On this chart I try to help you visualise the following:
Resistance and Support levels using simple boxes or the help of the Volume Profile indicator.
Divergence, Accumulation and FOMO using Volume bars versus price using only chart candles and the Volume bars indicator
Top longing visualised with candles and the Volume Profile indicator
Top longers, where they are created and the resistance that is then generated at the top forcing them to either close at a loss or liquidate
1. BEARISH DIVERGENCE
Here you can see the volume bars declining over time but in the chart the price is rising over the same period. Expect a volume spike and big price move at the end.
2. SELL OFF INTO ACCUMULATION
Once the price reaches the required level, the sells are triggered. This causes panic sells and the larger second sell volume bar.
After the sell off, volume bars are small and roughly the same size as the asset is accumulated over time while price is kept low.
3. FOMO INTO SELLS
Accumulation over, large sell orders are removed allowing prioce to jump.
Volume bars increase in size over time as more people FOMO buys pushing the price to a new ATH until the target price is met, FOMO continues to push the price higher than the top creating the zone of Top Longers.
Buys orders are then pulled causing price to drop.
Resistance and Support levels using simple boxes or the help of the Volume Profile indicator.
Divergence, Accumulation and FOMO using Volume bars versus price using only chart candles and the Volume bars indicator
Top longing visualised with candles and the Volume Profile indicator
Top longers, where they are created and the resistance that is then generated at the top forcing them to either close at a loss or liquidate
1. BEARISH DIVERGENCE
Here you can see the volume bars declining over time but in the chart the price is rising over the same period. Expect a volume spike and big price move at the end.
2. SELL OFF INTO ACCUMULATION
Once the price reaches the required level, the sells are triggered. This causes panic sells and the larger second sell volume bar.
After the sell off, volume bars are small and roughly the same size as the asset is accumulated over time while price is kept low.
3. FOMO INTO SELLS
Accumulation over, large sell orders are removed allowing prioce to jump.
Volume bars increase in size over time as more people FOMO buys pushing the price to a new ATH until the target price is met, FOMO continues to push the price higher than the top creating the zone of Top Longers.
Buys orders are then pulled causing price to drop.
Comment:
Short squeeze from $58880 high sell volume, target would be close to $65k to liquidate leveraged positions at 10x or above.
Comment:
Bounce in range expected, view chart in lower TF to see more detail
Comment:
Another bounce 12th May, same range then we dropped through Feb / Mar support level.
Price is currently within support but currently not seeing volume to support it.
Hopefully this idea gave you some simple pointers to look out for and ignore the noise.
If you don't have a TV subscription, it is worth it just for the Volume Profile indicator used in this chart.
Do me a favour, use my link: www.tradingview.com/gopro/?share_your...
Price is currently within support but currently not seeing volume to support it.
Hopefully this idea gave you some simple pointers to look out for and ignore the noise.
If you don't have a TV subscription, it is worth it just for the Volume Profile indicator used in this chart.
Do me a favour, use my link: www.tradingview.com/gopro/?share_your...
Stops in place for breakout or short squeeze, will wait to see if volume maintains momentum