$W volume is 0.5x its weekly average. Here is why that matters more than price
Most traders see a plus 3.1 percent day on $W and think buyers are stepping in
I check the volume ratio first because price can drift on empty air
Right now $W has 1.9M in daily volume while its seven day average is double that
That means half the usual participation is actually trading this move
A green candle on low volume is usually just a lack of sellers rather than real demand
If you want to check this ratio in twenty seconds just look at your volume moving average on the daily chart
Compare today against the past seven bars to see if the crowd is actually here
What volume filter do you use before taking a trade
#W #TradingTips
Most traders see a plus 3.1 percent day on $W and think buyers are stepping in
I check the volume ratio first because price can drift on empty air
Right now $W has 1.9M in daily volume while its seven day average is double that
That means half the usual participation is actually trading this move
A green candle on low volume is usually just a lack of sellers rather than real demand
If you want to check this ratio in twenty seconds just look at your volume moving average on the daily chart
Compare today against the past seven bars to see if the crowd is actually here
What volume filter do you use before taking a trade
#W #TradingTips