Advanced

Volumes
2.10
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Content
ANALYTICAL TRADER VOLUMES OVERVIEW ....................................................................................................... 3
TYPES OF VOLUMES............................................................................................................................................. 3
High Volume Bars ............................................................................................................................................ 3
Low Volume Bars ............................................................................................................................................. 3
Churn Bars ....................................................................................................................................................... 3
Thrust Bars....................................................................................................................................................... 3
Regular Up Bar / Down Bar ............................................................................................................................. 4
Test-like Bars Bullish / Bearish ........................................................................................................................ 4
SETTINGS ............................................................................................................................................................. 6

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ANALYTICAL TRADER VOLUMES OVERVIEW

Analytical Trader Advanced Volumes (AnalyticalTrader_Volumes) is an histogram indicator that shows the
volumes of the given symbol, and categorizes them in different types. On top of the histogram bars, it draws
a session moving average, useful to use as a benchmark (European-American / Asian sessions).
Analytical Trader Color Bars (AnalyticalTrader_ColorBars) will paint the bars according to the type of
volume; it uses the same color scheme as the volumes indicator.

TYPES OF VOLUMES
The indicator will mark the different types of volumes with different (customizable) colors. Each kind of
volume is described below, along with their (default) colors. Up candles (close higher than open) will show
darker colors, while down candles (open lower than open) will show lighter colors.

High Volume Bars

These will often define whats going to happen next: major tops and bottoms in the market will often be
made on high volume, and a high volume in a wide range bar closing on its highs/lows is usually a trend
continuation pattern, showing either clear demand or supply in the market.

Low Volume Bars

Low volume bars indicate either a temporary lack of demand/supply in the market;

Churn Bars
These are price bars that have a narrow spread (or range, which is the difference between the bars high and
low) and high volume. Bars like this often denote supply as the smart money prevents the price from moving
further by dumping sell orders into the market - that's why it has a narrow range and high volume (viceversa for demand patterns, after a market downtrend). Because of this, they often show up before market
corrections and significant trend changes.

Thrust Bars
Thrust bars are maneuvers to get stop-losses and stop orders, as well as to test the supply/demand in a
given price level. They have more meaning when they appear:

Near a support/resistance
Near a price area where there was previous supply/demand
On new highs/lows in the market

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Regular Up Bar / Down Bar

These will show when the bar doesnt fit in any of the other categories. Youll usually want to be shorting in
up bars and going long in down bars, and thats what this type of bars will show.

Test-like Bars Bullish / Bearish

The volumes indicator will paint these bars, which deserve a special attention due to their importance in
timing the entries. Test-like bars are bars where the supply/demand in the market is being tested, which will
usually tell you if there will be a trend or not.
A bullish test (no-supply test) in a price zone where there was previous demand will test the market for
supply, and for this the prices will be taken lower and the volume becomes the key variable to watch: a low
volume in a zone of previous demand, means there is no selling pressure, which means the buyers that
generated all that demand earlier are not exiting their positions. This means there is NO SUPPLY in the
market, and the strength is confirmed. AT Volumes will analyze the volumes and will only paint these bars if
the volume is appropriate.
If on the other hand, the volume is very high or the prices fail to rally in the next few bars, it means the test
failed otherwise the smart money would have picked up the sign and would be buying further, taking
prices higher. In that case there is SUPPLY in the market, and it either needs to go lower, or it needs to do
another test of supply. So when there is a bullish test, you want to check if the high of the test was broken
in that case it was probably a successful test. This makes them naturally good bars to enter in a trade.

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Demand and supply tests - in this chart, notice that most lack of supply tests were
successful (price rallied), while lack of demand tests were unsuccessful, as there
was demand present in the market

Another important factor to mention is the price where the test is happening it must be testing something,
otherwise itll not be a valid test. They will be valid tests only in a price level where there were recent:

Demand/Supply in the market, marked by Analytical VSA Trader

Very high volume/high volume bars, marked by red/violet volume histograms

If price isnt in any of these critical areas, test-like bars shouldnt be considered real tests and should be
dismissed.

Successful test: if its a test-like bar in one of the 3 price zones described above, itll be a successful
bullish test if the prices break the high of the bar in one of the next few bars. This will indicate there
is no supply in the market.
Failed test: If prices fail to rally after a test, the smart money didnt act on a strong signal and so the
prices need to go lower or another test needs to happen. If its a failed bullish test, it could also be a
short entry, and similarly if its a failed bearish test, it could also be a long entry.

Copyright 2015 Analytical Trader

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SETTINGS
Set to true to set GMT offset Set to true if a warning shows up in the chart, in order to set the GMT offset
Set your brokers GMT offset Itll set the GMT offset if the above setting is true
History Number of histogram bars to paint
Moving average period Period of the moving average
Check for updates automatically Set to true for this indicator to show a message when theres a new
update available

Alerts Module
Low Volume Alert Alerts of low volume bars
High Volume Alert Alerts of high volume bars
Churn Alert Alerts of churns
Test Alert Alerts of tests
Thrust Alert Alerts of thrust bars
Email Alerts Sends alerts by email
Push Notification Alerts Sends alerts to Smartphone

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