Volumes. Why every trader should be able to work with them.The third “stream” of incoming real data, which simply cannot be ignored when analyzing a chart, is volumes. I’ll try to explain why the third stream, what are the first two.
On any chart of a trading instrument there are two scales, price and time. These are two real and independent incoming data streams.
All Technical Analysis studies them inside and out.
Price behavior is studied in the form of graphic figures, support/resistance levels, candlestick analysis and patterns, trend lines and channels, the movement of waves of price movement, using indicators, Renko charts, tic-tac-toe, etc. and so on.
The time scale is divided into seasonality, quarters, trading sessions, sessions for hours before and after lunch, and simply into hours and minutes of possible manipulations (in ICT smartmoney, for example, Kill zones, macros).
I would call volumes the third stream of data, the “3rd scale on the chart.”
This is an independent and independent flow of data about the turnover of money, or more precisely, contracts traded at a certain time and at a certain price.
All indicators and volume analysis tools do not depend on price and time in the direct sense. They work with their data coming from the exchange.
A clear example... Any oscillator, for example, depends on the price, is calculated using a formula based on the price value, and produces a certain “averaged” option.” The cumulative delta curve is constructed based on data on the number of contracts traded from the exchange, and does not depend in any way on the price value; it has its own data.
Volumes also include not only analysis using various indicators and clusters. And the ability to work with COT reports, open interest and other data from CME. This is also data on contracts traded by different groups of participants.
And understanding how options work, all markets are closely related and influence each other. There are many complex risk hedging designs. Nobody wants to lose money.
And I think ignoring this data flow and not being able to work with it is, at the very least, stupid.
And simply, isn’t it interesting to look inside a candle or figure to see what’s really going on there? The price is in a “triangle or sideways”, accumulation/distribution is taking place, but is anything really happening there? Are you waiting for a rollback to imbalance (FVG), but is there this imbalance there? Are you waiting for a reaction to a level, “liquidity withdrawal”, order block, but is there something or someone inside the reaction or not?
By the way, I don’t know the fourth data stream, if you know, please let me know. I'll be happy to study it.
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Tradinglife
HOOK daily chart with Rounded BottomHOOK daily chart
121.5M Market Cap
aggressive entry at current price
lower entry zone on chart
a safer entry would be break / retest of weekly resistance
( 1.2512 ) ... the website has " Hot " words like " AI " and " Metaverse "
they also have a Staking option ... just to name a few things
BSCS Daily Time Frame looking for BounceNASDAQ:BSCS with possible 1hr support bounce
I entered at current price with lower entries
at 0.016063 / 0.013422
This is a Mid - Long Term Hold for me but I
also included some lower targets ( shown on chart )
This is a tiny market cap of 4.2M
A pullback to lower entries would be really nice
NTX Daily time frame with Bull Pennant NTX Daily time frame with Bull Pennant
measured move on chart along with
targets and stop loss
( if stopped out look at re-entering at the
break add on retest of 0.07200 area )
This is for ENTERTAINMENT purpose Only.
Not Financial Advise
Always DYOR ( do your own research )
MARSH Daily time frameMARSH Daily time frame
entry ideas on chart
stop loss 0.09994
( if we get stopped out ... enter break add on retest of 0.11612 )
if you are unsure of the importance of market cap let me know so i can make a video
KNOWLEDGE is Power
This is for ENTERTAINMENT purpose Only.
Not Financial Advise
Always DYOR ( do your own research )
DOCK Daily time frame DOCK Daily time frame
Market Cap 17M
entry idea on chart with lower entry
( also on chart )
stop loss 0.01534
( from tonight's live stream on TradingView )
This is for ENTERTAINMENT purpose Only.
Not Financial Advise
Always DYOR ( do your own research )
MOOV - dotmoovs broke out of resistanceMOOV - dotmoovs broke out of resistance
looking for price action to maintain support above 0.005104
lower entry at 0.005194 in case price action
has a retracement
stop loss 0.004859
( if stopped out ... look for re-entry once price
action breaks above 0.005104 )
targets on chart
this is a micro cap coin 3.3 M
This is for ENTERTAINMENT purpose Only.
Not Financial Advise
Always DYOR ( do your own research )
VAI ( AI coin ) Daily time frameVAI ( AI coin ) Daily time frame
this would be a nice mid - long term hold
targets are on chart with lower entry if price retraces
( looking to hold this coin for a while but put targets if you
wanted to take profits sooner )
This is for ENTERTAINMENT purpose Only.
Not Financial Advise
Always DYOR ( do your own research )
DATA cup and handle on the Daily Time FrameDATA on Kucoin - this is the Daily time frame
cup and handle
with targets on chart
💥 Market Cap of 28.8M
👉 Remember low market caps are easy to move and
recommended to have multiple targets ( depending on the
amount you put in )
This is for ENTERTAINMENT purpose Only.
Not Financial Advise
Always DYOR ( do your own research )
DENT 1hr 5x Long DENT 1hr 5x Long
enter at current price
lower entries 0.000852 / 0.000842 / 0.000838
stop loss 0.000822
targets 0.000878 / 0.000902 / 0.000947
Bullish Divergence playing out on the Daily Time Frame
This is for ENTERTAINMENT purpose Only.
Not Financial Advise
Always DYOR ( do your own research )
AVAX - watch this one ... for a Long Term HoldAVAX - watch this one ... for a Long Term Hold
Price Action ( PA ) has not had a candle close above 20.99 ( resistance )
until last week ( for about 441 days )
This is for ENTERTAINMENT purpose Only.
Not Financial Advise
Always DYOR ( do your own research )
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Hey traders, let me know what subject do you want to dive in in the next post?
Descending channel pattern AUDUSDYou see it's on the bottom of this pattern i see as a descending channel. The reason why i see this as a buying opportunity is because it might respect this pattern and it also has two untouched zones above which it might be attracted to. In the end of the day it might touch the upper line and continue down with its pattern or it might break above and continue up and create a new pattern.