Volume Behavior

Volume is an important part of understanding the behaviour of instruments. This Indicators colours the candles/bars according to whether the volume for that time period of the candle is an Accumulation or Distribution candle or in fact if it has less volume that the previous candle. This simple tool can help traders of any instrument that involves volume to instantly visualise this volume behaviour to help confirm trade directions and more importantly to identify when a move is running out of juice and will aid in making trade management decisions.

What do you get

Volume Behavior For The Trade Station Platform 10

This indicator colors the candles or bars according to the volume for that time period of the candle. This depends on whether it’s an Accumulation or Distribution candle. It also depends on whether it has less volume than the previous candle.

Volume Behavior

An important part of understanding the behavior of instruments is volume. This simple tool helps traders of any instrument that involves volume. It works by instantly visualizing the volume behavior to confirm trade directions. Additionally, the Volume Behavior for the Trade Station Platform 10 identifies when a move is running out of juice. It will also aid in making trade management decisions.

Traders who look to volume behavior have the advantage of foreseeing whether a trade made today would bring in gains. Of course, you need an analytical ability in order to take full advantage of this indicator platform.

What Do You Get

Color coding for the candles is as follows:

1. Green Candle: UP candle with increased volume compared to previous candle.
2. Grey Candle: UP candle but has less volume than the candle before.
3. Red Candle: DOWN candle that has increased volume compared to previous candle.
4. Cyan Candle: DOWN candle but has less volume than the candle before.

What This Means When Buying

So, a green candle is an accumulation candle where more shares, contracts, or coins are being bought than in the same candle (time period) previously. When you see this after low-volume candles it can be said that the momentum (Juice) is increasing to the upside.

And then, when you get another green candle after the first, even more volume and even more juice to the upside. When the up candles turn gray, the juice starts to run out to the upside. This is a great indication to tighten stops if you are long.

What This Means When Selling

A Red Candle is a distribution candle where more shares, contracts, or coins are being sold than in the same candle (time period) previously. When you see this after low-volume candles it can be said that the momentum (Juice) is increasing to the downside.

And then, when you get another red candle after the first, even more volume and even more juice to the downside. When the down candles turn cyan, it means the juice is starting to run out to the downside and this is a great indication to tighten stops if you are short.