AN INTRODUCTION: HOW TO TRADE ON VOLUME BARS AND WHAT THEY MEAN!
The good ol' fashioned volume bars, long a part of basic TA has been commonly misunderstood, mis-used and under-appreciated. Many people over confuse their TA with other indicators, and frankly, once you learn the volume game and how to use it - you will NEVER want to cheat on the volume indicator with another one, ever again.
TA on volume actually works on all timeframes. Hourly, weekly, monthly... And even on the one minute chart!!!!
I try to pretty much spell it all out for you guys on the charts below! Hopefully, everything can be clearly explained by them.
The above chart is a 1hr view, the below charts explaining volume trading are utilizing the 1 min chart for extreme clarity.
***PLEASE NOTE: Since CRYPTO in general is a slightly different animal than the stock market (because all stocks are basically under one exchange). Volume is derived differently on each exchange. Each crypto exchange will have different volume, BUT my rule of thumb is that typically BINANCE will have the most accurate volume ticks because they are one of the largest exchanges. This particular BTC chart is a Tradingview INDEX chart, which likely means that all of the information from most eligible exchanges are consolidated into one chart. NOT ALL crypto pairs will have this, so please be careful! You CAN comfortably use this method on stocks (again, they are all under one or two exchanges, but have the same federal rules that they must comply with).
Hope this helps everyone up their trading game. It has helped me a TON!!!
(PS: See my link on the last idea I posted right before we shot up to 24.2k - This is the method I used to forecast that jump in price)
TA on volume actually works on all timeframes. Hourly, weekly, monthly... And even on the one minute chart!!!!
I try to pretty much spell it all out for you guys on the charts below! Hopefully, everything can be clearly explained by them.
The above chart is a 1hr view, the below charts explaining volume trading are utilizing the 1 min chart for extreme clarity.
***PLEASE NOTE: Since CRYPTO in general is a slightly different animal than the stock market (because all stocks are basically under one exchange). Volume is derived differently on each exchange. Each crypto exchange will have different volume, BUT my rule of thumb is that typically BINANCE will have the most accurate volume ticks because they are one of the largest exchanges. This particular BTC chart is a Tradingview INDEX chart, which likely means that all of the information from most eligible exchanges are consolidated into one chart. NOT ALL crypto pairs will have this, so please be careful! You CAN comfortably use this method on stocks (again, they are all under one or two exchanges, but have the same federal rules that they must comply with).
Hope this helps everyone up their trading game. It has helped me a TON!!!
(PS: See my link on the last idea I posted right before we shot up to 24.2k - This is the method I used to forecast that jump in price)
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