Learn to read price action and volume for better decisionmaking from "summary" of Secrets of a Pivot Boss by Franklin O. Ochoa
Understanding price action and volume is essential for making informed trading decisions. Price action refers to the movement of a security's price on a chart, while volume reflects the number of shares or contracts traded during a specific period. By analyzing these two elements together, traders can gain valuable insights into market dynamics and potential future price movements. Price action analysis involves studying the patterns and formations that occur on a price chart. This includes identifying support and resistance levels, trendlines, and chart patterns such as triangles, flags, and head and shoulders formations. These patterns can signal potential entry and exit points for trades, as well as provide clues about market sentiment and strength. Volume analysis, on the other hand, helps traders gauge the strength and conviction behind price movements. High volume during a price advance, for example, can indicate strong buying interes...Similar Posts
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