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ES - Day Trading Analysis With Volume ProfileOn ES , it's nice to see a strong sell-off from the price of 5989. It's also encouraging to observe a strong volume area where a lot of contracts are accumulated. I believe that sellers from this area will defend their short positions. When the price returns to this area, strong sellers will push the market down again. Fair Value GAP (FVG) and Volume cluster are the main reasons for my decision to go short on this trade. Happy trading, Dale
CME_MINI:ES1!
by Trader_Dale
Understanding VWAP In TradingWhat is VWAP? VWAP is a price benchmark that gives more importance to prices where higher trading volume occurs. Unlike simple moving averages, which treat each price point equally, VWAP provides a volume-weighted perspective, making it more representative of market activity. Traders use VWAP to gauge market trends, confirm trade entries and exits, and measure the quality of executions relative to the market's liquidity. How Institutional Traders Use VWAP Large financial institutions and mutual funds execute large orders over time to minimize their market impact. VWAP helps them: Achieve better execution by ensuring their orders are filled at a price close to the session's average. Reduce market impact by avoiding aggressive buying or selling at extreme price points. Gauge liquidity and time their orders efficiently. Role of VWAP in Algorithmic Trading VWAP is integral to algorithmic trading strategies that automate order execution. Algorithms use VWAP in: VWAP Trading Strategies: Algorithms execute orders in line with VWAP to avoid moving the market. Mean Reversion Trading: Traders look for deviations from VWAP, buying when the price is below and selling when it is above. Liquidity-Based Order Execution: Algorithms track VWAP to execute trades more efficiently, particularly in high-frequency trading (HFT). Why VWAP is a Critical Benchmark for Intraday Traders For short-term traders, VWAP provides key insights into market behavior: Trend Confirmation: If the price is above VWAP, it indicates bullish sentiment; below VWAP suggests bearish conditions. Entry and Exit Points: Traders use VWAP as support/resistance for trade decisions. Institutional Footprint: Retail traders track VWAP to understand where large orders might be executing. Since VWAP resets daily, it remains a highly relevant indicator for gauging intraday momentum and trend strength. Calculation Where: Price = (High + Low + Close) / 3 (Typical Price for each period) Volume = The total number of shares/contracts traded in the period Understanding How VWAP is Calculated: Calculate the Typical Price (TP): TP=High+Low+Close/3 Multiply TP by Volume for each time period to get the Cumulative Price-Volume product. Sum the Price-Volume values cumulatively throughout the day. Divide by the cumulative volume up to that time. Since VWAP is cumulative from the market open, it resets at the start of each trading day. Difference Between VWAP and Moving Averages VWAP Volume-weighted Resets daily Determines fair value in a session Reacts to volume spikes Moving Averages (SMA/EMA) Equal-weighted (SMA) or Exponentially weighted (EMA) Continuous across multiple sessions Identifies overall trend direction Reacts to price changes How to Interpret VWAP When the price is above VWAP: It suggests that the market is in an uptrend, and VWAP may act as support if the price retraces. When the price is below VWAP: It signals a downtrend, and VWAP may act as resistance if the price attempts to rise. Reclaiming VWAP: If the price moves below VWAP but then breaks back above it, this could signal a bullish reversal. The opposite is true for a bearish scenario. VWAP and Market Trend Identification Uptrend: If the price remains consistently above VWAP and VWAP itself is sloping upward, the market is in an uptrend. Downtrend: If the price stays below VWAP and VWAP is sloping downward, the market is in a downtrend. Sideways Market: If the price oscillates around VWAP and VWAP remains flat, the market is range-bound. VWAP Standard Deviations (Bands) and Their Significance First Standard Deviation (VWAP ±1σ) Represents a normal fluctuation around VWAP. Prices bouncing within this range indicate balanced market activity. Second Standard Deviation (VWAP ±2σ) Suggests stronger price movement. A move beyond this level may indicate an overbought (above VWAP) or oversold (below VWAP) condition. Third Standard Deviation (VWAP ±3σ) Extreme price movement; rarely sustained. A reversion back toward VWAP is highly likely. Misinterpreting VWAP Signals Many traders assume that VWAP alone dictates market direction. However, simply being above or below VWAP does not automatically mean the market is bullish or bearish. Market structure, momentum, and external factors such as news events or institutional order flows must also be considered. How to Avoid It? Look for Confirmation: Use VWAP in combination with price action and other indicators, such as volume, market structure, and momentum oscillators (e.g., RSI or MACD). Check the Trend of VWAP: If VWAP is sloping upward and price is above it, this signals strength. Conversely, a downward-sloping VWAP with price below it indicates weakness. Observe Price Interaction with VWAP: If the price consistently bounces off VWAP and continues in the trend direction, it confirms its role as dynamic support or resistance. If the price frequently crosses VWAP back and forth without clear direction, it signals a choppy, range-bound market. Strategies VWAP Bounce If the price pulls back to VWAP and holds, traders may look for a long entry (in an uptrend) or a short entry (in a downtrend). Stop-loss orders are often placed slightly beyond VWAP in case of a trend reversal. VWAP Breakout If the price consolidates near VWAP and then breaks out strongly, traders may enter in the direction of the breakout. A sustained break above VWAP signals strength, while a break below VWAP signals weakness. VWAP as a Reversion Point Traders monitor price deviations from VWAP. If the price moves too far from VWAP, a reversion trade back toward VWAP may be expected. Key Takeaways VWAP Represents Fair Value – It calculates the average price of a security, weighted by volume, giving traders insight into where most of the trading activity has occurred. Intraday Benchmark – VWAP resets daily and is primarily used by intraday traders and institutions to assess whether prices are trading at a premium or discount. Support and Resistance Tool – VWAP often acts as dynamic support in uptrends and resistance in downtrends, helping traders make entry and exit decisions. Institutional Trading Guide – Large institutions use VWAP to execute orders efficiently, minimizing market impact and ensuring better fills. VWAP vs. Moving Averages – Unlike moving averages, which continue across multiple sessions, VWAP is cumulative from the market open and resets each day. Trend Confirmation – Price above a rising VWAP signals a strong uptrend, while price below a declining VWAP suggests a downtrend. Avoid Over-Reliance – While useful, VWAP should be combined with volume analysis, price action, and other indicators to avoid false signals. VWAP Bands for Overbought/Oversold Levels – Standard deviation bands around VWAP can help identify price extremes and potential mean reversion setups. VWAP is more than just an average—it's the heartbeat of market sentiment, revealing where true liquidity and fair value align. Stay sharp, stay ahead, and let’s make those moves. Until next time, happy trading!
CME_MINI:ES1!Education
by CandelaCharts
4
Bitcoin is making it real simple#BTC just moved out the supply/demand zone via an upward channel on declining volume to make a new all time high. Came back down to test that supply demand zone and failed that test to no surprise from me. It moved back into that zone and tested another breakout and failed that as well again to no surprise. On top of that, the RSI failed the test of the bullzone and is now below the EMA and looks like it will fail that test as well. The good news is CRYPTOCAP:BTC appears to have established its trade range for accumulation and will present opportunities for traders and buy and holders. #BTC #Wyckoff
BITSTAMP:BTCUSD
by HotsauceShoTYME
ANGEL ONE - Potential Cup Pattern Breakout!Timeframe: Daily (1D) Pattern: Cup Formation (shown with arc) Setup: Price is forming a classic cup pattern. The neckline (arc resistance) is near 2538.40. Price has recently approached but faced resistance around the neckline. Once the price breaks above the arc line with strong volume, a bullish breakout could be confirmed! Targets After Breakout: 🎯 Target 1: 2800 🎯 Target 2: 3000 Stop-loss suggestion: As per your risk management. Notes: Price is currently below the 200 EMA. For a strong confirmation, look for a close above the arc and the 200 EMA with volume spike. Disclaimer This analysis is for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any securities. Always do your own research and consult with a qualified financial advisor before making any investment decisions. Trading involves substantial risk.
NSE:ANGELONELong
by jeet20
BCH Analysis for Scalpers (1H)Bitcoin Cash (BCH) is currently showing multiple technical signals that support a potential bullish continuation. A reversed Head and Shoulders pattern is in the process of forming, and it aligns well with several key confluences — including the Ichimoku Cloud and volume profile support zones. A breakout above the $430 level would not only confirm the pattern but also activate a bullish flag formation, adding further momentum to the setup. In that case, the next immediate target would be around $452.4. This setup remains valid only upon confirmation of the breakout. Until then, caution is advised — a clean break and retest would offer the most favorable entry. — Thanks for reading.
Long
by vs_sayin
[20250526] Gold - True Bull or Liquidity Trap This Week?Key Dynamic Levels Guide: Previous Grey/Black, Green/Magenta, and Red/Blue dynamic levels mark important zones where Smart Money (SM) has positioned itself. These levels are crucial liquidity pools, as support and resistance (S/R) frequently revisit these zones. Check their values by hovering your mouse for guidance before proceeding. 4H key-level confluence can be refer in published Idea titled: Gold – Structural Bull Bias - One Leg Down Still Anticipated? refer the related post ---> 📊 Weekly Market Intent – Gold Analysis Gold has recently tested the 3360+ zone, showing renewed bullish momentum. However, system-based structure mapping suggests that this move might still be part of a broader setup—rather than a confirmed breakout. 📌 Market Structure & Key Levels A possible ABCDE triangle structure remains in play, where price is either concluding Wave-C or initiating Wave-D. If this formation holds, a pullback toward 3044–2950 could materialize before Wave-E completes and resumes the larger bullish trend. The market also aligns with a potential 3-Drive bearish trap, where recent highs attract late buyers before deeper liquidity moves unfold. 🔹 Key Dynamic Levels (4H Confluence): Bull VAH (Grey Line): 3317.52 – Key retracement level in a bullish environment. Bull POC (Light Green): 3313.55 – Defines bullish sentiment zone. Blue Line (Bull Bias Limit): 3254.26 – A breach would indicate deeper pullback risk. Red Line (Bear Bias Limit): 3369.81 – A decisive break suggests bullish continuation. Liquidity Levels: 3401.21 (upper target) | 3212.57 (lower target). 🧐 Market Sentiment & Next Move Current sentiment indicates bullish bias with bear presence, as the market attempts lower support levels before a bullish continuation. Bullish Continuation: Price moving past 3366 could signal a breakout, with unconfirmed top resistance levels remaining untested before further upside. Bearish Presence: Below 3313.55, sell-side pressure could intensify. Below the bull bias limit (3254.26), deeper downside traction suggests a short-cycle bearish move until a rebound occurs above the newly formed dynamic bear bias limit. 🧠 Reversal / Invalidation Conditions Bullish Strength Holds: Trading above 3253.57, with unsuccessful bear attempts, suggests bullish sentiment remains intact. Bearish Shift: A failed support at 3290 and successful retest reinforce downside pressure. Momentum and volume remain key for validating the shift. 📌 System-Based Order Limits Daily Order Limits Buy: 3350.95 | SL: 3281.20 | TP: 3399.82 Sell: 3302.39 | SL: 3372.14 | TP: 3253.52 Weekly Order Limits Buy: 3335.02 | SL: 3192.49 | TP: 3434.89 Sell: 3235.80 | SL: 3378.33 | TP: 3135.93 Monthly Order Limits Buy: 3374.47 | SL: 3097.33 | TP: 3568.65 Sell: 3181.54 | SL: 3458.68 | TP: 2987.36 📌 Final Insight Market intent unfolds dynamically, and structure-driven decision-making ensures anticipation zones remain valuable references. 📢 Gawai Festival Notice: As I’ll be away for the season’s harvest festival, I may not provide further updates on next shifts. However, this weekly confluence bias should guide traders in navigating market ranges effectively. Stay disciplined, wait for liquidity validation, and let Smart Money footprints lead the way. Wishing all traders a profitable week ahead! See you next week. 🚀
TRADENATIONSB:XAUUSD
by jerryfc000
Are we seeing UTAD on BTC?Bitcoin has been in ana scending channel for a while but ever since the new all time high, some things make me doubt we see a continuation of the bull trend in the near term. -Volume has been declining the entire length of the channel -We saw a bump in volume but the effort didn't match. A lower volume red candle had the same impact on price. -The new all time high resulted in a third touch of bearish divergence on the MACD. Also the MA's are showing bearishness. -The RSI fell below the EMA and is now looking like it's resisting breaking through. We are clearly in a supply zone and all signs point to absorption and distribution taking place. 104k is the next level that will offer any significant support.
BITSTAMP:BTCUSDShort
by HotsauceShoTYME
How to Use Fixed Range Volume Profile on TradingView 1️⃣ Why Fixed Range Volume Profile Matters ✅ It helps you spot real price structure where traders were active, not just where price passed through. Useful for: Identifying Supply & Demand zones Understanding nstitutional activity (volume concentration = likely smart money involvement) Analyzing range-bound markets Confirming pullbacks or entries in trending setups There are two different tools: one is called Volume Profile, and the other is Fixed Range Volume Profile. To learn more about them, check out the link below. Volume Profile Indicators: basic concepts: www.tradingview.com Fixed Range Volume Profile: www.tradingview.com 2️⃣ What is Volume in Trading? Volume refers to the total number of units (e.g., shares, contracts, coins) traded during a specific time period. It measures the market's participation. ✔️ High Volume = strong interest and confirmation of price moves. ❌ Low Volume = weak conviction, indecision, or potential false moves. Volume is calculated by counting all completed trades in a candle both buying and selling. Learn more about volume here: www.tradingview.com 3️⃣ What is Fixed Range Volume Profile? Fixed Range Volume Profile is a tool you can draw on your chart to check how much trading happened at different price levels, but only within the range you select. You pick the start and end point, and the tool shows volume activity just in that area. It shows three main levels: 🔴 Point of Control (POC): the price where the most trading happened 🟢 Value Area High (VAH): the highest price in the area where most trades occurred (about 70% of total volume) 🔵 Value Area Low (VAL): the lowest price in that same area These three levels show the price range where most trading took place also called the value area. 4️⃣ Why Fixed Range Volume Profile Matters It helps you spot real price structure where traders were active, not just where price passed through. Useful for: Identifying Supply & Demand zones Understanding institutional activity (volume concentration = likely smart money involvement) Analyzing **range-bound markets Confirming pullbacks or entries in trending setups 5️⃣ How to Use Fixed Range Volume Profile on TradingView Steps: 1. First, look for a clear range on your chart. A range is a sideways movement where price is mostly moving back and forth instead of trending. 2. I like to use the 4-hour chart for this, but you can use any timeframe. Using candles with clearer shapes can help you see the range more easily. 3. Once you see a range, go to the left-hand toolbar and select the Fixed Range Volume Profile tool. 4. Click at the beginning of the range, then drag your mouse to the end of the range. 5. Let go of the mouse, and the volume profile will appear on that section of the chart. Analyze: POC: Price may often return to this level because it's where most trading happened VAH: Price could have a harder time moving higher if it reaches this level may act like resistance VAL: Price may find support around here — traders bought more in this area 1. Find the Range 2. Draw your Profile 3. You should treat your volume range like a basic support and resistance level. What you want to see is a flip between support and resistance. 4. If the price breaks above the volume profile and keeps going higher, you want it to come back and retest that same range this time acting as support. 5. Your entry should be near the support. Your stop-loss should be placed above the high of the breakout or a logical structure. Of course, setting a stop-loss always depends on more context, like the overall market structure and your risk management plan. 6️⃣ Practical Scenarios ✔️ Use it during sideways or quiet market phases (called consolidation) to see where most of the trading happened before the market moved ✔️ Try it on pullbacks in trending markets to check if price is returning to an area of high volume ✔️ Draw profiles on different price swings to spot areas where volume keeps showing up again and again Example: ⚠️ Limitations Fixed Range Volume Profile might not work well when: The asset has very little trading volume (like new coins or very small stocks) There’s a big news event causing unexpected volume spikes The market is moving fast in one direction, and the volume zones don’t hold ⚠️ A couple of common mistakes traders make when using Fixed Range Volume Profile: They apply it in trending markets. This tool works best in sideways or ranging markets, not when price is trending strongly up or down. They include breakout volume. Breakouts often include forced liquidations or trapped traders this can create misleading spikes in volume. 7️⃣ Summary Fixed Range Volume Profile helps you see where most trades happened in a specific part of the chart. It highlights price zones where traders were most active, which can help you understand possible support, resistance, or value areas. ✅ Good for: Markets that are going sideways Double-checking volume around key levels Spotting price zones where support or resistance might appear Disclaimer: This is not financial advice. Always do your own research. This content may include enhancements made using AI.
Education
by Risk_Adj_Return
BTCUSDTPrice action anlysis The initial phase, likely Phase A, marked the stopping of the previous downtrend. The low reached around the 24th could be identified as a Selling Climax (SC) or a significant low. The subsequent rally to near the 25th then established an Automatic Rally (AR), defining the upper boundary of the initial trading range. A following decline that tested the SC zone, around the 25th, would constitute a Secondary Test (ST). Following this, the price entered Phase B, the "building of the cause," where the "Composite Man" is presumed to be accumulating. From the ST on the 25th until near the 26th, the price moved laterally, repeatedly testing the support and resistance levels established by the SC and AR, with supports around $107K-$107K and resistance evolving from $109K towards $109-$110K The low on the 26th, reaching near $107K, is particularly noteworthy and could be interpreted as a Spring or an ST in Phase C, effectively a shakeout below prior support. If this low on the 26th is indeed a Spring, then Phase C, the test, is confirmed by the immediate subsequent rally that did not retest this low with any significant force, indicating a lack of supply. This leads us into Phase D, characterized by a developing uptrend within the range and the potential for a breakout. The ascent starting late on the 26th and continuing to the current moment displays clear Signs of Strength (SOS). The price has broken through internal resistance levels within the range and is now challenging the upper boundary of the broader trading range, near $110K. Currently, the price at $109K is situated at a critical resistance zone, which notably coincides with the Point of Control (POC) indicated by the volume profile. Volume Behavior Analysis: The behavior of volume provides further context. During Phase A, volume at the SC, while not climactic, was significant compared to its immediate surroundings, and the volume on the AR was moderate. Crucially, volume during the ST on the 25th was markedly lower than at the SC, a positive sign for accumulation, suggesting diminishing selling pressure. Throughout Phase B, volume was somewhat erratic but generally decreased on successful tests of support. Some volume spikes were observed on upward movements testing resistance, indicating absorption of supply. The volume on the potential Spring on the 26th was moderate, which is acceptable if followed by a swift recovery on low-volume retests. In Phase D, the rally from late on the 26th has been accompanied by an increase in volume on bullish candles, especially during the breakout of internal resistance levels, supporting the SOS and indicating demand taking control. Current volume, as the price consolidates at the highs, is moderate. RSI Behavior Analysis: The Relative Strength Index (RSI) offers additional insights. A clear bullish divergence is evident when comparing the price low of the 25th with the low of the 26th; while the price made an equal or slightly lower low, the RSI formed a distinctly higher low. This classic signal supports the interpretation of a Spring or a final test of supply. During the accumulation phase, the RSI mostly oscillated below the 50-60 levels. With the onset of Phase D and the SOS, the RSI has crossed above and is maintaining itself above 50 (currently at 58.27), indicating a shift towards bullish momentum. It is not yet in overbought territory (above 70), suggesting potential for further upside if demand persists. The volume profile on the right shows the POC, the area of highest traded volume, situated precisely where the price is currently, around $109,7K - $109,8K. This area acts as a strong magnet and a significant potential resistance or support. Below this, a High Volume Node (HVN) around $108K could serve as strong support on pullbacks. Above the current POC, a Low Volume Node (LVN) exists before another minor HVN near $111K; LVNs are often traversed quickly if the price can overcome the current HVN. Relevant Points to Consider for the Next 24 Hours: Looking ahead for the next 24 hours, several key elements will be crucial. The immediate focus is on the price's ability to break and sustain above the current resistance and POC zone of $109,7K - $110K USDT. A confirmed breakout above $110K USDT, ideally accompanied by increasing volume, would validate the SOS and signal entry into Phase E, a markup phase, with potential targets around $110,5K and then the HVN near $111K. A pullback to this breakout zone that holds as support, forming a Last Point of Support (LPS), would be a strong bullish indication. Conversely, a failure to overcome this zone, especially with increasing selling volume, could lead to a retracement to test lower supports, initially around $109K-$109,2K, and then potentially the HVN at $108K. Volume during any breakout or rejection will be paramount; a low-volume breakout would be suspect (a potential Upthrust), while increased volume on a breakout would be confirmatory. For the RSI, if new price highs above $110K are achieved, it will be important to see if the RSI confirms with new highs or forms a bearish divergence, which could warn of short-term bullish exhaustion. Sustaining above RSI 50 is positive. From a Wyckoff perspective, if this is indeed Phase D, "Backups" or LPS testing the breakout area are normal. However, a failure of the structure, such as a decisive break below the Spring level (e.g., below 106,800), would invalidate the accumulation scenario and suggest either redistribution or a continuation of the prior downtrend.
by hiraganime
CHAMBLFERT - Chambal Fertilizers Ltd. (Daily chart, NSE) - LongCHAMBLFERT - Chambal Fertilizers Ltd. (Daily chart, NSE) - Long Position; short-term swing research idea. Risk assessment: High {volume & support structure integrity risk} Risk/Reward ratio ~ 3.41 Current Market Price (CMP) ~ 594 Entry limit ~ 592 on May 27, 2025 1.⁠ ⁠Target limit ~ 610 (+3.04%; +18 points) 2.⁠ ⁠⁠Target limit ~ 625 (+5.57%; +33 points) 3.⁠ ⁠⁠Target limit ~ 650 (+9.80%; +58 points) Stop order limit ~ 575 (-2.87%; -17 points) Disclaimer: Investments in securities markets are subject to market risks. All information presented in this group is strictly for reference and personal study purposes only and is not a recommendation and/or a solicitation to act upon under any interpretation of the letter. LEGEND: {curly brackets} = observation notes = important updates (parentheses) = information details ~ tilde/approximation = variable value -hyphen = fixed value
NSE:CHAMBLFERTLong
by VEDIMarketWatch