Volume Profile Basic Shapes (B-Shaped Profile) #3-#4B- Shaped Profile (See Chart)
Looks like a letter "B"
Sign of strong sellers
Sellers pushing price downwards and creating new price balance on lower prices.
B- profiles usually within downtrend
B- profile after an uptrend= end of the trend (or a temporary end)
Volume
Volume Profile Basic Shapes (P- Shaped Profile) # 1 - # 2P- Shaped Profile (See Chart)
Looks like a letter "P"
Sign of strong buyers
Buyers pushing price upwards and creating new price balance of higher prices.
P- profiles usually within uptrend
P- profile after a downtrend= end of the trend (or a temporary end)
Volume Profile (Point Of Control) #1POC (Point Of Control) line
POC= Point Of Control (place where most volumes got traded)
POC= Place where institutions were accumulating their positions the most.
Significant reference point for market participants
Most important place in any Volume Profile (no matter the time frame and shape)
Volume Profile is thickest there
Big Banks and Hedges can not hide their FOOTPRINTS of what price they are accumulating positions at with the Volume Profile.
Keep trading Easy- one way is by using a Volume profile. IF you have pro or premium level here at Trading view- try it with naked charts (nothing on them except the volume profile)- four choices in indicator settings.
I like under volume profile either the fixed and/or session ones- but experiment and do some back testing- might change way you trade.
Sea Ltd stock analysis w/ boxes and Volume ProfileHi everyone,
This time I am analyzing NYSE:SE stock movement using volume profile besides my usual boxes setup.
NYSE:SE stock price has shown very persistent up-trend strenght for the past year.
When we have the equity soaring up like NYSE:SE does, it is helpful to use Volume Profile to see a bigger picture.
I added three volume profiles for different timeframes: 9 months, 5 months and 2 months.
What does it show us?
As we can see in the past 9 months the biggest trading volume occured around 273 level. That is where our long-term POC is.
However, a decent volume profile started developing from 308 level and above.
For the last 4 months the highest volume has been seen at 323 level. Both 2 and 4 month profiles have universal volume distribution with same POC level.
That means that higher price level has been accepted and stock is consolidated on a higher time-frame.
What now?
As volume profile is dynamic, I expect long-term POC to migrate to 320 level.
However, for that to happen we will need to see a lot of volume at 320, which is 7% lower than the current price.
AND that would be happening at the uptrend support line, which is dangerous.
IF that is broken, we could see a return to 273 POC to repair long-term profile structure.
IF we continue higher from here, we would get unevenely distributed profile, which could be bad in the long-run.
Let me know what you think of NYSE:SE movement and if it is sustainable.
Trade wisely and good luck!
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Disclaimer!!!
This is not financial advise.
TA 101: Understanding VolumeVolume represents the total amount of trading activity in that market for that timeframe. The volume is an indicator of great importance and helps us with crucial information on selling or buying the stock.
General rules:
Volume is an independent variable from price.
Volume typically goes with the trend. For example, in a bullish cycle, the up volume is usually larger than down volumes. There is no forecasting value in this. If we have a growing trend, we also have a strong growth trend and then a volume in the stock market or forex trading. So a combination of rising volume and the rising price is normal.
Volume divergence : Volume normally leads price during a bull move. A now high that is not confirmed by volume should be regarded as a red flag. This is called volume divergence. Volume divergence is abnormal and either warns of an impending trend reversal or emphasizes the significance of any breakouts.
Total disinterest : When the price volatility shrinks to almost nothing, and volume does the same this indicates total disinterest. When the situation is finally resolved, this is often followed by an above-average price move. The quieter the price and volume action relative to preceding downtrend, the more explosive the subsequent rally is likely to be.
Very narrow trading range indicates buyers and sellers evenly matched. Extremely low volume indicates fine technical balance. Price decline and volume expand as a bearish signal and vice versa.
Bearish Signs
Parabolic blow-off is an event when the price hits ATH and the Volume explodes and is as large as last a few days of trading combined. This is a bearish sign!
Rising volume on a downside breakout of moving averages or trend lines is a bearish sign.
Sideway trend with increasing volume which is happening after a recent uptrend is considered a bearish signal.
Small rounding top price movement with rounding bottom volume is abnormal and is a bearish signal.
Bullish Signs:
Selling climax is the opposite of parabolic blow-off. It occurs when the price falls under a certain level and panic selling is triggered. That is a bullish sign.
Low volume at lower prices is a bullish sign. This could occur in double bottoms or bear market when the price goes slightly lower than the previous trough, but the volume is significantly lower at the new low.
Heavy volume on a sideway trend after a decline is usually a very reliable signal that the bottom has reached.
Can You Profit Day Trading? YesKeep Trading Simple!!!
Volume is the heart of trading Forex. This tells us how much interest is in a candle or at a price level zone- where big money and hedge firms are trading.
On chart example: London and NY session overlap is a very high liquidity and volume time every day to trade. Only 4 hour period.
Use only:
1) Simple Volume indicator
2) Session indicator
3) Bolliger Bands indicator
Rules are:
1) Is price action over a critical price action level? yes- 1.55000
2) Is price action over 20 ema of Bolliger Bands? yes- over yellow line
3) Use ATR for stop loss, entry and targets- this is something that all Forex traders should know on pair that is being trader.
4) On chart is 25 pip stop vs 62.5 pip is risk reward 1:2.5 setup
5) Only find setup at around start of London/NY overlap and trade during this 4 hour time period. Close all trades at end on London session.
Smart Money (Volume Spread Analysis) Works In Forex!!!Trading in the shadow of Smart Money. Learn to trade in the same direction. If you are going to play it You better understand it. The Masters & Teachers of the Wyckoff Method & Volume Spread Analysis: Tom Williams and Richard Wyckoff. If you put on your charts just daily charts with the On Balance Volume indicator only (or Tick volume) - might change how you look at and trade Forex. The chart never lies!!!
The “Smart Money”
Trade Large Enough Size To Actually Affect the Price Movement of the Instrument Being Traded and Can Change the Trend of Price But They CANNOT Hide Their Footprints on a Chart When You Learn VOLUME SPREAD ANALYSIS
What Is Volume Spread Analysis?
Most traders are aware of the two widely known approaches used to analyze a market- fundamental analysis and technical analysis.Volume Spread Analysis, however, is a third approach to analyzing a market. It combines the best of both fundamental and technical analysis into a singular approach that answers both questions of 'why' and 'when' simultaneously.Smart Money buy or sell they cannot hide their volume footprint (although they try!!)
At it’s core, Volume Spread Analysis or VSA is a methodology based on the original works and teachings of Richard D Wyckoff, a trader in the early
1900’s. The methodology seeks to establish the “cause” of price movement on a chart. The “cause” is simply the imbalance of supply and demand as the
market trades, resulting in strength or weakness in the market being charted. For the correct analysis of volume, you need to understand that the recorded volume contains only half the knowledge required for a correct analysis. The other half of the knowledge is found when observing the spread (or range) of the price bar and the closing price on that bar. Volume indicates the amount of activity on the price bar and the spread or range of the bar shows what the price actually did, and most importantly where the price finally closed. FYI: Please you tube and/or google VSA more- this will simplify Forex trading.
How Can Volume Spread Analysis Identify These Moves?
Volume = Activity. Interested in volume because it tells consensus of opinion among “Smart Money” Spread and Close in Relation to the background Confirm
Momentum play on NQ 45-min via volume-weighted RSIOverview
Simple overbought-oversold momentum play using NEXT RSI , which blends volume analysis with momentum. Volume weighing of the algo reduces the lag and improves accuracy over vanilla RSI as volume often precedes price action. This is a contra-trend (momentum exhaustion) scalping strategy - use order management (TP, SL, trailing stops) and do not trade signal to signal (e.g. long-short-long) .
Strategy Rules:
- NQ Futures, 45min chart
- Long Entry when NEXT RSI crosses over 35
- Short Entry when NEXT RSI crosses under 65
Order Management:
- Take profit @ +$50
- Stop Loss @ -$50
Prerequisites and set-up:
- NEXT RSI configured to 21,3,65,50,35
- NEXT Strategy Visualizer configured to Signal Source: NEXT RSI, LE @ 35, SE @ 65
Volume-Weighted Divergence Play on AAPL 10R via NEXT RSINEXT RSI Divergence Play: Key Concepts
- NEXT RSI is a low-lag, volume-weighted momentum oscillator that often precedes price action
- Divergence play resets at each open (do not count prior session's highs and lows)
- Use as you would other divergence strategies: higher price highs, lower NEXT RSI highs = bearish; lower price lows, higher NEXT RSI lows = bullish
-Use a preset TP / SL and/or close if NEXT RSI retraces back to last relevant high or low
Target Market:
- AAPL 10R Chart
- can be used with almost any market; volatility helps
Order Management:
- Enter on forming divergence, 2 or more clearly separated peaks or troughs
- TP / SL at 30 cents (AAPL)
- Exit if price retraces to the last NEXT RSI top or bottom referenced when opening the position
Optional:
- Additional NEXT RSI strategies can be discovered using the free companion NEXT Strategy Visualizer
Forex (When To Trade Is High Liquidity & Volume Time)The highest liquidity and volume in Forex daily is from end of Tokyo session to end of London session.
This is best 12 hour time frame time to trade Forex is in between those times, if you are scalper or day trader.
Noted on 1 hour chart of AUDUSD is noted times from 10 p.m. to 10 a.m. (PST/CA/USA times)= you need to change to where you live.
What happened in-between those times on Friday with AUDUSD- a great trade with a Harami two candlestick setup right at Tokyo/London overlapping session, at demand zone area, during the high liquidity and volume period of day in Forex. RR set up of 1:2.5 risk/reward or 20 stop vs 50 target.
Yes, this is how you keep Forex trading simple, just trade during this 12 hour period - and look for:
1) Engulfing two candle hourly setup
2) Harami two candle hourly setup
3) Pin-bar three candle hourly setup
4) Trend, Key Price levels, Momentum
5) Trade right pair, at right price, during right session and at right time of day.
Make Forex Trading Great Again by winning and taking what a pair gives you in a trade on a chart. Trade what you see not what you feel. Only you control when you enter and exit an individual trade- so put the most probabilities on your side to win more and make more.
We keep short in 6E - Weekly chatHello Traders
In the absence of today's close to analyze volume. the euro/dollar future is still short, at least that is the information that the volume indicator says.
The fast volume indicator just gave a short signal, also the slow volume indicator confirms the short trend.
If the price closes below the 38.2% fibo there is a good chance that it will go for the 50% fibo, exactly 1.15.
Keep it simple and mechanical
Have a good day!!
Supply and Demand patterns scanned automaticallyVery often the main issue for traders is to just on time (quickly?) spot on chart correct patterns that may warn traders about incoming to market Supply or Demand. Everyone tries to catch reversals as this is beginning of potentially long new trend. And asking yourself try to answer honestly to yourself - how often you skipped the move because you didn't notice it at first glance and only it was visible to you AFTER the move happen, when you revisited chart and tried to take lesson learnt from chart and wondering why you didn't enter trade that time..
There could be a lot of reasons of that but one of main that I try to fight is - eliminate subjectiveness. Therefore still I don't automate trading, but try to get potential signals identified by software. After multiple months of research and work, I modified original VSA approach and prepared better version of definitions combining knowledge and tips from multiple VSA Experts. That's how software was created and is learnt to identify Demand and Supply Signals automatically notifying me via alerts/notifications about potential trades. When we add to those signals automatic drawing of Volume Zones, we have complete trading system. Especially during first retest Volume Zones works like a charm when there's perfect opportunities to enter trades in original direction of first breakthrough.
On chart I also marked recent examples of Demand & Supply signals that were identified by Scanner BEFORE the trend move happened. Still judgement of trader (manual) is needed but Scanner gives already big edge on market. Combining this with Volume Analysis known from VSA approach and with knowledge about basic market structures, there's no other option than become profitable trader. Of course if you follow your own trading rules and properly manage money alongside with Risk:Reward ratio.
How to use the Tick and Price Action Indicator for NQ 5 minuteHow to use the Tick and Price Action Indicator in concert with Value Area for NQ 5 minute
1) Identify the fibonacci extensions based on previous day value area
2) Activate developing VA for the current day
3) Apply the Tick and Price Action Indicator and follow the arrows and colours
4) Enter only if NQ is trading outside of the current day Value Area (see your developing VA for this as outlined in step 2)
5) Use the fibonaccis in step 1 for support/resistance
High or Low Liquidity & Volume (When Is It?)Liquidity and Volume (When Is high and low periods of both?)
Generally per day in Forex trading 24/5 market their is 12 hours of low liquidity and low volume, which is after London ends to Tokyo ends.
Then, the other 12 hrs of high liquidity and high volume, which is easier to scalp or day trade which is at end of Tokyo to end of London.
You would need to know when Tokyo ends to London ends in your time zone (yes that overlaps New York 1st 4 hours too). Best hours to trade.
For your health: keep Forex trading within a certain times of days, so you can live life and maintain balance and enjoy fresh air......
UNDERSTANDING PRICE ACTION USING FIXED RANGE VOLUME PROFILE Hello Tradingview,
Thank you so much for providing traders such a beautiful platform and it will not be an exaggerating that you are the idea master as your idea for adding community and allowing users to interact with each other and sharing knowledge with each other has changed the of trading of many.
Today I want to write something about one of your great addition to the system , that is FIXED RANGE VOLUME PROFILE which I believe would help many either in taking decisions or to filter the confusion.
The terms to be used in short
What is Volume Profile?
Volume profile is a charting feature (or indicator) that shows the traded volume amount of an asset, over a specified period at certain price levels.
Volume profile shows this data as a histogram in a Y-axis (vertical) next to price levels.
volume profile uses the past traded volume and all of the strategies and plans are coming from historical data.
POC --
Price Of Control, The point of control is simply the price at which the largest trading volume has been made over a period of time (buy/sales). This point is a rare point in the market because it is an indicator that can be observed before and not exactly when the price change occurs.POC or Point of Control is the highest volume node on the volume profile.
The point of control is the longest volume bar on the volume profile and there are lots of volumes transacted there.
Traders use POC as support and resistance or an important retest point.
Value Area (VA)
A Value Area or VA is where 70 % of the volume is located in the volume profile. Determined from surrounding nodes of POC.
In this area, the volume profile gets a little complicated.
what this means is that 70 percent of total volume transacted on the chart had occurred cumulatively at these price levels which are called Value Area or VA.
The Value Area is a Market Profile concept.
This is an area demarcated by 2 prices which bound the "most traded in" part of a time period.
Technically the value area is 1 standard deviation away from the most traded at price which is the price which has the highest number of TPO's. This price is also known as the Point of Control (POC).
Each time that the market trades at a price during a half hour bracket a letter is added to that price (one per half hour) and a vertically aligned bell curve is created. The middle chunk of that chart is the Value Area.
Typically, the upper and lower prices of the Value Area, know as Value Area High (VAH and Value Area Low (VAL) are seen as support and resistance lines - in their simplest terms.
Developing Point of Control (Developing POC)--
A Developing Point of Control is a change of POC over time. As a POC can change over time, you can see the change by looking at the Developing POC line and what it was in the past.
Developing Value Area (Developing VA)
A Developing Value Area is a value area that is changing over time. As the value area changes over time, you can see the change by looking at Developing VA.
Developing VA is determined on the price action and is shown by two lines which show both Value Area High and Value Area Low over time.
Volume Profile Rules
You can identify market states with a volume profile. When you found out what market state you are in, these rules tell you what to look for in volume profile in different market states.
If the price is consolidating (ranging price):
Value Area will be located in the middle of the volume profile.
The price will bounce between HVNs and LVNs
If the price is trending upward (uptrend):
The value area will be located at the bottom of the volume profile.
The price will likely retrace to Value Area High
If the price is trending downward (downtrend):
The value area will be located on the top of the volume profile.
The price will likely retrace to the value area low.
Clearance
A Clearance is an area in the volume profile in which only LVNs are located, and there are no HVNs(high volume node) on that area.
If price enters, this territory expects the price to fall or rise very quickly until it hits a significant HVN.The strategy is when you see the price is going up or going down and it goes through major HVNs; it shows you the momentum is on that side. You should wait until the price goes through HVNs successfully and arrives in a zone in which lots of LVNs (low volume nodes) are there.
You can buy (if the price is going up) or sell (if the price is going down) through the LVNs.(literature copied from the internet).
Now if we analyze US 100 chart with this strategy, from the weekly chart, taking last 20 weeks as history, we see that POC line becoming 14990 and it was hovering around 200 points since last four weeks, but could not break the POC. Fibonacci level 2.272 is coming at 15422 and this beautiful FIXED RANGE VOLUME PROFILE is indicating that a new value area is developing around 15443, and here this indicator becoming special from other indicators as we have got a point 14990 as POC, which will act as a long term support, fibonacci level 2.272 , at 15422 will act as an immediate support if it gives a close above it today as it will be a daily close along with a weekly close.And this move can be considered as a real break out, not fake.
This indicator becoming special for this kind of market behavior where either new highs are forming continuously or new lows are forming continuously , I mean where traders becomes confused and make a mistake . Finally hopes start trading waiting & waiting and often ends in a tragedy.
I believe from the above logical calculations, a conclusive assumption can come out that it will be a buying call which can be more profitable rather to sell like a gambler. And coming to this conclusion, the contributions of this indicator is worth praising.
Thank you once again Tradingview.
Why Volume MATTERS! -a TV tutorial-I'm sure that you've heard a lot about "volume"... But you have probably found it pretty hard to make heads or tails about what it actually means and how you can gauge what may happen to price by reading volume.
I have long found that volume has been an "enigma" as a trader. Seemingly no real method to it's madness, but I have always heard that it is in fact a VERY important tool in trading. Honestly, it took me a while to comprehend what it actually means! Why some areas have high volume and low volume, and how to make sense of it.
The best way I have heard volume explained is that it is a measure of traders' PAIN.... While that is not a far off description of volume, I have a better explanation for volume: INTENT.
As you can see in the main chart above, I'm using several methods to show you different support and resistance levels. THEREIN LIES THE KEY...Resistance and support by itself is useless, because you can't gauge price's intent to cross it or bounce from it..... But VOLUME is the key to unlock price action's intent of bouncing from support or resistance or crossing it!
Here is the best way to get your mind around what volume actually means to you:
-LOW VOLUME at a resistance or support point means that there is very little INTENT to cross above or below it. (BOUNCE)
-HIGH VOLUME is the intent of market makers to push through either a support or resistance price point.
Seems super easy right?
Well...... Not so fast.
If you have spent any time around charts, you understand that there are two distinct different ways to measure support and resistance.
1) Either at key bottom or top consolidation levels.
2) Trend lines
If you take a look at price currently on Bitcoin in relation to support or resistance, you will see that we have just crossed right above a resistance trend line... Most traders would likely jump right into a long here, not recognizing that we are also at a price resistance point (easily seen on VERTICAL VOLUME PROFILE).
Would you long here, or would you short?
Answer: You would likely short here...
Why?
Answer: It is not just necessary to understand trend lines being resistance and support. You also need to see price points of resistance and support. Currently, we are seeing low volume at an obvious price resistance point (as seen on vertical volume profile). This gives you an indication that just because we have pushed past a trendline, volume is rejecting this price area.... IF, and only IF we pushed past 49200 on this chart with HIGH VOLUME would we stop loss and go long. Otherwise, we have a reason to believe that market makers are not interested in moving higher here, and we simply retraced up only to go right back down from here.
If you notice the red boxes on volume, the arrows that point towards price will highlight the fact that price always ended bouncing from a resistance or support point on low volume. Every high volume bar you see on the chart, gave intent on cross either a resistance/support trend line OR resistance/support price point.
Hope this helps you become a better trader to base your trades on volume instead of simply support or resistance!
Short squeeze by swing Trading with daily or hourly chartIt's simple to understand video on how you can profit from short squeeze by swing trading using daily or hourly or any intraday time frames. this video should help you understand how trade these kind of category stocks with potential. if anything to be clarified, please do write me back. Thank you.
Top 5 Most Traded Forex Currencies & Sessions The Top 5 Most Traded Currencies in the World
1. US Dollar (USD)
The official currency of the United States of America, the US Dollar is also the world’s primary reserve currency.
Most traded currency pair: EUR/USD
Most active trading session: New York and London sessions
2. Euro (EUR)
The second widely traded currency is the Euro.
Most traded currency pair: EUR/USD
Most active trading session: London and New York sessions
3. Japanese Yen (JPY)
The Japanese Yen is the official currency of Japan.
Most traded currency pair: USD/JPY
Most active trading session: New York and Tokyo sessions
4. Great British Pound (GBP)
The official currency of the United Kingdom and its territories, the GBP is known colloquially as the Pound Sterling.
Most traded currency pair: GBP/USD
Most active trading session: London and New York sessions
5. Australian Dollar (AUD)
The Australian Dollar is the official currency of the Commonwealth of Australia.
Most traded currency pair: AUD/USD
Most active trading session: Sydney/Tokyo and New York sessions
Boxes trading strategy example. $ABNB stock.Continuing my tutorials on boxes trading strategy.
This time let's analyze NASDAQ:ABNB stock price movement.
Taking all appropriate steps as described in my first lesson:
1. Identifying long-term trend channel.
2. Finding supply and demand zones.
3. Drawing a box inside which price is moving sideways.
4. Buying demand zone bounces.
5. Watching for breakouts.
There are some curious details in this stock's price movements.
We can see there was an attempt for a breakout from the box on the session opening of July 1st. However, there was not enough volume for the move higher, so the breakout failed.
As expected, the stock reversed to go lower in the followind days.
Even though this stock is in a falling trend channel, it's very news sensitive stock.
For instance, if there are positive news regarding COVID mitigation, we could see a major breakout from the falling trend.
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Airbnb has been on my radar for a long time now. Personally, I think it's a great long-term investment and I've been buying the stock on it's way down. I believe it will be a great post-COVID play.
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Disclaimer!!!
This is not financial advise.
My investment strategy. Example of my own $AMD position.I've been investing in NASDAQ:AMD since the last year.
AMD is one of my biggest positions.
For my long-term investgment portoflio I use fundamental analysis to evaluate stock buying opportunities.
If I like the company I then use technical analysis to determine entries, exits and targets.
Here is my technical setup on NASDAQ:AMD
I use a combination of technical indicators. Here is my process:
1. Determine current long-term trend channel.
2. Find supply and demand zones to form a box inside which a stock is currently moving.
3. Watch for the box breakouts using volume as an indicator of move's worthyness.
4. Find new boxes after the breakouts using the same process.
5. Rince and repeat.
This investment strategy is pretty flexible.
You can day trade/swing trade inside the boxes.
You can buy the breakouts when you identify them and sell in the next box.
You can accumulate large positions at demand zones of multiple boxes for a long-term.
Personally, for my long-term investments I add to positions after the bounce off of the demand zone and trim after breakouts when the move reverses to form a new box.
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Please let me know if you want to see a deeper dive into fundamentals in the future.
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Disclaimer!!!
This is not financial advise.
Smart Money (Volume & Open Interest)Trade With Smart Money (Key Is: Volume & Open Interest)
Bullish- an increasing open interest in a rising market.
Bearish- a declining open interest in a rising market.
Bearish- an increasing open interest in a falling market.
Bullish- a declining open interest in a falling market.
Note: Can get historical data on Forex open interest from the COT report (commitment of trader report), on every Friday of week.
Open interest is total number of futures contracts held by market participants at the end of the day. Open interest is one of the indicators of a pairs liquidity.
Open Interest is used:
1) gauge Market Sentiment
2) Strength behind price trends.
Open Interest: increases when traders open trades, decreases when traders close trades, a running total of all open position in a futures contract and indicates cash flowing in and out of the market. More cash come in, Less cash goes out.
Volume: Increases every time a trade is opened or closed. Running total of all transactions for a futures contract.