✅Most technician use multidimensional approach to market analysis by tracking the movement of 3 sets of figures- price, volume & open interest
✅Here I will share analysis on volume.

Volume & open interest as secondary indicators:
✅Price is by far the most important
✅Volume & open interest are secondary
✅Of those two, volume is the more important.
✅Volume is the number of entities traded during the time period under study.
✅Because, we will be dealing primarily with daily candlestick cart, our main concern is with daily volume.
✅Volume can be plotted for weekly chart as well.
General rule for interpreting Volume:
✅If volume is increasing, then the current price trend will probably continue in its present direction (either up or down)
✅If volume is declining, the action can be viewed as a warning that the current price trend may be nearing an end
Interpretation of Volume:
✅The level of volume measures the intensity behind the move
✅Higher the volume, higher the intensity
✅Volume should increase in the direction of the existing trend.
✅In an uptrend, volume should be heavier as the price moves higher, & should decrease on the price dips.
🟢Example: The upside price breakout by #sequentScientific through the Feb 2020 peak was supported by a burst if trading volume. that is bullish.(see chart)
7/ Image
🟢After the breakout, the volume bar followed the #sequentScientific price trend.
✅Volume were heavier as price rising
✅Volume dropped as price weaken. ( see chart)
8/ Image
Volume as confirmation in price patterns:
✅In my last tweets about chart patterns
✅Volume was mentioned several times as an important confirming indicator.
✅In an uptrend, the volume should be heavier during up moves & lighter on pullback.
✅In downtrend, the volume should be heavier during down moves & lighter on bounce
🟢More example: #lauruslabs ( in first chart volumes follow the price direction- up on up moves & down on pullbacks)
in 2nd chart of #lauruslabs (volumes are up on down moves & down on bounce)
10/ ImageImage
Volume Precedes price:
✅Technicians believe that volume precedes price, meaning
✅Loss of upside pressure in an uptrend & downside pressure in downtrend actually shows up in the volume figures before it is manifested in a reversal of the price trend.
✅Example : possible reversal of price trend in #pressman (W)[ see chart & volume increasing on upside and down on downside move]
✅some more example where volumes confirm the breakout/ breakdown : #lalpathlab( breakdown)
12/ ImageImageImage
✅Increasing volumes indicates that the current price trend will probably continue
✅declining volume suggest that the price trend may be changing
✅Volume precedes price. changes in buying or selling pressure are often detected in volume before price.

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More from @sunilkumarc3

Jan 30
The moving average is one of the most versatile & widely used of all technical indicators.
Because it can be easy to understand, quantified & tested.
Chart analysis is largely subjective.
Because two chartists may disagree as to whether a given price pattern is a triangle or wedge
But moving average trend signals are precise & not open to debate
Read 13 tweets
Jan 19
✅It represents a pause in the trend during which prices move sideways between two parallel horizontal lines
✅The rectangle is sometimes called “trading range” or “a congestion area”
✅Bullish rectangle pattern example: #abbindia
2/ ImageImage
✅Example of bearish rectangle pattern
3/ Image
Read 4 tweets

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