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Volume Based Technical Analysis
Concurrent Volume Signals
Volume Indicators
"Analyze market data in
real time. Plan your own Market Timing strategy to make money, regardless
of upward or downward trending markets."
What is a Chart?
A chart is a sequence of prices or volume plotted over a
specific timeframe. In statistical terms, charts are referred to as time
series plots. A chartist is an investor who plots information about share
prices and trading volumes on a stock chart, looking for patterns.
Investors, technical analysts and chartists use the
charts to analyze and forecast future price movements. Any security with
price data or volume data over a period of time can be represented on a
chart for analysis.
While technical analysts use real time charts almost
exclusively, the use of market charts is not limited to just technical
analysis. Because charts provide an easy-to-read graphical representation
of a security's price and volume movement over a specific period of time,
they can also be of great benefit to MarketVolume customers.
Chart Example
On the chart below, the vertical axis represents the price
(right) and volume (left) scales and the horizontal axis represents the
time scale. The price and volume chart for the S&P 500 extends from December
7, 2001 to December 12, 2001.
On this chart volume is represented by blue bars that
are drawn out by a blue line (Volume Moving Average). The black line
represents price movement during the period of time. The volume and price
are put on the same chart to make it easier to understand the
volume/price
relationship - how one affects other.
The red vertical and gray horizontal
navigation bars will help you to trace this relationship over a timeframe.
To see a more detailed explanation of all features of our JavaVolume® charts
you can refer to our "Chart Help".
MarketVolume's real time volume indicators remove the
emotional factor from trading decisions. Rather than making decisions
based on hope and fear, traders can keep in step with the market by
following the force that moves the market: trading volume.
NEXT:
Volume related terminology
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