A profitable volume-based trading strategy with high win rate on crypto, forex, and stocks using three indicators: Schaff trend cycle, Hull Suite, and volume oscillator. It involves checking the Hull Suite line color and position, the STC line’s position relative to 75 or 25, and the volume oscillator line’s position relative to zero line to determine when to enter a buy or sell position. The ATR bands indicator can be used to find recent swing highs or lows.

Volume-Based trading strategy: A Guide for Traders
Introduction
How does the strategy work?
Indicators required
Optimizing indicator settings
Entering into a buy position
Entering into a short position
Alternative strategy – using ATR bands
Conclusion

Introduction
Trading in forex, stocks or crypto requires a lot of knowledge about the market and the ability to handle risks. However, with the advancement of technology and the internet, traders use various software and tools to improve their profitability. One such tool is a volume-based trading strategy, which utilizes indicators to identify whether to enter a long or short position in a trade. In this article, we will discuss this strategy and how traders can use it to increase their profits.

How does the strategy work?
The volume-based trading strategy is based on three different indicators – Schaff Trend Cycle, Hull Suite, and Volume Oscillator. The Schaff Trend Cycle (STC) is a momentum-based indicator that determines whether a market is overbought or oversold. The Hull Suite is a trend-following indicator that helps in identifying the current trend, and the Volume Oscillator enables traders to identify whether the market’s volume is trending up or down. To put it in simple words, by combining these three indicators, the strategy will help traders to identify the trend and confirm whether it is a good idea to enter a trade.

Indicators Required
Before we begin, let us list down the indicators required for this strategy:
1. Schaff Trend Cycle
2. Hull Suite
3. Volume Oscillator

Optimizing Indicator Settings
Next, we will discuss how to optimize the indicator settings to suit the strategy’s requirements. Start by changing the chart timeframe to the 15 minute timeframe. After that, add the above-mentioned indicators to the chart – Schaff Trend Cycle, Hull Suite, and Volume Oscillator. Then navigate to the Hull Suite indicator settings and head over to the input tab. Change the length from 55 to 60 and the length multiplier to 3.

For the STC indicator, navigate to the Style tab and change the lines’ style to make the indicator easier to read. However, we won’t be changing the input settings of the STC indicator. For the Volume Oscillator indicator, head over to the Style tab and change the plot’s thickness and color, followed by doing the same for the zero line to make them visible.

Entering into a Buy Position
Let’s now discuss when to enter into a buy position. The first step is to ensure that the price is trading above the Hull Suite line, and the line’s color is green, indicating a bullish trend. The next step is to check if the STC line is above the 75 level, indicating that the market is not overbought. Finally, we need to check if there is enough volume in the market for us to enter the trade by examining if the Volume Oscillator line is above the zero line.

If all the conditions are met, we can enter into a buy position, placing the stop loss at the recent swing low and targeting a 1.5 times risk-to-reward ratio for the take profit. If you find it difficult to find the recent swing low, you can use the ATR (Average True Range) Bands indicator. In this case, place the stop loss at the upper ATR and target 1.5 times the risk-to-reward ratio for take profit.

Entering into a Short Position
Next, we will discuss when to enter into a short position. The first thing to do is to ensure that the price is trading below the Hull Suite line, and the Hull Suite line’s color is red, indicating a bearish trend. The next step is to check if the STC line has crossed below the 25 level, indicating that the market is not oversold. Lastly, we need to check if there is enough volume in the market for us to enter the trade. We can do this by examining if the Volume Oscillator line is above the zero line.

If all the conditions are met, we can enter into a short position, placing the stop loss at the recent swing high and targeting a 1.5 times risk-to-reward ratio for the take profit. Alternatively, we can use the ATR Bands indicator to place the stop-loss at the lower ATR and target 1.5 times the risk-to-reward ratio as before.

Alternative Strategy – Using ATR Bands
The ATR Bands indicator is an alternative to finding the recent swing high or low. If you are struggling to find recent swing highs and lows, you can use the ATR Bands indicator as mentioned earlier. This indicator helps traders to identify market volatility and provides an estimate of the maximum loss that traders can expect in a trade.

All traders need to do is to adjust the upper and lower bands multiplier to 3 in the indicator settings. After this, navigate to the Style tab and change the indicator’s color to make it more visible. Now, traders can enter into a trade, as usual, making sure to place the stop loss at the upper or lower ATR and targeting a 1.5 times risk-to-reward ratio for take profit.

Conclusion
In conclusion, the volume-based strategy is a reliable trading strategy that can help traders analyze the market and make informed decisions based on various indicators to enter profitable trades. While no trading strategy is universally successful, a well-performed volume-based strategy can increase the chances of profitability. This strategy has proven to be effective for different trading options such as forex, stocks, and crypto. However, it is advisable to perform thorough analysis and practice risk management principles to ensure sustainable success.

Source for this video