What is stopping volume?

Stopping volume is a concept in volume spread analysis (VSA). It refers to a dramatic increase in volume that stops the market from falling further. While you might not find frequent signals, they are highly reliable indicators that will strengthen your market analysis.

What are volume spreads?

Volume spread analysis is a new way of looking at the market. It more like the candlestick analysis taking into consideration the volume. However not all the candle stick rules apply here. The basic premise behind the volume spread analysis is that the market is basically moved by the “Smart Money”.

What is VSA in stock market?

VSA is the study of the relationship between volume and price to predict market direction. In particular, it pays attention to: Volume. Range/Spread (Difference between high and close) Closing Price Relative to Range (Is the closing price near the top or the bottom of the price bar?)

What is ultra high volume?

Ultra-High Volume is the Highest Volume in the current session. It is higher than the previous peak volume.

What is a stopping volume candle?

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 Wyckoff theory?

Wyckoff Market Cycle Theory Wyckoff developed a price action market theory which is still a leading principle in today’s trading practice. The Wyckoff method states that the price cycle of a traded instrument consists of 4 stages – Accumulation, Markup, Distribution, and Mark Down.

What is a low volume test?

Low volume test When the market is testing supply any down move dipping into an area or price range where there was previous high volume (previous selling ), which then returns to close on, or near the high, on lower volume, is a clear signal to expect higher prices immediately. This is a successful test.

How do you find the volume of a Zerodha chart?

In the chart above, you can see that volumes are represented by blue bars (at the bottom of the chart). The red line overlaid on the volume bars indicates the 10-day average.