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Volumeanalysis

Volume Wave Indicator - Buying signal 🔴 #EuroBundFutures! 📈✨ The technical position looks intriguing with a well-formed accumulation range. The breakout happened in late April, and after two weeks of trading, prices returned to the range. Monday's opening in the upper range paints a bullish picture. 🚀💰 💡 Returns to the range are common due to the modest breakout. 🎯 Market remains bullish as long as the accumulation range's bottom holds strong. Indicators used: Wyckoff Wave Chart Wyckoff Wave Volume What do you think about this chart? Follow us for updates! VolumeDayTrader
EUREX:FGBL1!Long
by VolumeDayTrader
📊 Volume Profile: IndicatorsThere’s a reason why trading volume has been a standard indicator on every piece of charting software over the last 30 years… it provides a crucial edge. Volume provides you with logical insight into the activity of market participants at varying price levels. Volume analysis helps traders to become more reactionary to price movements rather than trying to predict where price will go next, as is the case with most technical indicators. 📍Key takeaways about volume Key takeaways about the normal volume indicator plotted on the X-axis in trading: 🔹Volume Indicator: The normal volume indicator measures the total number of shares or contracts traded during a given time period. It is commonly displayed as a histogram or line chart, with the X-axis representing time. 🔹Liquidity: Volume is a crucial metric as it provides insights into the liquidity of a security. Higher volume generally indicates greater market participation and liquidity, making it easier to buy or sell the asset without significantly impacting its price. 🔹Confirmation: Volume can confirm the validity of price movements. In an uptrend, increasing volume supports the bullish move, suggesting strength and conviction among buyers. Conversely, declining volume during an uptrend may signal weakness or lack of interest. The same principles apply to downtrends. 🔹 Breakouts and Reversals: Volume analysis is often used to identify breakouts and potential trend reversals. A significant increase in volume during a breakout suggests a higher probability of a sustained move, while decreasing volume near a support or resistance level might indicate a potential reversal. 🔹Divergence: Volume can reveal divergence between price and market sentiment. For example, if prices are rising but volume is decreasing, it could suggest that the rally is losing steam and a reversal may be imminent. Similarly, increasing volume during a price decline might indicate selling pressure and further downside potential. 🔹Confirmation of Patterns: Volume can provide confirmation or invalidation of chart patterns such as triangles, head and shoulders, or double tops/bottoms. Higher volume during pattern formations enhances their reliability, while low volume can cast doubt on the pattern's significance. 🔹Watch for Extreme Volume: Abnormal spikes in volume can indicate significant market events, such as earnings releases, news announcements, or institutional buying/selling. Unusual volume can lead to increased volatility and potentially offer trading opportunities. 🔹Relative Volume: Comparing current volume to historical average volume helps gauge the significance of the current trading activity. Higher volume relative to the average may imply increased interest, while lower volume might suggest a lack of conviction or reduced market participation. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Editors' picks
Education
by QuantVue
35
USDJPYDiscovering key decision points on a chart can provide traders with valuable insights and attractive trading opportunities. By utilizing volume profile analysis, we can identify areas where buyers are likely to defend their positions. These zones represent crucial levels where market sentiment could shift, potentially leading to significant price movements. Furthermore, if the price breaks below these highlighted areas, it could trigger substantial selling pressure, creating potential opportunities for traders to capitalize on a second or even a third consecutive down day in the market. One particularly intriguing area to watch is the top region of the volume profile, where buyers initially entered the market. If the price breaks below this zone, it suggests that buyers may be trapped, which can present an enticing opportunity for traders to join the selling side. To enhance the effectiveness of our analysis, we can look for additional confirmation signals such as pin bars or engulfing patterns within these highlighted zones. These candlestick patterns, when combined with support from moving averages, can provide further validation for potential buy trades, adding to their attractiveness. On the flip side, if the price indeed breaks down, traders may consider targeting the 200-day simple moving average (SMA) as potential lower targets. The 200-day SMA is a widely watched indicator and can serve as a magnet for price action, offering traders a clear target to aim for. By incorporating these analytical tools and techniques, traders can navigate the market with greater confidence and increase their chances of spotting attractive trading opportunities. However, it's important to remember that chart analysis should always be complemented by sound risk management strategies and other forms of analysis to make well-informed trading decisions
by TSA_TimeSpaceAlgorithm
📊Volume Profile: Components & Concept📍What is a volume profile? A Volume Profile is an advanced charting indicator that displays total volume traded at every price level over a user specified time period. 📍Volume Profiles Uses: 🔷 Identify Key Support and Resistance Levels for Setups 🔷 Determine Logical Take Profits and Stop Losses 🔷 Calculate Initial R Multiplier 🔷 Identify Balanced vs Imbalanced Markets 🔷 Determine Strength of Trends 📍Volume Profile Components: 🔹Point of Control (POC): Price level where the most volume traded for the session. Commonly referred to as the POC. 🔹Value Area (VA): Price range in which a user specified percentage volume was traded for a session. Volume profile traditionalist use 70% as it close to 1 standard deviation from the mean. The Point of Control is used as the mean on a volume profile. 🔹Volume Area High(VAH) : This represents the price level at which the highest volume of trades occurred during the analyzed period inside VA. It indicates a significant level of trading activity and is often considered a key resistance level. 🔹Volume Area Low(VAL): Conversely, the Volume Area Low represents the price level with the lowest volume of trades during the analyzed period inside VA. It signifies a level of low trading activity and is typically considered a support level. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
3
PLTR - breaking out from base PLTR had been basing in the past 1 year and is now attempting to break out above the neckline @ 11.62. During this basing, there were some strong volume accumulation in Feb and then again in May (both times earnings inspired). A breakup on strong volume is always desirable and increased the odds of a sustainable rise, with near term target @ 14.50 (and good odds to rise further eventually). Any near term retracement after the breakup should ideally not bring it back below 11.60, as this would affirm that the neckline has then become the new support as it begins to trend. Whether this will happen remains to be seen though, and a "breakup and retest" (if it happens) will offer a lower risk opportunity to Long the stock close to neckline with initial stop loss placed slightly below. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NYSE:PLTRLong
by Juliac
BOIL LONG a 3x leverage Natural Gas ETF Natural Gas prices have finally reversed on the FOREX markets after significant downtrends from a historical high. BOIL on the hourly chart has reversed a two-week downtrend and today has an increasing volume. Ir bounced off the lower Fibonacci levels and is looking to revert to the mean. Price was undervalued below the green fair value zone at the VWAP +/- one standard deviation but is now heading back into it from the buying pressure. As a 3x leveraged ETF is prone to more volatility than the unleveraged UNG counterpart. I will play this with a call option contract expiring 3/31 striking $4.00 and expecting at least a 50% return in the upcoming 8 trading days. The risk here is that this is just a short pullback on the downtrend but getting in early on a long and watching carefully is the approach I have taken.
BLong
by AwesomeAvani
46
CADJPY - DAILY - Bullish Breakout & Continuation TradeTechnical analysis of a potential breakout & trend continuation trade using price action analysis, Fibonacci, structure & volume to predict the direction of the breakout & the ideal location for placing profit targets. If you have any questions or comments about anything discussed in the video, please leave them below & before you leave DO ME A FAVOR & show your support by hitting that LIKE BUTTON. I hope you guys have a great weekend! Your Trading Coach - Akil
Long
by Akil_Stokes
11
Stock Market Logic Series #1The purpose of this series is to provide insight into what price is likely to do... and more vital... what price is not likely to do... (since X is the cause and X is not existing, hence Y will not happen...) The chart is self-explanatory. IF no-one cares about the stock THEN no one will put money into it (no volume) THEN it will not rise. The BIG question is, at a certain overextended place, the price is rising, even though, everyone is at a loss on this stock. why NOT crush into a price of $1 in one sharp move? Can we "KNOW" that we are in an overextended place? When you have stock market logic behind you, you will be more confident to take trades.
NASDAQ:MDXHEducation
by ZoharCho
2
EURUSD - The Story says LongEvery chart has a story to say and this is the story of this one. The Story: Hitting Support with a very large down volume wave. Remember that on large down waves at bottoms there are usually buyers in there. Largest up volume wave after very long time - This is buying little by little and absorbing all the sell orders with buy orders. Abnormal SI of 24.0 which is probably their first Push Then another Abnormal SI of 21.1 on the down wave, that's a HTMD wave (hard to move down) Finally Plutus comes a PRL long signal ....but to confirm the logic I will wave this resistance line to be broken because we could start ranging for a while. Enjoy! Learn to read and trade any market!
Long
by TradeTheVolumeWaves
2
Can BYND rise from its support /demand ( multiyear low) ?BYND had it surge in the post Covid months. As seen on the weekly chart, multiple touches of the supply / resistance zone occurred in the range of $160-180 per share. Price is now at 5-10% of the highs and at the multi-year lows. Volume is weak. The RSI swing indicator has given a buy signal but I am skeptical. BYND is heavily shorted and sellers have dominated. My idea is to set an alert for a price of %15.00. The volume profile both short and longer term shows a lot of buying at the current price range. My idea is to set an alert for $15. If BYND can get there, some momentum might be achieved especially if some short sellers feel some pain and look to buy to cover and close. Otherwise any down trends in the general market will tend to drag BYND down as well.
NASDAQ:BYND
by AwesomeAvani
Analysis on EURGBP.Looking at the chart you will see that EURGBP has been ranging for so many days, forming multiple head and shoulders. Relentlessly trying to have a breakout from both the trend line and support zone, Finally it did. At this time every trader watching this pair will be happy after the long wait. If the trader is an aggressive one he would sell immediately but for some conservative trader they would wait for a retest. A retest which must be confirmed by volume. Now having done a retest, if you look closely you will notice that in the 4 hour time frame there was a great hike resulting from the news yesterday helping to hasten the retest, now having seen a big candle drawdown with a corresponding big volume in the 4 hour time frame. It prompt for a SELL ORDER, let's see how it goes down. ⛔⛔ NOTE: This is my own opinion based on my strategy and analysis, if you're going to enter the trade make sure to use good risk management based on your capital. Remember nobody is 100% sure of the Market. Make sure to use break even to trade a t zero loss.
Short
by chisommarvell
3
DUOL - buy the dipsDUOL broke out of a base formation neckline @ 114 strongly on 2nd March this year and then did a classic retest of the neckline on 13 March, affirming that the neckline @ 114 has now become support. It then went on to hit a high of 147 before retracing all the way back down 116.82 (triggering a trailing stop loss @ 130). A bullish morning star pattern than formed on 5th May and a re-entry was triggered on 6th May. However with earnings reporting on 9th May, one has to decide whether it was worthwhile to take the risk to long here. With the stock already dipping 20% from it's high of 147, the odds of an earnings surprise to the upside could be higher. Nevertheless, risking no more than just a small position (before earnings) seemed prudent. Now that earnings is out of the way (upside surprise), there is a chance it could break it's last recent high of 147 in the near term. On the bigger picture, the stock is now on an uptrend and there is room to rise in the coming months. However market could continue to be volatile hence it could be less risky to buy any near term dips rather than to chase breakouts. Learning to manage a position in such volatile conditions is paramount. I would still place trailing stops and am prepared to get stopped out but re-enter at the next bullish trigger, but only if the chart still looks bullish on the bigger picture. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NASDAQ:DUOLLong
by Juliac
BITCOIN ABOUT TO REPEAT THE SAME PATTERNAs you can see in the chart, we have been in range for 52 days. The previous range, lasted 53 days, if history repeats itself, between today and Thursday we should see a breakout to the downside and a retest of the 25k level. There are two main coincidences: 1- Almost the same downside movement distance to the major support (9%). 2- The same downside movement from the top of the range till the bottom of it (13%). However, we can observe a great difference, that it's the Volume. The previous range had 15.5M volume meanwhile this one had only 4.5M. That's three times less volume. Thing that can Indicate a very big move incoming. If what I say is correct, it could be a good choice to: - Open a short now till 25k. - In 25k Open a long till 35k. This is only a simple observation. Always do your own research. I would be very happy to see your opinion in the comments, if you agree, remember to give me a boost.
Short
by piccard54
2
Dollar General (DG) a recession stock is Trending UpDG had a swing low in mid-March. While it has retraced well, it is still 15% below the YTD high On the 2H chart, the retracement uptrend is accompanied by a persistent volume of about 2X that of March and before. I am supposing that with an early or light recession underway, value sensitive consumers are delivering DG more revenue from its retail operations and will continue to do so. The zero-lag MACD is showing a buy signal; I will take a long position and watch for signs of overextension or loss of directional strength as an exit in due time.
NYSE:DGLong
by AwesomeAvani
The END is NEARNow I understand there are a lot of shenanigan's going on in the banking sector, but I'm not going to pretend to know how exactly this will affect the price of bank stocks. Everyone and their mom is now bearish on bank stocks from the constant news of bank failures and if I've learned anything from the markets is that the market always moves against the crowd. So I make my decisions strictly from the price action and volume obtained from charts. BAC has been trending on this blue support line since 2016. You can even take it back to 2011. Each time it has bounced off of this blue trend line. However this time, it will be different. This time we had an inverse head and shoulder from which price broke down with SIGNIFICANT volume Although the price has bounced from the blue trend line for right now, it has already rejected the previous support of the inverse head and shoulders at $30. Validating the breakdown with more downside to come. The fact that a bearish pattern broke down with such high volume right above the extremely strong blue trend line tells me price action is gathering strength to be able to break below this blue trend line after years of support. When this break below occurs, it will be nasty. A rapid fall in price, not slow and drawn out. An optimistic bounce area will be between 24 to 23. However, a break of a trend line this strong can only be accomplished with significant strength, in this case bearish strength. I see BAC falling to the 19.5 to 17.5 dollar range, an area that previously was a resistance but is now a support. When will this break down happen? I don't know, but price action is showing it is bound to happen in the upcoming future. Possibly after earnings are all done with.
NYSE:BACShort
by MoRafi
Unlocking the Power of Volume: Combining Volume with TAIn our previous blog posts, we explored the importance of volume analysis in understanding indicators that can be used for volume analysis. Today, we'll delve deeper into how combining volume analysis with technical analysis can provide valuable insights for traders and investors alike. We will do so by laying out a strategy that anyone can use that will utilize volume. The Significance of Volume in Technical Analysis We have previously discussed how volume plays a crucial role in technical analysis. It is essential to examine volume patterns alongside price action, as it helps traders determine liquidity and identify potential trading opportunities. When combined with technical indicators, volume offers a more comprehensive view of market activity and can enhance decision-making in trading. Indicators to Combine with Volume Analysis Here are some popular technical indicators that traders can use in conjunction with volume analysis: 1. Moving Averages Moving averages (MAs) are one of the most widely used technical indicators, as they help traders identify trends and potential support and resistance levels. The two most commonly used moving averages are simple moving averages (SMA) and exponential moving averages (EMA). We'll use a short-term EMA (e.g., 9-day EMA) and a long-term EMA (e.g., 21-day EMA) for a strategy later in this post. 2. Relative Strength Index (RSI) The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100, with readings below 30 indicating oversold conditions and readings above 70 indicating overbought conditions. The RSI can help traders identify potential trend reversals and entry/exit points. The Strategy That Incorporates Volume 1. Identify Trend Direction First, apply the 9-day EMA(shown in white) and the 21-day EMA(shown in purple) to your price chart. The trend direction is determined by the relationship between the two moving averages: Uptrend: The 9-day EMA is above the 21-day EMA Downtrend: The 9-day EMA is below the 21-day EMA Sideways: The moving averages are intertwined, with no clear direction 2. Confirm Trend Strength with RSI Apply the RSI to your chart, and use the 30 and 70 levels as reference points: For uptrends, look for the RSI to stay above 30 and preferably above 50. For downtrends, look for the RSI to stay below 70 and preferably below 50. 3. Analyze Trading Volume Compare the volume levels during the trend to the average volume over a specific period of your choosing using your desired volume indicator (see previous post on volume indicators). If the volume is above average during the trend or is rising, it confirms its strength. Conversely, a decreasing volume may signal a weakening trend or a potential reversal. 4. Entry and Exit Points Long Entry: In an uptrend, look for the RSI to pull back below 50, and then cross back above it. Confirm the entry with increasing trading volume. This indicates a potential buying opportunity. Short Entry: In a downtrend, look for the RSI to pull back above 50 and then cross back below it. Confirm the entry with increasing trading volume. This indicates a potential selling opportunity. Exit Points: Use the moving averages as trailing stop-loss levels. For long positions, exit when the 9-day EMA crosses below the 21-day EMA. For short positions, exit when the 9-day EMA crosses above the 21-day EMA. Practical Tips for Combining Volume with Technical Analysis Here are some practical tips for effectively integrating volume analysis with technical indicators: 1. Use Multiple Timeframes Analyze volume patterns and technical indicators across different timeframes to identify potential trends and reversals more accurately. We always recommend a top-down time frame approach, starting at higher time frames and working down to your desired time frame for entries. 2. Look for Volume Confirmation When a technical indicator signals a potential trading opportunity, confirm it with volume analysis to ensure the move is supported by strong market activity. 3. Monitor Divergences Divergences between volume and price action can signal potential trend reversals or continuations. Keep an eye on these discrepancies to make informed trading decisions. Conclusion: Combining volume analysis with technical indicators can help traders and investors make more informed decisions about market trends and potential trading opportunities. By understanding the relationship between volume and price action and incorporating this knowledge with technical analysis, traders can unlock powerful insights and enhance their overall trading strategy.
Education
by LeafAlgo