Someone sent me this LINK.
Stopping Volume Pattern (Emini 5 minute)
Professional profit taking is occurring when the following conditions are met:
* Volume is greater than the previous bar's volume
* Range is less than the previous bar's range
* A new high is made (in an uptrend) or a new low (in a downtrend), and
* Closes off the highs (in an uptrend) or off the lows (in a downtrend)
The reduction in the bar's range is the real key. It shows that additional selling (in an uptrend) or additional buying (in a downtrend) is keeping the bar's range low. So Professional traders are taking profits and/or "fading" the current trend.
You will almost always see Stopping Volume patterns leading up to a market turning point. However, if the trend is strong it might take several Stopping Volume patterns in a row to slow the trend. Remember, most turning points are Stopping Volume patterns, but not all Stopping Volume patterns are turning points!
VSA UPDATES
TRO_MM_VOLUMEPCT shows the current volume as a percentage of previous volume. I also added that display to the BetterVolume 1.4_TRO_MODIFIED_VERSION indicator.
NOTE: If you load up more than one volume multimeter, adjust the inputs so the indicator isn't using more than 100 bars of data, OTHERWISE your computer will slow down. Remember, a multimeter takes the place of 9 charts.
FREE MT4 version of TRO_STOPPING_VOLUME, TRO_MM_STOPPING_VOLUME, and TRO_MM_VOLUMEPCT including SOURCE CODE, attached.
PLEASE DO NOT POST MY CODE ON OTHER FORUMS.
NOTE: UPDATE - added average volume percent to BetterVolume 1.4_TRO_MODIFIED_VERSION indicator
