📊The Effects of Volume Cheatsheet📍 In trading, volume refers to the number of shares or contracts that are traded within a specific period of time. It is a key technical indicator used by traders and investors to analyze the strength and direction of price movements in the financial markets.
The volume of a security can be used to confirm trends, indicate potential reversals, and identify areas of support and resistance. For example, a sudden increase in trading volume for a particular stock may suggest that a significant news event has occurred or that there is an increase in investor interest. On the other hand, a decrease in volume may indicate that investors are losing interest or that a trend is weakening.
Volume is important in trading because it provides information about market activity and helps traders make informed decisions. By analyzing trading volume along with other technical indicators such as moving averages and price patterns, traders can gain insights into market trends and make more accurate predictions about future price movements.
💥Key Takeaway:
When prices are rising or falling with high volume , it suggests that there is strong participation in the market and that the price movement is likely to continue in that direction . Conversely, when prices are rising or falling with low volume, it may indicate that there is not enough market participation to sustain the price movement and that a reversal could occur.
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Volumespreadanalisys
WFC Volume Spread AnalysisNYSE:WFC
Potential smart money involvement in buying at this key level 23. As back in 2011 reference a strong support level of instituitional buying.
however the stock rally remain weak, signalling that there might still be more Supply > Demand. waiting for a retest on 23 level with lower volume to enter a buy trade setup.
Wyckoff on BTC(Distribution)-Considering the shrinking volume on the Signs of Weakness' in Phase B, I assume we are in the Distribution Schematic #1
-Also, look at the Distribution Schematic #1, it is nearly identical with our BTC situation
Thanks for taking a look, please PM me if you are a fellow Wyckoffian so we can share ideas!
Long Trading Signal for NEMThe price bounced from the resistance zone formed by SMA100 and the downtrend line. The previous swing high can be used as a signal level. If price breaks it, we'll get a trend reversal signal and confirmation of further upward movement. MACD lines and DMI are bullish and support buying. Pending orders can be placed at 0.000093 level with stop orders at 0.000072 level. Profit targets are 0.000110 and 0.000135 resistance levels. If the price continues the downward movement and breaks the support levels, we will have to delete buy orders and wait for new trading opportunities.
BTC LONG PROJECT (H1)Hello, All!
After reaching almost 11.5k, BTCUSD reversed back to its current lows thus forming slightly disproportional, but valid Wolfe wave pattern.
Its validity is being confirmed by solid volume spikes at key points indicating strong demand zone.
Fundamentally speaking, nothing is currently preventing BTC from keeping its previous pace and reaching new highs.
EURAUD - Bearsish Bat at 1.5070This is a bearish bat pattern completing on EURAUD.
Last week, price has touched the PRZ and price failed to close higher.
This morning, price started to drift lower with increase in volume breaking previous low.
I will personally be waiting for a retest of a resistance level before going short on this.
Likely a high probability setup.
EP: 1.5070
SL: 1.5120 (50)
TP: 1.4880 (190)
Will keep you guys posted.
USDCHF BEARISH PROJECT (H4)The bearish wave formation was completed by creation of double top at point 5 supported by RSI divergence at H1/H4.
After the test of 2-4 line area, the price retraced to 61.8 of previous move and provided opportunities for opening short position. It is possible that the price will re-test 1-3-5 area once again before beginning the descend. Both this level and 2-4 possible breakout area should be monitored carefully.
3 positions were opened, more can be considered depending on further development of this pattern.
long movement appearedHello traders,
this is the daily chart and
now the market is closed and current bar has no fuel to keep rising, so next few bars we may see down bars to test the latest area if there are some supply to absorb. then sequence 2 flying up ... all the study depend on VSA
It is just your personal desicion if you win or lose, be careful and follow your own Strategy and System!
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EUR/USD is finished the down movement, more than 90 pips incominHello traders, as you see this is VSA sequence and this down movement is finished, the market declined to make any lower prices, even in the daily chart we have stopping volume or stopping the down movement bar, it means the correction is finished in the up trend,. now the trend should continue rising and in the next few days we expect new highs,
don't forget in the monthly chart we in an accumulation area! from many years the market is ranging or sidewalk market! the accumulation is done and the price is ready to jump off the box ;)
well this analysis is really simple and it's more simple for people who know little about VSA and Wyckoff methods.
It is just your personal desicion if you win or lose, be careful and follow your own Strategy and System!
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Good chance to sell 800 points / 80 pips.We have a weak background, it indicate to a down trend movement, this bar called upthrust is the sign, then we got this no demand bars then the market fall, also we got a new no demand bar, low volume bar is a very good sign to continue falling. I expect another 80 pips to TP2
Massive Down Trend !!In this Chart we are seeing a very weak Trend *weak = down movement* it all started from there 3 little up bars
look at their volumes, very low, and every up bar with low volume it means lack of demand.
no look at No Demand 2 it tried to test the Demand, the result was no demand! it's very good signal of the down trend.
so we have 3 targets, and each target the prise will take a break to test the demand, if we found high volume on the up bars it could be an alert to exit the short trade,
however, the Resistance 2 it's diffecult to predict if the price will reach this level, because we have the channel down line, and another resistance line, maybe the candle or the bar will have a very long tail then maybe it will close away from the buttom then it will be a signal to continue rising!
It is just your personal desicion if you win or lose, be careful and follow your own Strategy and System!
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