How to interpret the bottom bars on TradingView?

ethantaylor

full member

Activity: 280

Merit: 100

Quote from: atrocityx on February 24, 2018, 03:27:20 AM

These measure volume within a given candle time.. They represent buys and sells collectively but the color is based on whether the candle closed higher or lower at the end of the candle.

Large volume doesn't always equal lots of price movement, because there could be lots of volume from bears/bulls in a price argument stuck in consolidation... but more often than not the largest volume spikes will happen because the chart is indicating scenarios with high participation.. like a huge dip or a large fomo green candle... Volume can be used as an indicator to buy or sell but needs to be paired with other indicators to whether it means anything or not.

https://www.youtube.com/watch?v=NjxUNcYM-mE - basic volume indicator explanation

Thank you. I had watched the video and learned a lot.

Does green-colored volume mean the amount of buying after deducting the amount of selling? And does red-colored volume mean the amount of selling after deducting the amount of buying?

atrocityx

member

Activity: 336

Merit: 71

Quote from: ethantaylor on February 24, 2018, 03:19:27 AM

Please refer to this chart on TradingView.

I don't quite understand exactly what the bottom bars mean. They surely are associated with the graph above, but each of them doesn't seem to completely reflect its correspond bar above. For example, the bottom bar of 2018-02-06 is very long, but its correspond bar above is a lot shorter.

Could someone please explain? Thanks.

These measure volume within a given candle time.. They represent buys and sells collectively but the color is based on whether the candle closed higher or lower at the end of the candle.

Large volume doesn't always equal lots of price movement, because there could be lots of volume from bears/bulls in a price argument stuck in consolidation... but more often than not the largest volume spikes will happen because the chart is indicating scenarios with high participation.. like a huge dip or a large fomo green candle... Volume can be used as an indicator to buy or sell but needs to be paired with other indicators to whether it means anything or not.

https://www.youtube.com/watch?v=NjxUNcYM-mE - basic volume indicator explanation

ethantaylor

full member

Activity: 280

Merit: 100

Please refer to this chart on TradingView.

I don't quite understand exactly what the bottom bars mean. They surely are associated with the graph above, but each of them doesn't seem to completely reflect its correspond bar above. For example, the bottom bar of 2018-02-06 is very long, but its correspond bar above is a lot shorter.

Could someone please explain? Thanks.

Topic: How to interpret the bottom bars on TradingView? (Read 111 times)