Here is a step -by -step guide on how to analyze the volume of negotiation for market trends:
Step 1: Choose a delay
Select the time you want to analyze. Popular options include:
- Daily (graphics of 1 day, 5 days or 30 days)
- Weekly (1 week, 2 weeks or 4 weeks)
- Monthly (graphics of 3 months, 6 months or 12 months)
Step 2: Identify market trends
Understand the market trend. Current trends include:
- Haussier (momentum up)
- Bearish (momentum down)
- Linked to the beach
- Average reversion
Step 3: Analyze the volume of trading
Get trading volume data from a reliable source, such as:
- Exchange of APIs
- Eod (end of the day) Data flow
- Market data suppliers such as Alpha Vantage or Yahoo Finance
Choose the market delay and trend that you have selected in step 1.
Step 4: Calculate the mobile averages
Calculate the mobile averages to identify the momentum. Popular options include:
- Simple mobile average (SMA)
- Exponential mobile average (EMA)
- Relative force index (RSI)
Use step 3 data and calculate the mobile averages using the following formulas:
- SMA = (weighted average x closure price) / total volume
Ema = ((weighted average x closure price) + (Open price x weighted average)) / (2 total volume)
- RSI = 100 – (100 / (1 + RS))
Step 5: Analyze the indicators linked to the volume
Identify volume indicators to help identify market trends. Popular options include:
- On the volume of balance (OBV): calculates the difference between the purchase and sale of volumes
- Accumulation / distribution line (ADLI): indicates when a stock becomes exaggerated or occurring
- Balance volume index (OBI): a weighted sum of the REB lines for a given period
Step 6: View volume trends
Use visualization tools to analyze volume trends. Popular options include:
- Cartography software like tradingView, Thinkorswim or Ninjatrader
- Charts of chronological series with volume data
Visualize the mobile averages, the indicators linked to the volume and other trend lines on a graph.
Step 7: Make informed negotiation decisions
Use your analysis to make informed commercial decisions. Take into account factors such as:
- Trends linked to volume (for example, increase the levels of Obro or Adli)
- Medium mobile crossroads
- RSI levels
Combine these factors with other technical and fundamental analysis tools to enlighten your commercial decisions.
By following these steps, you can analyze the volume of negotiation for market trends and make informed negotiation decisions.
