Volume and Buy Sell signal

Ameet148

Active Member
#1
Hi

In the graph shown below,I want to know what should be done in the places where the volumes are really high.It is quite clear to see that each volume spikes leads to a change in direction.

NSE.jpg

Regards
 

Ameet148

Active Member
#3
when Volumes are very high follwed by a lower voule in down trend as you marked in the charts indicates Seller are exhausted. and vice versa.
Okay so if sellers are exhausted, that means there will be more buyers and stock holders at that price and then the buyers would hold the stock until it rises up or have a higher bidding.And this leads to a rise in price for that share.If this is not true please correct me.

Regards
Ameet148
 

Ameet148

Active Member
#4
Here's another query, the chart below shows high volumes accompanied with bullish and bearish movements.There are three support lines drawn.The first support line (Blue line) is broken and then confirmed by a big volume and sharp bearish movement.After that it breaks two other support lines.But in the last support line, even if the prices broke below it, there's no sign of sharp bearish movement (as before with the first support line) with the corresponding volume that it has attained.

So my question is, whatever I have mentioned above, is it correct or not?

 

bunny

Well-Known Member
#5
Here's another query, the chart below shows high volumes accompanied with bullish and bearish movements.There are three support lines drawn.The first support line (Blue line) is broken and then confirmed by a big volume and sharp bearish movement.After that it breaks two other support lines.But in the last support line, even if the prices broke below it, there's no sign of sharp bearish movement (as before with the first support line) with the corresponding volume that it has attained.

So my question is, whatever I have mentioned above, is it correct or not?

The price-volume action on this chart is indeed bearish. It could up most probably upto the high of the big red candle(slightly above 1.33000) where you can expect some large or small doji-like candles. If it does go up, then take a short trade only after it has again fallen below the low of that candle.

Since, it is only a 2-hourly chart(my guess), you may not make a lot in terms of "points" towards the downside. So if you want longer term opinion, post a daily or weekly chart.
 
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