Improving Fibonacci, Fractals, CCI, RSI, 

Pitchfork Tool, Volume, Gap And Scalping Trading

Purpose

To teach day or swing traders and investors how to trade volume stocks,
leaders and high volume stocks.   This will allow them to make profitable
trading and investment decisions and to avoid common errors.

The goal is to share the best trading strategies that work.

Definition

The daily trading volume is the total shares that were traded in one day including
all bearish and bullish trades.  For example, if market participants have bought two millions
shares of  XYZ on the 1st January and eight millions on the same day, then the daily volume for XYZ on that day is ten millions.

Volume leaders

These are stocks or securities with the highest volume compared to their

daily average and their peers’ daily trading transactions.   One can refer to

Google or Yahoo finance to check these leaders.  Another convenient

website is barchart.com/stocks/vleaders.php for the US stock market.
Note that Google finance provides a shortlist of local high-volume equities

depending on one’s country.
Active day and level two traders delight to trade these market volume-leaders.

Important points

1/ Day traders always keep an eye on the above daily average volume-stocks.
2/ Swing traders often watch above weekly or monthly average volume-equities.
3/ Investors and position traders will always take into account stocks that have

exceeded their monthly and quarterly average share dealings.
4/ When one is using the volume-indicator as a technical trader, one must always

intermix the fundamental and chart analysis to avoid regular pitfalls.
5/ A red volume-bar does not always point to a bearish trading activity.
6/ A green volume-day is not always synonym to a bullish market.
7/ It is recommendable to both traders and investors to watch the video titled: 

volume trading guidelines.  
8/  A surge in trading volume followed by a higher low is a high probability bullish trade setup.
9/ A surge in trading activities and the first lower high signal a viable bearish trade setup
10/ It is unavoidable to check the financials and news when one is trading or investing.
11/ The trading drill regroups:  first the setup, signal and a low risk entry point.
12/ Always adhere to the trading triangle.

Volume analysis

The share in question is Verizon Communications Inc (VZ)

Notice that from January 2013 up to Jan 2014, the average-volume

was three hundreds millions shares.
At the close of February 2014, there was a surge in its share

dealings (tall volume bar on the chart).  The size went up from 300M to

1.5 billions shares (more than four times trading interest)

Verizon stock (monthly chart) 

showing an above average high volume bar at the

closed of Feb 2014 (see chart).  The average monthly volume

from Sept 2013 to Jan 2014 is 300 millions shares.

This upsurge in equities dealing indicates numerous

big institutions intervention in Verizon shares.
At this juncture, one will analyze the financials and

news to ascertain if these are smart buyers or sellers. 

In a nutshell, one will substantiate if there is a

distribution or accumulation.

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