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The document outlines various volume analysis techniques in trading, categorizing volume levels as low, high, and ultra high based on their relation to average volume. It describes specific market signals such as 'Spring or Downthrust', 'Selling Climax', and 'Bullish Volume Reversal', detailing their characteristics and implications for potential market reversals. Additionally, it discusses signs of weakness and strength, providing criteria for identifying these signals through candle patterns and volume comparisons.

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malikaamir67908
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0% found this document useful (0 votes)
2 views5 pages

Untitled Document

The document outlines various volume analysis techniques in trading, categorizing volume levels as low, high, and ultra high based on their relation to average volume. It describes specific market signals such as 'Spring or Downthrust', 'Selling Climax', and 'Bullish Volume Reversal', detailing their characteristics and implications for potential market reversals. Additionally, it discusses signs of weakness and strength, providing criteria for identifying these signals through candle patterns and volume comparisons.

Uploaded by

malikaamir67908
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

AVERAGE VOLUME:-The Volume That Coincides With The 20- Period Moving Average Of The

Volume Indicator.
ABOVE AVERAGE HIGH VOLUME:-Highest Volume In The Current Session Which Is Higher Than
The Average Volume.
ULTRA HIGH VOLUME:-The Highest Volume In The Current Session It Is Higher Than The
Previous Peak Volume.
FIRST ANALYSIS:-
LOW VOLUME :-Volume Below 0.7 Times The Average Volume Will Be Low Volume.
HIGH VOLUME:-Any Volume Above 1.8 Times The Average Volume Will Be High Volume.
ULTRA HIGH:-Volume Above 3 Times The Avarage Volume Would Be Termed As Ultra High
Volume.
SECOND ANALYSIS:-
LOW VOLUME :-Volume Below 0.5 Times The Average Volume Will Be Low Volume.
HIGH VOLUME:-Any Volume Above 1.5 Times The Average Volume Will Be High Volume.

🟢Sign of Strength (S)


ULTRA HIGH:-Volume Above 3 Times The Avarage Volume Would Be Termed As Ultra High
Volume.

SPRING OR DOWNTHRUST (DT) :-


"Spread: Below average.
Volume: High.
Candle: Bull Pin Bar
Indicates strong buying interest at lower prices, suggesting a potential upward reversal."

SELLING CLIMAX (SC) :-


"Spread: Above average.
Volume: High Or Ultra High.
Candle: Bearish with 25% to 50 % lower rejection wick.
Signifies a reversal point as panic selling exhausts and smart money starts accumulating."

BEARISH EFFORT < BEARISH RESULT :- (RESULT NO EFFORT) - (NoE):-


BEARISH EFFORT IS LOWER THAN BEARISH RESULT
"Spread: Higher than prior(previous)bar.
Volume: Lower than prior(previous)bar.
Candle: 2 consecutive bearish (prior and current).
A large downward price move without strong selling effort (volume) indicaties an anomaly
where the result doesn't match the effort,
suggesting the down move may be unsustained."

BEARISH EFFORT > BEARISH RESULT :- (EFFORT NO RESULT) - (NoR):-


BEARISH EFFORT IS HIGHER THAN BEARISH RESULT
"Spread: Lower than prior(previous)bar.
Volume: Higher than prior(previous)bar.
Candle: 2 consecutive bearish (prior and current).
Strong selling effort (volume) fails to push prices down indicating an anomaly where the
result doesn't match the effort, suggesting a potential lack of downward momentum."
INVERSE DOWN THRUST (IDT):- FAILED TEST
"Spread: Lower than prior(previous)bar.
Volume: Above average.
Candle: Bear Pin Bar
Shows buyers overpowering sellers, likely leading to a bullish market reversal."

FAILED SELLING CLIMAX (FSC):-


"Spread: Prior bar higher than 2 bars prior.
Volume: Prior bar higher than 2 bars prior.
Candle: 2 consecutive bearish followed by bullish (2 bars prior bearish, prior bearish, current
bullish).
Failed selling effort suggests strong buying support and a possible upward trend reversal."

BULLISH VOLUME REVERSAL (BOR) BULLOUTSIDE REVERSAL:-


"Spread: Higher than prior.
Volume: High.
Candle: Prior bearish, current bullish.
(low wick < prior low wick) (close > prior high)
Indicates strong buying reversing a downtrend, confirmed by higher close."

END OF FALLING MARKET:- BAG HOLDING (BH):-


"Spread: Below average.
Volume: Ultra.
Candle: Bearish.
Signifies strong buying absorbs panic selling at new lows, likely leading to stabilized price or
reversal."

PSEUDO DOWN THRUST:- PSEUDO SPRING (PDT):-


"Spread: Lower than prior.
Volume: Lower than both prior and 2 bars prior.
Candle: Bull Pin Bar
Suggests weakening of the downward momentum with a potential upward continuation if
broken above high."

NO SUPPLY (NS):-
"Spread: Lower than previous two bars.
Volume: Lower than previous two bars.
Candle: Bear Pin Bar
Indicates a lack of selling interest at lower prices, potentially setting up for a price rise."
🔴SIGN OF WEAKNESS:- - (W)
UP THRUST (UT) :-
"Spread: Below average.
Volume: High.
Candle: Bear Pin Bar
Indicates sellers overpowering buyers during a price rise, suggesting a potential downward
reversal."

BUYING CLIMAX (BC) :-


"Spread: Above average.
Volume: High.
Candle: Bullish with 25% To 50 % upper rejection wick.
Represents peak buying, typically at price highs, with potential for reversal as sellers take
control."

BULLISH EFFORT < BULLISH RESULT:- RESULT NO EFFORT(NoE)


BULLISH EFFORT LOWER THEN BULLISH RESULT
"Spread: Higher than prior bar.
Volume: Lower than prior bar.
nCandle: 2 consecutive bullish (prior and current).
A large upward price move without strong buying pressure (volume) indicates an anomaly
where the result doesn't match the effort, suggesting the up move may be unsustained."

BULLISH EFFORT > BULLISH RESULT :- EFFORT NO RESULT(NoR)


BULLISH EFFORT HIGHER THEN BULLISH RESULT
"Spread: Lower than prior.
Volume: Higher than prior.
Candle: 2 consecutive bullish (prior and current).
Strong buying (volume) fails to drive prices higher indicates an anomaly where the result
doesn't match the effort, suggesting a potential lack of upward momentum."

INVERSE UP THRUST (IUT) :-


"Spread: Lower than prior.
Volume: Above average.
Candle: Bull Pin Bar
Increased selling pressure during an uptrend suggests a possible shift to a downtrend."

FAILED BUYING CLIMAX (FBC) :-


"Spread: Prior bar higher than 2 bars prior.
Volume: Prior bar higher than 2 bars prior.
Candle: 2 consecutive bullish followed by a bearish (2 bars prior bullish, prior bullish, current
bearish).High buying volume fails to sustain higher prices, indicating a potential reversal to
downtrend."
BEARISH VOLUME REVERSAL :- BEAR OUTSIDE REVERSAL (BOR) :-
"Spread: Higher than prior.
Volume: High.
Candle: Prior bullish, current bearish.
(high wick > prior high wick) (close < prior low)
Strong selling pressure reversing an uptrend, signaling a potential downtrend."

END OF RISING MARKET (BAG SELLER) (BS):-


"Spread: Below average.
Volume: Ultra.
Candle: Bullish.
Indicates buying saturation at market peaks, suggesting a possible reversal as demand
exhausts."

PSEUDO UP THRUST (PUT) :-


"Spread: Lower than prior.
Volume: Lower than both prior and 2 bars prior.
Candle: Bear Pin Bar (Criteria in 'Bar Settings').
Indicates weakening upward momentum with potential for downward continuation if broken
below low."

NO DEMAND (ND):-
"Spread: Lower than both prior and 2 bars prior.
Volume: Lower than both prior and 2 bars prior.
Candle: Bear Pin Bar (Criteria in 'Bar Settings').
Indicates reduced buying interest at higher prices, possibly leading to a price decline."

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