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Mastering Trading with Volume Analysis:Techniques and Tips Hey there, folks! Today, I'm gonna talk about how you can use trading volume to make your trading strategy even better. Previous article you can check by this link: How can trading volume influence your trades? The Momentum Rule: When there's a substantial volume during an upward trend, it will indicate that the next move could potentially continue in the same direction. Stop Volume Levels These are indicators of strong levels where the price is likely to bounce off. You can use them as an initial signal to enter a trade. Typically, a correction happens after the second price movement with lower volume, following the breakout from the volume level. Now, let's talk about horizontal volume. Horizontal volume represents traders' interest in a specific price level based on all the executed trades within a chosen period. Essentially, there are two patterns: false breakouts in various variations and rebounds from levels. There are two scenarios: the price approaches a level and then reverses. In this case, take note of the range where it stalls and determine where to place your stop loss. Usually, it's set behind the bar that serves as a support level. For better clarity, let's go through examples, starting with using the Fixed Range Volume Profile in TradingView. Pattern P: Very often, prices bounce off these profiles. Then, you examine the entry point from the false breakout of the profile. A similar pattern that traded involves a false breakout of the profile followed by a subsequent retest If you're interested in delving deeper into this strategy, I recommend conducting backtests and studying the movement of the assets you've chosen from the profiles. This will help you identify patterns based on your experience. There are countless patterns out there, and what will work for you is what you can break down and analyze effectively on your own. How do you find this article? Share in the comments your experience with working with volume in trading! Always appreciate your subscriptions and likes. Have a great trading week!
Education
by Ingwina
2
Mastering Crypto Trends: The Power of Trend Lines and LevelsHello Traders! Today we will discuss trend lines and how to use them in trading. Let’s talk about it! You can find the previous article by following this link: Trend Lines: What are They? Here is the chart for an example. There are 3 points we can reference and formulate a strategy for entry. Now, let's explore a scenario with a descending timeframe. We observe a descending structure that I've formed based on two points. And here's a quick tip: when a trend is just beginning to form, the third touch of the trend line is to follow the trend direction. Using this pattern, you can develop a small scalping strategy. Please keep in mind the market context and the impact of volume on price. (Note: The term "scalping" refers to a trading strategy that aims to make quick, small profits from minor price fluctuations.) 2. There are two entry options - entering from a touch to the trend line and entering on its breakout. Let's examine the breakout entry option using Matic as an example. Pay attention to the volume; with each movement, the volume decreases. When you observe such a pattern, there is an additional indication that the bearish momentum has subsided for the time being, and a breakout is likely. The entry will occur upon the breakout of this trend line, with an additional entry on the retest. I have marked the retest with the number 2. How to determine the nature of a breakout, whether genuine or false? Take a look at the coin's backtesting results. Certain coins excel in breakout strategies, while others are better suited for bounce trades. Pay close attention to how volume behaves as the trend approaches. An uptick in volume suggests growing interest and a potential surge in volatility. Moving forward, let's delve into strategies for trading bounces using the example of UNI/USDT. As you can see, the volume increased, and on the 3rd touch (which I've marked as entry point number) We had the opportunity to make a trade. However, there wasn't a notable breakout. Instead, there appeared to be a consolidation of movement. The volume also slightly decreased, indicating that the downtrend movement continues. When Not to Enter on a Breakout There are various systems out there, and I'll explain how you can approach this from the standpoint of Price Action and volume observation. Firstly, volume during a breakout. If the first touch occurred with significant volume. The second touch should ideally have increased volume for the resistance/support level. The second rule. If the market is in a downtrend, the likelihood of a breakout in the opposite direction is low. Additionally, focus on the touch of the resistance line. If it completely encompasses the Initial Move Bar (IMB) and is succeeded by a bearish engulfing pattern, the chances of a successful approach diminish. As an example, I'm attaching a chart for KNC. Upon approaching the level, there was no significant increase in volume, the market context was bearish, and the likelihood of a breakout was low. And let’s talk about breakout entry methods. Which one is considered the most reliable? Let's examine this on the chart. While this concept primarily applies to lower timeframes, the logic remains similar on higher time frames. The distance between a local low and the next one should be at most 1%. A higher volume on the breakout is desirable. A more conservative entry method is from the last local high. Indicators, what do I focus on when entering a trade? Let's take the same coin and examine it with the RSI indicator. Anything below the 50 median line is of interest for trade entry. Values above it might indicate local overbought conditions, offering a possibility for considering counter trend entry. And that's all for today, traders. Leave your comments and let me know which patterns you use for trade entry during trends; I'd be delighted to discuss them with you. Have a great trading week! As always, I appreciate your subscriptions and likes!
Education
by Ingwina
2
Diving Into Levels and Supports: Key Indicators (Part 2)Hi friends, I decide continue our article about levels and supports and talk about indicators. My last post about it you can look at this link: Introducing the Smart Money Concept: 1) "Smart Money Concepts" (SMC) is a relatively new yet widely embraced term among price action traders. This strategy helps them navigate liquidity more accurately and pinpoint optimal points of interest in the market. By checking where institutional market participants have placed their orders (either buy or sell side liquidity), traders can make more informed decisions about their entries and exits based on price action. Moreover, the indicator comes with alerts to identify swing structures and other relevant conditions, further enhancing its functionality. You can check the indicator: Smart money - Lux algo. And here is the possible entry. First of all you need to check reaction of the liquidity levels and then decide how to trade! It could be JOC, BOS or just bar. If you want to look in more detail for it, I recommend you read more about this indicator on Tradingview. 2) Presenting our top selection of tools for identifying support and resistance levels: Bollinger Bands: This indicator created on volume-weighted moving averages. In scalping, the strategy typically involves buying at the lower boundary and selling at the upper boundary. This approach is effective during flat movements and also works well when dealing with strong volumes in large candlesticks. What is the volume level? It's a level with high volume of the session/day. For example: 3) The Fibonacci retracement is a favorite among many short-term traders because it's great at identifying possible support and resistance levels. With TradingView's Fib retracement, you can easily trace important Fibonacci ratios between any price high and low you want. It's or view of 4h chart. The first strategy named "volume bar". The trade rule is simple = buy on the near 0,5 - 0,8 level, sell on the top, and your stop loss should be under the volume candle that draw the chart. RR is up to 1k2 and more. All these indicators can be use in your trading, and there are a lot of strategies for each of them. For example, for Fibonacci, aftershocks are still popular. Bollinger bands can be use in scalping with liquidity or volume levels. I prefer fibo retracement and smart money concepts. What’s your favorite indicator? Write in the comment below! Have a nice day, folks!
Education
by Ingwina
How to search gems in the daytrading!Hello everyone! My friends have asked me to compile a list of actions we should take during a bull market, and that's what this post is about. Let's get started! First Criteria: First and foremost , I try to pick solid coins with a market cap of over 1M. I use the Binance Exchange screener. It enables me to track coin volatility over 24 hours. Next, I keep an eagle eye out for volatility and percentage growth in a day. A rise of more than 8% in percent in the day is optimal. The next step is identifying the day's level and breakout level. The day's level refers to the 12-hour candle level, and the breakout level is the nearest support/resistance level that had breached. These levels will serve as clusters to make further decisions about the coin. If I spot volatility, I set up the DCA bot to work with it. In the trend situations, I stick with DCA settings. I turn to the GRID bot in the flat market. For example. a short explanation of current situation of the SET:BCH News Analysis: Evaluate a coin's potential based on news fundamentals through Twitter and Coinmarketcal. If you plan to hold crypto for more than 24 hours, you need to do research. What news do I find interesting? New exchange listings, chain updates, forks, airdrops, and whether there's any significant news that might trigger a buying spree. Backtest :It is a feature that I use with Bitgsap, allowing me to test how the coin could have generated profit with the bot's settings. It's not a guaranteed future result, but it helps me estimate potential profitability while considering past trends. Hunting for hidden gems in the crypto world is a fun but risky adventure. Always conduct thorough research and be prepared for the ups and downs of the crypto market! In-Depth Research: One of the last types of research I perform is blockchain analysis, examining the product itself and the community. Here, I analyze various data points, including the project founders and investment funds which have invested early in the platforms. The strength of the project's community and how often they appear in mainstream crypto media. If I can fetch data on the number of large wallets holding the coin from the blockchain, I do that too to understand the strength of the coin's holders. For example you can use DefiLama, moralismoney, etherscan and etc That’s it. How do you analyze crypto in the market? What is your strategy at this period? Write in the commentary below. I will appreciate your subscription. See you, folks!
Education
by Ingwina
Market Maker Model on ETH Turns Out Super Bullish!Revisited the Price Action and identified a much clearer vision of Liquidity, Consolidation, and Direction. Somehow, Ethereum has been very very very precise in its price and as to where it is headed. This diagram shows the Market Maker Buy Model that happens in all timeframes. It cannot be more precise than this. Ethereum expected to reach as low as -$650, clearing liquidity and mitigating an old bullish OB. Enter back into its range, then the new trend begins. I hope this helps!
Long
by bl4ckoffee
1
ETH SHORT SCALP ASIAN RANGE HIGH TO PRICE ARRAYS BELOW AR50Day's Bias: Bullish Plot: Descending Channel formation pattern. Price expands in the Asian Session, price is expected to return close around it's 50%. Price Arrays below AR50 to enter longs. If I am right that we reached the top of Asian Range, price is going to mitigate price arrays on or below its 50%. Bounce off AR50 within London or NY Sessions will be explosive. Taking this Short Scalp and setup a Long right below AR50.
Short
by bl4ckoffee
1
ETH Long Scalp Setup OTE Asian Low - Re-EntryDay's Bias: Bullish Plot: - Re-Entered after price shows a long entry setup after taking out short-term low liquidity. - Setup model, Price takes out Asian Range Low by London Session to go higher and take out buy-side liquidity. - Price Consolidated right above unmitigated optimal long entry before London Session. - Asian Range cleanly sets up buy-side liquidity targets before NY Session ends. - Day's Bias based on candle stick analysis. - Price consolidates and shows strong willingness to seek higher prices after reaching OTE . - Highest target Previous Day's High.
Long
by bl4ckoffee
ETH Long Scalp Setup OTE Asian LowDay's Bias: Bullish Plot: - Setup model, Price takes out Asian Range Low by London Session to go higher and take out buy-side liquidity. - Price Consolidated right above unmitigated optimal long entry before London Session. - Asian Range cleanly sets up buy-side liquidity targets before NY Session ends. - Day's Bias based on candle stick analysis. - Price consolidates and shows strong willingness to seek higher prices after reaching OTE. - Highest target Previous Day's High.
Long
by bl4ckoffee