Vision Volume

2020년 12월 14일

After reading an article on how to trade volume I felt that I needed some kind of indicator using price action and volume together.

More precisely I tried to build two indicators. Bear in mind this indactor is very simple because it only evaluates each bar with its previous bar and an average.

Nr.1 Weak/fake push: Price suddenly goes up/down a lot more but without much volume being traded -> sign of a fake move or low interest

Nr 2 Price action resistance: After an up or down move price suddenly stops moving but high volumes are being traded. This means high resistance from sellers in a rally or buyers in a decline.

This is very simple and as you can see it is often not a clear signal. I will try to improve it further. If a fake move bar (purple) has a close near its new high we don't know if the fake push will continue. As you can see on the chart. some reversal signs come a little to early.

You can re-color labels and turn them off optionally.

This is built for educational purposes only. I hope you find it useful.

Design by Hook