Bear Bull Volume
Keeping track of volume changes is very important in trading. Watching volume changes can help you in the following two situations:
- Decreasing volume in a good move
When you are in a good move and 'wondering' if you should be exiting, scaling out or bring up your stop, then look to decreasing volume as the bars close as a clue. If a bar decreases in height you may be in for a decrease in the trade momentum and possible flattening or reversal coming up.
- Low volume at the beginning of a move
If you get a signal for a trade with Autopro, and you note the volume on the signal bar is far less than other signal bars, then you should use caution.
The volume bars are color coded:
- RED: Bearish volume
- BLUE: Bullish volume
- WHITE: Neutral volume - caution with either direction
Edit Studies Options
In the options, you can change the bar colors and the overall study background color.
The 'White Bar Sensitivity' (Neutral Bar) adjustment. The default settings is '1'. To increase the number of white bars, you increase the number. To decrease the number of white bars, you decrease the value. You can choose from the available values in the drop-down box, or type in your own value.
Adjust this value, so that the number of white bars appears appropriate to the instrument and time interval you are trading. Appropriate meaning that the appearance of the white bars 'helps' you in your trade management.
Just remember, the purpose of this script ( and any other efs script for that matter ) is to alert you to mathematical conditions occurring in the price action. This is never a guarantee that a reversal will take place. Use the information along with your experience and other studies to make decisions.
Example: ES 89T
In both the low volume moves arrowed below, see how they both started out low and got LOWER on the second bar - this is the caution that this study can provide.
Note: we are not recommending trading the ES on such a short interval. It was used to show a principal of using volume analysis.
Example: Forex-Tick Chart
When you use a tick interval on a Forex chart, the BB bars will appear as in this picture. Actual volume is not available.
