When should you exit a trade?
Determine Exits using Volume.
We will try to explore how.
A thread.
Understanding the nature of Volume and Price Movement.
1. Price increase with Volume Increase is bullish. 2. Price increase with volume decrease is NOT bullish. 3. Price decrease with volume increase is bearish. 4. Price decrease with volume decrease is NOT bearish.
Note- Please read the comments above carefully and have a look at the cheat-sheet.
Warning- Be careful with the 2nd and 4th statement.
Not bullish doesn't mean bearish and Not Bearish doesn't mean bullish.
Hence if such a volume divergence occurs, LOOK FOR EXIT.
Volume Below Average is = Caution.
If there is price expansion with volume below the Average Volume
OR
If there is price contraction with volume below the average Volume
This should be taken as a sign of caution. The price movement is happening with LOW MARKET PARTICIPATION.
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1. Visible Range OI Delta Profile on @coinalyzetool
Shows where traders are entering and exiting. Use this like VPVR.
Use this indicator on LTF to identify trading levels in a trending market.
In range, use this to scalp on either side as target when price deviates.
2. Aggregate OI:
Having net open interest across all trading pairs is very useful.
Sometimes, one exchange will market enter large long positions while there is no action or selling action on other exchange. This filters out misinterpretation of that data to a large extent.
Understanding some trading Analysis can be difficult because of Complicated Terms.
Must Know Trading Principles and Terms for Trading and Analysis.
A Thread.
P. S. I will keep Updating this List.
This is the thread of most important trading Concepts and Terminologies you should know to Understand and do your own Analysis.
Consider it the language of trading.
I have added links to important tutorials along side Explanation.
1. MSB - Market Structure Break.
Break of Lower Low formed in Previous impulse = Bearish MSB.
If Lower Low is Broken, consider it a Bearish MSB.
Remember, Lower High formation isn't a MSB, but Lower Low Break =MSB.