If one candle was v big candle in green but its volume is smaller than its previous red candle which was half its size ,what’s the significance of this (as usually bigger candle hv bigger volume ,but this is just the opposite) ,so what does it tell us abt mkt /what’s its significance.
I saw this thing in nifty options chart on monday today in 15min time frame in first 30minutes
You should post the chart and ask questions like these.
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First of all you should see nifity futures chart for volume analysis not options chart.
If same formation formed on future then:
For geen bar: It looks like real buyers are not interested in taking the market up. Because there is no participation from buyers, which we can see in volumes. There is weakness in the market.
It also looks like fake mark- up in the price to trap the the buyer.
Red candle: Looks like sellers are interested in taking the market down.
But this analysis is incomplete without looking at the whole chart because analysis depends on various factors like location, context etc.
Thanks ,also let me know if we see a volume bar in a spot chart towards bottom under candlesticks , it (height of vol bar ) represents total trades occured in that particular time frame (buying plus selling ) or vol bar (it’s height)represents how much difference is there between buying trades and selling trade. OR vol bar(it’s height ) represents the number of either buying trades or selling trades happened only for final outcome (that is the color of final candlestick ,like if green candle form ,vol bar height represents only buying trade vol and not of selling trades)
In volume bar:
Total buying = Total selling. No difference.
For every buyer there should be equal no. Of sellers.
Price move up if more buyer are interested in buying at upper levels and if bar is big and volume as well then movement is justified.
It indicates sellers are still stronger than buyers. Sell positions are still pending to be squared off. This type of candle usually forms when the market is at the top and fewer buyers participate in the market till a new trigger is found in the market for making fresh highs…my personal observation.
Then why one vol bar is different in its height than other one ?? My simple question is what does the height of a volume bar represents or signifies?
VOLUME BAR 1: TOTAL BUYING= 500 AND TOTAL SELLING = 500 THEN, VOLUME BAR VALUE = 500 NOT 1000.
VOLUME BAR 2: TOTAL BUYING= 600 AND TOTAL SELLING = 600 THEN, VOLUME BAR VALUE = 600 NOT 1200.
HIGHT COMPARISON:
VOLUME BAR 2 (600) > VOLUME BAR 1 (500)
THAT IS WHY THEY ARE OF DIFFERENT HEIGHTS.
Hight signifies the total no. Of buying and selling at a particular point in time. (Colour of the bar have no meaning.)
Ok in height ,it represents numbers of buyers/sellers and not number of transactions (trades) ,{as one buyer or seller can place order for multiple units of the instrument ,kindly clarify.}
Why there is no volume shown in nifty and bank nifty chart in zerodha ?
pls guide
Yes.
It shows total no. Of filled quantity , not the pending ones.
Volume represent filled quantity not total no. Of trades.
You should see futures chart. And then add volume indicator.
Then if that’s the logic of height of vol bar ,then in my original query ,it signifies there r a lot of buyer in the mkt and less sellers (so demand is more and supply is less ,) that’s why price increases as green price candle of double height formed ,earlier u said it’s a trap but as per ur vol bar height ,it’s not ,kindly consider ur thoughts again and respond
You said big green bar with small volume bar.
Price should be justified by volumes.
Volume analysis is very vast topic. One need to analyse whole chart not the single candlestick. Single candlestick means nothing.
Analysis of candlestick should be done with some context of past chart.
I will suggest give more time to Volume spread analysis (VSA).