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Volumeprofileanalysis

AUDJPY is impending reversal SHORTOn the one-hour chart, AUDJPY is in the area of overhead resistance and the supply zone. Both the zero-lag MACD is showing bearish divergence. The mass index indicator has already given a reversal signal where mathematically the indicator goes over 27 and then triggers when it crosses down on 26.5 This indicator often misses a reversal but seldomly generates false signals. Japan has had rock-solid central bank actions and policies perhaps propping up the currency value in comparison with others including the Australian dollar. Overall, I have high confidence in a short leveraged forex trade of the pair at this time. The stop loss is just above the red supply zone while the target is just above the POC line of the volume profile yielding a trade with a reward for risk of over 20.
Short
by AwesomeAvani
KBE ( in top of ascending channel ) is ready to shortKBE on the one-hour chart has been in a rising parallel channel for a month. It is now near the the top of the channel having pivoted within the past few trading sessions. The MACD which is no lag shows a line cross above the histogram while the RSI is topped out as it was on May 23rd the most recent previous pivot downward. I see this as a short setup. The stop loss is at the recent pivot high while the target is $35.15 at the bottom of the channel and somewhat confluent with the POC line of the volume profile which is a natural bounce and reversal value. I would also short the banks by going long on BNKD which adds the extra risk and potential reward of leverage ( see that idea)
AMEX:KBEShort
by AwesomeAvani
DE traders buy on favorable earningsDeere Company had favorable earnings in May reporting quarterly earnings of about 3.5 % on their share's market price. DE is a blue-chip industrial sector stock comparable to CAT. It not a fast mover but very suitable for options trading or investment. On the 4H chart DE had been trending down through earnings in a descending parallel channel and relying on a lower VWAP for support. At the middle of this past week, DE made its reversal move into a trend up. This was accompanied by a change in the volume to predominantly buying volumes relatively high compared with the period before the earnings. This surge of volume of sorts is the fuel for upward price action. The zero-lag MACD indicator shows moving average divergence Price is breaking out of the channel moving towards the mean VWAP and POC line of the volume profile. demonstrating bullish momentum. Accordingly, I see DE as well setup for a long trade. ( SL $345 pivot low TP1 $400 ( 1 std above mean VWAP ) TP2 $420 ( 2 std above mean VWAP)
NYSE:DELong
by AwesomeAvani
SOFI in consolidation so can it continue bullishSOFI on the 2H chart is showing a massive bullish move of 30% in ten days. Most of the trading volume was near to the present price and indicated by the POC line on the volume profile. Price has not moved since most of the trades as there is now a consolidation phase more or less in the style of the high tight bull flag pattern. The three pat indicator of RSI, momentum and money flow index is red for momentum which went over 60 and then 80 and otherwise green. Overall, the indicator is a bullish bias. The volume indicator interestingly shows most of the the massive increase in volume is at the consolidation phase. This makes sense to me because in a nearly parabolic up move without a pullback it is hard to find a decent entry. Many traders including those based in large institutions will simply wait until a consolidation phase begins. The price is in the upper VWAP bands showing buyer has successfully pushed against the well-entrenched short sellers. The rise in price could force short sellers to buy to cover and close. In doing so they would actually help entrench bullish momentum. I believe I will join others in a long trade awaiting the next leg up. My stop loss is the mean VWAP +1 std dev while the target will be mean VWAP +3 std dev. Fundamentally, I believe that the financial sector including the fintech subsector are getting hot as technology is overextended.
NASDAQ:SOFILong
by AwesomeAvani
3
Is DISH ready to dish out some profits?On the weekly chart, DISH has been in a steady decline for over a year and is now on sale for 20% of the asking price a year ago. It is sitting on the long term support zone and has passed over the POC line of the volume profile putting buyers in control. The red doji candle followed by the green doji candle is the capitulation of the bottom. Volume in 2023 has steadily and persistently grown compared with 2022. The accumulation/distribution curve slope has finally approached zero to suggest a price action reversal . I will take a long trade early and beon the leading edge of the uptrend after noting a 15% breakout to kick off the month of June.
DLong
by AwesomeAvani
⚖️ Auction Market Theory📍Auction Market Theory, developed by J. Peter Steidlmayer and expanded upon by Jim Dalton in his book Mind Over Markets, explains how financial markets function as auctions where buyers and sellers interact. The theory focuses on two main objectives: facilitating trade through a two-way auction process and determining the fair value of assets. Supply and demand dynamics and price discovery play a crucial role in this process. Auction Market Theory is represented using tools like Market or Volume Profile, which utilize bell-shaped curves to identify the value area, representing 68% or 1 standard deviation from the mean. 🔷 In a balanced market , buyers and sellers agree on prices based on their perception of fair value. This leads to lower volatility and prices that remain relatively stable, resulting in a ranging market. The fair value can be recognized using the Market or Volume profile, which appears as a Gaussian bell-shaped curve. However, financial markets rarely stay in balance indefinitely. New information, whether fundamental or technical, causes markets to move away from fair value and transition into a different environment. 🔷 Imbalance refers to the opposite of balance, where there is a disagreement about fair value. In this scenario, one side of market participants becomes more aggressive, leading to a trending market. Typically, markets tend to trend only about 20% of the time and range about 80% of the time. When the market is within the value range, it is more likely to remain in balance and explore within that range. However, in the case of an imbalance, the market often drifts higher or lower until it reaches a stop, typically within a previous value area. 💥Key Takeaways: 🔸 Auction Market Theory explains how financial markets function as auctions, focusing on facilitating trade and determining fair value. 🔸 Supply and demand dynamics and price discovery are essential in the Auction Market Theory process. 🔸 Tools like Market or Volume Profile use bell-shaped curves to identify the value area, representing 68% or 1 standard deviation from the mean. 🔸 In a balanced market, buyers and sellers agree on prices based on their perception of fair value, leading to lower volatility and a ranging market. 🔸 Financial markets rarely stay in balance indefinitely, as new information causes them to move away from fair value and transition into different environments. 🔸 Imbalance occurs when there is disagreement about fair value, leading to a trending market. 🔸 Markets tend to trend about 20% of the time and range about 80% of the time. 🔸 When the market is within the value range, it is likely to remain in balance and explore within that range. 🔸 Imbalanced markets often drift higher or lower until they reach a stop, usually within a previous value area. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
GME appears to be ready to sell in JuneGME on the 4H chart appears to have topped out at the end of May after a decent rise of 30% after the May 2nd bottom. At present, the Hull Suite trend indicator is signaling a reversal while the MACD zer0 lag indicator shows the lines have crossed under the horizontal zero and the histogram has turned red. The RSI Indicator is showing a bearish divergence with strength decreasing from 80 to 60. I see this as a short setup and will take a position of put options with some long stock shares as risk management and hedging strategy. My target is a 50% retracement of May's move up and a stop loss above the swing high. GME is still above the POC line of the volume profile. Once it drops to that value, I expect bearish momentum acceleration. Earnings are coming. If in profit before earnings, I will take off half the position for the earnings and then expect GME to rise and stop out the remaining position or drop quite a bit more.
NYSE:GMELong
by AwesomeAvani
SNOW pulls bak on Earnings Discount SaleSNOW on the daily chart pulled back from decent earnings to in a massive bearish candle down into its intermediate-term fair value zone near to the mean anchored VWAP and the POC line of the volume profile. It is entirely possible that many traders sold SNOW at its highs when they got FOMO over NVDA and needed to free capital to get more cash in their accounts after buying NVDA . This could have easily helped SNOW go down despite decent earnings. No matter if SNOW is on sale, I will buy it now setting a stop loss @ $145.00 and watch for a Fibonacci-style retracement halfway back to the Pirvot high from which it fell for a first the target of $ 170, a second of $180 ( one third of the position for each) and the final at $170. In the meanwhile, I have a position on NVDA to play a possible drop.
NYSE:SNOW
by AwesomeAvani
FSR follows TSLA / NIO in uptrendFor the month of May on the 15-minute chart Fisker is up 27% while the general market QQQ is up merely 4%. FSR riding an ascending parallel channel tested the channel yesterday. This was met with high relative buying volume. (Fundamentally, TSLA and NIO are rising as well as EV stocks gain some momentum ) The Better RSI indicator is oscillating between oversold and overbought providing reasonable entries. The volume profile shows the highest volume support from $ 61.0 to 6.65. The uptrend started at 5.10 and the POC line which is the likely Fib 0.5 level on a future retracement combined in context suggest a target of 7.10 for the current uptrend. I find this to be suitable for a long trade setup also factoring in a stop loss at 6.55 just below the parallel channel.
FLong
by AwesomeAvani
Is ROKU ready to reverse and recover?ROKU here is on a one hour chart. IT has trended down from from its supply/ resistance area of 65-68 and has dipped into its demand/ support zone of 52-53 per the Luxalgo indicator. Price is presently far below the high volume area of the volume profile which shows the the highest volume at 64. At this point, short sellers are buying to cover and take profit. Price is now at the lowermost VWAP bands in the deep undervalued area. Bargain hunters such as myself now have an interest. Fundamentally, the last earnings report was reasonably favorable given the context of the general market and the economy. I see ROKU as a long-trade candidate at this point. It should follow AAPL, TSLA, META GOOG and other mega-caps and begin an uptrend. ROKU has high volume high liquidity and relatively narrow spreads. I will take a call option trade striking $50 with a DTE of 30-45 days. IF it performs well, at 21-30 days I will roll it into another.
NASDAQ:ROKULong
by AwesomeAvani
1
SNAX IS it ready for another explosive move?SNAX went up 5X last November after favorable earnings. It is a penny stock and inclined to volatility. The following could support another explosive move: (1) it just printed another favorable earnings report. (2) it crossed the mean anchored VWAP band (3) price is above the POC line of the volume profile and in the high volume area. (4) the RSI indicator shows relative strength crossed over 50. (5) bullish momentum is demonstrated by a green engulfing candle after several days of sideways consolidation. (6) price crossed through the basis midline of the Bollinger Bands typically considered by some to be an entry signal. As a penny stock this is a risky trade but as such is also carrying a high reward potential. I will take a long position and contribute to the bullish momentum. I plan to make at least 100% on this trade if not more. I will set a stop loss of 10% to give the volatility some room.
NASDAQ:SNAXLong
by AwesomeAvani
SYM Technology @ WorkSYM has ascended YTD at a rate of 20% monthly and compounded. It has had consistent earnings doing its thing which is providing robots to replace human labor in factories and servicing them. Its products are in constant demand and growing. On the chart, SYM is above the POC of the volume profile. Buyers have pushed the price higher and sellers overall have not kept up with opposing momentum. Price is in the upper bands of both the intermediate and short-term anchored VWAPs putting it in the fair to overvalued range. I see SYM as continuing to rise as companies and industries with warehouses seek to lower labor costs as a means to maintain their margins and survive the recession and its consequences. For me, this is an obvious long setup with high potential.
NASDAQ:SYMLong
by AwesomeAvani
A key reversal on EUR/USD just formed at a major support clusterA bullish engulfing candle has formed on the EUR/USD daily chart, which could carry some weight given the technical levels of support it sits upon. Despite an intraday break below 1.0700, the market rebounded and closed back above this big round number. The 200-day EMA also provided support following an intraday false break beneath it, and it is worth mentioning that the 200-day EMA provided support on three occasions between the end of February and beginning of March before a strong rally formed. The RSI (14) dipped to its lowest level since September 2022. Whilst it is not within the classic oversold level of 30, it now sits at a similar level to the RSI low in February which preceded the March Rally. Furthermore, yesterday’s low held above the March VPOC (volume point of control), which is the most traded level by volume (or ticks, in the case of spot forex). Whilst many would prefer real ‘exchange’ volume, I regularly use the ICE feed as it is an amalgamation of FX feeds and their respective liquidity providers, and I generally find their tick volumes to be quite reliable. And finally, the decline form the May high has been in a relatively straight line which almost begs for correction higher. So it appears we are at or very near to an inflection point on EUR/USD, and a move to 1.0800 seems achievable given the depth of its decline from the May high. Of course, incoming data is key so we will keep an eye on employment data for the US this week (ADP, JOLTS, layoffs, jobless claims) and to see if the jobs market shows further signs of softening ahead of Friday's NFP report, as that could reduce bets of a June Fed hike and support EUR/USD.
Long
by CityIndex
TSLA is pushing againTSLA on the 4H chart started 2023 with an upward trend taking it from basically $100 to a doubling by February 15th then a reversal in a fibonacci retracement fashion to mid level level by March 10th with a bounce up and then resettled in the same area by April 20th then holding above the upper of a VWAP band until its reversal a week later. At present, TSLA is pushing higher and has crossed ever a low VWAP band as well as the mean from the anchored VWAPs. TSLA reversed on April 27th at the bottom of the high-volume area of the profile and is now progressing through it. I believe that this is a good long setup. The stop is VWAP at $178 The target is $ 196 which is the neckline of the head and shoulders from February as well as the April 1 pivot high. i believe that TSLA has enough interest and typical momentum to push $10-11 despite headwinds like interest rates and loss of market share in China and the Nordic countries due to USD strength. The volume indicator shows relatively high volume compared with this past winter. I think this accumulation will result in price appreciation as things progress ( as per Wycoff).
NASDAQ:TSLALong
by AwesomeAvani
UNG retracement complete- to uptrend again.UNG as shown on the 15-minute chart had an untrend for a week culminated by the very steep finish to the uptrend into resistance followed by a very rapid bounce down and retracement. A standard 50% Fibonacci retracement is now complete. UNG appears to be bounding off the POC line of the volume profile which coincides with the 0.5 Fib level. UNG tracks the natural gas futures, especially the leading month. It appears now ready to resume an uptrend. This is a directional bearing on the trend for any instrument based on natural gas prices including XNGUSD on forex.
AMEX:UNGLong
by AwesomeAvani
2
BOIL Megaphone PatternBOIL on the 15-minute chart is currently in an upward facing megaphone pattern. I have drawn in the upper and lower trendlines which are a form of static support and resistance. The megaphone pattern is one of increasing volatility between buyers and sellers and indecision It is the opposite of consolidation in a narrow channel. The anchored VWAP shows BOIL to be between the mean VWAP and the first standard deviation band below it. This is generally considered the lower part of the fair value zone. The volume profile has a high volume area of in the price range of 3 to 3.7 while the POC line is confluent with the VWAP. The "better" RSI oscillator/ indicator shows values above 75 at swing highs and values below 25 at swing lows. My goal in this trade is to buy at the lower ( support ) trendline and sell at the higher ( resistance) trendline. I will be watchful for any fibonnaci retracements of a prior trend. At present, BOIL is at that lower trendline and RSI is showing weakness. I will add to my position now as I did in the whipsaw action some hours ago at the location of the bearish engulfing candles in the premarket and the opening.
AMEX:BOILLong
by AwesomeAvani
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 ❤️
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