The price change in the market is determined by supply and demand, accordingly, when analyzing a particular instrument, it is necessary to take into account the volumes of purchases and sales formed over a certain period. Анализ объемов, is very important when trading in financial markets, since it is with the help of volumes that you can determine the market interest in any price levels.
This type of analysis includes identifying price levels, on which the largest number of contracts or shares were traded, which indicates the increased interest of market participants in these levels.
In this way, the market moves from one price level to another, ie. from volume to volume.
Formation of volumes.
The importance of volumes stems from the time intervals of their formation.. Below is a diagram of the formation of volumes:
Tick - Second - Minute - 15 minutes - 30 minutes - Hour - Day - Week
Thus, hourly volumes form daily, daily form weekly, weekly – месячные.
Depending on the period, each volume has its own importance and rating.
1. Volume of the week - price, for which the most transactions were made within a week.
2. Volume of the day - price, by which the most contracts were traded within the selected day.
3. Volume of an hour - half an hour, 15 minutes, 5 minutes, etc.. in descending order
These parameters together determine the future and current behavior of the market in the price space.. The principle of trading from volumes is based on the movement of the market from one large accumulation to another, как это показано на рисунке
If you are interested:
– what are volumetric levels, где их брать, where to look and how to use to enter trades
– how to filter stock transactions and identify major players on the chart
– what software do you need to track volumes (paid and free), as well as, how to use paid programs in 2 times cheaper
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