๐Studying horizontal volumes๐ค
๐Volumes are one of the most useful tools on the market, That gives the most objective information about the alignment of forces between buyers and sellers (with qualitative analysis, of course). It is necessary to learn how to correctly interpret volumes ( volume analysis) and the trader gets a powerful tool at his disposal. Add to this risk management and money management (without this, you will never succeed in the market) and get one of the most profitable strategies.
There are two types of volume: horizontal and vertical. And in this eduaction idea, we will get a little acquainted with horizontal volumes.
๐ง What is it?
Horizontal volumes are a histogram based on the number of trades made at a price level. Unlike vertical volumes, that tells us about the volume traded for the set time period, horizontal volumes show the volume traded at the price level. This tool will allow to identify highly probable reversals, as well as areas of support and resistance . Thanks to TradingView, everyone can use the horizontal volume indicator for free. Thank you so much๐
๐ Horizontal volume indicator includes:
โก๏ธ Value Zone/Area
โก๏ธ VAH (value area high)
โก๏ธPOC (point of control)
โก๏ธ VAL (value area low)
All of the above can be seen on the graph (marked on the graph above).
The Value Zone/Area is the so-called "body" of the histogram for the selected period and is formed in the place where 70% (by default) of the total volume has passed.
๐กVAH (value area high) is the top line of the value area. The upper line of the value zone can play the role of resistance and support.
๐ดVAL (value area low) is the bottom line of the value area. Formed where volumes are declining. The lower line of the VAL value zone can also play the role of resistance and support.
You need to be very careful when the price approaches VAH and VALโ๏ธ
๐ตPOC (Point of Control) is the most important level. It is a support or resistance zone depending on where the price is above or below the POC. As long as the crowd has not formed an imbalance in the POC area, the price will move either higher or lower than the POC. At this time, it is better not to trade, and let the price decide, entering from a re-test of the formed balance.
๐How to trade?
Remember that everything needs experience! You will need time to develop your strategy based on horizontal volumes or to include this tool in your existing arsenal. Analysis, observation and again analysis! Pay special attention to POC, this level is the most important and interesting in terms of opening a position. Here you should pay attention to the weekly POC and intraday.
On the charts above, you can see trades in Gold ( XAUUSD ) and Silver ( XAGUSD ) that were opened exactly from the POC week (previous). You can observe the results yourself. Of course, there are also losing trades, but with the observance of risk management and a systematic risk/reward ratio, success is guaranteed.
๐ดConclusion
Horizontal volumes will help identify (but more confirm) support and resistance levels/areas. Near VAH, VAL and POC, one should be as careful as possible, as this is a good opportunity for a probable entry into a trade. We can call it a "creative process": you will definitely see and form many entry and strategy opportunities based on this.
๐Thank you for reading and profitable tradesโ๏ธ
There are two types of volume: horizontal and vertical. And in this eduaction idea, we will get a little acquainted with horizontal volumes.
๐ง What is it?
Horizontal volumes are a histogram based on the number of trades made at a price level. Unlike vertical volumes, that tells us about the volume traded for the set time period, horizontal volumes show the volume traded at the price level. This tool will allow to identify highly probable reversals, as well as areas of support and resistance . Thanks to TradingView, everyone can use the horizontal volume indicator for free. Thank you so much๐
๐ Horizontal volume indicator includes:
โก๏ธ Value Zone/Area
โก๏ธ VAH (value area high)
โก๏ธPOC (point of control)
โก๏ธ VAL (value area low)
All of the above can be seen on the graph (marked on the graph above).
The Value Zone/Area is the so-called "body" of the histogram for the selected period and is formed in the place where 70% (by default) of the total volume has passed.
๐กVAH (value area high) is the top line of the value area. The upper line of the value zone can play the role of resistance and support.
๐ดVAL (value area low) is the bottom line of the value area. Formed where volumes are declining. The lower line of the VAL value zone can also play the role of resistance and support.
You need to be very careful when the price approaches VAH and VALโ๏ธ
๐ตPOC (Point of Control) is the most important level. It is a support or resistance zone depending on where the price is above or below the POC. As long as the crowd has not formed an imbalance in the POC area, the price will move either higher or lower than the POC. At this time, it is better not to trade, and let the price decide, entering from a re-test of the formed balance.
๐How to trade?
Remember that everything needs experience! You will need time to develop your strategy based on horizontal volumes or to include this tool in your existing arsenal. Analysis, observation and again analysis! Pay special attention to POC, this level is the most important and interesting in terms of opening a position. Here you should pay attention to the weekly POC and intraday.
On the charts above, you can see trades in Gold ( XAUUSD ) and Silver ( XAGUSD ) that were opened exactly from the POC week (previous). You can observe the results yourself. Of course, there are also losing trades, but with the observance of risk management and a systematic risk/reward ratio, success is guaranteed.
๐ดConclusion
Horizontal volumes will help identify (but more confirm) support and resistance levels/areas. Near VAH, VAL and POC, one should be as careful as possible, as this is a good opportunity for a probable entry into a trade. We can call it a "creative process": you will definitely see and form many entry and strategy opportunities based on this.
๐Thank you for reading and profitable tradesโ๏ธ
๋ฉด์ฑ ์ฌํญ
์ด ์ ๋ณด์ ๊ฒ์๋ฌผ์ TradingView์์ ์ ๊ณตํ๊ฑฐ๋ ๋ณด์ฆํ๋ ๊ธ์ต, ํฌ์, ๊ฑฐ๋ ๋๋ ๊ธฐํ ์ ํ์ ์กฐ์ธ์ด๋ ๊ถ๊ณ ์ฌํญ์ ์๋ฏธํ๊ฑฐ๋ ๊ตฌ์ฑํ์ง ์์ต๋๋ค. ์์ธํ ๋ด์ฉ์ ์ด์ฉ ์ฝ๊ด์ ์ฐธ๊ณ ํ์ธ์.