Using Low Volume In your Trading Decisions

I posted a piece about low volume at the top of an uptrend leading to reversals on the daily charts a few days ago.  Today, I am going to show how using low volumes on the tick charts can help with making a trade on the intraday charts.

I will be using the 2K tick and 3 range chart for the ES.  I have circled important low volume bars on the 2K tick chart and transposed them over to the range chart.  The explanation is on the charts, but it demonstartes that if you have missed out on a S&D trade, then taking a retracement trade to get back into the trend is very possible using low volume, as per the teaching of Tom Williams on VSA.

Prior to discovering the RPM indicator, the LV bars identified by the Volume Patterns indicator were my momentum and exhaustion signals and they are still very important in making trading decisions in the here and now.  Too often low volume is ignored, but they can help with identifying short term opportunities.

See the charts, using the HMA on the 3 range after low volume signals are seen on the 2K ticks chart leads to good trading decisions.