Intuitive chart: Volume Candles chart

May 10

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(Candles chart and Volume Candles chart)

Usually, you see price and volume displayed separately on the chart.

Displaying it this way has the advantage of showing the overall flow, but since it must be viewed separately, it may be difficult to interpret when a quick judgment is required.

In order to trade based on movements in real time, you need to be able to quickly interpret charts.

Therefore, I think it is best to check charts intuitively.


TradingView Charts finally supports Volume Chandles charts.

We combined trading volume with price movements to make it more intuitive and faster to check.

When trading volume is high, the candles appear thick, and when trading volume is low, the candles appear thin.


(Volume Candles chart)

If you add indicators to your chart, you will notice that support and resistance points are more clearly visible.


Starting tomorrow, we will set it up according to the Volume Candles chart and publish it.


Have a good time.
thank you

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May 11

Note

(TradingView INDEX 1M Chart)


(Coinbase 1M Chart)


(Binance 1M Chart)


The charts above are all BTC charts.

However, although it is the same BTC chart, you can see that the price and trading volume are slightly different.

Therefore, we can see that both price and trading volume, which have been considered important in the stock market, have little meaning in the coin market.

Since most stock markets support one chart per item, both price and volume can serve as important indicators when trading.

However, in the coin market, since there are multiple charts for one item (coin, Totten), I think the importance of trading volume is bound to be weak.

Therefore, the coin market can be said to be suitable for trend-following trading.


(TradingView INDEX 1D Chart)


(Coinbase 1D chart)


(Binance 1D Chart)


Compared to the trading volume distribution on the 1M chart, the 1D chart shows a similar trading volume distribution.

Therefore, it can be said that it is possible to refer to the trading volume on a low time frame chart.

Therefore, in day trading or short-term trading, you can proceed with trading by referring to the distribution of trading volume, but in the mid- to long-term, it is of little significance.


In the coin market, where reference to trading volume is ambiguous, I think it is much better to check it intuitively by displaying it together with price candles, such as on a Volume Candles chart, rather than adding trading volume as a separate auxiliary indicator.


What is important in chart analysis is the arrangement of candles, the price moving average line, and support and resistance.

By studying the arrangement of candles, you will be able to naturally select support and resistance points or sections.

The advantage of this role is that it is clearly visible when looking at the Volume Candles chart.



Looking at the currently displayed chart, the candle that the finger points to is the thickest candle.

This thick candle means that a lot of trading volume has occurred, so you can see that the low to high point of this candle is the volume profile section.

Therefore, it falls into support and resistance areas.


The only way to learn new charts or indicators is to look at them often and a lot.

If you are not familiar with selecting support and resistance points or sections, we recommend using the Volume Candles chart.