Many traders get lost in a sea of complex indicators, but we believe in the "Holy Grail" of trading: Price & Volume. Specifically, the interaction between volume and its Moving Average (MA).
1. What is the Volume MA telling us?
Volume represents the energy behind a move. By using a Moving Average on our volume indicator, we filter out the "noise" and focus on sustained momentum.
When you see a spike that towers over the average—like what we are currently seeing on $ROSE—it’s a clear signal of Massive adoption, (aka accumulation).
2. The Case Study: $ROSE 🌹
In our recent analysis, we identified a volume momentum spike that hasn't been seen since 2022.
The Anomaly: Price was consolidating at the bottom of the range while the blue volume indicator exploded.The Conclusion: This is the "Smart Money" footprint. Large players are filling their bags (Ask/Bid imbalance) before the retail crowd notices.
3. Why it leads to a Short Squeeze
When high volume enters at a support level, it traps the "late bears."
Currently, 67.1% of traders are Short, expecting more downside.With Funding Rates at -0.0823%, these shorts are paying a heavy price to stay open.As soon as that volume-driven buying pressure breaks the first resistance, a violent Short Squeeze is inevitable.
🛠️ The Setup: How to Track the "Whale Footprint"
To replicate my volume analysis and spot accumulation exactly as I do, follow these steps in your volume indicator settings:
Filter the Noise: Open your Volume indicator settings.Uncheck "Volume": This removes the traditional vertical bars that often clutter the chart and distract from the main trend.Check "Volume MA": Enable this box to see the momentum line of market strength (the blue line in my charts).Precision Settings: Keep "Labels on price scale" and "Values in status line" checked to see exactly when volume hits historical records.
Why do we use this configuration?
By hiding standard volume and focusing only on the Moving Average (MA), we eliminate distractions. We aren't looking for a single bar; we are looking for the acceleration curve. When that blue line spikes vertically while the price is at the bottom, we know Smart Money is absorbing everything before the Short Squeeze begins.
If you need a clearer example of when it’s simply not the time to enter, look at the Bitcoin (BTC) chart.
The volume doesn't lie, we use it as our ultimate compass:
The Golden Entry: Our Volume MA indicator clearly signaled the best entry point back in 2023, when the blue momentum line hit its peak while prices were at the bottom of the range.The $120,000 Trap: When BTC was hitting its highs near 120,000, the Volume MA was already in a massive downtrend. There was zero institutional interest at those levels; the "smart money" had already moved on, leaving only retail noise at the top.Current State: Notice the difference between the explosive volume on $ROSE right now versus the flat, dying interest on BTC as it reached its peak.
The Lesson: Trading isn't about chasing the highest price; it's about following the highest conviction. If the volume isn't there, the move isn't real.
Final Thought: Data > Emotions
Trading is a game of probabilities. By timing our entries precisely when the Volume Moving Average (MA) starts to slope up, we secure profits with a much higher conviction and success rate.
This methodology isn't about predicting the future; it's about identifying the footprint of real liquidity before the move becomes obvious to the rest of the market. When volume confirms the intent, the probability of success shifts massively in our favor
Stop guessing and start following the volume. The whales leave a trail; you just need to know how to read it.
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