Drawing Volume Based Trendlines Support and Resistance
For this to work you're going to need your bull bear power void oscillator.
I have mine set on its default settings but you can also set it up with the following.
Click the image below for that indicator for free
The Setup
the length is 50
the moving average is 20
the macd settings are 12 / 26 / 9
With this I have a 50 period EMA on my chart.
Drawing Support and Resistance Levels Based on Volume
When drawing support and resistance levels you should always do them on a 1 hour time frame or higher. You can do them on a 30 minute time frame but some of them will be less relevant.
Since most people and most institutions do them a 1 hour time frame and hire you might as well be doing the same.
Support and resistance levels are found in the non-tradable areas of the oscillator. in other words it's the area of the oscillator where it has a black background.
As an example if you have a pink volume bar coming down first followed by a red volume bar afterwards this would mean resistance. But both of these bars must clear the void
If you have a light green bar first outside with the tradable area followed by a dark green bar this means support and both bars must be outside the void.
As an example if you have more than one light colored bar in the tradable area followed by a darker colored bar volume then you draw your support or resistance level at the 1st alternating color bars.
Find out where your current price level is and then draw about 2 or 3 support and resistance levels above current price and two or three below current price. You don't really want more than that.
Drawing Trendlines Based on Volume
To draw trend lines you need to have a background that goes from one color to Black and then to the alternate color for example green to Black to red or red to Black to Green. if you get the same color twice then what you have is a continuation of your trend.
In a trend that goes from green to Black to Red you're looking for the highest volume in the non-tradable area and then drawing of line from there to the very first tradable volume in the red area.
Once you do this you can't move to a smaller time frame and use that trend line as a Target when moving to it or an exit point.
I have mine set on its default settings but you can also set it up with the following.
Click the image below for that indicator for free
The Setup
the length is 50
the moving average is 20
the macd settings are 12 / 26 / 9
With this I have a 50 period EMA on my chart.
Drawing Support and Resistance Levels Based on Volume
When drawing support and resistance levels you should always do them on a 1 hour time frame or higher. You can do them on a 30 minute time frame but some of them will be less relevant.
Since most people and most institutions do them a 1 hour time frame and hire you might as well be doing the same.
Support and resistance levels are found in the non-tradable areas of the oscillator. in other words it's the area of the oscillator where it has a black background.
As an example if you have a pink volume bar coming down first followed by a red volume bar afterwards this would mean resistance. But both of these bars must clear the void
If you have a light green bar first outside with the tradable area followed by a dark green bar this means support and both bars must be outside the void.
As an example if you have more than one light colored bar in the tradable area followed by a darker colored bar volume then you draw your support or resistance level at the 1st alternating color bars.
Find out where your current price level is and then draw about 2 or 3 support and resistance levels above current price and two or three below current price. You don't really want more than that.
Drawing Trendlines Based on Volume
To draw trend lines you need to have a background that goes from one color to Black and then to the alternate color for example green to Black to red or red to Black to Green. if you get the same color twice then what you have is a continuation of your trend.
In a trend that goes from green to Black to Red you're looking for the highest volume in the non-tradable area and then drawing of line from there to the very first tradable volume in the red area.
Once you do this you can't move to a smaller time frame and use that trend line as a Target when moving to it or an exit point.
