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Volumespreadanalysis

ABT = bull pennantABT had exhibited great momentum for the past few weeks with the recent earnings on 19 Apr propelling it to gap up on high volume. It appears to be forming a bull pennant right now. It is possible to trade the breakup of this pennant (initial stop just below the gap up candle), however bear in mind that the overhead resistance at 114 - 116 might be difficult to overcome in the near term. Short term trade for time being. Let's see. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! "Let winners run and cut losses short". Take care and Good Luck!
NYSE:ABT
by Juliac
ONON - Still TrendingONON exhited strong price action since it's gap up after it's last earnings call on 21 Mar23 (pullbacks not withstanding). Volume continued to be good for the past 4 weeks with relative strength (relative to SPX) continuing to improve. However one can consider to ride this stock managing with trailing stops (pivot lows, fib retracement levels, moving average etc) to see how far it can bring us. Earnings is expected on 5 May, if it continues to run up till then, there is a possibility it could sell off after announcement (even on good news). Hence do be mindful of volality around then.
NYSE:ONONLong
by Juliac
📊The Effects of Volume Cheatsheet📍 In trading, volume refers to the number of shares or contracts that are traded within a specific period of time. It is a key technical indicator used by traders and investors to analyze the strength and direction of price movements in the financial markets. The volume of a security can be used to confirm trends, indicate potential reversals, and identify areas of support and resistance. For example, a sudden increase in trading volume for a particular stock may suggest that a significant news event has occurred or that there is an increase in investor interest. On the other hand, a decrease in volume may indicate that investors are losing interest or that a trend is weakening. Volume is important in trading because it provides information about market activity and helps traders make informed decisions. By analyzing trading volume along with other technical indicators such as moving averages and price patterns, traders can gain insights into market trends and make more accurate predictions about future price movements. 💥Key Takeaway: When prices are rising or falling with high volume , it suggests that there is strong participation in the market and that the price movement is likely to continue in that direction . Conversely, when prices are rising or falling with low volume, it may indicate that there is not enough market participation to sustain the price movement and that a reversal could occur. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
by QuantVue
6
Ways to improve your chart reading Part 2 – Multiple timeframesThe bigger the timeframe is, the bigger the move it may produce. Therefore, it can be good practice to define the direction of the price and your trading based on where and how things develop on higher timeframes. Another reason to use timeframes with bigger resolutions for the confirmation of your decisions is that a trade setup on one particular timeframe is isolated from a bigger move and may appear while that move is at the end of its correction. For example, it might be that a higher timeframe shows a lot of supply (selling) in the background while lower timeframes show the presence of demand (buying). Usually, in these situations an up move will not continue for a long time and may eventually reverse, locking the trader into a bad position. The 1-hour chart in the picture shows the US dollar/Japanese Yen FOREX currency pair. (FXCM:USDJPY). Wide range bars appear at 15:00 on March 7th, at 15:00 on March 8th and at 02:00 on March 10th, UTC time. According to the VSA methodology, the volume on those bars and their closing prices indicate the presence of supply (weakness). At the same time, the price goes up for some time after each of these three bars. As a result, many traders who are using the 1, 3 and 5-minute charts, where the trend is up, open long intraday positions. With serious weakness in the background as seen in the picture above - when the smart money is selling - the price will usually not go up far and turns down very quickly producing a significant move. This gives the trader the chance to make a nice profit on small timeframes. An example of this kind of opportunity might be seen when an up bar on the 1-minute chart gets closed with low volume at 14:22 on March 10. As in our chart example where it has taken almost 3 days to provide a good setup to the short side, very often it may take time for the trade pre-conditions to develop on different timeframes. An ability to wait until a setup on a lower timeframe is aligned with the strength and weakness of the bigger moves is another good habit to develop. In many cases using a multi-timeframe environment, as well as being patient, helps a trader to avoid losses and improve their profit.
by Trade-to-Win_from_Tradeguider