A Complete Course to Volume Price Analysis

The volume price analysis was developed by Wyckoff in the early 1900s through interviews & studying all successful traders of that time including EH Harriman, James R Keene, Otta Kahn, JP Morgan, legendary Jesse Livermore, the pioneer of day trading who developed and mastered the art of tape reading and made a huge fortune. The volume price analysis was further researched by Tom Williams in the 1960s and 1970s.

Have you wondered how all these investors & traders have earned huge fortunes?

Have you ever wondered why only your stop-loss is taken out before the market takes the big leap?

The candlestick volume is closely related to the activities of professionals and market makers. This book, ”A Complete Course to Volume Price Analysis", written by a trader and computer programmer will equip readers with the knowledge to predict future activities of professional traders in the market.

Is the theory developed in the 1900s and mid of last century still valid in the era of rapid computerization and algo trading? Can computers add value and assist to the research done by Wyckoff and Tom Williams?

 "A Complete Course to Volume Price Analysis" provides a good starting point for readers in trading and investment analysis. It not only covers important topics like Wyckoff theory, floating volume analysis, bar by bar reading of chart and lays a solid foundation for a serious trader like you but also provides simple tradingview pinescripts for identification of patterns on a chart.

After reading this book, you'll be able to analyze market structures and can make informed trade decisions. You will get benefited from reading the book and by applying skills gained to the real market. As per Wyckoff's Theory, few market makers manipulate the market and move the market in such a way that most of the retailers lose their bet. In VPA, analysis we combine Wyckoff's theory and volume price analysis to align our trade with trades of market makers. This is thus another art of trading along with momentum and not a tool to identify the position of exact high or low.

Following are the major type of bars that we will attempt to identify objectively so that there is no ambiguity in their identification:

1. Bar indicating no demand by retailers (sold in anticipation of price fall).

2. Bar indicating no supply by retailers (holding and expecting price rise).

3. Buying climax, the bar marking an end of up-trend and beginning of the distribution of stocks by market makers.

4. Effort to move-up : Effort by market makers to rise scrip prices

5. Effort to move-down: Effort by market makers to reduce or drop scrip prices

6. Move-up failed: A previous attempt by market makers to rise price up failed

7. Move-down failed: A previous attempt by market makers to move the price down failed

8. Stopping volume: Attempt by market makers to stop fall in price and bring strength to market

9. Market testing Bar: Testing strength of previously established supply or demand zone.

10. Upthrust Bar: An attempt to trap buyers at high prices.

Learn more on volume price analysis and other technical fundamentals through the Book "A Complete Course to Volume Price Analysis- Read the market Bar by Bar"  by Achal. Pinescript codes for identification of bars also available in book to assist you during your learning.

	130 pages book

Keywords: stopping volume candle, stopping volume indicator, stopping volume bar, how to use volume candle, stopping volume pattern, what is stopping volume, stopping volume trading, how to trade volume, stopping volume vsa, stopping volume vpa

Effort to Move-up bar

Effort to Move-up bar

Effort to move up bar is a firm long up closing bar with its volume in agreement with the size of bar. The bar has small or no tail signifying lesser selling pressure. An effort to move down bar is generally associated with sudden buying activity by professional buyer, the buyers having deep pocket and internal information of the underlying asset. The effort to move-up bar is formed after buyers have accumulated enough equity at cheap prices.

Valid effort to move-up bar

A valid effort to move-up bar can be found after some accumulation i.e. sideways movement. A effort to move-up bar after a sudden dip i.e. long red candle followed by a long green candle cannot be considered as a valid effort to move-up bar. Such type of a bar could also be result of failed test. A valid effort to move-up bar can also be confirmed if it has a no supply bar or accumulation bar i.e. small size large volume before it.

What after a valid effort to move-up bar?

A effort to move-up bar needs to be confirmed before any trade can be taken. A effort to move-up bar is a calculated move by professionals after they have set in the stage for mark-up of prices. Even after taking all due considerations even professionals can never be sure whether their move is successful or not. They use some good news or positive market sentiments to make such moves. How can a professional confirm the move ? The only way to confirm the move is by taking a demand test. If the effort to move bar is followed by a supply test, you can always take long trade on confirmation of no selling pressure.

Examples of effort to move-up bar

Below is the daily chart for Indusind Bank from NSE, an Indian Exchange for the month Oct 2020. Here we can observe accumulation spread over a month and  effort to move-up bar towards end of month.

The candle with circle on their top represent bars of either accumulation or distribution depending on their location. After the immediate break out, price has paused for a while to accumulate more before moving further.

Resources

Learn more on volume price analysis and other technical fundamentals through the Book "A Complete Course to Volume Price Analysis- Read the market Bar by Bar"  by Achal. Pinescript codes for identification of bars also available in book to assist you during your learning.

200+ pages book	130 pages book

Buy Udemy Course on creating trading strategies and creating indicators in PINESCRIPT on trading view at 70% discounted price at USD 20. Buy Now  

Keywords: stopping volume candle, stopping volume indicator, stopping volume bar, how to use volume candle, stopping volume pattern, what is stopping volume, stopping volume trading, how to trade volume, stopping volume vsa, stopping volume vpa

Effort to Move-down bar

Effort to Move-down bar

Effort to move up down is a firm long down closing bar with its volume in agreement with the size of bar. The bar has small or no tail signifying lesser buying pressure. An effort to move down bar is generally associated with sudden selling activity by professional buyer, the buyers having deep pocket and internal information of the underlying asset. The effort to move-down bar is formed after sellers have distributed equity at higher prices.

Valid effort to move-down bar

A valid effort to move-down bar can be found after some distribution i.e. sideways movement at top of rally. A effort to move-down bar after a rise i.e. long green candle followed by a long red candle cannot be considered as a valid effort to move-down bar. Such type of a bar could also be result of failed supply test. A valid effort to move-down bar can also be confirmed if it has a no demand bar or distribution bar i.e. small size large volume before it.

What after a valid effort to move-down bar?

A effort to move-down bar needs to be confirmed before any trade can be taken. A effort to move-down bar is a calculated move by professionals after they have set in the stage for mark-down of prices. Even after taking all due considerations even professionals can never be sure whether their move is successful or not. They use some bad news or negative market sentiments to make such moves. How can a professional confirm the move ? The only way to confirm the move is by taking a supply test. If the effort to move bar is followed by demand test, you can always take a short position on confirmation of no demand.

Examples of effort to move-down bar

Below is the daily chart of APPLE INC for May 2021. Effort to move down bar has been marked with "ED" which is just located below distribution zone.

The Third bar from the effort to move-down bar re-test the distribution zone before prices further falls. The ideal price point to take a short position is after breakout of distribution zone and re-test of the zone. The above set up has seen a fall of about 6.5% within 4 days.

Resources

Learn more on volume price analysis and other technical fundamentals through the Book "A Complete Course to Volume Price Analysis- Read the market Bar by Bar"  by Achal. Pinescript codes for identification of bars also available in book to assist you during your learning.

200+ pages book	130 pages book

Buy Udemy Course on creating trading strategies and creating indicators in PINESCRIPT on trading view at 70% discounted price at USD 20. Buy Now  

Keywords: stopping volume candle, stopping volume indicator, stopping volume bar, how to use volume candle, stopping volume pattern, what is stopping volume, stopping volume trading, how to trade volume, stopping volume vsa, stopping volume vpa

Wyckoff Accumulation Schematic

 

ICICI CHART

Below is a chart of Wyckoff's accumulation. In the last post we had analysed the same chart wherein we had noticed a stopping volume activity on the left bottom bar.

In this chart we have identified effort to moveup bars through a small piece of pinescript and we can notice more frequency of effort to move up bars towards breakout portion of the accumulation zone. Once the price have breakout they have come back to re-test the resistance zone.

GOOGLE CHART

This is another accumulation zone identified in google inc during Nov 2020 to Jan 2021. Three bars towards to end of the zone were found to be bars of effort to moveup and hence it was confirmed before the break-out that this zone is more likely be a zone of accumulation and breakout is near. After breakout the prices have retested the resistance zone for remaining supply before moving ahead.

Resources

Learn more on volume price analysis and other technical fundamentals through the Book "A Complete Course to Volume Price Analysis- Read the market Bar by Bar"  by Achal. Pinescript codes for identification of bars also available in book to assist you during your learning.

200+ pages book	130 pages book

Buy Udemy Course on creating trading strategies and creating indicators in PINESCRIPT on trading view at 70% discounted price at USD 20. Buy Now  

Keywords: stopping volume candle, stopping volume indicator, stopping volume bar, how to use volume candle, stopping volume pattern, what is stopping volume, stopping volume trading, how to trade volume, stopping volume vsa, stopping volume vpa

What is stopping volume pattern or indicator in VPA?

Stopping volume candle is a classic price volume pattern in VPA or VSA (volume spread analysis). I have also attempted one stopping volume indicator in pinescript. If you have analysed correctly the stopping volume bar can be traded.

What is Stopping Volume Pattern or stopping volume candle?

The above is ideal representation of stopping volume pattern. Succesive downward bars having decreasing size and increasing volume. It is result of panic selling by the market participants. A set of other investors known as professionals who have inside information and have large research team have fair idea of price. After a significant downfall in price, these professionals find price lucrative and they jumpin for the buying. The huge buying by the professionals is represented in the structure of bar and their size as explained above.

Stopping volume Indicator in Pinescript

//@version=4 study("Stopping volume",overlay=true) volAvg = sma(volume,40) closePos = (close - low)/(high-low) // if close = high then closePos = 1, if close = low, value is zero if volume > 1.5 * volAvg and closePos > .5 and close < sma(close,7) and low==lowest(low,5) label1 =label.new(x=bar_index,y=high[1],text="SV")

Though the diagram in the previous section is of successive bars, the code is bit different for identification of stopping volume. You can attempt different code for identification of these bars based on your understanding of the pattern and pinescript skills. In the above code, average of 40 bars have been used for benchmarking of volume. If you like you may increase or decrease this number also.

Example of stopping volume Bar

Above is ICICI Daily Chart for the period March to May 2020. On the left are two stopping volume patterns found by pinescript indicator script. The volume spread analysis of stopping volume suggest that huge volume was absorbed by these two candles by the professionals and the close of the bar is closer to the high of the bar. 

How to trade Stopping volume bar (VSA)?

The successful stopping volume bar happens to stop fall in prices and the lower point of the bar act as support because this is the price area wherein professionals have put-in their huge money for value buy. Now if price goes below this point they can lose their position. The professionals will always try to defend their position at this support line. 

When price reaches to this support line a sharp reaction is expected. It is suggested to take a long position when price touches this support line. In the above example for ICICI Bank from NSE , an Indian exchange price touched this support line twice and reaction was observed.

Resources

Learn more on volume price analysis and other technical fundamentals through the Book "A Complete Course to Volume Price Analysis- Read the market Bar by Bar"  by Achal. Pinescript codes for identification of bars also available in book to assist you during your learning.

200+ pages book	130 pages book

Buy Udemy Course on creating trading strategies and creating indicators in PINESCRIPT on trading view at 70% discounted price at USD 20. Buy Now  

Keywords: stopping volume candle, stopping volume indicator, stopping volume bar, how to use volume candle, stopping volume pattern, what is stopping volume, stopping volume trading, how to trade volume, stopping volume vsa, stopping volume vpa