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If you’ve been trading for any length of time, you’ve likely heard the phrase, “Volume precedes price.” It’s not just a catchy saying — it’s a fundamental principle of market dynamics. Volume is the fuel that drives price movements. Understanding how to read it and use it in your trading decisions can mean the difference between a winning trade and chasing a bad setup. Volume tells you where the action is. It reflects the level of commitment from buyers and sellers in the market. When volume spikes above average — especially during key price movements — it often signals areas of support or resistance. That’s why I pay close attention to high-volume bars in my charts. These aren’t random occurrences… They mark significant points where market participants have shown their hand. For example, let’s say a stock like Dollar General (DG) breaks below the VWAP and stays there with consistently high volume. That’s not just a coincidence — it’s a signal. Buyers aren’t stepping in, and sellers are in control. On the flip side, if a stock like JPMorgan (JPM) holds above its 50-day moving average with strong volume, it’s a clear indication of institutional support. Identifying Key Levels with Volume One of the most valuable ways to use volume is in identifying critical support and resistance levels. When you overlay volume on a daily chart and then drill down to an intraday chart, you’ll notice that these levels often align. This is why I emphasize looking at both time frames — they paint a clearer picture of where the market’s battle lines are drawn. For instance, if you’re trading Consumer Staples (XLP) and notice a high-volume bar near a previous resistance level, it’s a strong clue that the level may hold. Conversely, a breakout on high volume suggests the potential for further upside. Volume is the market’s megaphone. It shouts where the big players are making moves and gives you the edge to trade alongside them — not against them. If you’re ignoring volume in your trading decisions, you’re flying blind. Start incorporating it into your analysis, and you’ll quickly see why it’s one of the most critical tools in a trader’s arsenal. Take the time to study volume and let it guide your trades. It’s not just about buying and selling — it’s about buying and selling smart. I hope that helps! Roger Scott Roger Scott Trading Follow along and join the conversation for real-time analysis, trade ideas, market insights and more! Telegram: https://t.me/+_vmfwkeP8fA5YWQ5 *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. See the Simple Pattern That’s Won 24 Straight Trades, Returning an Average 28% You don’t want to miss out on a mind-blowing simple way to spot what could be big winners that nobody is talking about. It’s called the A-Line Pattern, and Roger’s revealing the details for you at 2 p.m. ET today, Jan. 17. It all starts with this pink indicator you see here on this chart… All we have to do is wait for the daily candle to close below the indicator. Then open a specific trade… and sit back and wait for what could be the next big win. Just like the 24 wins in a row the A-Line has provided — with an average return of 28.08%! And right now, Roger’s taking a look at what he believes could be win No. 25. We cannot promise future gains or protect against losses, but you don’t want to miss out if the A-Line pays hits. The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. From 2/25/20 through 1/16/25, the average win rate on live published trade alerts is 77.14%. The average weighted rate of return on options trades was 10.78% over an 11 day average hold time. This idea came directly from my Daily Chart Setup that automatically signals potential plays.
How the Daily Chart Setup Works Here’s a more detailed description of how the pattern triggers: 1. The price breaks upward through the orange Market Roadmap Line. 2. Then the price goes up and down while staying above the line. Eventually, it comes down to touch the line again — this could take days, weeks or even months. 3. Once it touches the line and starts moving back up, that signals an entry. I use Fibonacci levels for for profit targets and stop losses, and these two tools combined have helped me achieve a 77% win rate over the past six-plus years! You can grab my Market Roadmap Indicator here for just $5 — less than a cup of coffee at most places! Want to get a link to TradingPub content, trade ideas, real-time market analysis and educational tidbits? We have you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3… 1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, click here. To download to your Android device, click here. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.” 2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, click here. To download onto your MacOS, click here. 3. Then add our channels by clicking these links!
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