How to read volume in your stock:
General concept:
- You want to see volume increase on impulses and volume decrease on corrections
Volume analysis:
A:
Price is moving up, volume is increasing - as should be.
B:
Price is correcting, volume is decreasing - as should be.
C:
Price is moving up, volume is increasing - as should be, BUT the large volume is not pushing forward and the price is starting to correct - Red flag.
D:
Price is correcting, volume is decreasing - as should be.
E:
Price is keeping correcting further, volume is increasing on deep correction after breaking local low!!! (not as should be) + HUGE amount of volume greater than volume peaks 1 and 2 =====>>>> we are about to go into a large correction!
Large correction = deep or lengthy... but it doesn't tell you which one... maybe both, it is just telling you correction about to happen...
F:
Large correction is happening, volume is decreasing.
EXTRA ANALYSIS:
Remember that the market is fractal, so this pattern repeats itself on different structures.
- From point A to E you have an impulse on increasing volume. From point E to F you have a correction on decreasing volume (Bigger time frame).
- From point A to 1 to B there is an impulse and correction volume pattern, as stated above on the lower time frame:
A is an impulse with increasing volume
1 is like point E - volume on the RED day is greater than the Green day or any previous days on the rise.
B is a correction on decreasing volume
The whole concept of volume analysis is to help the trader be more in tune with the market cycle... So you will know when you are in a correction, and when you are in impulse.
Knowing this will help you HOLD ON, when you need to, or TAKE PROFIT when you have signs that correction is happening.
If you like it, follow and like this idea so it will save on your saved ideas for future reference.
General concept:
- You want to see volume increase on impulses and volume decrease on corrections
Volume analysis:
A:
Price is moving up, volume is increasing - as should be.
B:
Price is correcting, volume is decreasing - as should be.
C:
Price is moving up, volume is increasing - as should be, BUT the large volume is not pushing forward and the price is starting to correct - Red flag.
D:
Price is correcting, volume is decreasing - as should be.
E:
Price is keeping correcting further, volume is increasing on deep correction after breaking local low!!! (not as should be) + HUGE amount of volume greater than volume peaks 1 and 2 =====>>>> we are about to go into a large correction!
Large correction = deep or lengthy... but it doesn't tell you which one... maybe both, it is just telling you correction about to happen...
F:
Large correction is happening, volume is decreasing.
EXTRA ANALYSIS:
Remember that the market is fractal, so this pattern repeats itself on different structures.
- From point A to E you have an impulse on increasing volume. From point E to F you have a correction on decreasing volume (Bigger time frame).
- From point A to 1 to B there is an impulse and correction volume pattern, as stated above on the lower time frame:
A is an impulse with increasing volume
1 is like point E - volume on the RED day is greater than the Green day or any previous days on the rise.
B is a correction on decreasing volume
The whole concept of volume analysis is to help the trader be more in tune with the market cycle... So you will know when you are in a correction, and when you are in impulse.
Knowing this will help you HOLD ON, when you need to, or TAKE PROFIT when you have signs that correction is happening.
If you like it, follow and like this idea so it will save on your saved ideas for future reference.
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🧪 Feel confident with science and logic
💰 Trade your way to success and freedom
