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Let's make a prediction of what's going to happen next on this chart. the price is moving up quickly which is great and the volume is also increasing as the price is going higher. This is a nice volume profile. Candlesticks are important.

Adding the volume gives another point of data to help me measure sentiment and make a prediction of what's going to happen next. So now we have a red candle. all right, and it's on lighter volume. Not bad.

A second red candle comes in also on light volume. My prediction now is that this is going to make a new high increasing volume as it was moving up light volume. Pullback: This is a classic bull flag. This is the resolution that I would expect and this is the volume profile that I would want to see accompany the stock as it makes this move back up in a perfect world.

This would have also come down right down to its 9 EMA.

By Stock Chat

where the coffee is hot and so is the chat

One thought on “Predicting highs using volume profiles”
  1. Avataaar/Circle Created with python_avatars @infinitelyllc says:

    Thank you for the quick lesson!🤩

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