Jamie Saettele, CMT
Scandinavian Capital Markets
High Volume Levels
High volume levels are defined as the close of the bar with the highest volume in X periods. For days and weeks, X = 50 (the highest volume in 50 days or weeks). For hourly charts, X = 100 (highest volume in 100 hours). High volume prices can act as support/resistance or simply a point of reference from which to establish a bias (bullish above and bearish below).
2 Bar Volume Reversals
A 2 bar volume reversal occurs when price makes a high/low on high volume and then moves in the opposite direction on high volume in the next period. An example is below.
Australian Dollar Daily 2 Bar Volume Reversals
Volume J-Spike
A volume J-Spike is the same as a regular J-Spike (see here) except that volume for the period must be a certain percentage above average volume. An example is below.
Euro Daily Volume J-Spikes
VWAP
Volume weighted average (VWAP) price displays the average price based on both volume and price through the trading day and starts over each day. I prefer to use VWAP with a designated start time rather than begin the calculation new each day. For example, I’ll often refer to VWAP for the current year or month. This is simply the average price for the year or month weighted for volume. I may also reference VWAP from an important high or low or an important event. Below are some examples. Note that I use futures prices to determine VWAP. I do not have reliable volume figures for spot because there is no centralized exchange in spot. Examples are below.
British Pound 2019 VWAP
Australian Dollar 2019 VWAP
New Zealand Dollar VWAP from November 2019 RBNZ
SP Futures 2019 VWAP
Copper 2019 VWAP
Any reviews, news, research, analysis, prices or other information contained in this article is provided as general market commentary, does not constitute investment advice and may undergo changes from time to time. Trading the Financial and Currency Markets on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as to your favor. Before entering trading Financial and Currency Markets, you should carefully consider your investment objectives, level of experience and risk appetite. There is a possibility that you could sustain a loss of some or more of your initial investment and therefore you should not invest money which you cannot afford to lose. You should be aware of all the risks associated with Financial and Currency Markets trading, and in case you have any doubt, rather seek advice from an independent financial advisor. Scandinavian Capital Markets AB, its owners, employees, agents or affiliates do not give investment advice, therefore Scandinavian Capital Markets AB assumes no liability for any loss or damage, including without limitation to, any loss of profit, which may be suffered directly or indirectly from use of or reliance on such information. Scandinavian Capital Markets AB strongly encourages consultation with a licensed representative or financial advisor regarding any particular investment or use of any investment strategy.
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