The Better Pro Am Indicator | Emini-Watch.com 23.01.

2019, 22)38

The Better Pro Am Indicator

Updated: Monday 16 November 2015

BUY NOW BACK: BETTER SINE WAVE

Using Average Trade Size to identify Professional and Amateur activity is

totally new – and I’ve never seen it mentioned anywhere before the
introduction of Better Pro Am and it’s use on Emini-Watch. So if you want
to get an edge in your trading, read on.

“Knowing what the Pro’s are doing makes all the difference.” Herb
C.

“The Better Pro Am indicator is brilliant.” Mark L.

“Better Pro Am really kicks ass.” KB

Professionals & amateurs can be identified

by analyzing trade size

http://emini-watch.com/trading-indicators/volume-patterns/ Strona 1 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38

Volume Patterns: Trade Size Used to Identify

Professionals & Amateurs

Professionals trade in size; Amateurs trade in singles and doubles. So

analyzing average trade size directly identifies Professional and Amateur
activity.

The Better Pro Am indicators use a proprietary algorithm to analyse

average trade size and identify Professional and Amateur activity.
Professional bars are painted blue and Amateur bars are painted yellow
(default colors, can be changed).

Professional activity can be used to identify

market tops & bottoms

http://emini-watch.com/trading-indicators/volume-patterns/ Strona 2 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38

Volume Patterns: Professional & Amateur Activity

at Trend Changes

Since Professionals trade in size they need to buy new lows and on down
bars and sell new highs and on up bars – before the trend changes. By
contrast, Amateurs are always chasing the trend, buying breakouts or
selling breakdowns – so doing the opposite of Professionals, buying new
highs and on up bars and selling new lows and on down bars.

By looking for these Professional and Amateur volume patterns you can get
a good sense of where the Professionals are entering trades and taking
profits. In my trading I look for Professional and Amateur activity at price
extremes and then watch to see how price reacts to determine trend
changes.

This approach takes quite a lot of interpretation and practice – but it’s well
worth it once you get the hang of it. A useful tip, to make things easier, is to

http://emini-watch.com/trading-indicators/volume-patterns/ Strona 3 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38

ignore Professional and Amateur activity that occurs during price

congestion and concentrate on price extremes.

Here are three more examples with videos:

Volume Patterns – How I Interpret Professional and Amateur Bars

Volume Patterns – A New Take on the Double Top
Volume Patterns – Head & Shoulders Pattern from a Volume
Perspective
Volume Patterns – Trends and Tells

Note: The Professional and Amateur PaintBars are designed to be used

on tick charts.

Professional accumulation & distribution

patterns are seen early

http://emini-watch.com/trading-indicators/volume-patterns/ Strona 4 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38

Volume Patterns: Professional Accumulation &

Distribution

Included in the Better Pro Am indicators are 4 of my favorite volume

patterns. Three of these volume patterns identify Professional
Accumulation and Distribution:

Stopping Volume (St and St* on chart)

Profit Taking (PT on chart), and
No Demand and No Supply (NoD and NoS on chart)

Stopping Volume and Profit Taking show Professionals are reversing their
positions. However, the Professionals trade in size and need to scale in and
out of positions. So these volume patterns are often seen before the market
eventually reverses.

The No Demand and No Supply volume pattern is often seen at market

tops and bottoms. It indicates there is a lack of buying volume at market
tops to push price to new highs, or lack of selling volume at market
bottoms. This volume pattern often confirms a change in trend.

In my own trading, I use clusters of these 3 volume patterns as

confirmation of trend changes, not necessarily as entry signals.

Note: The Stopping Volume and No Demand/No Supply volume patterns

included in Better Pro Am are improved versions of the free ones
available on this website.

But amateurs usually get it wrong

http://emini-watch.com/trading-indicators/volume-patterns/ Strona 5 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38

Volume Patterns: Amateurs Getting it Wrong

The fourth Better Pro Am volume pattern is called RAMBO – which is

short for “Reversal of Amateur Break Out”. Marked on the chart with the
text “R”.

The logic behind this volume pattern is that break outs led by Amateurs
often fail. Amateurs are always chasing price, entering late and expecting a
breakout from congestion to turn into a trend move. Professionals will fade
this behavior, drive price back into congestion and gun the Amateur stops.

Volume patterns are best traded with

confirming indicators

http://emini-watch.com/trading-indicators/volume-patterns/ Strona 6 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38

Volume Patterns: Better Pro Am with Better Sine

Wave & Better Momentum

Nothing is perfect and I don’t believe you can trade with these Professional
and Amateur volume patterns alone. However, in my own trading they are
an essential part of confirming a change of trend and signaling entry
points.

I use Better Sine Wave and Better Momentum to confirm high probability
trades:

Better Pro Am shows me what the Professionals and Amateurs are

doing
Better Sine Wave shows me price cycles and trends, and
Better Momentum shows me buying and selling volume momentum

The chart above shows a trend change and how these 3 indicators came

http://emini-watch.com/trading-indicators/volume-patterns/ Strona 7 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38

together:

1. Better Momentum signaled exhaustion selling volume

2. Professionals take profits on their Short trades and get Long
3. An early false rally is led by the Amateurs and the lows are re-tested
4. Amateurs are expecting a break to new lows but the Professionals step
in
5. Bullish divergence on Better Momentum coincides with an “End of
Trend” warning signal on Better Sine Wave

The market ends up putting in a low at 1,060 and rallying to 1,075 before
Professionals take profits and we get exhaustion buying volume.

More screenshots of Better Pro Am in action

Does Better Pro Am have an input setting for

the different average trade sizes of different
markets?
No. Better Pro Am is dynamic and no fixed average trade sizes are coded
into the indicator and there are no parameters that need to be optimized.

The indicator is not just for trading the Emini. You can use it on any
market with volume data and the indicator will automatically calculate
what levels to use for Amateur and Professional activity. Personally I hate
optimized code and none of the ‘Better’ indicator input parameters need to
be changed based on the market traded or market conditions.

What about the different average trade sizes for day and after-hour
sessions?

At the end of the day session Better Pro Am will take a few bars to “re-
calibrate” with the lower trade sizes in the after-hours. So a few Amateur
yellow bars will show immediately after the close. Then things will get back
to normal and Better Pro Am will start showing real Amateur and
http://emini-watch.com/trading-indicators/volume-patterns/ Strona 8 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38

Professional activity.

What’s the difference between Better Pro Am

& Better Volume?
The Better Pro Am PaintBars (blue and yellow bars) identify Professional
and Amateur activity using average trade size. Professionals trade in size;
Amateurs trade in singles and doubles. So analyzing average trade size
directly identifies Professional and Amateur activity.

Better Volume infers Professional activity by looking for large volume but
relatively small range bars – “High Churn” bars. The assumption is that
Professionals can enter/exit without moving price significantly. Part of the
reason they can do this is that they enter/exit at price extremes. Amateurs
are seen on low volume bars.

In my personal trading I’ve switched 100% to Better Pro Am from Better

Volume. Better Volume was/is a great volume indicator – I made a lot of
money with it plus got recognition and website traffic by releasing it as a
free indicator. But times change, trading methodologies evolve and it’s
time to move on.

And here’s a video comparing Better Pro Am vs Better Volume.

Summary
This article should have convinced you to:

Use trade size to spot Professionals and Amateurs. The Better

Pro Am indicators use a proprietary algorithm to analyse average
trade size and identify Professional & Amateur activity. They work in
any time frame (tick to monthly charts) and for any market (futures,
stocks, forex, etc.), however, the Professional and Amateur PaintBars
are best used on tick charts.

http://emini-watch.com/trading-indicators/volume-patterns/ Strona 9 z 10
The Better Pro Am Indicator | Emini-Watch.com 23.01.2019, 22)38

Anticipate trend changes with Professional activity.

Professionals can be seen active at trend changes, buying new lows
and selling new highs. But Amateurs chase the trend, buying
breakouts and selling breakdowns, highlighted by the RAMBO
(“Reversal of Amateur Break Out”) volume pattern.
Watch for volume patterns too. Leading into trend changes you’ll
see Professional accumulation & distribution patterns like Stopping
Volume, Profit Taking and No Demand/No Supply.
Don’t use just one indicator. Use confirming indicators to identify
high probability trades. In my trading I use a combination of 3 non-
correlated indicators, this includes Better Pro Am.
Upgrade from Better Volume. Lastly, in my own trading, Better
Pro Am has now replaced Better Volume.

What people are saying about Better Pro Am

BUY NOW

http://emini-watch.com/trading-indicators/volume-patterns/ Strona 10 z 10