Scribd
Upload
24 views6 pages

Volume Indicator Trading Strategies

This guide provides practical trading strategies using the Volume indicator to enhance trading success and sentiment analysis. It outlines three key Volume environments: increasing/steady Volume for momentum trades, flat Volume with outlier spikes for mean reversion trades, and irregular Volume to avoid trading. The guide also emphasizes the importance of understanding market conditions and offers tools for discovering profitable altcoins.

Uploaded by

popcorntrailers2021
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
24 views6 pages

Volume Indicator Trading Strategies

This guide provides practical trading strategies using the Volume indicator to enhance trading success and sentiment analysis. It outlines three key Volume environments: increasing/steady Volume for momentum trades, flat Volume with outlier spikes for mean reversion trades, and irregular Volume to avoid trading. The guide also emphasizes the importance of understanding market conditions and offers tools for discovering profitable altcoins.

Uploaded by

popcorntrailers2021
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 6

Volume Indicator: Trading Strategies and

Setups
In this guide, we’ll dive deep into practical trading applications of the Volume indicator.

This is how I use the indicator in my actual trading to enhance my win rate %, understand
the flow of money, and study sentiment.

K
I’ve also used these strategies to train 100+ profitable traders.

hA
If you can understand and consistently apply this guide to your trading, you will never need
to use another indicator again.

Let’s begin!
us
ro
Ko
@
Just like asset selection, before entering any new positions, we carry out a market
environment analysis to judge if the Volume is ideal for us to trade and which strategies will
perform best in that environment.

There are 3 Volume environments in any market to look out for:

1. Increasing/ Steady Volume

● This is where Volume increases over time or remains stable throughout the move.
● It’s a great environment for momentum trades where the trends are strong and
looking to trade against them is likelier to get you stopped out.

K
This is what the Volume environment looks like:

hA
us
ro
Ko

An uptrend with a steady Volume is a great environment for momentum trades and lets me
@

long resistance breaks consistently. I also use the same strategy for shorts with slightly
minor differences in trade triggers.

Here’s an example of what that environment may look like:


K
hA
This works best to make money in bullish market conditions where altcoins are trending
upwards.
us
2. Flat Volume with outlier spikes

● This is where the Volume stays relatively flat and then we get a sudden spike.
● This creates a great trigger for mean reversion trades because buyers/ sellers have
ro

potentially market-bought/sold a big order. If there is no continuation to create a


trend, the price is likely to revert and change direction.

This is what that Volume environment looks like:


Ko
@
This is most common in choppy price action or when price is range-bound. Some of my most
common trades with this setup show up on altcoins. I look to trade price extremities (range
highs/ range lows) and align the Volume for confluence to enter trades.

Here’s an example of what that environment may look like:

K
hA
us
ro

This works best when price swing-fails a level with high Volume or if an altcoin has a sudden
surge in Volume with no follow-through after the outlier nodes.
Ko
@
3. Irregular/ unclear Volume

● Most traders will ignore this but this is the most important Volume environment to
know.
● Knowing when not to trade is more important than knowing when to engage because
trading in unfavorable environments is where you will lose most of your money.
● A Volume profile with no clear trend and very irregular behavior is where I like to stay
flat/ not trade.

K
hA
us
ro

Understanding your ideal trading conditions also helps you with sentiment analysis by being
able to judge how your opposition is feeling. These are the potential market participants you
might be trading against and the timeframes they normally trade in:
Ko
@
There are plenty of other techniques traders use for Volume analysis such as strength
buying/selling, absorption, Volume divergences, etc. but mastering the basics is the easiest
way to use Volume profitably.

To find coins that have good Volume, use my Altcoin Discovery System. This will help
automate your market scans so you can focus more on trading the best assets in the market.
This has helped me find many coins that have even gone 100X.

If you want to simplify your trading more and make money trading altcoins, join my
Telegram. This is where I share most of my setups, charts, techniques, and strategies.

K
hA
us
ro
Ko
@

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy