Price Action
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  • Brooks Trading Course
  • 01-Getting Started
    • Video 01: Terminology
      • 1. Common Abbreviations
      • 2. Every Market: always in either Trend or Trading Range
      • 3. Support and Resistance
      • 4. Breakout
      • 5. Candles and Bars
      • 6. Two Types of Candles
      • 7. Technicals and Fundamentals
      • 8. ABC Pullback in Bull Trend: 2 Leg Sideways to Down
      • 9. ABC Pullback in Bear Trend: 2 Leg Sideways to Up
      • 10. Minor Trend Reversal: Usually Leads to Leg in TR
      • 11. Major Trend Reversal: Bear to Bull
      • 12. Major Trend Reversal: Bull to Bear
      • 13. Inside and Outside Bars
      • 14. Scalps and Swing Trades
      • 15. On Daily Charts
      • 16. Chart Price Increments
      • 17. Moving Average
      • 18. Entry Bar and Signal Bar
      • 19. With Trend and Counter Trend
      • 20. Context: All of the Bars to the left
      • 21. Always In Direction
      • 22. Example: Always in Short, then Long
    • Video 02A: Chart basics and price action
      • 1. Candle Charts: Most Day Traders: use candle charts
      • 2. Candle Charts: 3 types of bars
      • 3. Candles: 2 parts
      • 4. Example of Doji Candle: Trading Range Bar
      • 5. Market: Purpose of Market
      • 6. Market: Goal of All Markets: find fair price
    • Video 02B: Chart basics and price action
      • 1. Volume: Market Needs More Sellers
      • 2. Volume Divergency Often Leads to Rally
      • 3. Should Traders Watch Volume?
      • 4. Depth of Market?
      • 5. News?
      • 6. Risk On and Risk Off?
      • 7. FOMO Trading
      • 8. Momentum Traders: Ignore Fundamentals
      • 9. Value Traders: Buy When Cheap
    • Video 02D: Chart basics and price action
      • 1. Candlestick Patterns?
      • 2. Market Inertia: 80% chance of more of the same behaviour
      • 3. Inertia In Trends: 80% Rule
      • 4. Inertia in Trading Ranges: 80% Rule
      • 5. Trading: Difficult
      • 6. Candlestick Patterns: False Gods
      • 7. Main Points: What Traders Talk About?
      • 8. Two Forces Control ALL Markets: Context and Momentum
      • 9. Pressure: Early Sign of Strength
      • 10. Indicators: useless
      • 11. Any Type Chart is Good
    • Video 04: My Setup
    • Video 05: Program trading
    • Video 06: Personality Traits of Successful Traders
    • Video 07A: Starting Out as a Trader
    • Video 07B: Starting Out as a Trader
  • 02-Charting Analysis
    • Video 08: Candles, Setups, and Signal Bars
      • Video 08A: Candles, Setups, and Signal Bars
      • Video 08B: Candles, Setups, and Signal Bars
      • Video 08C: Candles, Setups, and Signal Bars
      • Video 08D: Candles, Setups, and Signal Bars
    • Video 09: Pullbacks and Bar Counting
      • Video 09A: Pullbacks and Bar Counting
      • Video 09B: Pullbacks and Bar Counting
      • Video 09C: Pullbacks and Bar Counting
    • Video 10: Buying and Selling Pressure
      • Video 10A: Buying and Selling Pressure
      • Video 10B: Buying and Selling Pressure
    • Video 11: Gaps
      • Video 11A: Gaps
      • Video 11B: Gaps
      • Video 11C: Gaps
      • Video 11D: Gaps
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  • Volume and Price Divergency
  • But there are far more important things than Volume to watch, to increase trading opportunity.
  1. 01-Getting Started
  2. Video 02B: Chart basics and price action

2. Volume Divergency Often Leads to Rally

Previous1. Volume: Market Needs More SellersNext3. Should Traders Watch Volume?

Last updated 1 year ago

Volume and Price Divergency

When price going down, sellers are less and less willing to sell at low price.

As the price is going down, less and less traders are interested in trading. If it keeps going down, no one will trade. No one will sell at lower price. The Volume starts to dry up.

  • Market will constantly adjust the price to maximze the volume.

But there are far more important things than Volume to watch, to increase trading opportunity.