VOLUME PRICE ANALYSIS In INTRADAY TRADING (Day Trading) 🔥🔥

VOLUME PRICE ANALYSIS In INTRADAY TRADING (Day Trading) 🔥🔥


– [Instructor] Welcome to the
video on Volume Price Analysis in Intraday Trading. I have covered Day
Trading in great depth and link to all those
videos will come up, at top right end of your screen. In this part, I
will be showing you, how you can use Volume Price
Analysis in Intraday Trading and then combine it with your
existing trading strategy. Again, what I will explain
here is extremely simple and this is something you
can implement right away. So let’s get started. In this video, we
will be looking at Volume Price Analysis
through candle volume charts. Now candle volume
charts is available, across most technical
analysis platforms. But in case you cannot find one, you can access these
charts for free at stockcharts.com. If you also use
Amibroker Software, then let me know in the
comment section below and I will post
the AFL for same. Now what I’m gonna
explain in this video is not a trading strategy, but it is more on lines
of plug and play concepts that you can apply in
your own trading strategy. This is perhaps the
most important video, in this Day Trading series and hence do watch
this till the end. Concepts here will help you
understand price structure, in the current market and
this would then help you, make better informed decisions
on next trading session. At first, I’ll be showing you, some volume price
analysis concepts mainly to determine demand and
supply in Day Trading. I’ll be covering which types
of charts to focus upon, along with how to
spot demand and supply and how to conduct multiple
time frame analysis. Towards the end of this video, I will also discuss
some key points related to psychological
impact of charts and how you should
approach such scenarios. While I have made honest
attempts to keep things as simple as possible, I would
strongly recommend for you to watch this video
two times at least. So let us first see
how to get access of candle volume charts. In stockcharts.com,
which is a free website, candle volume chart can
be selected in this region and time frame settings
can be made here. Most of the brokers these days, do provide candle
volume charts as well and hence do check your
broker’s technical, analysis platform. In case you’re still unsure, then let me know your brokers
name in comments section below and I will let you
know if candle volume is available in their platform. I also have a free link
for candle volume charts and I will post
the same for you, in the description box below. In case you use softwares
like Metastock, Ninjatrader, Amibroker, candle volume
charts are readily available. In Trading View and
investing.com though, candle Volume is
not yet available. So let us now discuss
the three rules that I broadly follow during
Volume Price Analysis. The first rule I follow
during Volume Price Analysis is to identify right
charts to focus upon. Unless I specify otherwise, all charts here are of
60 minute time frame. Now as an Intraday Trader, I’m always on the look
out for price balance. This is the only
stage wherein I start to look for a long
or short trade. Now by price balance I mean, a state where demand and supply is equally distributed
on the chart. This mostly happens when price is clearly confined in
a well-defined range. Now once price is in a range, it is then much easier to assess the potential
movement in price, on the upside or on downside. In Intraday Trading,
we are ideally looking for shift in demand and supply to identify potential trading
opportunities on the chart. Irrespective of which
trading strategy you use, you can apply these underlying
concepts of volume and price to understand overall
price structure better. In this chart, if
you see price here is in a well-defined range. In this range, you can
clearly identify supply and demand candles that
I’ve marked in this region. Now these are the
kind of charts, you should be watching out for. And let me explain this, by
taking up one more example. In this chart, as
price has moved lower, one can spot wide range supply
candles on the downside. Look at the width of all
the candles in this region, most candles are formed on
back of high-volume activity. In this region, price then
enters a state of balance, wherein demand and supply
candles of same width, are evenly distributed. Now this is the region
you must focus upon to spot Intraday
Trades in the market. If you look at overall
structure of price, there seems to be more
supply visible on the chart. The down move has
happened on back of wide range supply candles
and even within this range, one can spot candles
with wide range. Always remember that
price balance on a chart is an optimum place
to initiate a trade. Now during such phases,
trader can plan trade better, based on the well defined
range visible on the chart. Too many beginners,
in my opinion, commit the mistake of taking
trades based on a couple of wide range bullish
or bearish candles. This in my opinion, should
be avoided at all times as this remains one of the
key reasons why traders, fail in their trading. So let me now explain why couple of candlesticks are
not the ideal region to initiate an Intraday Trade. In this chart, as
price moved lower, you can then spot strong
wide range bullish candle, in this region. Now many traders would see
this as a sign of strength. In reality though, this current bullish candle
has no larger context, within which it’s price
action can be analyzed. Post formation of
this single candle, price then moved sideways
for three to five sessions. During the same time, while supply candles
are not wide in range, price still managed to
move lower in the direction of prior trend. The message here, on this
chart is very simple. Without relevant context,
avoid trading based on couple of strong candles that
show up on the chart. This is precisely why
focusing on charts, which exhibit a
pre-defined range is so useful in
Intraday Trading. Traders keep focusing
on strategies and do not focus on
overall chart structure. This is the most common mistake
and this should be avoided. I hope this aspect is clear. The Second rule I follow
during Volume Price Analysis is to identify demand
and supply on chart. The main emphasis again
is to identify path of least resistance with help of simple candle volume charts. All the basic
candlestick patterns that you know are
applicable here as well. So in this chart, price
was trending lower and bias of trend was
visible on the downside. This candle here
clearly represents, selling on back of high volumes. Another high-volume
candles show up here but this time around, you
get a long tail candle that represents demand
at lower levels. Post this, you then get one
demand candle in this section which reflects the presence
of some buyers in the market. Price then
consolidates sideways, till you get these set of three
wide range bullish candles that signals the shift in trend. Now do note that all
this is very easy to see in hindsight
and you should be aware of hindsight bias in this video. But with the right amount
of focus and practice, identifying such shifts in
price is entirely possible. Do note that this does take time and sincere amount of effort. With each candle
that is printed, you have to
continuously analyze it with respect to
overall price context. Do not forget this point. Now this chart that you
see is the continuation of the previous
chart that we saw. These three were the candles
that signaled trend shift, in the previous chart. Now look at what happens
as price progresses. Apart from this one candle here, you keep getting
these demand candles which are wide in range
and which signal presence of strong buyers in the market. Again, as an Intraday Trader, Volume Price Analysis is
crucial at each stage of market. You should always pay attention
to any wide range candles that form on the chart and
you should make efforts to determine the path of
least resistance for price. If you keep following this
on a consistent basis, I can assure you that result
will follow in times to come. Let us now look at one case of
spotting supply on the chart. In this chart, before
price got on this range, bias of price trend
was clearly down. As price moved lower here, look at all these wide range
candles on the down-side. Momentum is clearly increasing
as price moves lower. Once price gets in a range, there are two demand
candles visible and two supply candles
that are visible. While price is in balance here, you should not ignore
the fact that prior path of least resistance before
the balance was formed was on the downside. Now one of the advantages of conducting demand
and supply analysis is to determine the probable
direction of breakout. Therefore if I see
a wide range candle, developing on the downside
that is below this range here, I would mark that trade out
as a high probability trade. But unless I combine
overall price structure and volume price analysis,
I hope you can see that knowing this in real
time would not be easy. Now this is the same chart that we saw in the
previous slide. Price was in balance
in this region, that is the range
that I’ve marked here. While price was in balance here, trajectory of price was
clearly on the downside. During such phases as I
have marked on the chart, there are traders who
do attempt to buy, when they spot such bullish
candles on the chart. In my opinion this
should be avoided as mostly weak
hands in the market would take entry without proper
context of price structure. Price then stages a breakdown
here with a wide range candle and price then heads
lower with momentum. The whole practice
of spotting demand and supply in Intraday Trading, is to assess subtle
shift in price momentum and to then adjust accordingly. So as of this slide, we
have covered two rules with the first rule being
that of identifying right kind of charts and second
rule where we emphasized, on demand and supply. So let us now look
at the third rule. The third rule I follow
during Volume Price Analysis is to analyze chart over
multiple time frames. During this phase, I
use one-time frame cart to analyze price structure and
I refer to another time frame to take trades. Now I had briefly
covered the concept of multiple time frames in
the second or third part of Day Trading series, but I will be elaborating
those concepts further. So this chart that you see is
a 60 minute time frame chart and to enter the trade,
I will use combination of 15 minute chart with this. In this chart,
prior trend of price is clearly on the upside. You can spot this with all
these wide range candles that I’ve marked on the chart. After a brief
balance stage here, price then forms a wide
range bearish candle, which is also the strongest
among all the candles that are seen on this chart. Now once you spot
this, you then need to validate your analysis
on a lower time frame chart. Do remember that prior
price trend was up and hence you cannot
enter right away, based on one candlestick alone. Now on a 15 minute
time frame chart, these are the four candles that have formed a wide
range bearish candle, on previous chart. Do note here that
the previous chart was of 60 minute time frame. Once these candles are formed,
look at what price does here. Price consolidates and
then tries to move higher. Look at all these
candles that I’ve marked. Most of these candles
are narrow in range and reflect less
momentum on the upside. At this stage, you
should get further clues about prior trend ending. Even now though if you see,
entry on the short side, should be avoided
as you should wait for a fresh trigger to go short. Trigger to go short comes
about in this region with these two wide range
candles on the downside. I hope this point of assessing, two time frames
together is clear. Price then moves lower,
reaffirming the path of least resistance
on the downside. In Intraday Trading, you
will see this pattern, repeating multiple times and therefore do
watch out for same. So let us now see what happens after this region on the chart. Now this chart here is
again the continuation of previous chart. As price moves lower, you get these two wide
range bullish candles. These are the precise regions where weak hands
enter in the market without realizing the
structure of market, on higher time frame chart. There is no trade visible
here as trend remains down and this is nothing more than
counter trend retracement, in form of these two
wide range candles that I’ve marked on the chart. Whenever you plan to enter
trades in Intraday Trading, keep in mind the
overall price structure at higher time frame. This way, you will be aligning with stronger players
in the market. Now quite often, this
is completely ignored and traders attempt
to take trades, based on such candles
that I’ve marked. Do remember that in order to
become a successful Day Trader, you need to understand
the confluence of demand and supply regions
across various time frames. So let us now discuss couple
of psychological barriers, in Intraday Trading. When you are trading
in the market, you need to be aware of
tricks your mind will play, during the entire
decision making process. Now let me explain this
with couple of case studies as these will help you
execute trades better. In this chart, path
of least resistance for price is very clear. All these wide range
candles on the downside, clearly suggest strong momentum. At this point, price has
fallen from 645 to 570 that is a fall of nearly 12%. As price is entering
equilibrium, couple of wide range bullish
candles are also visible here. I’ve marked the
same in this region. If you conduct multiple
time frame analysis here, clearly there is no long
trade visible in the market as trend remains firmly down. So let us now see what happens
as price progresses further. So in this chart, price moved
out of balance at this stage. Now focus on the candle here. This is where your
mind would prevent you, from taking a trade and this
is a psychological barrier, you need to be aware of. At this point, there
won’t be many traders who would be
looking to go short. In my opinion though, this is a mistake and
one should be open to taking trades here. This is especially
true if you’re seeing, such strong bearish
trend on the chart. Now once this
candle is completed, price fell further by
10% from this level, that is from 530
to level of 480. As an Intraday Trader, you need to focus on what
Volume Price Analysis conveys to you. Once you have this information, you can then time
your trades better by referring to a
lower time frame chart. I hope this aspect is clear. In this chart, path of least
resistance is again very clear. Price is clearly moving lower
on back of wide range candles. Now width of these candles
do not seem wide due to the presence of
this candle here and due to existence
of gap on the chart. Price at this point,
fell from 270 to 240, which is a fall of over 12%. Price if you see was
again forming a balance, in this region as I have
marked on the chart. Price then moved
lower with a gap and we got this wide range
candle at this instance. At this stage, there
would be very few traders, who would be willing
to short sell. The main reason for this is traders would expect
retracement towards this region that is for the gap to fill out. If you look at Volume
Price Analysis though, price is clearly on the way down and momentum is clearly
visible on the downside. Let us now see what happens
as session progress. In the previous chart, gap down candle
ended at 180 level. From that level, price
again fell another 25% to close at 120 over
the next few sessions. In this case, you
could have again used, multiple time frame
analysis and concept of price retracement to
take entry in the trade. The main point to focus upon is improving on your
thought process, once you spot such
patterns on the chart. It’s important to note that you can control
risk in such phases by keeping position size small or by using options
as an instrument. Do not forget that risk
is high during such times and you should focus on
money management first. So let us now discuss
how you can use, what we have discussed
in your own trading. So the first point I
would emphasis upon, is selecting the
right kind of charts. Select only those charts that
are in state of price balance. Post this, look for
part of least resistance by conducting demand
and supply analysis. Once this is complete, then focus on multi
time frame analysis to identify entry opportunities. Now whether it is VWAP
Indicator, Range Breakout or MVWAP Trading strategy,
before applying this, you should conduct
Volume Price Analysis to understand the
overall price structure. This way, you will
increase your odds of success a great deal. You can also use
traditional volume to analyze this but candle
volume charts are more visual and more easy to use. Do watch the previous
videos on Day Trading, as I have covered many
concepts in great depth. Link to all these
parts will come up at top right end of your screen. In the meantime, if there is
any doubt related to any topic, then let me know in the
comment section below, no matter how basic
your doubt is. So kindly consider
hitting the like button and sharing this video
if you find it useful. Thanks a lot for
watching this video guys. Take care and be safe.

65 Comments

  1. Intraday Trading Videos https://www.youtube.com/playlist?list=PL9myHLrE5hrOT8O9g-f8kb575b-KTsq0B

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  2. RESPECTED BROTHER,,,, EXCELLENT VIDEO….

    VERY HELPFUL…AND NO DOUBT…ALL QUESTIONS SOLBED BY YOU….

    I AM FEELING THAT YOU ARE BUSY NOWADAYS…BUT IN YOUR BUSY SCHEDULE….YOU PUBLISHED VIDEO FOR YOUR VIEWERS….

    THANK YOU VERY MUCH….🙏🙏🙏

  3. Thanks for the update sir.

    Very useful concept will practice it.

    What kind of return should one expect on monthly basis like 5 or 10 % as a day trader?

  4. Thanks once again bro for the wonderful analysis on Volume candle.. Also sir., as already requested earler., do send the settings AFL coding for vwap/mvap at [email protected] Awaiting since long time.
    pls do send. thanks.

  5. Yes Boss, price and volume r only two components those needs to be mastered if u want to be successful in trading. Nothing is above then these. One has to spend sufficient time on charts to see the hidden story!!

  6. Very much informative content as always…just need one help sir can u plz send me a example of trading journal and how to maintain it..need some help In it

  7. Dear TradeWithTrend, learned one more concept. Kindly post ur BNF live trading videos of entries & exits and explain why u r taking that trade?
    As u promised, upcoming September month is dedicated to Option Trading.
    Kindly explain each & every concepts on Option trading which I have already suggested some relative points.
    1. Option Greeks
    2. IV
    3. Option chain analysis
    4. Vix
    5. Spreads, Straddle, Strangle, etc
    6. Best time to Buy or Sell options
    7. Choosing proper Strike Prices
    8. Cracking direction of market through options
    9. Charts to follow; Index or Future?
    10. Difference between Option OI & Future OI?
    Explain each & everything in a practical approach one should trade options after this chapter.
    Thank you..

  8. I have made an analysis video on TECHM . I want your views on it. Thank you so much for your efforts. https://www.instagram.com/tv/B10ipJ0gUoe/?igshid=957lyq1y65t4

  9. Bro thanks for all your efforts.

    Can you please make a video on different types of volume candles as I see white candles, green hollow candles with red border. If not share any pdf

  10. Thank you, will adhere to these rules. Would love to see a video on how to know When to exit a intraday trade. I panic and exit very early. Thanks in advance.

  11. Excellent video, was looking forward for Volume Candle charts, key takeaway for me is the price balance.
    Also, the best part is that you dont hard sell the concept. For ex: You mentioned about the hindsight bias in the video unlike many others that try to prove their point and that's what we like in your videos!!!

  12. some charts you have opened which dictate your logic and analysis and you upload that video with your explanation and analysis

  13. ತುಂಬಾ ಚೆನ್ನಾಗಿ ಮೂಡಿ ಬಂದಿದೆ ಸರ್ ಹೀಗೆ ಮುಂದುವರಿಯಲಿ ವಂದನೆಗಳು ನಿಮ್ಮೆಲ್ಲರ ಸಹಕಾರ ಅತಿ ಮುಖ್ಯ

  14. Hi sir
    How can i set a stoploss on longer term basis in long positions as all orders get cancelled at the end of the day and there are huge gaps sometime in opening of market which can lead to huge loss as well ! Thanks in advance 🙏

  15. Sir i am a TYBCOM student was pursuing CA but lost interest in the middle and dropped out. I have been analyzing and studying stock market for the last two years. Do you think CFA is a good career opportunity?

  16. Dear sir, Great secession…This video is going to add value in my trade skills..Will keep in mind..Thanx a lot for this video.

  17. Amazing video.I was doing exactly the same way as you have explained in the video.But wasn't using volume candles though.Very Nicely Explained.I can have more clear entry/exit by adding this candlesticks in my trading.
    Thanks a lot.Keep going!….

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