How To Analyze Trading Volume For Market Trends
Here is a TEP-BO-STEP guide on how Volme transactions for brands trend:
Step 1: chose a time range
Select the time range you want to do. Poplar optimals include:
- Daily (1 day, 5 days or 30 -day diagrams)
- Weekly graphics (1 week, 2 weeks or 4 weeks)
- Monthly (3 months, 6 months or 12 months)
Step 2: Identify market trends *
Understand it. Common trends include:
- Bullish (ascending impulse)
- Bear (descending impulse)
- Range-Boound
- Average reversion
Step 3: Analyze the trading volume
Get Volme trading data from a reliable source such as:
- Exchange api
- EOD data feed (end)
- Market data from Alpha Ventage or Yahoo Finance
Choose time and brand time is sold in step
Step 4: Calculate the Mobile Media **
Calculate the movement environments to identify the impulse. Poplar optimals include:
- Simple Movement Average (SMA)
- Media on exponential movement (EMA)
- Relative force index (RSI)
Use data from step 3 and calculate
- Sma = (closed price x media weight) / total volume
Ema = ((prices close to average weight x weight) + (average average average) / (2 total volume)
- RSI = 100 – (100 / (1 + Rs))
Step 5: Analyze the volume tied indicators
*
Identify volume -related indicators to help identify brands. Poplar optimals include:
- On the volume of the hip (OBV): calculate the difference between the volumes between and the sale
- Line of accumulation/distribution (ADLI): indicates that a stock becomes overloaded or overloaded
- ON BALANCE VOLUME INDEX (OBI): a suum of obvious lines for a certain period of time
Step 6: View volume trends *
Use Taalyze Volme viewing tools. Poplar optimals include:
- Graphic Software such as TradingView, Thinkorswim or Ninjatrader
- Time series diagrams with volume data
View movement media, volume -tied indicators and a scraping line on a graph.
Step 7: Make informed trading decisions **
Use the analysis for an informed mother the trading decisions. Consider the factors that:
- Volume -related trends (eg, increasing ov or adli levels)
- In movement medium crossings
- RSI levels
Combine factors with one of the technical and fundamental analysis tools.
Following it, channel Volme trading for brand transactions and informed trading decisions.