ADAUSDT Very bullish pattern - LongADA once again drew a very strong accumulation in the background.
After re-entering the accumulation range yesterday and after a failed stop loss hunt (washout), ADA breakout range again. The volumes at the tops and bottoms testify to a very strong accumulation of value by a large capital. The wave marked with the volume of 57m is the largest upward wave since the beginning of the declines, at the same time confirming the entire accumulative pattern.
Indicator used for this analysis: Wyckoff Wave Volume
Technique: Wyckoff Methodology
Long!
Follow for more!
VolumeDayTrader
Volumeanalysis
IMGN Biotech Post Earnings IMGN had great earnings the last days of April and has been trending up ever since.
It is riding the upper Bollinger band consistently in this past wee. The volume spike
after earnings has subsided but ongoing volume is at about 5X the moving average of
early April and March. Increased volume supports price momentum. The volume spike
here is obvious and significant.
IMGN announced a public offering. I see this as a positive. It is primed for increasing
growth but needs the fuel. Interest rates are high. Stock offering will raise cash
and all shareholders will be rewarded. IMGN is resting and consolidated in a narrow
range during this public offering. See also the favorable article from IBD linked below.
I see IMGN as a solid swing long until the next earnings. I will watch for an uncoiling
upon completion of the offering with resumption of momentum moving forward.
Injective (INJ): A Top Performing CryptocurrencyInjective has been one of the top-performing cryptocurrencies this year. Let’s see what happens next!
What is Injective? Injective is a blockchain designed for finance, powering DeFi applications such as decentralized spot and derivatives exchanges, prediction markets, and lending protocols. It offers core financial infrastructure primitives and a fully decentralized MEV-resistant on-chain orderbook. Its cross-chain bridging infrastructure is compatible with Ethereum and other blockchains. Injective uses the Cosmos SDK and a Tendermint-based Proof-of-Stake (POS) consensus mechanism, providing fast performance and transaction finality. It also provides a highly interoperable smart contract platform based on CosmWasm. INJ, its token, is used for protocol governance, dApp value capture, POS security, developer incentives, and staking.
Injective’s Current Trend
Injective (INJ) has been making waves in the cryptocurrency market, gaining 700% since the beginning of the year. INJ has stood out in the market due to its consistent upward trend, avoiding any significant periods of consolidation.
Currently, it appears that INJ is pulling back to its support level of $5.00. This pullback will result in a 50% drop from its 2023 high. The $5.00 support level is expected to hold, and afterwards we may see INJ continue its uptrend towards the all-time high.
For traders, one of the best aspects of INJ is its volatility. The daily candles of INJ are very large, which means that there is a lot of intraday volatility. This characteristic is a great advantage for day traders, as they can make quick returns.
Conclusion: Injective has proven to be one of the top performing cryptocurrencies this year, offering consistent upward momentum and high intraday volatility. With its pullback to the $5.00 support level, traders should keep a close eye on the price action of INJ in the coming days.
Bitcoin buying zone Bitcoin looks like it is gathering strength again for a new upward breakout. Volumes on an uptrend show the power of buyers. We are still dealing with a sideways trend and a clear BUYING ZONE in the case of a re-pull back. 28k is crucial to further consider the current price behavior as a bullish pattern
Dream Finders Homes - with accumulation in the backgroundDFH on the last two candles did not significantly reduce its price, although the main SP500 index fell quite strongly. It seems that this action is stronger than the broad market index SP500. In the background we have a strong accumulation and we should expect increases in the coming sessions
S&P500 on very strong support.The US index is bouncing off a strong support. The volume on down waves is definitely smaller in the last quarters. Tomorrow we have non farm payroll data and everything indicates that the market will want to strengthen. The current layout looks like an accumulating range, which can still be tested in today's session. On smaller timeframes, the volume breaking this range indicates an uptrend
Volume Indicators: Using Indicators to Analyze VolumeIn our last post we discussed how volume plays a crucial role in financial trading, providing insights into the strength of price movements and overall market sentiment. Volume indicators are essential tools for traders, helping them make informed decisions based on market activity. In this blog post, we will dive deep into the world of volume indicators, discussing their importance and exploring the best indicators available for analyzing volume in day trading. We will also provide practical examples of how these indicators can be used to enhance trading strategies.
The Importance of Volume Indicators
Volume indicators can reveal the level of interest in a financial instrument, showing how many shares, contracts, or lots are being bought or sold within a specific time frame . By analyzing volume, traders can better understand the market's momentum and identify potential breakouts, reversals, and areas of support or resistance. Volume indicators can also help traders detect bullish or bearish divergences, where price movements and volume are not aligned, indicating a possible trend reversal.
Top Volume Indicators
a. Volume-Weighted Average Price (VWAP)
VWAP is a popular volume indicator that calculates the average price of a financial instrument, weighted by volume. It is often used as a benchmark by institutional traders to gauge the efficiency of their trades. VWAP can help traders identify trends and potential entry and exit points, particularly for intraday trading.
b. Volume-Weighted Moving Average (VWMA)
Like VWAP, VWMA assigns more importance to periods with higher volume by calculating a moving average that incorporates volume data. VWMA can be used to confirm trends, as a rising VWMA in an uptrend or a declining VWMA in a downtrend shows that volume is supporting the price movement.
c. Money Flow Index (MFI)
MFI is an oscillator that measures the inflow and outflow of money into a financial instrument over a specific time frame. It combines both price and volume data, providing insights into buying and selling pressure. MFI can help traders identify overbought or oversold conditions, as well as potential trend reversals.
d. Accumulation and Distribution Indicator
This indicator measures the cumulative flow of money into and out of a financial instrument, helping traders identify accumulation (buying) and distribution (selling) phases. A rising Accumulation and Distribution indicator suggests strong buying pressure, while a falling indicator signals strong selling pressure.
e. Klinger Oscillator
The Klinger Oscillator is a volume-based indicator designed to predict long-term trends by comparing short-term and long-term volume flows. It can help traders confirm price movements and detect potential trend reversals.
f. On-Balance Volume (OBV)
OBV is a simple but effective volume indicator that calculates the cumulative volume, adding the day's volume when the price closes higher and subtracting it when the price closes lower. OBV can help traders identify trends and potential breakouts by comparing price movements with volume data.
Applying Volume Indicators in Trading
When using volume indicators, it is important to remember that they should be used in conjunction with other technical analysis tools and price action analysis. By combining volume indicators with other technical indicators and chart patterns, traders can develop comprehensive strategies for trading breakouts, reversals, and identifying areas of support and resistance.
Conclusion
Understanding volume and incorporating volume indicators into trading strategies is essential for traders looking to make informed decisions in the financial markets. By using a combination of indicators such as VWAP, VWMA, MFI, Accumulation and Distribution, Klinger Oscillator, and OBV, traders can better analyze market activity and develop effective trading strategies.
If you like our content don't forget to give us a boost and follow our page @LeafAlgo!
ACHV Biotech ACHV had good earnings in mid-March and has been in an ascending triangle since that time.
The uptrend had a correction April 17th to 20th to which buyers responded with spiking
buying volume. Current volume is 3x relative to the usual and customary historical volume
averages.
I will take a long trade on this when price descends to the support trendline as notified by
an alert set on Tradingview. The target is the post covid highs of $ 17.00 . This is modest
compared with the average upside of the analysts of $ 22+ ( see the link below)
I will take out a sizeable stock position and also some insurance in the form of a long term
put option to manage the risk on the trade.
BAC Bank of America SHORTBAC is shown here on the 15 minute chart. Fundamentally, it is under pressure like
many other banks including First Republic.
On the chart, price is in a downtrend having bounced from VWAP (redline)
in confluence with the blue line of the top of the high volume area of the
volume profile. Price is underneath the blackline which is the 210 HMA.
Only shorts should be taken underneath that line.
The target is the thin red line below which is the bottom of the low volume area.
Accordingly, the thin red line is the target while the thin blue line or the
VWAP (thick red) are the stop loss levels. This is a very safe trade with
an acceptable R:R.
My put option @ $ 28.50 for expiration 5/12 gained 68% overnight.
I will ride this down and then look for the reversal trade.
Dollar Index with very bullish patternsHey traders!
Seems like since few days we have nice accumulation patterns on Dollar Index. Sellers loosing power in last two days and buyers taking slowly control. Very strong buying waves on the last highs give extremely bullish patterns.
Trading around upper channel line is giving information that buyers try to go high buy still they absorb short selling. the dollar index is weighted by the euro in 57%, so if the breakout accrued on this chart EURUSD should be traded short.
Indicators used to market analyses:
Wyckoff Wave Chart
Wyckoff Wave Volume
Wyckoff Wave Trend
ACHV preparing to Reverse SHORTACHC previously ran up in a high tight flag pattern in my previous idea.
It has been slowly ascending in a narrowing channel. ( ascending wedge)
There has been a little push in volume on the indicator as price has
approached the upper boundaries of the channel. The average
directional index has decreased into the " chop zone" where consolidation
and lack of direction describes the price action.
I see this an an opportunity for a short entry. I will watch things on
the 1 and 5 minute charts for the best entry possible and the
ride this volatile biotechnology stock a long as possible.
OPRA Opera - Alternative Browser Earnings Play LONGOPRA has had a consistent upwards trajectory as shown on the 4H chart.
189% price increase in approximately 125 trading days is about 1.5% daily return,
This could be a good set-it-and-forget-it play on the very positive earnings report.
OPRA beat earnings guidance by 34% despite advertising pullbacks in a moderate
recession. The revenue held steady giving cause shareholders to see the ship
as sailing well despite the headwinds it is exposed to.
The chart shows a dramatic increase in volume in the past month which is
powering the price action. On the long term volume profile, price is sitting
above the POC, buyers are dominating right now and short sellers if anything
are buying to cover giving further fuel to the price appreciation.
As the modest pirce per share and great return on any recent ivestment,
I see OPRA as heading higher into blue sky (all-time high). Today's pullback
of 3% is the entry @ market in the morning.
How to catch the great trade entriesAfter the price falls below the contraction zone on the higher timeframe (4H in this case)
We look at the MCVF that I made; go to a lower timeframe (5m in this case)
The indicator finds contractions in momentum and tells you when price will reverse; almost right at the top;))
I linked the indicator below, make sure to give me a follow and a boost if you like the code + content that I make
📊 Cumulative Volume Delta (CVD)📍 CVD describes the number of contracts bought at the offer minus those sold at the bid. It simply measures the "aggressiveness" of buyers versus sellers. If the sellers are aggressive, they place limit orders instead of market selling and vice versa. CVD is the easiest method to use delta in your trading.
🔹UPTREND EXHAUSTION
Price is making new highs but CVD isn't. This shows a lack of interest coming from aggressive buyers who would be needed to continue the price increase. We can expect a short term reversal to the downside.
🔷UPTREND ABSORPTION
CVD is making new highs but price isn't. This shows that there is a lot of activity from aggressive buyers trying to push the price higher but their market buy orders are getting absorbed by limit sell orders.
🔷DOWNTREND EXHAUSTION
Price is making new lows but CVD isn't. This shows a lack of interest coming from aggressive sellers who would be needed to continue the price decrease. We can expect a short term reversal to the upside.
🔷DOWNTREND ABSORPTION
CVD is making new lows but price isn't. This shows that there is a lot of activity from aggressive sellers trying to push the price lower but their market sell orders are getting absorbed by limit buy orders.
👤 @AlgoBuddy
📅 Daily Ideas about market update, psychology & indicators
❤️ If you appreciate our work, please like, comment and follow ❤️
SKX - Cup & HandleSKX has trended above it's 200 day moving average since 11 Nov 2022 and began to consolidate in a mini cup pattern ("handle" if we look at the monthly timeframe) for the last 3 months. It has just broken above this mini cup neckline @ 49 strongly after earnings beat and is now heading towards a more significant neckline (54 - 56 zone). If it is able to break and stay above this major neckline, then there is room to go higher as it begin a new up trend.
Ideally we would like to see a minor pullback shortly after the breakup to retest and affirm that the neckline has become the new support. However this may or may not happen and we should manage the trade with trailing stops (usually placed at near term pivot lows, gap fill or some fib levels).
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 (ie postion sizing, stop loss etc) is important! Take care and Good Luck!
Intapp INTA Cloud Software Services Tech LONG As can be seen on the 2H Chart INTA is on pacing over a 350% annualized gain
without any major pivots. The volume indicator shows a dramatic increase
in volume realtive to the year prior. INTA is capturing alpha consistently
in a hypergrowth mode as can be seen by reviewing the earnings beats quarter
after quarter. This is clear and obvious entry with earnings coming on
May 8th. I originally bought options last summer after the double bottom
and have added a couple of weeks before each earnings .
Price recently bounced down 10% from minor resistance representing
a small pullback with space above in the runup for the earnings report.
I see a potential return of 15% in 10 trading days or less and
75-100% for call options with expiration of 5/19/23 in consideration
of the pullback described above and shown on the chart
How to use Volume and Volatility to improve your tradesVolume and volatility are two important factors that can affect your trading performance. Volume measures the number of shares or contracts traded in a given period, while volatility measures the degree of price fluctuations. Understanding how these two factors interact can help you identify trading opportunities, manage risk, and optimize your entry and exit points.
In this article, we will explain how to use volume and volatility to improve your trades in four steps:
1. Analyze the volume and volatility patterns of the market or instrument you are trading. Different markets and instruments have different volume and volatility profiles, depending on factors such as liquidity, supply and demand, news events, and market sentiment. For example, some markets may have higher volume and volatility during certain hours of the day, while others may have lower volume and volatility during holidays or weekends. You can use tools such as volume bars, volume indicators, average true range (ATR), and historical volatility to analyze the volume and volatility patterns of your chosen market or instrument.
2. Identify the volume and volatility signals that indicate a potential trade setup. Volume and volatility signals can help you confirm the strength and direction of a trend, spot reversals and breakouts, and gauge the momentum and interest of the market participants. For example, some common volume and volatility signals are:
- High volume and high volatility indicate strong conviction and participation in a trend or a breakout. This can be a sign of a continuation or an acceleration of the price movement.
- Low volume and low volatility indicate weak conviction and participation in a trend or a breakout. This can be a sign of a consolidation or a slowdown of the price movement.
- Rising volume and rising volatility indicate increasing interest and activity in the market. This can be a sign of a potential reversal or breakout from a consolidation or a range.
- Falling volume and falling volatility indicate decreasing interest and activity in the market. This can be a sign of a potential exhaustion or continuation of a trend.
3. Choose the appropriate trading strategy based on the volume and volatility conditions. Depending on the volume and volatility signals you observe, you can choose different trading strategies to suit the market conditions. For example, some possible trading strategies are:
- Trend following: This strategy involves following the direction of the dominant trend, using volume and volatility to confirm the trend strength and identify entry and exit points. You can use trend indicators, such as moving averages, to define the trend direction, and use volume indicators, such as on-balance volume (OBV), to measure the buying and selling pressure behind the trend. You can also use volatility indicators, such as Bollinger bands, to identify periods of high or low volatility within the trend.
- Reversal trading: This strategy involves identifying potential turning points in the market, using volume and volatility to confirm the reversal signals. You can use reversal patterns, such as double tops or bottoms, head and shoulders, or candlestick patterns, to spot potential reversals, and use volume indicators, such as volume profile or accumulation/distribution line (ADL), to measure the distribution or accumulation of shares or contracts at different price levels. You can also use volatility indicators, such as standard deviation or Keltner channels, to identify periods of overbought or oversold conditions that may precede a reversal.
- Breakout trading: This strategy involves trading when the price breaks out of a consolidation or a range, using volume and volatility to confirm the breakout validity and direction. You can use support and resistance levels, such as horizontal lines, trend lines, or Fibonacci retracements, to define the boundaries of the consolidation or range, and use volume indicators, such as volume breakout or Chaikin money flow (CMF), to measure the inflow or outflow of money during the breakout. You can also use volatility indicators, such as average directional index (ADX) or Donchian channels, to measure the strength or weakness of the breakout.
4. Manage your risk and reward based on the volume and volatility expectations. Volume and volatility can also help you determine your risk-reward ratio, position size, stop-loss level, and profit target for each trade. Generally speaking,
- Higher volume and higher volatility imply higher risk and higher reward potential. You may need to use wider stop-losses and profit targets to account for the larger price fluctuations. You may also need to reduce your position size to limit your exposure to the market.
- Lower volume and lower volatility imply lower risk and lower reward potential. You may need to use tighter stop-losses and profit targets to account for the smaller price fluctuations. You may also need to increase your position size to enhance your returns from the market.
By following these four steps, you can use volume and volatility to improve your trades in any market or instrument. Volume and volatility are dynamic factors that reflect the supply and demand forces in the market.