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Anand Rathi.pdf - Volume Expansion: An edge for a low risk...

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Volume Expansion: Anedge for a low risk entryBy: Anand Rathi
WHAT IS VOLUME PRICE ANALYSIS (VPA)Volume Price Analysis (VPA)is a technical analysis tool that combines both price andvolume and attempts to confirm price action or warn of potential weakness or lack ofconviction by buyers and sellersAccording to Anna Coulling:“There are only two leading indicators in trading. One isprice, and the other is volume. In isolation, they are weak and reveal little, but put themtogether, and just like gun powder, they become an explosive combination.In short:Volume Price Analysis reveals the DNA of the Market, and places this awesome powerin your handsYou can become a confident and assured trader, removing emotion and stress fromyour tradingAlso, will start to enjoy your trading, as you will know where the market is going nextbased on simple logic and the power of Volume and Price
Basics important points of VPA & Marketswhat is a volume: A transaction of buy and sellMarket is all about supply and demandBuyer test supply & Seller tests demandbuyer looks to buy low & seller looks to sell high4phases: Accumulation, Mark-Up, Distribution,Mark-down,Additional: Re-accumulation, Re-distribution
IMPORTANT POINTS TO REMEMBERAlways give Importance to Price levels (range)If the volumes are conflicting with price, then price levels take precedenceMid-point of high volume candle gives an Indication with respect to aggressivenesswhen ever vols very high or very low at not so imp lvl we need to be cautious..

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