• Skip to primary navigation
  • Skip to main content
  • Skip to footer

866-878-9209

support@topdogtrading.com

  • Facebook
  • Twitter
  • YouTube
Top Dog Trading

Top Dog Trading

Learn Day Trading and Forex Trading

  • HOME
  • ABOUT
    • TOP DOG TRADING REVIEWS
  • RESULTS
  • PRODUCTS
    • COURSES & SOFTWARE
    • FREE TRADE STRATEGY
    • SECRETS
    • BEST STUFF
  • BLOG
CONTACT US

Trend Reversal Patterns Stock Volume Analysis Video

You are here: Home / Trend Reversal Patterns / Trend Reversal Patterns Stock Volume Analysis Video

December 12, 2018 by Barry

Trend Reversal Patterns Stock Volume Analysis: This video (and article) will show you how to catch major trend reversal patterns using stock volume analysis.

It works on the stock market, futures, and other commodities. This post will also teach you the overall fundamental understanding of trends and how to effectively use them in timing your trades to boost your trading performance.

Was this video on Trend Reversal Patterns Stock Volume Analysis helpful to you? Leave a message in the COMMENTS section at the bottom of this page. 

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.


Trend Reversal Patterns Stock Volume Analysis

Welcome to this tutorial on trend reversal patterns using stock volume analysis, you can also use this with futures and commodities and other markets. So, this is actually a followup to the previous week’s video. That one is on volume trading strategy. I’ll put a link down in the description for that one, but I’ll do a quick review here real quick just to show the meta-pattern that we demonstrated in that video, which is really easy. Basically, we get an impulse-move up and a retrace, and what we want to see are these little rectangles on volume where volume, in fact, we are going to do it all the way across, and we want to see as the market moves up a breakout of that rectangle outside of that range and that indicates a strong move up. Now on the retrace, that’s just as important.

In fact, a little bit more important even and we want to see that volume dip back down into that range. In other words, we don’t want to see big volume on the retrace, otherwise, then this uptrend may be at an end because there’ll be strong selling and then as the market moves back up – that is what we’re looking for at that trend. Then we get volume coming in. So it’s a strong move up and it goes to that bar there. And then on the retrace, buying comes back in the zone. Again, we have strong buying, weak selling, all right? And that’s the basic meta-pattern that we teach for trend continuations and then it just gets stuck in this range and goes nowhere. It just kind of gets range bound then, right? That’s the first meta-pattern to understand for trend continuations. Let’s look at trend reversals.

Reversal patterns technical analysis

Now, this could be a trend change because the strength is to the downside and is indicated by volume. So now, we get an up move. Well, is that up move on strength or weakness? Now it’s on weakness. It only goes up on basically two bars there and it’s going up and weakness. So again, then when it comes back down, it comes down on strength, strong volume if you will. So you see the dominant energy. If you think about it with that phrase, what is the dominant energy of the market? Is it moving up with strength, moving down with strength or is there just no dominant direction at all? I mean during this time here, frankly, there’s really no dominant energy up or down. Even though the price of the market is moving up, but there’s no dominant energy in the market with regard to volume.

So let’s see. Let’s draw in our average zone here for volume trading, it’s right in about there. Again, if you want, you can use a moving average there. I prefer to do it this way personally. Now, as the market goes up, do we really get, you know, here we do, yes, and it goes up from there. But after that point, where’s the next time that volume gets above the top of the range? Does it go up? No, it’s going up on weakness. See that going up on weakness. In fact, I don’t even want to draw that, let me do it this way, so here. Let’s highlight that in yellow because we use yellow for keeping within the zone, so sure. This whole time the market is still going up on price, but not on strength, it’s going up on weakness. That is our first clue.

Trend reversal indicators

That’s our first indication that this value may now be coming to an end. Then when it comes down, if we were going to continue to buy this as a trend continuation pattern, we’d want to see weakness on the way down in terms of volume, but no, we get strength. We’ve got big volume bars, so it’s coming down on strength now. That means there is not just profit taking and not just retail or shorting, but there are large institutions selling big volume on the downside. That’s actual shorting not just covering positions, most likely. Either way, it is not good for the bulls.

Now, this could be a trend change because the strength is to the downside, indicated by volume. Now, we get an up move. Well, is that up move on strength or weakness? Now it’s on weakness. It only goes up on basically two bars there and it’s going up in weakness. So again, then when it comes back down, it comes down on strength, strong volume if you will. So you see the dominant energy. If you think about it with that phrase, what is the dominant energy of the market? Is it moving up with strength, moving down with strength or is there just no dominant direction at all? I mean during this time here, frankly, there’s really no dominant energy up or down. Even though the price of the market is moving up, but there’s no dominant energy in the market with regard to volume.

Bearish reversal patterns

And again, we can look at one more example, it goes up. When it goes up, it goes up on what weakness going as back down within the range and when it comes back down, it comes down with strength. So that’s it. So now, as soon as we get to this, now the first time this happens, that actually this is your first clue, right? Right in here. That’s your first clue. And then this is more like the confirmation. So it’d be hard to buy or hard to short this because this comes in at the end of the move.

So then you’d look at maybe a retrace and then you’d say, okay, well if I needed to be real aggressive and short up here based on this pattern, and again, I wouldn’t do that unless it was an extended trend, but that’s a pretty aggressive trade, I’d have to say pretty aggressive because you don’t really have any confirmation of strength to the upside or downside. But for real aggressive traders, that’s a potential option. The better one, I think we have more confirmation now. Now, we have seen the dominant energy of the market shift to the downside. And so this retrace really, the first time that you know the best, most conservative, the trade entry for a trend reversal trade.

Our Favorite Rubber Band Trade Strategy

So if you liked this video, if you felt that this is helpful to you, then help others by paying it forward. Click on that beautiful little share button below. People will benefit from it and you’ll feel good. It feels good to do good things for good people. Also, I love your comments. Go ahead and click the thumbs up icon and leave any comments you have. I read every single one of them. They mean a lot to me.

Finally, I am giving away my rubber band trade strategy. That one is a complete trade strategy. It’s not just a little tutorial like this. I actually, in that strategy, give you the entries, the exits, where I placed my stops, everything. The whole rules for the trade, something you can start trading right away, but please trade it on a demo or simulator first, make it prove itself to you and prove to yourself that you can treat it profitably, absolutely free. Just click on the icon in the top right hand corner of the video and I’ll get that over to you immediately.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits, I’m happy to share that with you. Just send me an email at support@topdogtrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on Trend Reversal Patterns Stock Volume Analysis? Enter your answer in the COMMENTS section at the bottom of this page.

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons.

FREE GIFT!

Also, I’m giving away one of my favorite Trend Reversal Patterns Stock Volume Analysis strategies that work in trading the markets. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with the first video.

Those interested in Trend Reversal Patterns Stock Volume Analysis video that works in today’s markets also showed an interest in this video:
https://www.topdogtrading.com/best-trading-indicators-day-swing-trading/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
https://www.youtube.com/user/TopDogTrading?sub_confirmation=1

Emini Trading,  ETF Trading,  Forex,  Futures,  Stocks,  Technical Analysis,  Trend Reversal Patterns,  Trend Trading,  Trends,  Volume,  Volume Trading Strategy e-minis,  Forex,  Futures,  stock market,  Technical Analysis,  Trend Reversal Patterns,  trend trading,  Trends

FREE TRADE STRATEGY!

You'll receive one of my favorite setups for E-mini trading, Forex day trading and stock market trading: "The Rubber Band Trade."You'll receive it on day 4 of my FREE 5-Day Video Mini-Course: "Make Money by Breaking Every DayTrading Rule You Ever Learned!"To get the setup for "The Rubber Band Trade," your subscription to my newsletter, special promotions from me and my valued trading associates, and the 5-Day Video Stock, Emini and Forex Training, simply fill out the form below.You'll instantly receive an email with the link to your first video lesson TODAY.

GET IT NOW

Footer

Top Dog Trading

866-878-9209

support@topdogtrading.com

8939 S. Sepulveda Blvd, STE 110-111
Westchester, CA 90045

Sitemap

  • Home
  • About
  • Best Stuff
  • BLOG
  • Contact Us

company

  • Terms of Service Page
  • Privacy Policy
  • Risk Disclosure
  • FREE SUBSCRIPTION
  • COURSE REVIEW

This site makes use of cookies which may contain tracking information about visitors. By continuing to browse this site you agree to our use of cookies. CLICK HERE to learn more. Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.

 

RISK DISCLOSURE

 

These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

 

IF YOU DO NOT AGREE WITH THE TERMS OF THIS DISCLAIMER, PLEASE EXIT THIS SITE IMMEDIATELY. PLEASE BE ADVISED THAT YOUR CONTINUED USE OF THIS SITE OR THE INFORMATION PROVIDED HEREIN SHALL INDICATE YOUR CONSENT AND AGREEMENT TO THESE TERMS.

 

The information contained on this site is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible and common. Seek the services of a competent professional person before investing or trading with money.

 

Neither the information contained on this site, nor in any other place, is provided to any particular individual with a view toward their individual circumstances and nothing on this site should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research. There is a substantial risk for loss when trading securities as they are highly susceptible to the risks and uncertainties of certain economic conditions. For all these reasons and others, your use of the information provided on this site, or any other products or services, should be based upon your own due diligence and judgment of how best to use the information, and subsequently independently verified by a licensed broker, investment advisor or financial planner.

 

Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance. There can be no assurances of future success or performance and we will not be responsible for the success or failure of any individual or entity which implements information received from this site.

 

WE DO NOT IMPLY, PREDICT, OR GUARANTEE THAT YOU WILL BE SUCCESSFUL IN EARNING ANY MONEY WHATSOEVER. IF YOU RELY UPON ANY FIGURES OR INFORMATION ON THIS SITE, YOU MUST ACCEPT THE RISK OF SUBSTANTIAL TRADING LOSSES.

 

Past results of any individual trader are not indicative of future returns by that trader, and are not indicative of future returns which may be realized by you. Neither the author nor publisher assume responsibility or liability for your trading and investment results. This site and all information therein is provided for informational and educational purposes only and should not be construed as investment advice. The author and/or publisher may hold positions in the stocks, futures or industries discussed here. You should not rely solely on this Information in making any investment. You need to do your own independent research in order to allow you to form your own opinion regarding investments and trading strategies.

 

It should not be assumed that the information in this web site will result in you being a profitable trader or that it will not result in losses. Past results are not necessarily indicative of future results. You should never trade with money you cannot afford to lose.

 

The information in this site is for educational purposes only and in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. There is an extremely high risk in trading. This information is provided “AS IS,” without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice.

 

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

 

  • Facebook
  • Twitter
  • YouTube

Copyright © 2023 Top Dog Trading. All rights reserved. Return to top