Implication Of Volume In Day Trading
- Thread starter deb99891
- Start date
Hey grandpa !
This is for you !
As earlier discussed in thread, the big volume appearing with no price movement. when this happens in intraday market this is called a squeeze, which means that one side is trapped (bulls or bears) by the other. it is difficult for learners like us to easily understand which side is trapped when it needs to be understood
But, there is one behavior common after it happens,price knows its direction after it. for eg: if we see a squeeze at exact 10 rs, and the price moves up to 11, this means that bears are trapped, we will see that the price may move to even 15 on the upside but it will not come down to even 9 on the downside ( mostly ofcourse ). that is because, if the price comes down to 9, bears will start covering there positions at there price, and the eagerness of bears to cover the positions first will not let the price come down
In this chart of orchid we can see a squeeze (A). The blue line is marked just below the squeeze price and its not violated throughout the session.
On the same day cairn. (A) and (B) are squeeze and the bulls are trapped. In this chart i personally think that the perfect bullish candles no (7) and (9) were reason for the squeeze. the price never went above blue lines.
This is for you !
As earlier discussed in thread, the big volume appearing with no price movement. when this happens in intraday market this is called a squeeze, which means that one side is trapped (bulls or bears) by the other. it is difficult for learners like us to easily understand which side is trapped when it needs to be understood
But, there is one behavior common after it happens,price knows its direction after it. for eg: if we see a squeeze at exact 10 rs, and the price moves up to 11, this means that bears are trapped, we will see that the price may move to even 15 on the upside but it will not come down to even 9 on the downside ( mostly ofcourse ). that is because, if the price comes down to 9, bears will start covering there positions at there price, and the eagerness of bears to cover the positions first will not let the price come down
In this chart of orchid we can see a squeeze (A). The blue line is marked just below the squeeze price and its not violated throughout the session.
On the same day cairn. (A) and (B) are squeeze and the bulls are trapped. In this chart i personally think that the perfect bullish candles no (7) and (9) were reason for the squeeze. the price never went above blue lines.
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