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Volume and Open Interest

in Figure 6.36. Almost every price reversal on the EURUSD occurs at an intraday

tick volume peak. This is especially useful if price is retesting a previous support

or resistance level. Many practitioners also prefer to employ a bidirectional or

straddle entry, catching price whichever way it traverses during a volume peak,

since price rarely remains unchanged after a cycle peak.

In Figure 6.37, we observe price successfully rebounding off trendline retests

at Points 1, 4, and 5, which all occurred during a tick volume cycle peak. These

support levels were further corroborated by a cycle‐tuned stochastic oscillator

fIgure 6.36 Volume Cycle Peak Reactions at Support and Resistance on the 30‐Min

Chart of EURUSD.

Source: MetaTrader 4

fIgure  6.37 (Stochastic Filtered) Tick Volume Cycle Peak Reversals on the Hourly

Chart of EURUSD.

Source: MetaTrader 4