how should I interpret the length of volume bars in chart underlay? If the bar is taller than the previous few bars then does it mean that smart money is moving in/out of the stock?
thank you
Volume is just interpretation of Buy and Sell transactions happening in that particular time period, one can’t really interpret who is moving the price but general assumption is that it is smart money but don’t use it as sole indication to trade.
@ShubhS9 thank you for your help. it would be appreciated if you can help me in understanding one more thing.
if the volume bar is significantly taller than previous days/weeks then does it means that for the day the buy /sell activity is happening at a higher level compared to the recent past?
Yes.
