Volume Analysis
14 lessons in this track so far, in the order we suggest reading them.
Reading Volume
BeginnerVolume Analysis BasicsVolume analysis uses trading activity to confirm or question price moves. Learn the core principles, volume spikes, climaxes, dry ups and how to apply them.BeginnerRelative VolumeRelative volume compares current volume with its normal level. Learn the RVOL formula, time of day adjustments, scanning for stocks in play and how to use it.BeginnerVolume DivergenceVolume divergence is when price makes new highs or lows on shrinking volume. Learn how to spot bearish and bullish volume divergence and how to act on it.BeginnerBuying and Selling PressureBuying and selling pressure describe which side is more aggressive. Learn how to read it from candles, volume, delta and the tape, and the limits of each method.
Volume Indicators
IntermediateVWAPVWAP is the average price weighted by volume since the session started. Learn the formula, why institutions use it, VWAP bands and intraday trading strategies.IntermediateAnchored VWAPAnchored VWAP starts the volume weighted average from an event you choose, like earnings or a swing low. Learn how to pick anchors and use them as dynamic levels.IntermediateOn-Balance Volume (OBV)On-Balance Volume adds volume on up days and subtracts it on down days to track money flow. Learn the formula, divergence, breakouts and its limitations.IntermediateMoney Flow Index (MFI)The Money Flow Index combines price and volume into a 0 to 100 oscillator. Learn the MFI formula, overbought and oversold levels, divergence and how to use it.IntermediateAccumulation/DistributionThe Accumulation/Distribution line weights volume by where the close falls in the range. Learn the formula, how it differs from OBV, divergence and Chaikin tools.
Volume at Price
IntermediateVolume ProfileVolume profile shows how much traded at each price instead of each time period. Learn to read profiles, POC, value areas, nodes and how traders use them.IntermediateHigh and Low Volume NodesHigh volume nodes are prices with heavy trading; low volume nodes are thin gaps. Learn how price behaves at each, how to find them and how to trade them.IntermediatePoint of Control and Value AreaThe point of control is the price with the most volume; the value area holds about 70% of volume. Learn how they are calculated and the trades built on them.IntermediateMarket ProfileMarket profile organises price by time spent at each level using TPO letters. Learn auction market theory, profile shapes, day types and how traders use it.IntermediateVolume-Based LevelsVolume-based levels come from where heavy trading happened: POC, value areas, nodes, VWAPs and climax bars. Learn to find, rank and trade them with price action.