🐳Learning to understand bar analysis – Part 2 🚀
Hello! 👋 In the second part of bar analysis, we study vertical volumes and price reactions from levels. These tools help to more accurately assess the strength of the trend and market behavior.
1.Vertical volume 📊
Volume shows how actively participants support the movement:
Increasing volume → trend strengthens
Decreasing volume → weak interest, trend loses strength
If the previous bar is larger than the next, but volumes are increasing → signal of trend slowing: price is advancing harder
2.Price reaction from level ⚡
Horizontal — an important level of support or resistance.
The speed of movement and distance covered show the market's reaction:
Fast movement → strong impulse, line holds the price
Slow movement → weak reaction, a breakout is possible
Such analysis helps to assess not only the direction but also the quality of the trend.
Conclusion:
In the second part, we studied how volumes reflect the strength of the trend, and the speed of movement and distance show the price reaction to levels. Combine both methods — and trading will become more precise!
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