Here is a step by step guide on how to analyze the negotiation volume for market trends:
Step 1: Choose a time frame
Select the time frame you want to analyze. Popular options include:
- Diaries (1 -day graphics, 5 days or 30 days)
- Weekly (1 week, 2 weeks or 4 weeks)
- Monthly (graphics of 3 months, 6 months or 12 months)
Step 2: Identify market trends
Understand the market trend. Common trends include:
- Oky (ascending impulse)
- Bassist (downward impulse)
- Rank range
- Average reversal
Step 3: Analyze the negotiation volume
Obtain negotiation volume data from a reliable source, such as:
- Exchange API
- EOD (end of day) Data feeds
- Market data suppliers such as Alpha Vantage or Yahoo Finance
Choose the time frame and market trend that selected in step 1.
Step 4: Calculate mobile averages
Calculate mobile averages to identify the impulse. Popular options include:
- Simple Mobile Average (SMA)
- Exponential Mobile Average (EMA)
- Relative Force Index (RSI)
Use the data 3 data and calculate mobile averages using the following formulas:
- Sma = (weighted average closing price) / total volume
Ema = ((closing price x weighted average) + (open price x weighted average)) / (2 total volume)
- RSI = 100 – (100 / (1 + rs))
Step 5: Analyze indicators related to volume
Identify volume -related indicators to help identify market trends. Popular options include:
- Balance volume (obvious): Calculate the difference between buying and selling volumes
- Accumulation/Distribution Line (ADLI): Indicates when an action is overcourse or overall
- On Balance Volume Index (OBI): a weighted sum of obvious lines for a certain period of time
Step 6: visualize volume trends
Use visualization tools to analyze volume trends. Popular options include:
- Graphic software such as tradingView, Thinkorswim or Ninjatrader
- Time series graphics with volume data
Visualize mobile averages, volume -related indicators and other trend lines in a graph.
Step 7: make informed commercial decisions
Use your analysis to make informed commercial decisions. Consider factors such as:
- Trends related to volume (for example, increase obvious or ADLI levels)
- Mobile average crossings
- RSI levels
Combine these factors with other technical and fundamental analysis tools to inform your commercial decisions.
Following these steps, you can analyze the negotiation volume for market trends and make informed commercial decisions.