Volume is the most powerful indicator.
Volume helps you identify powerful breakout
Volume helps you identify when the trend is ending.
Volume analysis masterclass.
A 🧵
#BankNiftyOptions #StockMarket #StockMarketindia
Volume helps you identify powerful breakout
Volume helps you identify when the trend is ending.
Volume analysis masterclass.
A 🧵
#BankNiftyOptions #StockMarket #StockMarketindia
In this thread we will cover
➡️Volume spread analysis
➡️Volume divergence
➡️Volume in trending market
➡️Volume in consolidating market
➡️Volume during breakout
➡️Volume during pullback
➡️Volume during exhaustion
➡️Combining above concepts
➡️Volume spread analysis
➡️Volume divergence
➡️Volume in trending market
➡️Volume in consolidating market
➡️Volume during breakout
➡️Volume during pullback
➡️Volume during exhaustion
➡️Combining above concepts
1/n Volume spread analysis
Big candle size should be followed with a big volume bar - smart money is present
Small candle size should be followed with a small volume bar - smart money not present
Big candle size should be followed with a big volume bar - smart money is present
Small candle size should be followed with a small volume bar - smart money not present
2/n Volume divergence
Divergence is when big candle bars have less volume, indicating weakness and a potential trap for retail traders.
Similarly small bars with big volume bars indicates move is not supported by smart money.
Divergence is when big candle bars have less volume, indicating weakness and a potential trap for retail traders.
Similarly small bars with big volume bars indicates move is not supported by smart money.
3/n Volume in trending market
In a trending market, volume should increase as the trend progresses.
This indicates the trend's strength and that it is likely to continue.
In a trending market, volume should increase as the trend progresses.
This indicates the trend's strength and that it is likely to continue.
4/n Volume in consolidating market
In a consolidating market, volume should decrease as the market is indecisive and not strongly trending in either direction.
In this market, most fundamental investors either build their position or offload the stock
In a consolidating market, volume should decrease as the market is indecisive and not strongly trending in either direction.
In this market, most fundamental investors either build their position or offload the stock
5/n Volume during breakout
During a breakout, volume should increase significantly.
This indicates a strong movement in one direction and potential for a powerful breakout.
If a breakout is not followed by strong volume it is a fakeout
During a breakout, volume should increase significantly.
This indicates a strong movement in one direction and potential for a powerful breakout.
If a breakout is not followed by strong volume it is a fakeout
6/n Volume during pullback
Volume during pullback should be less than during the trend - indicating a healthy pullback.
Volume during pullback should be less than during the trend - indicating a healthy pullback.
7/n Volume during exhaustion
An exhaustion candle is a large candle with high volume that indicates the end of a trend .
This can be used to indicate a potential reversal or pullback in the market
An exhaustion candle is a large candle with high volume that indicates the end of a trend .
This can be used to indicate a potential reversal or pullback in the market
8/n Combining the volume concepts.
If you are a fundamental investor - If you have identified that stock is good, then always enter during consolidation phase
If you are a momentum investor - Wait for stock to trend and give healthy pullback and then enter.
Example below
If you are a fundamental investor - If you have identified that stock is good, then always enter during consolidation phase
If you are a momentum investor - Wait for stock to trend and give healthy pullback and then enter.
Example below
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