Volume Trading Power Lesson with Jake from TrendSpider.com


Volume Trading Power Lesson with Jake from TrendSpider.com — Hosted by David Moadel
hello and welcome to looking at the
markets with David Modell volume is so
crucial in your trading and your
investing doesn’t even matter what
you’re trading I mean it could be the
spiders you know the sp500 it could be
Bitcoin it could be gold silver whatever
the heck it is you got to be aware of
volume and how to use it and how to
trade it today I’ve got a special guest
a repeat guest Jake from trend spider
dot-com and he’s going to give us some
power tips and how he uses volume I mean
he he let me know beforehand that he
thought that SP why the S&P 500 was
going to go up today and it did and he
used volume to know that and now I want
to know how he knew that so Jake welcome
back to looking at the markets thank you
for having me once again I’m always
happy to be on yeah okay so volume along
with candlesticks or or better yet these
other types of indicators which is
raindrops you know which only trend to
spider has and if you want to get these
power tools for volume and for raindrops
you got to go to trend spider calm I’ll
also put a link in the description below
this video just go ahead and click on
that but Jake what are we looking at
today so I’m going to go over a couple
case studies on how you can use the
raindrop charts and so you’ll see here
we have s P Y on the Left we have s P Y
on the right and they look different
because one side has a raindrop chart in
one side has a regular holo chart a holo
candle chart that is and what you can
see here is yesterday on the 28th of
April we can see in the raindrop portion
of this chart that a lot of the volume
was aggregating at the top of the range
yesterday so you can see the left side
here
the right side or the first half and in
the second half of the day and you can
see on the left side that there’s the
volume profile shown and then you can
see on the right side there’s the volume
profile shown for the price action
throughout this period now what’s
interesting is during the second half of
the period you can see that a lot of
this volume almost all of it was focused
at the very top of this range and we
know that there was no volume on the raw
on the bottom part of this price range
because there’s no volume profile it’s
literally just flat so we know that
there was no volume within this range
all of that volume was really focused at
the top so we could see that buyers were
really starting to accumulate and shares
were really aggregating around the top
of this area and then we had our
continuation up and you can see in the
regular hollow candle all we can see
here is that buyers were in control
because the open was down here the close
was up here and we can see buyers were
in control we don’t know where those
buyers were really located at we just
know if we turn on this volume candle or
this volume bar at least in this bar we
can see that essentially you you had you
know you had a decent amount of volume
but it wasn’t anything that was really
significant if we go to this bar we can
see that sure all right there was a
slight you know there’s a slight uptick
in volume in the second half at the top
we know that within this small little
wick here and let me get rid of this
volume bar you can see in this little
wick we just know that the price moved
up however here we know that within that
wick there was quite a bit of volume in
the second half of the day so what we
call this is kind of a balloon generally
we’re looking for a balloon that’s
breaking out of a very specific level
but if we turn on the SMA which we can
see here you know the balloon was kind
of forming right at the bottom of this
SMA and then we had pretty much the
price action almost hopping over the SMA
and so you can see here I got this alert
this morning
it says breakthrough at five
minutes so that means that the price
broke through this area within the first
five minutes of price action and so I
was able to know right off the bat that
we gapped up now personally I’m looking
at the markets pretty much heavily
pre-market but if you’re someone that
didn’t have a chance to check out the
price action yet you would have been
alerted immediately whenever the five
minute candle closed above this line
that we were starting to move up so this
is a really cool way to keep your trades
efficient where you don’t necessarily
have to watch the market constantly
these system is doing some of that for
you so this is a cool example of showing
the volume really aggregating at the top
of the price action yesterday and then
our continuation up as well as showing
you how the alert system works on the
platform where you go in send an alert
and you’re essentially I’m having the
system do all the grunt work for you
now let’s say that we continue up and we
want to be alert at any time the price
action touches the top of this range
here we can do the same thing that we
just did on the this was the SMA 20 we
can do this on this trendline here
create alert at this drawing and we can
do the same thing if I want to only know
if the price action touches anywhere
within this purple area I just click
touch and you can see as I increase or
decrease the sensitivity here I’ll be
alerted any time the price action gets
anywhere within this purple area and
then what I can also do is change the
confirmation candle so in this case if
you’re looking at the daily candle let’s
say that we just absolutely ripped into
power hour and the price action got
close to anywhere within this purple
area you would have you would still need
to wait until the daily candle closed to
get that alert well let’s say that your
intraday trading you want to scale in or
scale out of a position and you want to
know when the five-minute candle closes
in this purple area you’ll be able to
know a lot quicker and you’ll be able to
take advantage of that trade a lot
quicker and make a decision what you can
also do is change the name this is a
randomly generated name curious
engelbart that’s a interesting eliminate
that’s what you get with randomly
generated names
let’s make this previous resistance
let’s do expiration ending within ten
days we can have this expiration go all
the way up to forty five days I’m
depending on which pricing plan you have
but let’s just do ten through the
purpose of this and we’ll create the
alert so now if we get back into this
purple area which has been tested in the
wick already today we’ll get that alert
whenever the five minute candle closes
in this area so it’s really a way for
the system to watch these different
little small areas for you without you
having to look at a ton of different
charts at once so that’s the first case
study of a cool example of
follow-through after price aggregating
at the top of the range yesterday and
then this is a cool example of Bitcoin
so this is definitely something you can
use not only on stocks but crypto as
well where yesterday Bitcoin really
broke through a very crucial level of
support if we go back you can see you
know this area of symmetrical triangle
support has really been an area that has
held since we started the hard uptrend
again in early June right and so what’s
interesting here is you can see as we
break down here yesterday a lot of that
volume was focused at the bottom of the
range into the second half of the day so
you can see that this wasn’t just a fake
out this was this was backed by volume
and you can see that because there’s
this blob of volume here that shows
there was an uptick and then we’ve got
our continuation down today if we split
the screen and look at the regular
candle we don’t know anything about the
volume within this wick we just know
that the price got to this area but with
the raindrop we can see that there’s
this big hump in volume that shows that
sellers were definitely you know taking
this down it wasn’t just a little blip
on the radar trying to stop out people
because we did have that continuation
down tomorrow or at the next day out
which is today and you know who knows
what happens from here we do see a
little bit of kind of consolidation
price action kind of forming near the
I’m here so who knows if that sellers or
just people kind of buying the dip in
accumulating but this is a way that you
can really utilize the raindrops to get
a secondary perspective on how volume
and price action are working together
rather than just seeing okay here’s the
daily candle this is the wicks these are
the bodies and this is what happened
this gives you a lot more information
about the actual equilibrium price the
supply and demand and gives you a much
better gauge of what’s what’s going on
within the day to day or even you know
half hour and a half hour price action
so yeah and and again people do need to
go to trend spider calm if they want to
get that particular tool with the
raindrops and also with those alerts
that you mentioned and with the alerts
you can actually specify the sensitivity
of the alerts which is really really
cool I like the split-screen ability
here on transpire calm yeah there it is
there there are the different types of
alerts you can get the sensitivity break
through touch or balance it’s all a
little bit different and once you get
used to it you’re not going to want to
go back to regular old candlestick
charts with you know on those other
platforms what a beautiful symmetrical
triangle on Bitcoin there so with the
volume you’re seeing do you predict you
have any predictions as far as is it
just gonna break down further based on
volume so you know it’s definitely
showing that sellers are in control here
and I think quite a few people were
watching this area to breakdown so the
fact that this is now breaking down and
that there is volume behind it I’m not
an advisor or a broker dealer or
anything like that so all I can say is
based on today’s volume we can look and
see that throughout the day the volume
has started to kind of aggregate near
the low of the period because we can see
this little hump of volume here for me
personally this looks like just a
classic case of maybe a retest
for example maybe possibly retesting
this general trend line above let me get
rid of that line not sure what what that
did there and so what I would do here is
you know this could just be a classic
bounce and then pull back so that’s
where I would really use this this alert
here and in case that we did pull back
to the upside because at the end of the
day I really don’t know what’s gonna
happen yesterday was a much easier day
to kind of get an idea that we’d
probably continue down because we did
have a lot of this volume breaking down
through this crucial area right now
we’ve already kind of broken down so
it’s hard to tell if this is going to be
a little bit of a dead cat bounce or
this is a false breakdown but to me the
fact that this was backed by a decent
amount of volume breaking down tells me
that you know bears are definitely kind
of taking over at this point it seems
mmm interesting do you have any other
examples for us um one thing that I
wanted to show and this is on the pqq so
I’m not sure if we did this on our last
video but this is a really cool case
study of just understanding how volume
and price action work on on raindrops so
we can see here we’ve got this
resistance area we’ve got an area on the
chart two times that we actually tried
to break through this red line first
time we failed miserably and that’s
because you can see that there wasn’t a
lot of volume backing this recent touch
so you know excuse me yeah this this
would be the one – this would be the
fourth touch we tried to break out
during the first half of the period
however during the second half of the
period you can see this area is flat so
there’s no volume here all of that
volume was focused below the trend line
and then we have our continuation down
so compare that to when we finally did
break out at the trend line you can see
a lot of that volume is focused through
the trend line here and we can see if we
split the screen again you know there
was a wick that that was broken through
this red line but if you actually look
to see where the volume was you wouldn’t
be able to really tell so in this case
we’ve got the line we can see that
there’s a wick but with the raindrops we
can see within that wick all of this
volume here that’s really supporting the
price above this
I compare that to the other one there’s
no volume really supporting the price
above this line and you’ve got your
download volume supporting the price
above the line and you’ve got your
continuation up very nice Wow
okay looking very bullish for the
indexes for the Q’s and that is the
Nasdaq ETF right there hoping for a
recovery in Bitcoin hope it gets back
above that trendline that we mentioned
before and the spiders the S&P 500
looking strong how do I know well it’s
like you just told us it’s because of
the volume and these raindrops provide a
lot more information than traditional
candlesticks ever could or will Wow
all right any other commentary for today
that is it one thing I want to mention
if you can still see my screen with the
Q’s same thing we’ve got a lot of that
volume aggregating at the top of the
range here so we’ll have to see if we
really break through this line or not
tomorrow but you know with the week
closing and the monthly candles closing
tomorrow Friday the 30th of August it’s
going to be a it’s going to be an
exciting day to watch absolutely I’ll be
watching it and I’ll be using transpiler
to help me I’m a member of it and you
guys should be too if you’re not already
go ahead and go on over to trend spider
comm and sign up there is a free trial
period so you can test it out and then
you’re going to want to get a
subscription like I did and also click
on that link in the description below
this video
Jake it’s it’s been great I’m gonna
start paying more attention to volume
and how you’ve been using it so thank
you for coming on and looking at the
markets once again I appreciate it today
thank you so much for having me and if
you guys have any questions or want to
learn more about the raindrops we will
put a link in the details as well about
how you can learn more about those in
our blog check that out it’s in the
description below the video thanks a lot
everybody and I’ll see you next time on
looking at the markets

Add a Comment

Your email address will not be published. Required fields are marked *