Trading the volume using stock charts

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Experts can find the market movement from reading the stock charts. It needs practice to become a technical analyst. The high and low of the market cannot be predicted easily, the trader has to follow with the trend. Even Gann also said this in his book, never predict the high and low of market. Let the market decide the high and low, as a trader you must trade accordingly.

There are many techniques used in Intra-day by traders. But reading the volume would be another feather in the cap. Because volume decides the buying and selling power, when the resistance is broken but there is no volume then it’s a false trade. you must refrain from those trades. so the volume decides up or down, breakout of the stocks is decided by short-covering in fear or buying in greed.

Sometimes there are situations where the stop-loss gets traded and losses being made on both buy and sell trades. but if you read the volume correctly, there is a chance of making good trades and earning more money. In the three phases of market, accumulation, consolidation and distribution phase, the volume clearly explains when to make a trade, whether it is buy or sell.

Mastering Your Trades – Trend & Counter-Trend Trading Using Volume Analysis

Learn from the expert in stock trading “Gail mercer”, the book explains the role of volume in day trading and as well swing trading.

In my opinion, swing trading is the best option for traders because

you can hold one or three days. Trades like these are very effective but you don’t get more than ten in a month.Four to five trades in a month can get you pay your house rent. Read the volume and make good trades every month. build your portfolio slowly in a systematic way to attain the financial freedom.

 

 

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