But, most people never use it in the right way – because no one ever taught them how.
Here are 10 psychological triggers to knowing Volume in a better way :
Traditional idea of Volume:
- if the price increases with an increase in volume, it is BULLISH
- If the price is increasing without volume, it is BEARISH
- if the price is falling with an increase in volume, it is BEARISH
- if the price is falling without volume, it is BULLISH
But this doesn't hold good every time!
Let's look at some examples.
Ex #1: Tata Consumer (Daily Chart)
Here the price has gone upside from 640 to 780 without any increase in the volume!
15 timeless classic books from different parts of the world.
On Trading Psychology, trading as a business, money, psychology, finance, and more:
Like & Retweet!
1 - Trading in The Zone
This is a classic book by Mark Douglas, and you will see this book in most categories in the stock market.
Trading in the Zone will teach you how to set yourself up for success by developing powerful mental habits and attitudes towards your trading.
2 - Reminiscences of a Stock Operator
It's all about Jesse Livermore and written by Edvin Lefevre.
Jesse is one of the most famous & debated traders in history. This book follows his life from his childhood until he gains fame as "The Greatest Bear of Wall Street."
Are you facing difficulty to understand MARKET PROFILE?
Read this!
12 Simple Concepts of Market Profile
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Market Profile is a technical concept with a unique charting technique developed by Peter Steidlmayer in 1985.
Market profile is a style of plotting "Price" on the Y-axis and "Time" on the X-axis, which most of the time form a bell-shaped image as the body of the profile
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Market Profile helps day traders identify Other Timeframe Participants (Big players) who have money and information power.
Our job as short-term traders is to follow these big sharks which give direction to markets.