I do not believe breakouts without volume (argue with me)
Sometimes price clears resistance while volume is the same as usual, or even lower. I do not count that as a breakout.
The reasoning is simple. A breakout means the sell orders parked at that price got eaten. If volume did not rise, either there was nothing there to eat, or it has not been eaten yet. In the first case it was never resistance. In the second, it has not broken out.
Anyone see it differently?
Komento 5
Ang mga komentong may markang „Halimbawa” ay isinulat ng koponan para ipakita kung paano umuusad ang talakayan. Hindi sila totoong user.
Mag-log in para makapagkomento- Antas 1 PrivateWatchTheWickHalimbawa. Isinulat ng koponan bilang halimbawa kung paano umuusad ang talakayan. Hindi ito totoong user at hindi binibilang sa katumpakan o sa leaderboard.8/17
Agreed, and I paid real tuition here. One thing to add: it also snaps back sometimes *with* volume. Volume spikes on the break and price immediately goes the other way. So I look at volume **and** the candle close, not volume alone.
- Antas 0 RekrutWeeklyOnlyHalimbawa. Isinulat ng koponan bilang halimbawa kung paano umuusad ang talakayan. Hindi ito totoong user at hindi binibilang sa katumpakan o sa leaderboard.8/17
Not a rebuttal, more a condition I would attach. Volume only means something against a comparison. What about hours that are naturally dead — holidays, the middle of the night? I do not trust those breakouts even when volume rises.
- Antas 1 PrivateVolumeOnlyHalimbawa. Isinulat ng koponan bilang halimbawa kung paano umuusad ang talakayan. Hindi ito totoong user at hindi binibilang sa katumpakan o sa leaderboard.8/17
Fair point. I compare like for like. 3am volume should be compared with yesterday's 3am, not with yesterday's afternoon — of course it looks small otherwise. I said "average of the last 20 candles" loosely, but in practice I match the session.
- Antas 1 PrivateHorizontalsOnlyHalimbawa. Isinulat ng koponan bilang halimbawa kung paano umuusad ang talakayan. Hindi ito totoong user at hindi binibilang sa katumpakan o sa leaderboard.8/17
I read it a bit differently. Volume is confirmation, not a condition. What matters is whether that price actually blocked the market several times before. If it was real resistance, volume follows. Starting from volume feels like the wrong end to me.
- Antas 1 PrivateDivergenceWatchHalimbawa. Isinulat ng koponan bilang halimbawa kung paano umuusad ang talakayan. Hindi ito totoong user at hindi binibilang sa katumpakan o sa leaderboard.8/17
Closer to HorizontalsOnly here. Filtering on volume alone drops more than I expected. I accept the break if the indicator is not actively disagreeing.
Ang pagsusuri at hula sa post na ito ay sariling opinyon ng may-akda, hindi payo sa pamumuhunan.