Strategy to follow the steps of whales from the volume indicator using the 100 exponential moving average!!!
The strategy of tracking whales using the volume indicator and combining it with the exponential moving average (EMA 100) can be effective if implemented in a thoughtful manner. This strategy is based on identifying entry and exit points based on price action with significant changes in volume. Here are the steps to implement the strategy:
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1. Chart preparation:
1. Choose the appropriate time frame (5 minutes, or higher time frames if you are looking for fewer but stronger signals).
2. Add:
Volume indicator.
MOTHER 100.
3. Make sure the chart uses Heikin Ashi candles if you want to filter trends more clearly.
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2. Steps to implement the strategy:
A. Determine the general trend using EMA 100:
If prices are above the 100 EMA line, it indicates an uptrend, and look for buying opportunities.
If prices are below the 100 EMA line, it indicates a downtrend, and look for selling opportunities.
B. Volume analysis to determine whale steps:
Significant increase in volume:
If you notice a sudden jump in volume accompanied by a strong price movement (higher or lower), this indicates the entry of large funds (often from whales).
In an uptrend: A bullish candle with high volume indicates strong buying interest.
In a downtrend: A bearish candle with high volume indicates a big sell.
C. Entry based on signals:
1. Buy deals:
The price is moving above the 100 EMA line.
High volume with strong bullish candle.
Confirm entry with breakout of nearby resistance.
2. Sell deals:
The price is moving below the 100 EMA line.
High volume with strong bearish candle.
Confirm entry with break of nearby support.
D. Using volume as an additional confirmation point:
Watch if the volume is constantly increasing as the trend continues (positive for the trade).
If you notice a drop in volume when approaching a resistance/support, this could be a sign of a potential reversal.
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3. Place Stop Loss and Take Profit:
Stop loss:
For buy trades: Place stop loss below the 100 EMA or below nearby support.
For sell trades: Place stop loss above the 100 EMA or above nearby resistance.
Make profits:
Use support and resistance levels or watch volume. If volume starts to decline with reversal candles, consider exiting.
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4. Additional tips:
1. Use additional indicators for confirmation:
Relative Strength Index (RSI) to avoid entering overbought/oversold areas.
Monitor news that may affect the market.
2. Risk Management:
Do not risk more than 1-2% of your capital on a single trade.
3. Practice on a demo account:
Test the strategy on a demo account before implementing it on a real account.
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Practical example:
The price is moving above the EMA 100.
Strong bullish candle with high volume breaks through nearby resistance.
Enter a buy trade after the breakout.
Stop loss below previous resistance.
Take profits when reversal signals appear or the price approaches new resistance.
Good luck
