RSI-
-Think of RSI like a channel. The channel has its borders that are popularly known as "oversold" and "overbought." Traditionally. they are pre-set to 30 and 70 respectively. Here, they are set to 25 and 75 respectively.
- You can dispose of the terms overbought and oversold and replace them with DEMAND (25 level) and SUPPY (75 LEVEL). Think about it when you consider the principles of buying low and selling high. If you understand supply and demand trading or the principle of scarcity in general, this change in labeling can completely change how you use this very effective tool (when used correctly).
Volume-
- Negative space in volume. Volume is the most important indicator. It shows us exactly where SM showed interest, or DIDN'T show interest in the price. If you look carefully at teh characteristics of volume in moves in waves. There is the crest (highest volume of the day) and there is the trough (lowest volume of the day).
-The trough (the lowest volume of the day) is one of the only components of the chart that is a constant. It is a "fixed" piece of information. With very rare exception the trough is ALWAYS the lowest volume of the day.
-The lowest volume of the day is where the SESSION DIVIDER intersects vertically with the trough of the volume. You can activate the sessions divider in the chart settings located at the lower right corner of the screen.
-Price is going to be drawn from areas of high concentration to low concentration sorta like osmosis in chemistry. Price does not want to fight through a wall of volume, it wants to smoothly more through areas where it will not meet resistance. If you want a more academic explanation please refer to Tom Williams book Mastering the Markets which you can find for free through a web search. I believe its page 40. Look up "path of least resistance."
These are just some random pearls. It's a difficult process to type out in one chart. IIf you are learning how to read a chart, its okay to learn 1 or 2 pieces at a time. Eventually you will be able to put all of it together. This is why I think its super important to spend 6 + months just demo trading and back testing. Trading is like MMA... would you jump in the ring tomorrow with a top level competitor? You would lose. Think of the chart like this. Before you jump in the ring (use real money) you want to train.
The more hours you put in in demo trading and backtesting, the less real money you will lose as you get better and if you are committed you can get better at this. It not easy. It's an actual skill like learning a musical instrument or a martial art. So you really need to respect it and you the work in if you expect to make it work for you. Because if you do not, it will take every single penny you give it in due time.
Hope this isn't too confusing.
If you are interested in learning volume check out Pete Faders VSA free videos on YouTube. Ii have no affiliation or make any money from suggesting you check his material out.
Good luck.
-Think of RSI like a channel. The channel has its borders that are popularly known as "oversold" and "overbought." Traditionally. they are pre-set to 30 and 70 respectively. Here, they are set to 25 and 75 respectively.
- You can dispose of the terms overbought and oversold and replace them with DEMAND (25 level) and SUPPY (75 LEVEL). Think about it when you consider the principles of buying low and selling high. If you understand supply and demand trading or the principle of scarcity in general, this change in labeling can completely change how you use this very effective tool (when used correctly).
Volume-
- Negative space in volume. Volume is the most important indicator. It shows us exactly where SM showed interest, or DIDN'T show interest in the price. If you look carefully at teh characteristics of volume in moves in waves. There is the crest (highest volume of the day) and there is the trough (lowest volume of the day).
-The trough (the lowest volume of the day) is one of the only components of the chart that is a constant. It is a "fixed" piece of information. With very rare exception the trough is ALWAYS the lowest volume of the day.
-The lowest volume of the day is where the SESSION DIVIDER intersects vertically with the trough of the volume. You can activate the sessions divider in the chart settings located at the lower right corner of the screen.
-Price is going to be drawn from areas of high concentration to low concentration sorta like osmosis in chemistry. Price does not want to fight through a wall of volume, it wants to smoothly more through areas where it will not meet resistance. If you want a more academic explanation please refer to Tom Williams book Mastering the Markets which you can find for free through a web search. I believe its page 40. Look up "path of least resistance."
These are just some random pearls. It's a difficult process to type out in one chart. IIf you are learning how to read a chart, its okay to learn 1 or 2 pieces at a time. Eventually you will be able to put all of it together. This is why I think its super important to spend 6 + months just demo trading and back testing. Trading is like MMA... would you jump in the ring tomorrow with a top level competitor? You would lose. Think of the chart like this. Before you jump in the ring (use real money) you want to train.
The more hours you put in in demo trading and backtesting, the less real money you will lose as you get better and if you are committed you can get better at this. It not easy. It's an actual skill like learning a musical instrument or a martial art. So you really need to respect it and you the work in if you expect to make it work for you. Because if you do not, it will take every single penny you give it in due time.
Hope this isn't too confusing.
If you are interested in learning volume check out Pete Faders VSA free videos on YouTube. Ii have no affiliation or make any money from suggesting you check his material out.
Good luck.