114/28, 4'52 PM Volume Price Acton Analysis in Trading - Price Analysis Volume Price Action Analysis Back to: Trading with Smart Money Volume Price Action Analysis in Trading In this article, | am going to discuss Volume Price Action Analysis in Trading. Please read our previous article where we discussed 3 Rules for Volume Analysis in Trading. At the end of this article, you will understand the following. 1. Understani 19 Market Structure through Volume Swing Analy: 2, Strength and weakness of swing through volume price action analysis 3, How to analyze volume in trading Understanding Market Structure through volume analysis In the frst part, we have studied 3 laws of volume analysis. These are 1, THE LAW OF SUPPLY AND DEMAND 2, THE LAW OF CAUSE AND EFFECT 3, THE LAW OF EFFORT VS RESULT Based on these laws we know the analysis of the big picture is market structure analysis using volume. Because the final decision-making depends open the market structure: Market Structure It is similar to learning to read a new alphabet-once you understand the characters, you can read the words, and once you know the words you can read the story. So market structure consists of short-term swing * The market moves in an up downswing, what we call a market swing. In a healthy bull trend, the upswing generally exceeds the downswing in length, the reverse is true for the bear market * Hence by observing market swing, we are able to glimpse into the structure of the market and get clues on whether the market will move up or down hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! wr114/28, 4'52 PM Volume Price Acton Analysis in Trading - Price Analysis * So basically price move in an uptrend or downtrend 1. In a healthy bull, the trend Price Makes Higher High (HH) and Higher Low (HL) 2. In a healthy bear, the trend Price Makes Lower High (LH) and Lower Low (LL) hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! airiw | | HL i! hi Hl Uptiend— Price making i nt a DOWNTREND Price make Lower High (LH) and Lower Low(LL) ha “ uw 4 Masry Ms + "y - + Let's understand the rally (opposite of decline)114/28, 4'52 PM Volume Price Acton Analysis in Trading - Price Analysis What happens during the rally? During the rally, what has been going on? Two things 1. First the buying of stock by those who are covering their previous short sales(after knowing that they are in the wrong direction) and 2. Second, actual new buying by those who expect the advance to continue What happens after the rally? 1. Ifthe rally is due to more short covers than long buyers then, itis likely to be declined in future 2. If the rally is due to actual new buying, the trend is likely to continue How can I tell which type of rally is? (Short covering or long buying) Watch the volume and momentum of price changes © IF PRICE is rising with momentum and VOLUME is rising, it means the market is STRONGLY BULLISH. The move Is by long buyers. HARMONEY * IF PRICE is rising but VOLUME is falling and momentum also falling, it means the market is WEAKLY BULLISH. The move is by short covering. DIVERGENCE. Why PRICE is rising and VOLUME rising in the rally? For price to overcome selling pressure created by 1. Profittaking selling order 2, New selling order at the market top What indicates HARMONEY & DIVERGENCE? It should be noted that the price movement will be in direct proportion to the amount of effort expended. * If the effort is in harmony with the result it is a sign of the strength of the movement and suggests its continuation. If the effort is in divergence with the result it is a sign of weakness of the movement and suggests a reversal * The result tends to be in direct proportion to harmony or divergence. If divergence is suggested, a smaller divergence tends to generate a smaller result, and a larger divergence, a larger result. On the other hand, If hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! anr114/28, 4'52 PM Volume Price Acton Analysis in Trading - Price Analysis harmony is suggested, a greater effort will cause a movement of long duration; while a slight effort will be reflected in a movement of shorter duration, General Rules for Interpreting Volume to determine the health of a trend 1. If PRICE is rising and VOLUME is risi 1g, it means the market is STRONGLY BULLISH. Volume helps us to determine the health of a trend. An uptrend is strong and healthy if volume increases as the price move with the trend and decreases when the price goes counter-trend (correction periods or ‘pullbacks’) 2. If PRICE is rising but VOLUME is falling, it means the market is WEAKLY BULLISH. Uptrend weakening ‘When prices are rising and volume is decreasing, it tells that a trend is unlikely to continue. Price may still attempt to rise at a lesser pace, and once sellers take control (which is usually signified by an increase in volume on a down bar or candle), prices will fall 1. If PRICE is falling, VOLUME is rising, the market is STRONGLY BEARISH. 2. If PRICE is falling and VOLUME is falling, the market is WEAKLY BEARISH. Downtrend weakening Price-Volume Relationships Price-Volume Relat inship Implication for the Trend Price is rising and Strong Uptrend Volume is rising Price is rising and Uptrend Weakening Volume is declining Price is declining and Strong Downtrend Volume is rising Price is declining and Downtrend Weakening Volume is declining Understanding Market Structure through Volume Swing Analysis ‘The movements of the price do not develop in periods of time of equal duration, but they do it in the swing of different sizes, for this reason, we have to study the relationship between the upward and downward swings hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! sir114/28, 4'52 PM Volume Price Acton Analysis in Trading - Price Analysis ‘The swing of the market furnishes a clear insight into changes in supply and demand. By learning to judge all sizes (both up and downswings) of market swings, you will gradually learn to spot the time when a rally, and the time when a reaction has stopped and is about to reverse. These are the turing points. Here we have to find out 1. Strength and weakness of swing through volume analysis or find out harmony and divergence 2. volume analysis at the key level for decision making Strength and weakness of swing through volume analysis ‘There are two methods to find out strengths and weaknesses in swing through volume analysis 1) Compare the volume of the current price swing with the volume of the previous price swing in the same direction? What itis telling? Harmony or divergence 2) Compare the volume of the current price swing with the volume of the previous price swing in the opposite direction? What itis telling? harmony or divergence A Compare the volume of the current price swing with the volume of the previous price ‘swing in the same direction. This means comparing the current impulse swing vs. the previous impulse swing. What it is telling? Volume increasing or decreasing or the same volume. Let's understand the divergence hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! wir114/23, 4:52 PM Volume Price Acton Analysis in Trading - Price Analysis SWING B Erinn DIVERGENCE HARMONEY A VOLUME * Compare the volume of UP-swings (A) and upswing (B). Note the decreased VOLUME of the swing (B), indicating a reduction in bullish VOLUME. Weakness is appearing on the bullish side. * When prices are rising and volume is decreasing, it tells that the trend is unlikely to continue. Price may still attempt to rise at a slower pace, and once sellers take control (which is usually signified by an increase in volume on a down bar or candle), prices will fall * The move is by short-covering RALLY * A low volume upswing as the market attempts to rally above these old tops is telling you clearly that the market is not going anywhere * High volume up bars in the same areas is certainly indicating that there is supply in the market. If the market makers and specialists are stil bullish they will have to absorb any supply that appears, this will allow prices to continue up. Let’s understand harmony hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! mr114/23, 4:52 PM Volume Price Acton Analysis in Trading - Price Analysis SWING B DIVERGENCE * When comparing current upswing B volume with previous upswing a volume. Note the increasing VOLUME ‘on A swing, indicating an increase in BULLISH STRENGTH. BULLISH price swings are showing signs of strength * RISING PRICE IS ACCOMPANIED BY RISING VOLUME. It means the market is STRONGLY BULLISH. Price will continue the trend * High volume up bars in the same areas is certainly indicating that there is supply in the market. If the market makers and specialists are stil bullish they will have to absorb any supply that appears, will allow prices to continue up Compare the volume of the current price swing with the volume of the previous price swing in the opposite direction. Means compare impulse volume vs, retrace (pullback) volume. In general, a healthy trend has increasing volume on impulse move and decreasing volume on retrace volume. Let's understand harmony hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis!114/23, 4:52 PM Volume Price Acton Analysis in Trading - Price Analysis SWING B I YA A aaa a —— | elm ULL * When comparing current downswing B volume with previous upswing A volume. it shows volume decreasing. Strength is now clearly on the bullish side. * Price movement is expected in the direction of strength. When prices are falling and volume is decreasing, it tells traders that the trend is unlikely to continue in the down direction. Price may stil attempt to fall at a slower pace, and once buyers take control (which is usually signified by an increase in volume on an up bar or candle), prices will move up Let’s understand the divergence hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! err114/23, 4:52 PM Volume Price Acton Analysis in Trading - Price Analysis SR acto rape VOLUME When comparing the current upswing B volume with the previous upswing A volume IT SHOWS PRICE is falling and VOLUME is rising, it means bearish PRESSURE OVERCOME bullish PRESSURE. TREND CONTINUE IN down DIRECTION Please watch the following video if you want to learn and understand the Volume Price Action Analysis concept in a better way. hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! son71814/23, 4:52 PM Volume Price Acton Analysis in Trading - Price Analysis Volume Price Action Analysis in Trading. How to use volume price analysis in stc In the next article, | am going to discuss Volume Spread Analysis in Trading in detail, Here, in this article | try to explain the Volume Price Action Analysis in Trading. | hope you enjoy this Volume Price Action Analysis in Trading article. Please join my Telegram Channel and YouTube Channel as well as my Facebook Group to leam more and clear your doubts. ~ Previous Lesson Next Lesson - Volume Analysis in Trading Volume Spread Analysis in Trading 9 thoughts on “Volume Price Action Analysis” KENNEDY JULY 30, 2020 AT 2:41 PM | enjoyed this tutor. | have a question My question is: Ifa candle is bullish (green) and the volume of the candle is bearish in color (red), what does it signifies or what is the candle telling us about the market? Reply hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! nr114/28, 4'52 PM ‘Volume Price Action Analysis in Trading Price Analysis PRAKASH KUMAR ‘APRIL 10, 2021 AT 433 PM GAPDOWN Reply RAJENDRA ‘APRIL 28, 2023 AT 12555 PM It tells the candle itis a bullish volume but bulls are not able to push the price above the close of the previous close Reply SHABBIR ‘OCTOBER 30, 2020 AT 601 PM sir one article on base candle with highest volume in detail and secrets Reply RUPESH BATRA ‘OCTOBER 31, 2020 AT 850 AM Very nice,thanks, keep the good work continue Reply RUPESH BATRA (OCTOBER 31, 2020 AT 853 AM Make some videos on swing trading and on moving average also , this tutorial is very nice , I'm regularly following you on telegram and also ur subscriber on you tube, thanks Reply (MANGULU RANA MARCH 14,2021 AT 12:15 PM hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! san7114/28, 4'52 PM ‘Volume Price Action Analysis in Trading Price Analysis Sir me ap ka video dekha bahuth achalaga. Me ap ko thankyou baltahu or ap ka all video me dek ne kelly chahatahu please sms. Reply SAGAR JULY 23, 2022 AT 11:27 AM Thank you so much Reply RAM FEBRUARY 16,2023 AT 10:12 PM Very very nice explanation, Thank you so much sir Reply Leave a Reply Your email address will not be published. Required fields are marked * Comment * Name* Email* Website hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! s3n7814/29, 4:52 PM ‘Volume Price Action Analysis in Trading Price Analysis Price Action © How to Study Candlestick © Candlestick Analysis in Trading © Price Action Analysis © Advanced Price Action Analysis © Thrust Pullback and Measuring Move Analysis © How to Trade with Smart Money © Supply and Demand Zone Trading © How to Day Trade with Trend © Multiple Time Frame Analysis © Head and Shoulder Patterns © How to Trade with Support and Resistance © Advanced Candlestick Analysis © Trendline Trading Strategy © WRB Trading Strategy Day Trading Strategies © Wa? Trading Strategy © Gap Trading Strategies © Intraday Open High Open Low Trading Strategy © PIN BAR Trading Strategy © Trading with Sideways Price Action Area © Pullback Trading Strategy © Intraday Breakout Trading Strategy Risk Management © 3 Techniques for Risk Management in Trading © 4 Things | Wish | Knew When | Started Trading Stock Selection & Live Scanner © How to Make Your Own Day Trading Scanner © Stock Selection for Intraday Trading Intraday Trading Course © Intraday Trading Course © Multiple Timeframe Analysis for Intraday Trading © Wa? Trading © Opening Range Trading Strategy hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! snr114/28, 4'52 PM ‘Volume Price Action Analysis in Trading Price Analysis Opening Range Breakout Volume Price Action Analysis Volume Analysis in Trading Volume Price Action Analysis Volume Spread Analysis in Trading Candlestick Pattern Analysis, Finding Entry Opportunity using Volume Spread Analysis Spring and Upthrust Trading Strategy \VSA Trading Strategy Option Chain Analysis Option Chain Analysis in Trading Indicator RSI Trading Strategy BTsT BIST Trading Strategy ‘TECHNICAL ANALYSIS MASTERCLASS Technical Analysis in Trading Market Structure in Trading Understanding Market Structure through Swing Supply and Demand Trading (Part - 1) Supply and Demand Trading (Part - 2) Chart Patterns ‘Top 7 Chart Patterns in Trading Every Trader Needs to Know How to Trade Bull Flag and Bear Flag Pattern CPR and Pivot Point and VWAP Trading System Pivot Point Trading Strategies Central Pivot Range Trading Strategy Swing Trading Strategy Using Pivot Point Trading Strategies Darvas Box Trading Strategy Volatility Contraction Pattern Trading Strategy Volume Spike Trading Strategy Fibonacci Trading Strategy Fibonacci Trading Strategy using Confluence Factor hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! ssn7114/28, 4'52 PM Volume Price Acton Analysis in Trading - Price Analysis Smart Money Trading Strategies Pullback Trading Master Class How to Become a Successful Trader Most Popular Trading Books Cs mec mer CeO au ee Ca a eee ASP.NET Core Tutorials ASP.NET MVC Tutorials ASP.NET Web API Tutorials C Tutoria NET Programs Tutorials CNET Tutorials Cloud Computing Tutorials Data Structures and Algorithms Tutorials Design Patterns Tutorials DotNet Interview Questions and Answers oe ea a a oR Oc Se ee ce Mera Rc ee et eS eee se cet ASP.NET ¢ CONROE MCL c GETITON De ao eae Ee Google Play hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis!114/28, 4'52 PM Volume Price Acton Analysis in Trading - Price Analysis hitpsdotnetutorals. nevlessonWvalume-price-acton-analysis! snr114/28, 4'52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. Volume Spread Analysis in Trading Back to: Trading with Smart Money Volume Spread Analysis in Trading In this article, | am going to discuss Volume Spread Analysis in Trading. Please read our previous article, where we discussed Volume Price Action Analysis in detail. At the end of this article, you will understand the following pointers. 1, What is volume spread analysis? 2, How to use volume spread analysis in trading? 3, Market structure with respect to volume spread analysis 4, Volume spread analysis 5. Selling climax 6. Stopping volume 7. How to trade based on selling climax and stopping volume? MARKET STRUCTURE With Respect To Volume Spread Analysis Let us understand bullish trend formation, The bearish trend turned into the bullish trend Price goes through 4 phases. These are Phase A. Stopping the previous bearish trend Phase B. Construction of the cause (accumulation) Phase C. Test for confirmation (testing supply after accumulation) Phase D. Bullish Trend out of range. hitpsdotnetutorals. nevlessonWvolume-spread-analysis-n-trading! +2014/28, 4:52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. PHASE A. PHASE B PHASE C PHASE D Largest recto back [({<————_ Ultra high__ > Test of supply volume ‘We will come to this market structure later. Just understand the overall concept How to analyze volume activity in the chart 1. Through volume price action(VPA) (discussed in the Previous article) 2. Through volume spread analysis(VSA) (we will discuss in this article) Let’s understand how to differentiate different types of volumes like 1. Average volume 2. Below average volume 3, High volume 4, Utrachigh volume Now we have four types of volume. Let's find out in the chart Volume always moves in a cycle. Rule ~ You can visually compare Mountain Peaks to identify volume peaks structure. The key is to understand the structure of the peak clearly. Volume peak has the following characteristics: Rising Volume — Peak (Highest Point)— Falling Volume hitpsdotnetutorals. nevlessonWvolume-spread-analysis-n-trading! 21201814/23, 4:52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. RISING VOLUME FALLING VOLUME ULTRA HIGH VOLUME AS THIS VOLUME GREATER ‘THAN LAST PICK VOLUME Pick HIGH VOLUME Pick HIGH VOLUME Pick ABOVE AVERAGE VOLUME AVERAGE VOLUME BELOW AVERAGE VOLUME Average and Above Average Volume: Above Average Volume is the Highest Volume in the current session which is higher than the average volume but itis lower than the previous peak Volume. Average Volume is the volume that coincides with Moving Average 20 of the volume indicator High volume and Ultra-high volume: high volume is volume equal to the previous pick volume. Ultra-High Volume is the Highest Volume in the current session. It is higher than the previous peak volume. aa ne ay ides: tae tO DO HIGH VOLUME ULTRA HIGH ULTRA HIGH ABOVE AVERAGE Vo ime VOLUME VOLUME Bearish and Bullish Volume Bearish Volume is marked in Red and it shows bearish activity. Bullish Volume is marked in green and it shows bullish activity. if demand volume is greater than supply volume then overall bullish volume itpsidotnetutorals.netlessonvvolume-spread-analysis 20114/23, 4:52 PM Volume Spread Analysis in Trading - Price Action Aralysis. Test of supply volume Sign of strength means. The stopping action of the downtrend Phase A. Stopping the previous bearish trend (the sign of strength) Again recall the volume interpretation + Smart money has no interest in the upside ~ Low volume, + Smart money is selling into the public buying — Higher volume. © The ultra-high volume-the classic trap of "Smart Money Now we have found two important rules for volume spread analysi: * Rule Number 1— Weakness appears on an Up candle. Supply when it comes, it comes on an up candle. * Rule Number 2~ Strength Appears on a Down candle, Demand when it comes, it comes on a down candle. ‘Some volume spread analysis that suggests the end of the downtrend. These are 1. Selling climax 2. Stopping volume 3, End of falling market hitpsdotnetutorals. nevlessonWvolume-spread-analysis-i-trading! 20114/28, 4'52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. Now we will discuss these 3 pointers What is a selling climax? This condition marks the end of the approaching end of a particular downtrend. This panic selling by retailers (or the Public) creates an extreme expansion of the price spread and an expansion of the volume, this action may occur over one day or over several days which is matched by buying (demand) of: 1. experienced smart money 2. large interests The classic characteristics of a selling climax: * There must be a trend to reverse. (after a significant extended down move on the time frame of interest ) * The trend will accelerate to the downside with wide spreads down closing in the middle or high * Volume expands dramatically © Often occurs one more than one bar * Must be tested for entry DIVERGENCE HARMONEY Peery voLuMe Decay itpsidotnetutorals.netlessonvvolume-spread-analysis DIVERGEN Seo cant 91201814/28, 4'52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. aa wm oe a Se i mo Aselling climax is generally followed by a secondary reaction why? ‘Two possible outcomes after selling climax 1. Either the professional money is BUYING into the SELLING [see the end of a DOWN market] 2, There is a trading range OR technical support level to the left and. (trend continuation) Let's first understand for a trend continuation after selling the climax If buying during the Selling Climax was principally for the purpose of supporting prices temporarily and checking a panic or relieving a panicky situation, this support stock will continue after a technical bounce from support. If price supply sufficiently to drive prices through the lows of the climax day and bring about a new decline, that is, a resumption of liquidation. hitpsdotnetutorals. nevlessonWvolume-spread-analysis-i-trading! +0120114/23, 4:52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. Trend reversal after selling climax After a technical rally, if prices test climax low with volume decreasing and hold around or above the climax lows, then we have an indication of support and the completion of liquidation. This tells us that there is no selling Pressure or no Supply, (i.e. no more sellers) an obvious conclusion that the market is going to rally as shown on the right side of the image If the test’ is successful, we can expect higher prices, especially if the test is on low volume and narrow spread down bar into the same area where you first saw the very high volume. This is a strong BUY signal. Time To Buy The Market AFTER TEST 1. Look for selling climax 2, Wait for the successful test(/ower volume and narrower spread)OF selling climax day low 3. Any reversal candlestick pattern(like engulfing or outside bar or pin bar) 4. Buy above that candle 5, STOP LOSS below the low itpsidotnetutorals.netlessonvvolume-spread-analysis 11120114/23, 4'52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. Larges reactiorNpullback Selling climax Test of suppl: Ultra high _> volume +e a eso we it . “al A. only Jud at - ty, jr = “fl ro i J pyle ‘il ir setingcinox | iM low volume test of selling climaxlow hitpsdotnetutorals. nevlessonWvolume-spread-analysis-i-trading! 1220114/23, 4'52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. 4 jt hi | { i oh pe! 1M ri SEELING CLIMAX ">| Py ~ * | SPRINGTEST = Stopping volume What is stopping volume? * To stop a down move and demand has to overcome the supply * Its the volume of smart money coming into the market and stopping It from falling further * What is happening is that the weight of the selling pressure has become so great at this point, that even the ‘smart money moving into the market has the insufficient muscle to stop the market from falling in one session. It takes two or three sessions for the brakes to be applied and is like our tanker. Characteristics of stopping volume * Demand overcoming supply * Occur after an extended down move * Volume expand significantly © Bar close-mid or high and body narrow (lower shadow) * Often occurs one more than one bar. The first bar close may be low 2 bar close-mid or high hitpsdotnetutorals. nevlessonWvolume-spread-analysis-i-trading! 1320114/23, 4:52 PM \Volume Spread Analysis in Trading - Price Action Aralysis. HARMONE 1 vERGENCE a7 imey= SHADOW LUME INCREASING AVERAGE VOLUME STOPPING VOLUME ‘Two possible outcomes after seeing stopping volume Ifthe volume had represented SELLING, how can the spread be narrow? There are only two possible outcomes for a narrow spread DOWN-day on very high volume. 1. Either the professional money is BUYING into the SELLING [see the end of a DOWN market]. 2, There is a trading range to the left and the professional money is prepared to absorb the buying from traders. from the support region Trend continuation after seeing stopping volume This topic will be covered in the next separate arlicle Trend reversal after seeing stopping volume After seeing the stopping volume. If the ‘test’is successful, we can expect higher prices, especially if the test is on low volume and narrow spread down bar into the same area where you first saw the very high volume. This is a strong BUY signal hitpsdotnetutorals. nevlessonWvolume-spread-analysis-n-trading! 1420114/28, 4'52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. nll \ SELLING CLIMAX oS en (i How to trade after seeing stopping volume? Time To Buy The Market AFTER TEST 1. If the day closes on the lows, you now have to wait to see what happens the next day. 2. Ifthe next day is level or up, this must surely show buying on the previous day as well, 3, wait for the market to come back down into the area of stopping volume on LOW VOLUME narrower spread 4, The time to buy the market is when we begin to trend up As the trend begins. Any reversal candlestick pattern (like engulfing or outside bar or pin bar). This shows us that there are no sellers or no Supply 5. Buy above that candle 6. STOP LOSS below the low In the next article, | am going to discuss the followings, 1, How testing is down and different types of testing 2. Finding support and resistance based on the volume spread analysis method Please watch the following video if you want to learn and understand Volume Spread Analysis in the Trading concept in a better way. hitpsdotnetutorals. nevlessonWvolume-spread-analysis-i-trading! +91201814/23, 4:52 PM Volume Spread Analysis in Trading - Price Action Aralysis. Volume Spread Analysis(VSA). How to use volume ... In the next article, | am going to discuss Reversal Candlestick Pattern Analysis in detail. Here, in this article, | try to explain Volume Spread Analysis in Trading. | hope you enjoy this article. Please join my Telegram Channel and YouTube Channel as well as my Facebook Group to leam more and clear your doubts, = Previous Lesson Next Lesson ~ Volume Price Action Analysis Candlestick Pattern Analysis 1 thought on “Volume Spread Analysis in Trading” FRANK FEBRUARY 1, 2022 AT 11:08 PM Hello, ‘Thx for your very good explanations. Ihave got one question regarding the volume indicator: The bars of the standard MT4 volume indicator just tell you whether the volume was higher in comparison to the previous bar (then the current bar becomes red or vice versa hitpsdotnetutorals. nevlessonWvolume-spread-analysis-n-trading! 16120114/28, 4'52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. But when | see it right, your volume indicator shows red bars for example when the selling power was higher. And the volume is displayed by the hight of the volume candle, ‘When | understand it right the standard MT4 indicator does not show whether the selling power was higher but only the volume quantity. Could you please let me know which volume indicator you use, Thx Reply Leave a Reply Your email address will not be published. Required fields are marked * Comment * Name* Email* Website Sa’ Price Action How to Study Candlestick Candlestick Analysis in Trading Price Action Analysis, hitpsdotnetutorals. nevlessonWvolume-spread-analysis-i-trading! +720‘1423, 452 PM ‘Volume Spread Analysis in Trading - Price Action Analys's ‘Advanced Price Action Analysis Thrust Pullback and Measuring Move Analysis How to Trade with Smart Money Supply and Demand Zone Trading How to Day Trade with Trend Multiple Time Frame Analysis Head and Shoulder Patterns How to Trade with Support and Resistance Advanced Candlestick Analysis Trendline Trading Strategy WRB Trading Strategy Day Trading Strategies ‘WAP Trading Strategy Gap Trading Strategies Intraday Open High Open Low Trading Strategy PIN BAR Trading Strategy Trading with Sideways Price Action Area Pullback Trading Strategy Intraday Breakout Trading Strategy Risk Management 3 Techniques for Risk Management in Trading 4 Things | Wish | Knew When | Started Trading ‘Stock Selection & Live Scanner How to Make Your Own Day Trading Scanner Stock Selection for Intraday Trading Intraday Trading Course Intraday Trading Course Multiple Timeframe Analysis for intraday Trading WAP Trading ‘Opening Range Trading Strategy ‘Opening Range Breakout Volume Price Action Analysis Volume Analysis in Trading Volume Price Action Analysis Volume Spread Analysis in Trading Candlestick Pattern Analysis hitpsdotnetutorals. nevlessonWvolume-spread-analysis-n-trading!114/28, 4'52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. Finding Entry Opportunity using Volume Spread Analysis Spring and Upthrust Trading Strategy \VSA Trading Strategy Option Chain Anal Option Chain Analysis in Trading Indicator RSI Trading Strategy BIST BIST Trading Strategy ‘TECHNICAL ANALYSIS MASTERCLASS Technical Analysis in Trading Market Structure in Trading Understanding Market Structure through Swing Supply and Demand Trading (Part - 1) Supply and Demand Trading (Part ~ 2) Chart Patterns Top 7 Chart Patterns in Trading Every Trader Needs to Know How to Trade Bull Flag and Bear Flag Pattern CPR and Pivot Point and VWAP Trading System Pivot Point Trading Strategies Central Pivot Range Trading Strategy Swing Trading Strategy Using Pivot Point ‘Trading Strategies Darvas Box Trading Strategy Volatility Contraction Pattern Trading Strategy Volume Spike Trading Strategy Fibonacci Trading Strategy Fibonacci Trading Strategy using Confluence Factor ‘Smart Money Trading Strategies Order Block Trading Strategy Smart Money Market Structure Trading Strategy Breaker Block Trading Strategy Liquidity Hunting o Stop Hunting in Trading Sniper Order Block Entry Trading Strategy hitpsdotnetutorals. nevlessonWvolume-spread-analysis-i-trading!114/28, 4'52 PM ‘Volume Spread Analysis in Trading - Price Action Aralysis. Pullback Trading Master Class How to Become a Successful Trader Most Popular Trading Books ontact ADO.NET Tutorial Angular Tutorials ASP.NET Core Blazor Tuturi ASP.NET Core Tutorials ASP.NET MVC Tutorials ASP.NET Web API Tutorials C Tutorials C#.NET Programs Tutorials C#.NET Tutorials Cloud Computing Tutorials, Data Structures and Algorithms Tutorials Design Patterns Tutorials DotNet Interview Questions and Answers De oe ae eee Reco Pane eRe ae art Se eae eo ee ee ase ea ASP.NET Core Web API Tutorials HTML Tutorials GETITON Pea eaten le TeTefe| Aad oa itpsidotnetutorals.netlessonvvolume-spread-analysis 201201814/28, 4'52 PM Candlestick Pattom Analysis - Volume Price Action Analysis, Candlestick Pattern Analysis Back to: Trading with Smart Money CANDLESTICK Pattern Analysis In this article, 1 am going to cover all Reversal Candlestick Pattern Analyses in detail. In the previous article, we have discussed Candlestick Analysis in Trading, PIN BAR Trading Strategy, Wide range of candle analyses. And in this article, we will cover 2 candle reversal patterns Outside Reversal Pattern BULLISH OUTSIDE REVERSAL PATTERN STRUCTURE 1. The first candle is a narrow range candle or Doji 2. The second candle completely engulfs the first candle and closes above the first candle high. 3. The second candle is low below the first candle low, but the close must be above the first candle close and high above the previous candle high 4, The second candle should be accompanied by a high volume hitpsdotnotutorals. ntvlessonicandlastickpatter-analysis!1814/28, 4'52 PM Candlestick Pattom Analysis - Volume Price Action Analysis, HIGH NARROW RANGE CANDLE PREFER DOJI ——l WIDE RANGE CANDLE CLOSE ABOVE THE HIGH Low OF SMALL CANDLE “aromas 1 \ | i 1 ‘i | “yaa = a OUTSIDE REVERSAL PATTERN PSYCHOLOGY ‘What exactly is going on at these levels? Let us understand the two candlestick pattern psychology. The first candle should be narrow or doj. hitpsdotnotutorals. ntvlessonicandlastickpatter-analysis! amt1814/28, 4'52 PM Candlestick Pattom Analysis - Volume Price Action Analysis, ‘A Doji represents either one of two things: * Buyers and sellers are equally strong * Indecision in the market if appears after an extended move Basically, smart money testing the selling pressure below support to make sure there is no new business to be done at these levels. When no selling pressure below the low of the previous candle, smart money starts to drive price up Basically, smart money testing the selling pressure below ‘support to make sure there is no new business to be done at t i l = these eves When no seling pressure below fo of previous - ancle smertmoney str ave price up i ath yi i How do Reversal candlestick Patterns work? yt Reversal candlestick psychology is one of the reasons why reversal patterns are such effective predictors of price reversals. Here's an example: tps idotnetutorals.netlessonicandlastick-patter-analysis! sit1814/28, 4'52 PM Candlestick Pattom Analysis - Volume Price Action Analysis, The bullish OUTSIDE REVERSAL pattern has formed and the market is moving up. All the previous sellers are now at loss, and will be looking to exit their positions with BUY trades, forming an area of support. ‘SUPPOR ZONE | Itprces retrace back nto the range ofthe bearish candlestick | | i body, you can bet that the previous sellers will quickly BUY to close their trades, pushing the market price back up 4 LOW OF BULLISH OUTSIDE REVERSAL PATTERN As support hitpsdotnotutorals. ntvlessonicandlastickpatter-analysis! am1814/28, 4'52 PM Candlestick Pattom Analysis - Volume Price Action Analysis, 4a sms we oa sade AXISEANK BULLISH OUTSIDE et rw atte BULLISH OUTSIDE REVERSAL PATTERN should be followed by bullish price action. One more bull candle should be formed to confirm the bullish reversal or validated the bullish engulfing candle HDFCBANK BULLISH OUTSIDE REVERSAL PATTERN followed by bullish pice action by, FAILED TO FOLLOWTHROUGH They will work best in trending conditions. Trade with the trend. In an uptrend, bullish outside reversal patlerns work better, tps idotnetutorals.netlessonicandlastick-patter-analysis! sit1814/28, 4'52 PM Candlestick Pattom Analysis - Volume Price Action Analysis, > a= a oY eS RY ta HOFCEANK ie" ii i Ly t wt Pr \ he, iw ‘yet They will work best in trending conditions i i Wea ity Trade from support or resistance level How do we trade it? 1, Buy above the bullish Engulfing pattem 2. Stop loss below of the pattern tps idotnetutorals.netlessonicandlastick-patter-analysis! ent1814/28, 4'52 PM Candlestick Pattom Analysis - Volume Price Action Analysis, ENTRY ABOVE OF THE ERN HIGH STOP LOSS BELOW OF THE PATTERN Low Stay tuned | will add the remaining reversal patter to this article. In the next article, | am going to discuss Finding Entry Opportunities using Volume Spread Analysis in Trading. Here in this article, | try to explain Reversal Candlestick Pattern Analysis in detail. 1 hope you enjoy this article. Please join my Telegram Channel and YouTube Channel as well as my Facebook Group to leam more and clear your doubts, + Previous Lesson Next Lesson + Volume Spread Analysis in Trading Finding Entry Opportunity using Volume Spread Analysis 1 thought on “Candlestick Pattern Analysis” SHEKHER NISHANK FEBRUARY 16,2021 AT 7.29 AM hitpsdotnotutorals. ntvlessonicandlastickpatter-analysis! mm1814/28, 4'52 PM Candlestick Pattom Analysis - Volume Price Action Analysis, what does average lower wick represent 22? (a) rejection from the level (b) warning that market is showing that it can move till that level and we should wait for the call trade Reply Leave a Reply Your email address will not be published. Required fields are marked * Comment * Name* Email* Website Price Action How to Study Candlestick Candlestick Analysis in Trading Price Action Analysis ‘Advanced Price Action Analysis Thrust Pullback and Measuring Move Analysis How to Trade with Smart Money Supply and Demand Zone Trading How to Day Trade with Trend Multiple Time Frame Analysis Head and Shoulder Patterns tps idotnetutorals.netlessonicandlastick-patter-analysis! amt1423, 452M Candlestick Pattem Analysis - Volume Price Action Analysis How to Trade with Support and Resistance Advanced Candlestick Analysis Trendline Trading Strategy WRB Trading Strategy Day Trading Strategies WAP Trading Strategy Gap Trading Strategies Intraday Open High Open Low Trading Strategy PIN BAR Trading Strategy Trading with Sideways Price Action Area Pullback Trading Strategy Intraday Breakout Trading Strategy Risk Management 3 Techniques for Risk Management in Trading 4 Things | Wish | Knew When | Started Trading Stock Selection & Live Scanner How to Make Your Own Day Trading Scanner Stock Selection for Intraday Trading Intraday Trading Course Intraday Trading Course Multiple Timeframe Analysis for Intraday Trading war Trading ‘Opening Range Trading Strategy ‘Opening Range Breakout Volume Price Action Analysis Volume Analysis in Trading Volume Price Action Analysis Volume Spread Analysis in Trading Candlestick Pattern Analysis Finding Entry Opportunity using Volume Spread Analysis Spring and Upthrust Trading Strategy \VSA Trading Strategy Option Chain Analysi Option Chain Analysis in Trading Indicator tps idotnetutorals.netlessonicandlastick-patter-analysis! amt1814/28, 4'52 PM Candlestick Pattom Analysis - Volume Price Action Analysis, RSI Trading Strategy BTsT BIST Trading Strategy ‘TECHNICAL ANALYSIS MASTERCLASS Technical Analysis in Trading Market Structure in Trading Understanding Market Structure through Swing Supply and Demand Trading (Part - 1) Supply and Demand Trading (Part - 2) Chart Patterns Top 7 Chart Patterns in Trading Every Trader Needs to Know How to Trade Bull Flag and Bear Flag Pattern CPR and Pivot Point and VWAP Trading System Pivot Point Trading Strategies Central Pivot Range Trading Strategy Swing Trading Strategy Using Pivot Point 1g Strategies Darvas Box Trading Strategy Volatility Contraction Pattern Trading Strategy Volume Spike Trading Strategy Fibonacci Trading Strategy Fibonacci Trading Strategy using Confluence Factor ‘Smart Money Trading Strategies Order Block Trading Strategy Smart Money Market Structure Trading Strategy Breaker Block Trading Strategy Liquidity Hunting or Stop Hunting in Trading Shiper Order Block Entry Trading Strategy Pullback Trading Master Class 6 Price Action Pullback Trading Strategy Types You Should Know ‘Top Mistakes to Avoid When Pullback Trading and How to Overcome Them? Pullback or Reversal in Trading: How to Spot the Difference 2 Pullback Trading Strategies You Must Know How to Become a Successful Trader Free Price Action Trading Course tps idotnetutorals.netlessonicandlastick-patter-analysis! son1814/28, 4'52 PM Candlestick Pattom Analysis - Volume Price Action Analysis, Most Popular Trading Books ed eee ae et ace kere ce ASP.NET Core Tutorials ASP.NET MVC Tutorials ASP.NET Web API Tutorials C Tutorials CHNET Programs Tutorials C#.NET Tutorials Cloud Computing Tutorials Sete en eon ee ee ree Java Tutorials Entity Framework Tutorials JavaScript Tutorials LINQ Tutorials Python Tutorials Sel ate Re ee ee CT cee ac Java Struts Tutorials C++ Tutorials JSP Tutorials MySQL Tutorials Oracle Tutorials ASP.NET Core Web API Tutorials HTML Tutorials : GET ITON D> oo ie Play | M Sir how | can get your notes in book form Reply Leave a Reply Your email address will not be published. Required fields are marked * Comment * Name* Email* hitpssidotnetutorals.netlessonivsa-tracing stvategy! s3n7814/29, 4:59 PM Website Price Action \VSA Trading Strategy in Deal - Volume Spread Analysis How to Study Candlestick Candlestick Analysis in Trading Price Action Analysis ‘Advanced Price Action Analysis Thrust Pullback and Measuring Move Analysis How to Trade with Smart Money Supply and Demand Zone Trading How to Day Trade with Trend Multiple Time Frame Analysis Head and Shoulder Patterns How to Trade with Support and Resistance Advanced Candlestick Analysis Trendline Trading Strategy WRB Trading Strategy Day Trading Strategies ‘WAP Trading Strategy Gap Trading Strategies Intraday Open High Open Low Trading Strategy PIN BAR Trading Strategy Trading with Sideways Price Action Area Pullback Trading Strategy Intraday Breakout Trading Strategy Risk Management 3 Techniques for Risk Management in Trading 4 Things | Wish | Knew When | Started Trading Stock Selection & Live Scanner How to Make Your Own Day Trading Scanner Stock Selection for Intraday Trading Intraday Trading Course Intraday Trading Course Multiple Timeframe Analysis for intraday Trading hitpsdotnetutorals. netlessonivea-rading-statogy! snr1423, 453M \V8A Trading Strategy in Deta- Volume Spread Analysis WAP Trading ‘Opening Range Trading Strategy ‘Opening Range Breakout Volume Price Action Analysis Volume Analysis in Trading Volume Price Action Analysis Volume Spread Analysis in Trading Candlestick Pattern Analysis Finding Entry Opportunity using Volume Spread Analysis Spring and Upthrust Trading Strategy \VSA Trading Strategy Option Chain Analysis Option Chain Analysis in Trading Indicator RSI Trading Strategy BTsT BIST Trading Strategy ‘TECHNICAL ANALYSIS MASTERCLASS Technical Analysis in Trading Market Structure in Trading Understanding Market Structure through Swing Supply and Demand Trading (Part - 1) Supply and Demand Trading (Part - 2) Chart Patterns ‘Top 7 Chart Patterns in Trading Every Trader Needs to Know How to Trade Bull Flag and Bear Flag Pattern CPR and Pivot Point and VWAP Trading System Pivot Point Trading Strategies Central Pivot Range Trading Strategy Swing Trading Strategy Using Pivot Point Trading Strategies Darvas Box Trading Strategy Volatility Contraction Patter Trading Strategy Volume Spike Trading Strategy Fibonacci Trading Strategy hitpsdotnetutorals. nevlessonivea-rading.stategy! ssn71814/23, 4:53 PM SA Trading Strategy in Deal - Volume Spread Analysis. Smart Money Trading Strategies Pullback Trading Master Class How to Become a Successful Trader Most Popular Trading Books Rete os ae ee amt ca et arn oe canal ASP.NET Core Tutorials ASP.NET MVC Tutorials ASP.NET Web AP! Tutorials C Tutorials C#.NET Programs Tutorials C#NET Tutorials Cloud Computing Tutorial Data Structures and Algorithms Tutorials Design Patterns Tutorials DotNet Interview Questions and Answers Java Tutorials Entity Framework Tutorials JavaScript Tutorials LINQ Tutorials Python Tutorials SOLID Principles Tutorials SQL Server Tutorials Trading Tutorials JDBC Tutorials Java Servlets Tutorials Java Struts Tutorials C++ Tutorials JSP Tutorials MySQL Tutorials Oracle Tuto ASP.NET Core Web API Tutorials HTML Tutorials GETITON t Net Tutorials | Website Design by Sun Google Play hitpsdotnotutorals.nevlessonivea-rading-siategy!814/28, 4.53 PM SA Trading Strategy in Detal- Volume Spread Analysis, hitpssidotnetutorals.netlessonivsa-tracing stvategy! snrVolume trading awe AY USeao@onoco What IS volume? Perry SET a Ce aL RAV el Teale) Pao aee MOST CONFUSING BY RETAILERS PAV) wate laser 1a Only method you should know(basic discuused) Logic SummaryWhat IS volume? 1. Price = direction of the trend 2. Volume =strength of the trend 3. Price and volume confirms the market direction 4. Divergence leads to market weakness * For Each transaction there have a buyer anda seller. | mean buyers always equal to sellers . * Then what is buying and selling volume? ic BoWhat is buying and selling ells i BoRelative volume RoRULE 1: harmony If price rallies and has spread and Ne nseconreana eee and decrease on retraces against the dominant trend Key-4[eRoRULE 4: climax VOLUME RoIf ry. f saya l , Trost tertag + yr IRULE 4: climax VOLUME Pru eer lag Ae Tel Ronse R TL Le) Cie aoa Tre RR Ce RCL) PE NAD oe CUE las i BoRULE 5: STOPPING ACTION HarmonyHarmony price ranges and’ volume according) \\ Divergence and high volumeRULE 6: significant volume VET atmo ee TesTallieclag price highs and lows .As the market approaches those levels again, is volume more (showing strength) or less (showing weakness) than the last ARO cOCaoie fr} What to do? HoIs ly QoL TOW VOLUME TEST PRICE UNABLE TO RE| LOW VOLUME TEST PRICE WUICKLY SHOW SM STEEL FEEL WEAK MARKET QUICK REVERSEIs ly QoL TOW VOLUME TEST PRICE UNABLE TO RE| LOW VOLUME TEST PRICE WUICKLY SHOW SM STEEL FEEL WEAK MARKET QUICK REVERSEURES cme RELY IS ot { 2LOW VOLUME TEST PRICE UNABLE TO REVERSE LOW VOLUME TEST PRICE WUICKLY SHOW SM STEEL FEEL WEAK MARKET QUICK REVERSE3 rules for volume analysis These are the 3 rules that based our volume analysis 1. THE LAW OF SUPPLY AND DEMAND 2. THE LAW OF CAUSE AND EFFECT 3. THE LAW OD EFFORT VS RESULT LEARN TO TRADE1 THE LAW OF UPPLY AND DEMAND i The law define as When demand is greater than supply then price will rise to meet this demand and conversely when supply is greater than demand then price will fall 4 fundamental principle of supply and demand oem Om Cle | SRV) lier iuulel mole cial) Semel RCo ee Ll Cee = Divergence leads to market weaknessBULLISH CHARACTER BEARISH CHARACTER afe)me) iS we) RU) Mal aeR atta tse Meee le A eee Ron ISs $ ayPRICE DECREASE WITH VOLUME INCREASE a 4 PRICE INCREASE WITH VOLUME DECRESE