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Volume Trading Strategy
Volume trading strategy is the number of the shares that change the hand in the specified time frame.
Volume is the variable term that is independent of price.
Volume trading strategy measures the enthusiasm of the buyers and sellers, so analyzing the book gives us a better understanding of how and why price moves in a direction.
Volume is by solid news; for example, positive information about the company creates an interest in the stock and will attract people to buy that stock.
If there is good news about the stock, buyers are interested in buying that stock, and then the trading volume rises due to an increase in the huge demand.
If there is any bad news about the stock, sellers are interested in selling that scrip, or profit booking may occur, then the trading volume lowers.
There is a buyer for every seller in the stock market, and there is a seller for every buyer.
Volume trading strategy is in bars, and if you get a long bar compared to the average bars, the relative importance is high on that day due to unusual buying and selling of the stock.
In an uptrend, at extremes, all the people are fully invested. Nobody has to sell the stock because the prices are higher and higher, a considerable volume shows, a vast buying and selling at a particular day.
All People Are Buying Stock Because The Stock Is Rising, Then Who Is Selling The Stock At The Buying Range? Volume Trading Strategy
Those are the savvy investors, or you can say that intelligent money professionals, institutional buyers, big anglers, and informed investors know the stock’s actual value.
Intelligent investors know that the stock is overbought; all the informed investors sell at the higher threshold. All the buyers buy the scrip because they think that the stock will move upper than the new higher end.
In a downtrend, all the people are fully booking profits or selling the stock at new lows. Nobody has to buy the scrip because the prices are lower and lower, a considerable volume shows, a vast selling and buying at a particular day.
All Are Selling Stock Because The Stock Is Falling, Then Who Is Buying The Scrip At The Selling Range? Volume Trading Strategy
Those are the savvy investors, or you can say that intelligent money professionals, institutional buyers, big anglers, and informed investors know the stock’s actual value.
Intelligent investors know that the stock had sold heavily; by the informed investors are buying.
All the sellers sell the scrip at the higher threshold because they think that the stock will move low than the new lower end.
Savvy investors invest in millions so that the vast volume had seen in powerful uptrend and downtrend.
In an uptrend, if volume increases, demand increases, and price likely to move in the same direction.
In the continuous uptrend, the volume spikes will be more.
While institutional buyers are short selling the stock, so the prices are going down.
The volume trading strategy also affects support and resistance levels, if a stock is at a resistance level, the demand may increase at the breakout, and the scrip will continue to rise.
When the stock price drops near to the support level, at the support level, there will be a massive pressure of buying, and then the volume rises significantly to move the stock towards the bullish side.
When the stock price moves near to the resistance level, at the resistance level, there will be a massive pressure of selling, and then the volume rises significantly to move the stock towards the bearish side.
So marking the support and resistance is very important for the volume trading strategy.
Think about the situation, if one investor places an order to buy 100 shares, it will not move up, but if the 1000 investors place a buy order of different quantities at the current price level, the stock will move up due to the strong demand, because there are more buyers than sellers.
There fore to break out through the critical support and resistance level, huge volume is required, and break out through the vast momentum confirms the breakout.
Volume trading strategy will be applicable for all stocks and indices, and futures.
Do not take an entry buy seeing the huge volumes on both bullish and bearish sides.
The volume trading strategy will only show which side will be more players and investors.
To make an entry of the stock by using volumes will not be more accurate, but taking access by conjoining all the discussed indicators and support and resistance levels and also by the open interest, will be the most probable and profitable trade for the volume trading strategy.
I want to take a trade of volume trading strategy by marking support and resistance levels.
Because when the stock price reaches the support level, the informal investors will invest a considerable amount of capital due to the vital support region, and they will move the stock towards the bullish side.
When the stock price reaches the resistance level, the informal investors will book the profits or sell the stock with huge capital, and they will move the scrip towards the bearish side due to the strong resistance.
If we do not have much capital to invest and move the market, follow the people who invest in the vast amounts and move the market according to the support and resistance levels.
How To Identify The Big Players? Volume Trading Strategy
We can identify them by mastering the volume trading strategy if the volume bar rises suddenly at the support and resistance levels or break out zones.
After breaking which side the volume will be more, that will be the side where the big players will locate.
If bullish side, the volume will be more, then the big players will be on the bullish side.
If the bearish side, the volume will be more than the big players on the bearish side.
Remember one thing huge volumes have been generated by big players and investors or institutional buyers.
I will follow the one line at my trading zone.
IF YOU HAVE TO BECOME A BIG PLAYER, THEN FOLLOW THE BIG PLAYERS.
If you are interested in taking these types of most probable trades, you may contact us to be a profitable and most probable trader.
These are the only samples for best indicators for intraday trading.
The original program will be in our private groups and our course about best indicators for intraday trading.
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