Nova Volume Trading System

Nova Trading System – Updated Version

Click to use Nova Volume Indicator

This is the most up-to-date and complete breakdown of Nova. It includes almost everything I use today - from prep to execution - so you can see exactly how I trade it. This post replaces anything I wrote on the first page but you can still use that information too! & yes I did use our little tech friend to structure my write up as it was a mess and full of information haha.

1. What is Nova?

Nova is a volume-based trend system that combines three key elements:

1. Volume (to time momentum shifts)
2. Liquidity & market structure (to understand where price is headed & why)
3. Simple tools (EMAs, Fibonacci, Initial Balance)

The idea is not to blindly follow a signal - it’s to understand why price is moving and align with it.

2. Philosophy

1. Keep it simple - remove the noise and trade what’s obvious.
2. Volume and structure explain most moves; no need for buzzwords like breaker blocks or fair value gaps (or imbalances which ARE good to use).
3. Trade with context: know where price is coming from and where it’s likely to go (HTF POIs).

3. Timeframes & Tools

My Timeframes

1. Execution: M1
2. Bias (HTF): M15
3. Context: H1, H4, Daily (bigger picture trends)

You can also choose to use your own timeframes, these are just what I use.

My Indicators

1. EMAs: 50, 100, 200 EMA (sometimes 240 LWMA instead of 200 EMA)
2. Nova Volume Indicator: Momentum confirmation (bullish/bearish histogram + signal line)
3. Fibonacci levels: 50%, 61.8%, 66.5% (sweet spot), 70.5%, 78.6%

Other

1. Horizontal levels for liquidity (highs/lows of previous week, day, session, daily open)

4. Pre-Session Prep

Mark Levels (POIS)

1. High/low of previous week
2. High/low of previous day
3. High/low of previous session (Asia if London; London PM if NY)
4. Daily open price
5. Any obvious imbalances (don’t focus heavily on these, just note them)

These areas are where liquidity pools - price often purges these before reversing or continues after breaking and retesting them.

Define Bias

1. Bullish bias: Expect price to sweep lows for liquidity before pushing up.
2. Bearish bias: Expect price to sweep highs for liquidity before dropping.

These become your Points of Interest (POIs) for setups.

5. Market Structure (Context)

Structure shows who’s in control:

1. Bullish trend: Higher highs + higher lows
2. Bearish trend: Lower highs + lower lows

Only trade with the prevailing structure - don’t try to fade a strong trend unless reacting at a higher timeframe POI.

6. Vertical Line Technique (HTF Nova Crosses)

On the M15 (bias timeframe), mark vertical lines where the Nova signal line crosses the zero level:

1. In a bullish trend, a cross below 0 often signals a pullback.
2. In a bearish trend, a cross above 0 often signals a pullback.

These marks help align your M1 entries - you’ll usually see the EMAs flipping right around these points, which is where high-quality setups form.

7. Entry Models

Momentum (Trend Continuation) Entry

1. Confirm HTF bias (M15 structure + Nova signal cross).
2. Wait for price to pull back to POI or sweep liquidity.
3. Look for bullish/bearish histogram cross above/below 0 on M1 (momentum shift).
4. Confirm EMAs are stacked and angled in trade direction.
5. Enter on candle close after 2 confirming histogram bars (often open of 3rd).
6. Stop: recent swing low/high or IB edge.
7. Target: 2:1 minimum - more if context allows.

Reversal (HTF Zone Reaction) Entry

1. Identify HTF POI (See above for POI's).
2. Wait for Nova momentum shift opposite the prior trend.
3. Confirm with EMA flip on M1.
4. Enter after 2 confirming histogram bars in reversal direction.
5. Stop: beyond recent swing/POI.
6. Target: opposing liquidity or next major HTF level (5R+ possible).

9. Risk Management

I personally risk 1–2% per trade. If you’re starting out, I’d suggest 0.5% or lower until you’re consistent - your focus should be survival and learning, not swinging for home runs.

Why I Take Partials

When aiming for bigger targets (like a HTF POI), I’ll take partials at 2:1 and let the rest run. This:

1. Banks profit early and reduces emotional stress.
2. Keeps you in the game if price reverses before reaching the big target.
3. Allows flexibility - you can re-enter on fresh signals without fear of "losing" what you made.

Rules I Stick To

1. 1–3 high-quality setups per session.
2. If scaling in, set last entry to break-even before adding new positions.
3. Move to BE around 1:1 or 1.5:1 (depends on structure and volatility).
4. Avoid trading black/white background zones (no momentum) or right into big news events.

10. Advanced Targeting

1. If reacting from a higher timeframe POI, target opposite liquidity pools (previous high/low).
2. These are where you get 5R–10R+ trades - but don’t force it. Bank profits if market slows or structure shifts.

11. Final Notes

This is the updated system as I use it today. Everything you need to apply Nova is in this post and the first page of the thread.
Keep it simple, trade with context, and don’t overcomplicate what’s already working.

NOTE: I will be adding image examples afterwards to the post above so bear with me!

I just wanted to make sure this update is clear and concise... easily digestable.

I will be heavily editing the post after so come back tomorrow to see it in it's final form.

Just hate posting long threads only for there to be some kind of error posting and losing all my progress.

If anyone has any questions about anything that you want me to add... Let me know or forever hold your peace

[quote=xkwisit2001;15337311]Nova Trading System – Updated Version

Excellent, clear break down and resource for all thank you!

A couple of questions that may help everyone.

Fibonacci levels: 50%, 61.8%, 66.5% (sweet spot), 70.5%, 78.6%

618 is generally considered the golden ratio, 665 I have not considered before, can you say a bit more about this please ?

(sometimes 240 LWMA instead of 200 EMA)

Can you say when you would use the LWMA, is it under certain conditions, time frames or asset's?

Nova works well with gold, I have also has success with BTCUSD and several currency pairs and stocks. Do you make any adjustments to the nova settings using different time frames or assets, or use the default across all ?

Thanks again for your time and the great explanation.

Good questions bud

I never used to have 66.5 on my fibs but I would use it for sniper entries of the 61.8.

Its the middle between 61.8 and 70.5 so that's where I'd set my pending entries.

I should have explained better and I'll edit the update.

If you are trying to enter the 61.8.. The 66.5 area is often where price wicks to.

Have managed to get into a number of entries to the pip using the 66.5 but it's not that important for me now with nova as we're not trying to get the best sniper entries... We just need to participate in the trend even if we only take 50% of it.

240lwma is alot more sensitive and will show the ema flip sooner. I use it a lot but for the sake of the thread the 200ema is better... You can play around with it and see which one suits you better.

Regarding settings, I don't really change them because I have a mental memory which tells me when to enter so nova is merely a strong confluence for me.

One thing I will add to the update is liquidity sweep candles. Often when you see crazy volume from a candle price after will often go into a POI after. The following candles will lose volume and reverse. That high volume candle most often is where institutions enter.

Try it out... Look for those single high volume node candles and mark the open... Then look further on the chart and you'll see it often ends up being support or resistance.

Excellent, Thanks

Here is an example of a high volume candle initiating a POI move or sweeping lows and becoming support after.

Nothing is random

Could be an entry model on its own



M15 example

Nova Trading System – Updated Version

Thank you for your time and effort..
It is definitely a reliable system and I am using this successfully in trend following trades along some other technical methods.
It Gives Good R:R often above 3, I breakeven at 1:1 to avoid any potential loss , Yesterday I got 1 sl and 1 tp of 5 RR.
Stop losses do occur as it's part of business but market eventually pays you back.

Hello everyone. This is my current view. We have the Macro and Mini structures, both bullish. The Micro is now bearish and is in the last liquidity zone of the Mini. If we don't get acceptance below the low of the Mini, I'll try some long trades when the Micro aligns with the Macro and Mini again. The price could also break below the low of the Mini but not get acceptance (unconfirmed close below the low). Again, I'll wait for the Micro to realign before looking for long trades. If the Mini turns bearish, I might look for short trades (with the Micro aligned) to reach the next liquidity zone of the Macro. This is my plan.

This post is just my take on market structure. The structure is only part of the author's method, so please refer to his entry rules for your trades.

Closed on BE and of course it goes down the moment I close my position...
I need more patience.

Almost a clean trade but I had no patience.

entered short M1 3361.76.

The price has accepted the breakout of the Mini structure. So now I'll try to go short with a target of 1:2 or in any case no further than the nearest liquidity zone of the Macro structure. I hope it doesn't reach it before creating a retracement.

SL at BE will now let run to 3341 or signal line crosses up above 0 on M5, whichever comes first.

In the end, the price went without me! There were several trades for the more aggressive ones!

What is usually a good stop lost distance for xau my broker does not have fix risk reward?

Hello! This is my view of the structure and my plan for today: The macro structure is still long with a new high accepted. The mini structure is also still long, while the micro structure is currently short. I will try to open long positions when the micro structure realigns. I expect false signals because I see a lot of liquidity at the underlying levels. The long swing in yesterday's US session rose very quickly. As usual, follow the thread author's rules to take your trades. Regards

M15 buy entry signal and then M1 buy entry signal. I had a quick in and out...

Same signals on MT4

H1 gold. Lots of congestion, would like to see a break out, up or down, before looking for a trade.

Maybe a another lower trend line test and then up....will keep the powder dry.