Yes – you can apply volume to cryptocurrency trading!

Yes – you can apply volume to cryptocurrency trading!

If you thought volume price analysis could only be applied to stocks, equities, forex and bonds, think again. It works just as well for cryptocurrencies as this video explains from the morning forex trading session. In this case, we are using the TradingView platform with the Quantum Trading indicators and for Bitcoin, but the methodology can be applied to any other cryptocurrency.

00:06

Using volume to trade cryptocurrencies

00:06

The speaker addresses common questions about using indicators on TradingView, focusing on whether volume-based analysis applies to various markets, specifically cryptocurrencies like Bitcoin. They confirm that volume and price analysis can be used to trade cryptocurrencies and demonstrate this using a 5-minute Bitcoin chart on TradingView with their indicators.

00:42

Multiple timeframes and volatility triggers

00:42

The speaker discusses different time intervals—ten, fifteen, and twenty minutes—and demonstrates selecting one to view in full size. They mention keeping multiple intervals visible for easier comparison and highlight the presence of volatility triggers. The speaker notes that many cryptocurrency traders might have impulsively bought during this period, but suggests reconsidering such decisions through regression analysis.

01:14

Volume signals congestion and reversal

01:14

The segment explains market behavior during congestion, highlighting a volatility trigger accompanied by significant volume. It describes how price action reverses into congestion zones despite high volume. The discussion notes that while there is some weakness confirmed by decent volume, the overall market is falling alongside decreasing volume, indicating a particular market condition.

01:43

Analyzing price and volume trends

01:43

This segment explains the concept of falling price analysis, emphasizing the importance of distinguishing between primary and secondary reversals in trends. It highlights how falling volume alongside falling price can indicate whether a pullback is a minor correction or a true reversal from bearish to bullish, or vice versa.

02:08

Market likely to remain in congestion

02:08

The speaker explains that the market is unlikely to reverse its downward trend with a significant rally. Instead, it is expected to move sideways in congestion. The Tremanis indicator has begun to signal a return to bullish price action, illustrating that volume price analysis can be applied across various markets, including Bitcoin and other cryptocurrencies, as long as there is sufficient volume on the chart.

02:44

Watching VIX and currency movements

02:44

The speaker reviews the VIX, noting it is still trending downward. Attention shifts to the Canadian dollar and yen, which are beginning to decline slightly. The currency array confirms this movement as the highs start to decrease. The segment concludes with a brief overview of chart developments indicating the start of a market reversal.

03:20

Sentiment and risk considerations

03:20

The speaker emphasizes the importance of ensuring that an opportunity is also reflected in market sentiment and the VIX index, warning that without this confirmation, the trade carries high risk.

By Anna Coulling – creator of volume price analysis