The volume on stocks definitely has a different wave pattern compared to futures and FX. Although different it is very predictable. The trough of the wave is ALWAYS mid session. This is a key piece of TA. It is a hard fact. Here the lowest volume of the day is the area that is not grey. The lowest volume is where the supply or the demand is at its lowest and price is able to break through.
As of the current position, we will have to see what the reaction is at the last supply zone and if the sellers start to get in the way. We will have to see if the volume increases tyo teh point that it outweighs the buyers leading to the price dropping.
Once the market opens, should price start to drop, we will look for re-accumulation patterns at our EMA's or previous demand zones.
Its important not to open the chart and chase the price. Never just hit the button to buy or sell without a thorough analysis. You may get away with it sometimes but that is a very high risk way to trade and will eventually catch up to you.
Setting target areas, waiting for price to get there allows you to let the price come to you versus you chasing after it. t takes time and requires a lot of patience.
We will see how this one play out. It may not play out in this way at all. All these projections are are tentative targets. If price reaches them we take it from there and see if things line up for a lower risk trade.
As of the current position, we will have to see what the reaction is at the last supply zone and if the sellers start to get in the way. We will have to see if the volume increases tyo teh point that it outweighs the buyers leading to the price dropping.
Once the market opens, should price start to drop, we will look for re-accumulation patterns at our EMA's or previous demand zones.
Its important not to open the chart and chase the price. Never just hit the button to buy or sell without a thorough analysis. You may get away with it sometimes but that is a very high risk way to trade and will eventually catch up to you.
Setting target areas, waiting for price to get there allows you to let the price come to you versus you chasing after it. t takes time and requires a lot of patience.
We will see how this one play out. It may not play out in this way at all. All these projections are are tentative targets. If price reaches them we take it from there and see if things line up for a lower risk trade.