Bitcoin Forum

Hello guys. I wanted to share something that I've created. After trading for a while using TA, i found that one of most important indicators is volume. While it took me a while to understand volume properly, I'd now say that I'm doing fairly well with using volume as a leading indicator for most of my trades and it has greatly improved my performance.

However, I wanted to see if there was an even better way to visualize volume. A way for us to easily see what was happening inside a one day candle without opening it up by hour or by minute. This is why I've decided to make a new kind of chart which uses dots to show the volume inside candlesticks.  

https://i.imgur.com/Dw2AYlS.jpg

The bubbles inside the charts indicate the volume. The gradient of the dot shows the volume at a given price point. The darker the dot, the more the volume there was at that point. With these charts, you can easily identify support and resistance lines. You will also be able to differentiate between actual and inflated asset prices.

I have been using the charts myself and found it really insightful. I wanted some feedback from other traders so I thought I'll show it to everybody here.

Here's the link to the charts for whoever is interested - https://cryptocontrol.io/en/volumedots (https://cryptocontrol.io/en/volumedots) Let me know what you guys think about this.

Interesting approach, thanks for the link, would be curious to see how your trading improves after the implementation of this indicator...

If for example there is a confluence of trading volume around the same price over multiple days, then this indicator can indeed be useful in identifying market appetite and patterned behavior on those levels...

Seems interesting!
Would like to know this strategy works for you in the short term.
Use it for a month and update this post with your performance and % of gains in your investment.
If things work out well may be many of us will start using it for real.

It seems the website needs a stable connection to load the full page because right now, my internet connection is not stable as usual, so I cannot take a look at what inside of the website. I don't know if the site is out of service or not because it's too long to load the page even for the homepage.

But it makes me curious to see how it looks.

Yes, very interesting concept on how to 'attack' your trading in crypto based on volumes.

Can you elaborate on how you can "identify support and resistance lines".

I'm not sure if you are the first one who used this method, perhaps other traders did, but is not sharing their secret sauces, so to speak. :)

I think that is good news, even I'm not yet tried this new chart but it seem interesting. I hope this kind of new chart for technical analysis is no hidden agenda but I think it seems its a good one because there's a few people have good aphorism about it. Also I hope this new chart is can easily to used and easily to analyze even by own.

This thing will be helpful for us to determine which investments will be good enough for our future. Starting is difficult in the first place, that's why we need to be more careful on our decision making before taking initiative. We won't achieve the target unless you're in the actual trading situation, particular on pressures that you experienced.

Definitely, every analysis being shared to us here will be a good help and will be interesting on how we are going to used or approached. I'm not expert trader, but I think I have seen this somewhere else or similar to this analysis.

Anyway, the good thing is that the OP shared this technique, might be new to some of us, but if it would help us more to make money out of our trading then it will be a nice add on to the trading methods we are using so far.

For me, this is one of the best uses of that tool. And the chart indicator looks neat and clean, no more additionaly graphics in chart, you can still identify the green candles or red candles.
But is that free? Like there is no limitation using it?

I remember also one of the indicator before in Tradingview, but that is paid. You can see the volumes in particular area based on what you area you selected, and it is really helpful especially for identifying the supports and resistance.

I think that is not free service because upon trying to visit the site, it says I need to subscribe to the premium to use the filter. So, it's totally paid service. Hopefully, there is a free trial even just an hour of reading the price chart and probably OP gives an update about this. I like it too because this indicator is easy to understand no more lines interrupt upon reading the indicator.

Technical analysis(TA) is very important in trading but other's problems are dont know how to use indicators. Because it is very hard to understand for them reading a chart. I think this one will be the answer, it's very simple and clean to read.

I'm not surprised that you have to pay to get access to the TA volume chart analysis this guy has made. He seems to have spent some time researching, thinking about this and implementing it for all of us to use, at a price of course, so the fact that he's upright charging for the service is only right and it indicates that it is all likely legit. Unlike many other who claim they've done something and its all free, it is then that I become quite suspicious  ???

Volume is somewhat important than the price. Trading volume is a measurement if this coin has a wider spread or a better future. Even trading using low volume exchanges you'll certainly find out that it is easy to buy and sell in exchangers that have a huge market volume than the others.

Is was good to know that you'd find it coz some traders and usually, newbies never see it good but rather to focus on the known coins. Perhaps, a successful trader never started at good but they eventually gain knowledge and effective strategy through experience. And there you are mate, having this way you'll be having the confidence of what you do.

Just checked it out and it's some awesome idea that could be helpful when doing TA. I will try using it soon to see how it eases work.
I noted that there are only 2 trade pairs available that is BTCUSDT and ETHUSDT. Any plans to increase on the pairs in the near future.

It would also be much more awesome if there were more time frames i.e 1 minute, 3 minute, 5 minute, 30 minutes...  ;)

Yes, absolutely! Just let me know which symbols you're looking for :) Currently smaller time frames haven't made much sense for us, but I'll try to accommodate it somehow. Reach out to me! Telegram: @enamakel or email enamakel@cryptocontrol.io

That was an amazing technical analysis chart it is easy to understand because you will see only a dot was there inside the candlestick.
Somehow I like to learn technical analysis but I can't find person who willing to teach me even I pay but only amount I can afford. I am totally noobs of reading TA chart and I want to pursue my self in trading once I have a piece of knowledge on it but now I've stack here because I dont have enough knowledge yet.

Yes, exactly! So not only was I able to understand point where there was heavy volume (which at pivot points often became the support/resistance points), but I was also able to find long/short squeezes as well. I've documented most of the cases in a medium post over here. https://medium.com/cryptocontrol/understanding-the-volume-dots-a-new-to-way-to-visualise-volume-593035f276f1

So basically, volume helps you identify and confirm a trend reversal, break out or places where there is a strong support line. Like in the case of BTC, 9500$ and 10,000$ have always historically been key price lines.

So you'd find that these points huge trading volume; hence really dark dots on the volume dots. You can see the diagram below as an example.

https://miro.medium.com/max/2098/1*PWtTq9cYUwss21zJHbEUpQ.png

no hidden agenda; just collecting market feedback and trying to find the product market fit hence not charging for it at the moment. i think that there is a lot of potential for these charts, hence any feedback would really help :)

So at first i wanted to do this within tradingview itself; but it turns out to create charts like this, you need a lot more then OHLCV values; you need to keep track of all the trades that happen within that one candle and then calculate the dots out of that. Which something beyond trading view.

Currently I'm trying to find a product-market fit for it. but if it's going to be paid then it'll be something very reasonable. And the free version will contain everything but with delayed data.

I wrote a blog post documenting more of the possible studies that can be done with this; https://medium.com/cryptocontrol/understanding-the-volume-dots-a-new-to-way-to-visualise-volume-593035f276f1 do have a look! Would love for your feedback.

Yes, the challenge with volume is that you need a trained eye to understand how to make sense of volume. However I think the charts give newbie traders a better opportunity to visualise volume in a simpler way. Although there's a ton of improvement i know that'll go into this for sure.

Do try it out and let me know what is your criticisms on it?

So the site sells news apis which has a premium version. however the trading dots atm aren't charged. a free version is there with limit and delayed data so you can have a look at how things work. and a price point will be there in the future, but it'll be super reasonable.

currently this is just an idea and it has greatly improved my trading performance as i can get a lot of valuable insights from it. hoping for people (even beginners) to see the same. I've written a blog post to help people understand how to use it; do try it out and let me know? https://medium.com/cryptocontrol/understanding-the-volume-dots-a-new-to-way-to-visualise-volume-593035f276f1

Currently I am already using it; and it has at least doubled my performance, especially when it comes to understanding long/short squeezes. When I see a short squeeze and I don't find enough volume supporting it, then almost immediately I go against the market (short) and almost everytime i'm right.

Here's a visual on how I see a short squeeze.

https://miro.medium.com/max/1548/1*DPpsMODQiGWsF3CC9_nHWA.png

https://miro.medium.com/max/6218/1*ly0bm3RWTzf8Ad1LR4gd-Q.png
The one I am talking before that I already saw in Tradingview indicator or tool is the VPVR. They have similarity since they are both for volumes, but this VPVR is not free I think, I once used this when I availed the Pro version of Tradingview.
And as what I can see in the chart of OP, it is much newbie friendly than VPVR. But I don't the accuracy of these tools.