Several techniques use volume as an important point in the trade. Whether to indicate strength, exhaustion, pullback weakness, among others.
chief I quote Richard Wyckoff’s theory, which said about the importance of looking price and volume.
However, there are several
possibilities to filter what is volume that should be noticed.
PVRSA/PVA users use an indicator with specific colors, which assist in
identifying the volume and type of movement that the price has made.
Will the high volume candle serve as a resistance, or has it
indicated a candle of exhaustion of movement and the trend will reverse?
This decision is the trader’s, but will be aided by the pva color
candle indicator coloring rule.
The indicator can be used on any asset/currency pair and can be customized according to the trader’s
See also my volume analysis indicator in the form of histogram and also the “Dragon”, as they complete pva analysis (Price
and Volume Analysis)
Success and good trades!