The chart below shows the recent Ethereum crash, where prices went as low as $897. The image below shows a support level being tested twice. In the first attempt, the price briefly drops below the level but reclaims it quickly. The trading volumes on both the candles during the breakdowns are completely different. A few hours later, the second attempt was made. I usually use this kind of volume analysis while monitoring support and resistance levels. You can clearly see the volume spiking at the bottom. Analyzing volume is especially interesting when you compare spot pairs to futures or perp pairs because the latter has liquidations, whereas spot pairs are more organic.
Writer’s Disclaimer: This article is based on my limited knowledge.
How Do I Access The Volume Profile Indicator on Tradingview? At the same time, time-based volume can be used to get more clarity in trading analysis. The indicator will pop up. I experimented with various methods of analysis before finding a system that works for me. As usual, volume alone will not turn you into a profitable trading wizard. Find the “Fixed Range Volume Profile” option on the toolbar on the left side of your screen. If you can’t find the option on the toolbar, click on the Quick Search option in the top-left drop-down menu. Has been written for educational purposes only. Writer’s Disclaimer: This article is based on my limited knowledge. Look up “Fixed Range Volume Profile”. My articles should never be construed as financial advice in any shape or form. From there, you just have to apply it to the area of the chart you want to analyze and the tool does the rest. You can use volume profiles to find areas of interest, liquidity voids, resistance and support.
It can be used to identify areas of support and resistance. These POCs are often respected as support levels. The blue lines mark the value area, where 70% of all trades for the selected area have taken place. The high-volume nodes are also called points of control (POC). In the image, VAH & VAL stands for value area high & value area low. Price often cuts through them very quickly, as nobody is interested in buying or selling in those areas. In addition to using the high-volume nodes, you will also find areas with little to no volume.
Cross margin combines the entire account balance as collateral to all positions, and profits in one trading can cover the losses made in another trading. Reduces the risk of by spreading potential losses across your entire account balance. Maximizes the efficiency of account funds, especially for advanced trading strategies. Higher risk of losing the entire account balance if trades move significantly against you. Allows traders to manage multiple open positions without worrying about insufficient collateral for each individual trade. Although this minimizes the likelihood of instant liquidation, it puts the entire account at risk of market price movements.
Leverage trading has become a popular strategy in the cryptocurrency market, allowing traders to amplify their potential returns by borrowing funds. Crypto leverage trading allows traders to borrow funds, enabling them to control positions much . What Is Leverage Trading in Cryptocurrency? Platforms offer various leverage ratios, such as 2x leverage, 5x leverage, or even 100x leverage, allowing traders to choose based on their risk tolerance and trading goals. With leverage trading, even a 5% market move can double your returns – or wipe out your position. By increasing exposure to , traders can achieve higher potential gains, which also significantly increases the risk of losses. This high-reward, high-risk strategy requires a solid understanding of margin dynamics, careful planning, and risk management to succeed.
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