Anchored Volume-by-Price shows what price levels experienced heavier or lighter volume based on closing prices. Unlike traditional volume that’s plotted on the horizontal or X-axis below the price chart, volume-by-price is plotted on the vertical or Y-Axis on the right side of the chart, with each bar representing the volume at the associated prices. The further the volume bar is from the right of the screen, the more volume was traded at that level.
You can add Volume-by-Price in a few easy steps:
- Click on the ellipsis (3 dots) to the right of the Indicators button in the top menu bar.
- Search for “Volume by Price” in the indicator search field.
- Click on Volume by Price to add the indicator.
- Click on Apply to add it to the chart.
- Adjust the VbP Start Line by hovering your cursor on the vertical dashed line until you see the double arrow icon. Next, hold and drag the vertical dashed line either left or right to position it at the point on the chart from which you wish to begin measuring the Volume distribution.
TrendSpider can also automatically identify a Start Line based on various price movements. For instance, you can automatically draw a Start Line following the most recent gap rather than manually setting the line each time.
See Automated Anchoring 101 for more information.
Other details:
- Volume By Price indicator will always reference the most recent completed closed bar to the VbP Start Line to determine the volume.
- PoC refers to the Point of Control – the most popular price level as measured from the point-in-time you have selected with the VbP start line.
- VWAP refers to the Volume Weighted Average Price from the point-in-time you have selected with the VbP start line.
- Manually anchored VbP is being computed on a time frame which is lower than the chart time frame.
Reference:
TrendSpider Software Update: Volume by Price Indicator Added (Blog Post - Software Update)
Trading Volume Shelves using Supply and Demand Techniques (Video)
Volume in the stock market? How do Traders Use it? (Video)
TrendSpider Software Update: Volume by Price Drawing Tool Added (Blog Post - Software Update)