SOUND HOUND AI Uptrend possible runSound Hound under the Umbrella of AI plays. Slowly curving up out of Inverse head and shoulders.
Volumepriceanalysis
The Significance of Price Action and Volume in TradingIn the world of trading, successful traders understand that relying on indicators or searching for magic solutions is not the key to profitable trades. Instead, the focus should be on two critical elements: price action and volume. By delving into these aspects, traders can gain valuable insights into market strength, identify the aggressors, and make informed decisions. This post idea will explore the importance of price action and volume, the role of indicators, the concept of volume, the auction market theory, the influence of economic factors, and the synergy of price action and volume analysis.
In trading, it is crucial to prioritize price action and volume over a reliance on indicators or supposed magical indicators. Indicators often fail to capture the complexity of market dynamics, while price action and volume provide tangible insights into market behavior. These two factors become the foundation for understanding market strength, trends, breakouts, and breakdowns.
One of the key aspects of trading is determining who holds the upper hand in the market: the buyers or the sellers. By closely observing price action and volume, traders can identify which group is more aggressive. Recognizing the aggressor enables traders to align their strategies accordingly and make informed decisions.
Having an excessive number of indicators on a trading chart can create noise and hinder decision-making. The clutter of indicators may lead to confusion and obscure the true signals the market is conveying. Traders are advised to streamline their charts and focus on the essential elements of price action and volume to gain clarity and precision in their analysis.
Volume represents the number of transactions occurring in the marketplace. Contrary to common misconceptions, volume does not indicate the presence of more buyers or sellers. Instead, it provides insights into the aggressiveness of the market participants. Higher volume suggests increased interest and participation, while lower volume may indicate a lack of interest or a consolidation phase.
The auction market theory provides a framework for understanding how buyers and sellers interact in the market. Market participants aim to find an equilibrium in price through limit orders and market orders. This theory enables traders to observe the bids, asks, and execution of orders in real-time. By monitoring these dynamics, one can decipher the strength and direction of the market.
Volume analysis can unveil valuable information about support and interest levels. When price is rising and volume follows suit, it indicates a strong support level as there is substantial interest from buyers at those price levels. Conversely, if price is rising, but volume remains low, it suggests a lack of interest and may indicate a weak support level.
Price action reflects the market's behavior and communicates valuable insights. Traders analyze candlestick patterns, supply and demand zones, and support and resistance levels to gain a comprehensive understanding of price dynamics. Price action reveals trends, breakouts, and breakdowns, providing traders with crucial information for making trading decisions.
While the market typically trades around levels perceived as fair value, economic news, announcements, and other factors can disrupt this balance. Such events create imbalances that trigger aggressive buying or selling. Traders must consider the impact of economic factors on price action and volume, as these elements play a vital role in identifying potential trading opportunities.
The true power lies in combining price action and volume analysis. By leveraging both aspects, traders can gain a deeper understanding of the market's strength, trends, and potential breakout or breakdown situations. The interplay between price action and volume provides comprehensive insights into market dynamics, enabling traders to make well-informed trading decisions.
Price action and volume are indispensable elements in successful trading. By prioritizing price action and volume analysis over indicators, traders can develop a better understanding of market behavior and make informed decisions. Volume serves as a window into market interest and support levels, while price action communicates the market's behavior and trend patterns. By synergizing price action and volume analysis, traders can unlock valuable insights and enhance their trading strategies.
For Friday trade, with simple chart setting, easily see that aggressive buying lead open above then aggressive selling pushing down price
The Power of Volume: Understanding Volume Analysis in TradingIn the dynamic world of financial markets, successful traders know that understanding volume analysis is crucial for making informed trading decisions. Volume, the number of shares or contracts traded during a given period, provides valuable insights into market dynamics and helps identify potential trends, reversals, and the strength of price movements. In this Educational article, we will explore the power of volume and its significance in trading, uncovering the key principles of volume analysis, practical strategies for incorporating it into your trading toolkit.
📊 The Basics of Volume Analysis 📊
Volume analysis is the study of trading activity represented by the volume of shares or contracts traded within a specified time frame. By analyzing volume alongside price movements, traders gain insights into market sentiment, liquidity, and the overall strength of a trend. Here are some fundamental concepts to consider:
Volume and Price Relationship: Volume often accompanies significant price moves. When volume surges during an uptrend or downtrend, it suggests increased participation and conviction from market participants. Conversely, low volume during consolidations or indecisive periods can indicate a lack of interest or involvement.
Volume Patterns: Patterns in volume can reveal important clues about market dynamics. For example, a gradual increase in volume during an uptrend may suggest a healthy and sustainable trend, while a sudden spike in volume near key support or resistance levels could signal potential reversals.
📊 Analyzing Volume in Different Market Scenarios 📊
Volume analysis can be applied across various market scenarios to gain insights into the underlying dynamics. Here are a few examples:
Breakouts: When a stock or asset price breaks out of a key resistance level with high volume, it suggests strong buying interest and potential continuation of the uptrend.
Reversals: A significant increase in volume accompanied by a sharp price reversal may indicate a trend exhaustion and potential reversal. Volume analysis helps validate potential reversal signals.
Divergence: When the price is moving in one direction while volume is moving in the opposite direction, it can indicate a weakening trend. Divergences between volume and price can provide valuable early signals of trend reversals.
Example: FINPIPE _ breakout with huge volume & reversal candle at retest (at support) of breakout with huge volume
📊 Integrating Volume Analysis into Your Trading Strategy 📊
To effectively incorporate volume analysis into your trading strategy, consider the following tips:
Confirmation: Volume analysis can act as a confirmation tool for other technical indicators or chart patterns. For example, if a price breakout occurs with high volume, it confirms the strength of the breakout.
Relative Volume: Compare current volume to historical averages to gauge the intensity of trading activity. Unusually high or low volume relative to average volume can highlight potential trading opportunities.
Multiple Time Frames: Analyzing volume across different time frames can provide a broader perspective on market dynamics. Higher time frames can reveal long-term trends, while lower time frames offer insights into intraday trading activity.
📊 Volume Indicators 📊
To assist traders in analyzing volume effectively, several technical indicators have been developed. These indicators help visualize and interpret volume data in meaningful ways. Here are a few commonly used volume indicators:
Volume: The most basic volume indicator, volume bars represent the volume traded during each price bar or candlestick. By comparing the height of volume bars across different periods, traders can identify anomalies or significant shifts in trading activity.
Moving Average in volume indicator: Moving Average calculates the average volume over a specified period. It smoothens out volume data, making it easier to identify volume spikes.
On-Balance Volume (OBV): OBV measures the cumulative volume by adding or subtracting the volume based on whether prices close higher or lower. It helps identify periods of accumulation or distribution and can provide early signals of trend reversals.
Wave Volume Divergence: A unique addition to volume indicators, this indicator enhances volume analysis by providing wave volume divergence and cumulative volume information. Traders can utilize this indicator to identify potential divergences between volume and price, as well as observe the cumulative volume trends.
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Keep exploring the power of volume analysis, and remember:
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Correlations of Retail Stock Traders & Carl Jung's Archetypes Carl Jung, a renowned Swiss psychiatrist and psychoanalyst, introduced the concept of archetypes as universal patterns or symbols that reside in the collective unconscious.
Carl Jung's archetypes , rooted in the collective unconscious, offer profound insights into human behavior and decision-making processes.
(archetypes example would be the Devil and Angel on your shoulder, Jung beleives there is more to it that good and evil)
Retail stock traders, operating in a dynamic and often volatile market, are not exempt from these archetypal influences.
Let's explore the correlations between Jungian archetypes and how they impact the decision-making process of retail stock traders when executing trades.
The Hero Archetype:
The Hero archetype drives traders to conquer challenges and attain success. Within retail stock trading, this archetype encourages traders to take calculated risks, seize opportunities, and exhibit unwavering confidence in their decision-making abilities. While the Hero can inspire bravery and determination, traders must be mindful of impulsive and overly aggressive behaviors that may lead to irrational choices.
The Sage Archetype:
The Sage archetype embodies wisdom, knowledge, and the pursuit of truth. Retail stock traders influenced by the Sage archetype engage in extensive research, analysis, and due diligence before executing trades. They seek to understand market dynamics, uncover patterns, and leverage their intellectual prowess to make informed decisions. However, an excessive reliance on analysis may result in analysis paralysis, inhibiting timely execution.
The Jester Archetype:
The Jester archetype represents humor, spontaneity, and irreverence. In the world of retail stock trading, this archetype may manifest as traders who adopt a lighthearted approach and embrace risk with a sense of playfulness. Jester-influenced traders may be inclined to explore unconventional trades, pursue novelty, and seek excitement. Nevertheless, caution must be exercised to avoid impulsive or reckless decision-making.
The Caregiver Archetype:
The Caregiver archetype embodies compassion, empathy, and a desire to nurture others. In retail stock trading, traders influenced by this archetype prioritize socially responsible investing, seeking companies aligned with their values. They consider sustainable practices, ethical considerations, and impact investing as integral components of their decision-making process. However, emotional attachments to causes may cloud judgment, necessitating a balanced approach.
The Magician Archetype:
The Magician archetype symbolizes transformation, power, and the ability to manifest desired outcomes. Traders influenced by the Magician archetype possess intuitive market understanding and employ strategies that seem almost mystical. They may rely on technical analysis, precise timing, and sophisticated algorithms or trading systems. However, an overreliance on intuition without grounding in tangible data may result in unreliable decision-making.
The Shadow Archetype:
Carl Jung's concept of the shadow archetype represents the darker, suppressed aspects of the psyche. In retail stock trading, the shadow can manifest as greed, fear, impulsivity, or an inclination toward unethical practices. Traders must confront their shadows and acknowledge the potential biases and emotional influences that can cloud judgment. By bringing the shadow into conscious awareness, traders can make more objective and rational decisions.
Impact on Decision-Making Process:
The interplay between these archetypes and the shadow profoundly affects the decision-making process of retail stock traders. Awareness of these archetypal influences enables traders to leverage their strengths while mitigating potential pitfalls. Recognizing the shadow archetype's presence allows traders to confront their biases, manage emotions, and make more rational and ethical decisions.
Understanding the correlations between Carl Jung's archetypes and the decision-making process of retail stock traders sheds light on the intricate psychological factors at play within financial markets.
By recognizing and integrating these archetypal influences into their decision-making process, traders can enhance self-awareness, improve emotional regulation, and ultimately make more balanced, informed, and profitable trading decisions.
EURUSDEURUSD is Bullish in the big time frame, but first some imbalances need to be filled, and as price break previous structure we can take this good opportunity.
GBPAUDChart is clear, in the bigger picture price tends to fall at least one more time to reach some important liquidity areas. And price is clearly consolidating for gaining some momentum. I expect to see price falling from one of the previous highs.
PARAGMILK Swing Trade SetupThis will be my personal trade Setup, This is not an advice of any kind to initiate trade according to this setup. This is for only for my learning purpose and maintaining my trading journal.
PARAGMILK is in downtrend from 2018 and Forming Descending Triangle and broke trendline resistance with good volume.
CMP is 112.30
Nearby Support is at 98.
Nearby Resistance is at 128.
Not Defining any targets or SL just posting views of stock charts which are looking good for trade setups.
Always do your analysis and trust your own analysis.
📊 Volume Profile: IndicatorsThere’s a reason why trading volume has been a standard indicator on every piece of charting software over the last 30 years… it provides a crucial edge.
Volume provides you with logical insight into the activity of market participants at varying price levels. Volume analysis helps traders to become more reactionary to price movements rather than trying to predict where price will go next, as is the case with most technical indicators.
📍Key takeaways about volume
Key takeaways about the normal volume indicator plotted on the X-axis in trading:
🔹Volume Indicator: The normal volume indicator measures the total number of shares or contracts traded during a given time period. It is commonly displayed as a histogram or line chart, with the X-axis representing time.
🔹Liquidity: Volume is a crucial metric as it provides insights into the liquidity of a security. Higher volume generally indicates greater market participation and liquidity, making it easier to buy or sell the asset without significantly impacting its price.
🔹Confirmation: Volume can confirm the validity of price movements. In an uptrend, increasing volume supports the bullish move, suggesting strength and conviction among buyers. Conversely, declining volume during an uptrend may signal weakness or lack of interest. The same principles apply to downtrends.
🔹 Breakouts and Reversals: Volume analysis is often used to identify breakouts and potential trend reversals. A significant increase in volume during a breakout suggests a higher probability of a sustained move, while decreasing volume near a support or resistance level might indicate a potential reversal.
🔹Divergence: Volume can reveal divergence between price and market sentiment. For example, if prices are rising but volume is decreasing, it could suggest that the rally is losing steam and a reversal may be imminent. Similarly, increasing volume during a price decline might indicate selling pressure and further downside potential.
🔹Confirmation of Patterns: Volume can provide confirmation or invalidation of chart patterns such as triangles, head and shoulders, or double tops/bottoms. Higher volume during pattern formations enhances their reliability, while low volume can cast doubt on the pattern's significance.
🔹Watch for Extreme Volume: Abnormal spikes in volume can indicate significant market events, such as earnings releases, news announcements, or institutional buying/selling. Unusual volume can lead to increased volatility and potentially offer trading opportunities.
🔹Relative Volume: Comparing current volume to historical average volume helps gauge the significance of the current trading activity. Higher volume relative to the average may imply increased interest, while lower volume might suggest a lack of conviction or reduced market participation.
👤 @AlgoBuddy
📅 Daily Ideas about market update, psychology & indicators
❤️ If you appreciate our work, please like, comment and follow ❤️
📊Volume Profile: Components & Concept📍What is a volume profile?
A Volume Profile is an advanced charting indicator that displays total volume traded at every price level over a user specified time period.
📍Volume Profiles Uses:
🔷 Identify Key Support and Resistance Levels for Setups
🔷 Determine Logical Take Profits and Stop Losses
🔷 Calculate Initial R Multiplier
🔷 Identify Balanced vs Imbalanced Markets
🔷 Determine Strength of Trends
📍Volume Profile Components:
🔹Point of Control (POC): Price level where the most volume traded for the session. Commonly referred to as the POC.
🔹Value Area (VA): Price range in which a user specified percentage volume was traded for a session. Volume profile traditionalist use 70% as it close to 1 standard deviation from the mean. The Point of Control is used as the mean on a volume profile.
🔹Volume Area High(VAH) : This represents the price level at which the highest volume of trades occurred during the analyzed period inside VA. It indicates a significant level of trading activity and is often considered a key resistance level.
🔹Volume Area Low(VAL): Conversely, the Volume Area Low represents the price level with the lowest volume of trades during the analyzed period inside VA. It signifies a level of low trading activity and is typically considered a support level.
👤 @AlgoBuddy
📅 Daily Ideas about market update, psychology & indicators
❤️ If you appreciate our work, please like, comment and follow ❤️
EURNZD - Classic textbook entry - Exit from Range with PRSThe Story:
1. Largest Linear Volume Down Wave
2. Ranging for a few days
3. Plutus provides the signal PRS = Plutus Reversal Short
That's a text book entry for the SI traders and their methodology.
110 pips so far
Enjoy!!
GBPUSDGBPUSD seems like it will not fall. A big consolidation is taking place in the daily time frame. In the intraday frame this could be a good trade to catch, a lot of positions already been accumulated in the demand area down.
EURUSDAn obvious accumulation that could take the price higher. Could be a good trade before deciding what is the long term direction of the price.
Weekly Price Projection for Brent Crude Oil W/C 17th April 2023Price Range Projection:
Weekly High: ~ $86.58
Weekly Low: ~ $82.818
In the chart above, you can see the price on the 3-hour timescale, along with a fixed range volume profile.
Weekly High Projection
The fixed range volume profile (the horizontal histogram) is an indicator that can be used to show resistance and support levels. The red horizontal line in the close-up chart above indicates the point of control, which is the price level that had the most volume. As you can see, the price stalled around this point. This is where I see the weekly high.
Weekly Low Projection
I have placed the weekly low at a previous support level, which was formed from a chart pattern that had a breakout more than a month ago. This is shown with the two blue trendlines.
📊The Effects of Volume Cheatsheet📍 In trading, volume refers to the number of shares or contracts that are traded within a specific period of time. It is a key technical indicator used by traders and investors to analyze the strength and direction of price movements in the financial markets.
The volume of a security can be used to confirm trends, indicate potential reversals, and identify areas of support and resistance. For example, a sudden increase in trading volume for a particular stock may suggest that a significant news event has occurred or that there is an increase in investor interest. On the other hand, a decrease in volume may indicate that investors are losing interest or that a trend is weakening.
Volume is important in trading because it provides information about market activity and helps traders make informed decisions. By analyzing trading volume along with other technical indicators such as moving averages and price patterns, traders can gain insights into market trends and make more accurate predictions about future price movements.
💥Key Takeaway:
When prices are rising or falling with high volume , it suggests that there is strong participation in the market and that the price movement is likely to continue in that direction . Conversely, when prices are rising or falling with low volume, it may indicate that there is not enough market participation to sustain the price movement and that a reversal could occur.
👤 @AlgoBuddy
📅 Daily Ideas about market update, psychology & indicators
❤️ If you appreciate our work, please like, comment and follow ❤️
AUDUSD short the end of a daily chart trendLooking at a 5 RR short, ideally I will wait for a distribution to play out and get in with a tighter SL than pictured.
$USDJPY Trade 1 on NY Open, BUY #forex #trading
Entering the first trade for the day, London Session.
Buying $USDJPY above the breakout zone indicated on the chart.
Targetting the next resistance zone on the 15min | 1hr timeframes.
Zigzag breakout on support and resisance levels.
New York Open.
Simplicity and Clarity.
Cheers,
G.
CAT: Range Bound Swing TradingCAT developed one of the entry signals I teach this week. The stock rebounded from testing the lows of the trading range. Hybrid indicators suggest large-lot buying is triggering in the lows of the range.
Point gain potential may be limited by the sideways trading range developing, but swing trading can be done within the range if you can catch the entry early in the upswing from the lows and plan to exit near the highs.
This trading range will need to compress near the highs to sustain a breakout to the upside.
INARI sign of bottom with upcoming short term rebound on the wayDespite earnings miss expectations, the price & volume shows that the price is supported with intention to rebound in short term from yesterday 5 mins chart.
However, the upcoming rebound may just be a short term rebound to soften the price fall. Any longer term upside needs to be monitor.
Live Trading: Price and Volume Analysis2 trades being taken in real time based on how much move is left upon point of entry on a probability basis combined with volume analysis.
MATIC Will be bullish soonDefined the order block between the range of 1.5-1.8.
RSI is also near the oversold region
The trend is decreasing and the volume is not increasing. So it means the seller will not be more interested in the long way. So the market will be pumped soon
Let's see what happens
BTC/USD analysis - price actionbased on previous view, I traded the level but on a random price to check if the zone works perfectly. Seems that zones work perfect only if it is meeting certain conditions. checking levels on bigger charts gives more clear view on your investment. Fib retracement on extra candles actually worked which-means having more candle in your area makes your trades more perfect. I will also start adding videos with other indicators in coming sessions.
Short USD/CHF @ .91570Volume has accumulated around .91570 on USD/CHF sellers should hold this zone as USD/CHF pushes back up into this area.
Short USD/CHF @ .91570
TP: .91200
SL: .91880
