GBPUSD 09 JAN 2023 (the most predictable area of any chart)
Where the session divider intersects with the volume is ALWAYS the lowest volume of the day. It is something we can see. All you have to do is look for yourself. Usually what follows is PHASE B... If you do not know what that is, look up Wykcoff schematics on duckduckgo. You can find a more academic explanation through a search.
The bottom line here is that price is like water running through a valley. It is going to go around rocks. Whenever water finds rock, it is going to move around it. This is the principle of the "PATH OF LEAST RESISTANCE"
When price (water) hits rocks (volume) it slows slow or goes in the opposite direction.
Look at where the volume is lowest... then notice the subsequent price action wether price movs up or down. This is why it is key to recognizing this area of the chart.
Of course you still need to know the basics of supply and demand and support/resistance. But yoru trading game will improve considerably if you can truly read and understand volume.
The bottom line here is that price is like water running through a valley. It is going to go around rocks. Whenever water finds rock, it is going to move around it. This is the principle of the "PATH OF LEAST RESISTANCE"
When price (water) hits rocks (volume) it slows slow or goes in the opposite direction.
Look at where the volume is lowest... then notice the subsequent price action wether price movs up or down. This is why it is key to recognizing this area of the chart.
Of course you still need to know the basics of supply and demand and support/resistance. But yoru trading game will improve considerably if you can truly read and understand volume.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.