Volume Analysis

One of the most important skills for a trader is to understand market sentiment and identify the dominant forces behind price movements.

• The top line chart in each section is simply the 1 Month Daily Price.
• The second bar chart reveals whether the Volume Trend is rising or falling.
• The Daily Volume vs 3 Month Average is used to help determine the strength of the trend, by gauging recent trade volumes compared to previous activity.
• If the Inflow/Outflow Weekly Volumes are predominantly green over the last month, it suggests that buyers are in control. If the readings are mostly red, it indicates that sellers are dominating market activity.