I’m going to show you a new concept that i’ve introduced in the recent posts, the “net volume” or a security’s uptick volume minus its downtick volume over a specified period, in this chart it’s 1 week. It is a main concept the “net volume” for the trader that trades on volume togheter with “volume at price” and “vwap” or volume weighted average price; all tools aimed to understand when and where to trade using volume data.
Well, going back to our chart on the left you can see how it’s developing a strong net volume weekly bar very similar to what we’ve seen in the april-june bull market. This is very positive and it means that buyers are getting in again after a prolonged period of weakness. I think that the net volume it’s a nice tool to confirm the presence of an uptrend/downtrend and you can rely on it for your trading decisions
I’m still long from 3.22$ and i basically bought after 2 consecutive weeks of positive net volume, a confirmed long signal with the weekly inverse RSI fisher transform oscillator and a slightly positive weekly moving average.