Quote from: privacyn3on on January 24, 2020, 12:39:45 AM

@exstasie: Thanks for the useful insight into trading. I studied more about it. I checked the links you shared related to using Volume for improving the trading, there is a section in that article which explains how to use Volume to identify bullish signs.

Specifically:

"Volume can be very useful in identifying bullish signs. For example, imagine volume increases on a price decline and then the price moves higher, followed by a move back lower. If the price on the move back lower stays higher than the previous low and volume is diminished on the second decline, then this is usually interpreted as a bullish sign."

So, I applied this knowledge to the XRP/USDT chart on Poloniex today and I think I understood it correct. Could you please check the screenshot I made and tell me if I understood it correct?

A word of caution about applying volume analysis (and TA in general) to relatively illiquid markets. To put it simply, the smaller the market, the less reliable TA will be due to lack of consistent volume. XRP's huge market cap masks how small the market is. If you are going to chart it and analyze volume, I'd recommend watching Binance or Bitfinex instead of Poloniex.

Here's an example on the BTCUSD chart of what I think the article is trying to convey: