Another way to try view the relationship between price/volume, supply/demand....
again, as an adjunct to volume, RSI may be useful to the trained eye in identifying supposed "oversold" and "overbought" target areas...
With I have no idea how to write this and there may very well be late to the party and there may be something better... But for now..
I superimposed RSI (at 14) over Weis Wave cumulative volume set to 5. you have to mess with the adjustments in order for it to align. Placing a horizontal line in the rsi at 50 will aid in aligning the wies wave median line to the center of the RSI. In the weis wave settings i have the distribution areas set to below zero line.
Take note of where the RSI is located and the cumulative volume signature below or beneath the rsi... ADX/DMI can be used in a similar way as well.
At the end of the day it is essential to understand volume or this may or may not make sense.
Sources of education:
Tom Williams VSA
Pete Faders VSA
Wyckoff Analytics
BTC trading challenge price action
GL
again, as an adjunct to volume, RSI may be useful to the trained eye in identifying supposed "oversold" and "overbought" target areas...
With I have no idea how to write this and there may very well be late to the party and there may be something better... But for now..
I superimposed RSI (at 14) over Weis Wave cumulative volume set to 5. you have to mess with the adjustments in order for it to align. Placing a horizontal line in the rsi at 50 will aid in aligning the wies wave median line to the center of the RSI. In the weis wave settings i have the distribution areas set to below zero line.
Take note of where the RSI is located and the cumulative volume signature below or beneath the rsi... ADX/DMI can be used in a similar way as well.
At the end of the day it is essential to understand volume or this may or may not make sense.
Sources of education:
Tom Williams VSA
Pete Faders VSA
Wyckoff Analytics
BTC trading challenge price action
GL