Get started

Volumeprofileanalysis

NFLX Watching for another BreakoutNFLX gapped up on the morning of 5/18 with high momentum and a volume spike both of which faded by mid-day shown on this 15- minute chart. Since then price has been in a narrow consolidation range centered about the POC line of the multisession volume profile. Price is in the fair value area between the mean anchored VWAP and the +1 STD band. The zero lag MACD is confirmatory for a trend resting in consolidation I will watch for green candles in a row with the second having more range than the first. I will check to see if the relative volume is 2X the running mean. If so, I will enter and try to get the early breakout. Stop loss will be $365 below the POC line. I will exit upon seeing upper wicks and volume falling back down to the mean. My expectation is for a quick 3 to 5 percent trade with a R:R of better than 10:!.
NASDAQ:NFLXLong
by AwesomeAvani
Can XNGUSD short squeeze?XNGUSD on the weekly chart showing two years of price action with weekly candles shows the rise in 2021 into spring 2022 then printing a head and shoulders pattern and the reversal to deep into the support/demand zone. The volume profile shows the majority of the trading during this time period to have been between $3.75 and $ 8.50. It would seem likely that there are a sizeable amount of short sellers holding positions with unrealized profits of 50% to as much as 300%. This past week had the best buying volume in six months and provides bulls with optimism If natural gas can gain some momentum and put in green candles with a decent price range for a couple of weeks in a row, the combination of new buyers with new interest and short sellers liquidating and buying to cover their unrealized gains might ignite a bit of a rally for natural gas. I will keep natural gas on watch. I will keep in mind that a breakout without a corresponding volume the response could be a fakeout. A stop loss would be $1.95 below the support zone while the final target would be $4.75 below the POC line. Interval take profits would be 10% of the forex lots every time the price rises by $0.50 for risk management and good profit taking while underway.
FXOPEN:XNGUSDLong
by AwesomeAvani
CVNA - Retracement UnderwayCVNA in the past couple of trading sessions had a 20 % move and then reversed downward. As shown on the 1 hour chart, price is below the demand/ resistance zone and sitting on the POC line of the multisession volume profile where volatility is often at its highest. The anchored VWAP indicator shows the bands are nearly flat. Price is in the fair value zone and falling towards VWAP. RSI is near 60 and dropping. I see this as a decent short setup. The first target is before the VWAP at 11.20 while the second target is at 10, the confluence of the bottom of the high volume area and the first VWAP band below the mean. the stop loss is near to the first VWAP band above the mean at 12.55. Fundamentally, CVNA has a decent earnings report but is subject to an impending recession where consumers may be not inclined to make big purchases such as cars.
NYSE:CVNAShort
by AwesomeAvani
4
ACB Aurora Cannabis Long SetupOn the 4H chart ACB has dropped out of a head and shoulders pattern list winter with high volume into a downtrend with lower volume now into support / demand as shown by the Luxalgo indicator. The anchored VWAP is also trending downward with support at the minus 1 and minus 2 standard deviations. The volume profile shows the majority of the recent share exchanges have been at the $0.65 per share area. If price rises above that POC line of the profile, ACB will get the attention of new buyers while short sellers will begin to cover thus causing buying pressure and momentum. I will buy a sizeable quantity for perhaps $1-2K shares once price gets over that POC line. Prospective buyers will consider this to be a reversal confirmation. I will be one of them. The first target is the volume void at $0.79 or about 25% with the other target being one standard deviation above VWAP at about $.90. Stop loss will be set at $0.05 below the entry. For profit insurance I will hedge with a single put option contract at a strike of $0.70 with a 90-120 DTE to diminish risk at a minimal cost.
NASDAQ:ACBLong
by AwesomeAvani
📊 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
XAGUSD Spot SilverSilver had been on a downtrend for two weeks before hitting its pivot low on 5/18/23 and reversing. The Hull suite indicator has changed from red to green while the zero lag MACD indicator bounced on the zero line and is now uptrending. Importantly, on the way down price dropped quickly through a low volume area of the volume profile marked out on the the two hour chart. This area had the highest bearish momentum meaning the most negative price action over the least time. If price can regain $ 24.25, the inverse could occur being a burst of bullish momentum propelling the price through the low volume area described. Contributing to this could be a squeeze if those who are short liquidate and buy to cover. Finally, the predictive algo Echo indicator suggests a rise in price to begin the trading week up to but bouncing down from that $24.25 target being the bottom of the volume void. I will place a long trade with the target in mind. If price can break it, I expect an explosive move perhaps equal and opposite to the 4% downward move earier this week. Also contemplated are equity trades in SLV. AGQ and ZSL depending on the price progress underway.
OANDA:XAGUSDLong
by AwesomeAvani
PSNY Polestar EV Startup Can it Rise from Bottom?PSNY ( Polestar) has dropped to its lows after an earnings report which shown it still has no cash flow but at least the losses are less than projected by the analysts. On the chart zoomed out, price is in megaphone pattern which demonstrates increasing volatility. Price is at the bottom support trendline and one standard deviation below the anchored VWAP. This suggests 15% upside in the immediate short term. Price action is starting to resemble that of Fisker (FSR) . I see this as a risky swing long trade as price tries to rise to the VWAP and POC line of the volume profile. ( PSNY is in better shape than NKLA and RIDE but not by a whole lot ) I would be very reluctant to make an investment in Polestar but happy to play the volatility for profit.
NASDAQ:PSNYLong
by AwesomeAvani
2
FULC Biotech Fib Level BouncdFULC on the 15 minute chart had a good response to favorable earnings and then retraced. It is now bounding off the Fib 0.5 level and also confluent with the POC line of the volume profile and the mean of the anchored VWAP. Buying volume appropriately overtook selling volume on the reversal Luxalgo's Echo indicator, an AI predictive tool, suggests a 10% price rise in the after-hours which is typically a busy trading period for biotechnology penny stocks. I will take a long trade on FULC in after hours and take off a part of the position in the next trading day and hold the rest through the weekend.
NASDAQ:FULCLong
by AwesomeAvani
📊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
AUDJPYAUDJPY on the 30-minute chart has had higher lows but also lower highs and may have a symmetrical triangle pattern. Price is currently at or above the following : (1) the POC line of the long-term volume profile (2) the mean line of the long-term anchored VWAP (blue line ) and the convergence of the EMA 200 ( red) and EMA 21 ( green). On the stochastic RSI the lines are moving upward from a bottom well below 20 and suggest bullish divergence. Given these confluences, I conclude that AUDJPY is set up to move higher over the intermediate term.
Long
by AwesomeAvani
USDCAD Short then LongUSDCAD in the past several sessions had a good uptrend then hitting a double top and reversal Sunday 5/15 after the open. The double top occurred at the of the second upper VWAP band above the mean and the top of the volume profile. On the descent , it has crossed under the POC line of the volume profile and is widway between the first positive VWAP bandline and the mean VWAP. Luxalgo's Echo indicator based on AI algorhythms predicts the trend down will bounce and reverse off the first lowewVWAP band at 1.337 into a consolidation sideways pattern for a day or two and then reverse. Accordingly, I will take a short position targeting 1.337 while getting a stop loss at the first upper VWAP ~ 1.35. I expect to close before swap comes into effect.
Short
by AwesomeAvani
TRLY Undervalued / Fed Fix Long SetupThe 2H chart on TLRY shows a volume profile showing the highest concentration of shares traded at $2.65 or about 15% above the current price. Short sellers dominated there. Price has descended down onto the support/demand zone. It is near to tow standard deviations below the mean VWAP and so very undervalued. Federal legislation intended to remedy the cannabis industry's issues with banking, commercial loans and other financial liquidity has begun. This is huge for this subsector and could cause a breakout from the deep undervalued territory. I will take a long setup here for a decent amount of shares and hedge with a single put option for risk management/insurance. ACB is similarly positioned.
NASDAQ:TLRYLong
by AwesomeAvani
ETH is STILL in a PHASE B.If I Consider 12.05.21 being a Climax (BC) and 19.05.21 an AR, Then my FORK is set in the Following way : Creek > 4379$ ICE > 1400$ MID Range > 2480$ ST > 3990$ / 1700$ UA > 4877$ 1. WHY THE COLLAPSE as of 18.06.22 is NOT A SPRING ? Even if PA has reintegrated the FORK, to being considered a SPRING (PHASE C), it should (PA) at least kick the ST @ 3900$ before sitting on any LPS (Last Point of Support) and exit by the TOP. IT DID NOT !!!! Furthermore, and obviously, the Volume does not show any potential sign with full lack of Harmony (Weiss) to confirm being a SPRING. Finally, after made an Elastic Jump, it only arrived to reach the VAH then slipped back seeking some potential Liquidity before to reintegrate it again... Mathematical deduction > If not a SPRING, what could it being a part Major SOW ? If not a PHASE C, then still in the Observation Phase (B) ! 2. "THE b Shape" and THE LVN. Even if my Fork, defined in the introduction, is not really accurate, let's express the Volume Profile of the ACTUAL RANGE since January 21 ! Actual VAH > 2075$ Actual VAL > 1031$ Actual POC > 1564$ As you can deduct by yourself, PA has reintegrated the FORK defined by the Fixed Range Volume Profile. There is NO JAC; No bounce, even for testing above the MID range of my initial FORK... If reintegrated, then ST (1700$) should be the KEY, and POC might be visited again. WHY it might be visited ? I have a big conviction that the LVN below this POC (1564$/1270$) should be closed ! I think it should be obvious for everyone who understand what the analyze of the volume profile really shows ! THE story of "b Shape". It is not really over ! I agree ! Yes of course the PA should visit above the MID Range (2480+). It should... When ? That is the question... Maybe tomorrow, maybe in one week, maybe in one month, a quarter... BUT !!!!! OPEN INTEREST providing us a very clear information regarding THE potential interest of MMakers... You don't agree with me ? SO ! If there was not any UTAD made, we don't have the confirmation of the Breaking ICE. If we didn't see the SPRING, we should see it soon in order to get access above the MID Range ! And IF the SPRING (Phase C) might happen, where do you think, it will take the LQ if not below 1k figure ? I just fixed 1k to not really afraid you ! Just Think about.... Don Pablo
by BlackSquareFinance
UVXY Volatility Index ETFUVXY as shown in the 15 minute chart is slightly above the basis line on the Bollinger Bands as shown also on the BB indicator or Luxalgo. Price is slightly below the mean VWAP of the anchored VWAP situated in the fair value area as also confirmed by the volume profile and its POC line confluent with the VWAP bands. Given impending federal data reports and news, I expect volatility will rise. UVXY could have positive price action in the range of 10% in tomorrow's trading day which can be day traded or scalped.
AMEX:UVXYLong
by AwesomeAvani
F Surprised on Earnings Ready for Rising PriceFORD ( F) significantly surprised on earnings no matter that a recession may be underway and no matter its balance sheet is saddled with debt which is increasingly more expensive to services. Pre-orders for the Lightning F -150 are strong. On the 2H chart, price has yet to react to the earnings surprise. Volume has picked up but nothing dramatic. The zero-lag MACD lines have crossed under the histogram and are now crossing over the zero line. Price in a sign of strength rose out of its Fibonacci band channel and is just below the anchored mean VWAP while at the uppermost portion of the high volume area of the volume profile. I see this as a good place to take a long position targettting $ 12.80 to 13.00 with a stop loss at $ 11.80 below the POC line of the volume profile.
NYSE:FLong
by AwesomeAvani
1
US100 VPOCs of interestWe are nearing the top of the range, however there is a daily VPOC at 12920 still left untagged, another below at 12520. At the very least to reach balance we tag 12920. Above we have a VPOC in the 13500-13550 area, further away but a long term target for aa bullish breakout, most like a fakeout if it stops there as above 13900 would be the real target. I think we need to tag these VPOCs below as many have been left all the way down to 11800 and the ones above are many months older from the initial leg down.
U
by Tetsu_Gaijin