Volume Analysis Explained — Measured (PDF Guide)

"Wait for volume confirmation" is advice almost everybody gives and almost nobody has measured. It sounds unarguable -- of course a move backed by more trading is a better move -- and unarguable is exactly the property that stops anybody from checking it.

This guide carries the four volume tests measured in Wave 11, each with its own control, and adds a measurement of its own: how often three popular indicators actually agree on the same bar. Both answers are surprising and neither is a slogan. This is a 46-page PDF that teaches Volume Analysis from the first thing you see on the screen through to a written strategy with an entry, a stop and an explicit rule for when the trade is wrong.

Nothing is taught underneath a chart. Every label sits on the candle, the line or the level it is describing, on real BTC, ETH, SOL and LINK charts. There are three quizzes on real charts, each followed by the same chart re-shown annotated with the reasoning, plus faded practice pages where the first steps are filled in and you finish the rest.

WHAT'S INSIDE

What a volume bar actually is, and is not -- A count of units traded on one exchange over one bar. The guide is specific about what that does and does not include, because on crypto it includes rather less than people assume.

Four volume tests, each with its own control -- High volume and low volume, on the hourly leg and the daily one. 34.59 per cent, 40.45 per cent, 41.22 per cent and 31.25 per cent against controls of 33.07 per cent, 33.41 per cent, 37.03 per cent and 38.44 per cent.

Why the biggest number is the least convincing -- The 40.45 per cent reading sits on 314 signals with a half-width of 5.5 points, and its version on the other leg runs the opposite way. The guide reads the sample before the number.

And what confluence looks like when you count it -- On 85,500 hourly bars the relative strength index fired 1,323 times, MACD 3,281 and the Stochastic 2,740. All three agreed on 1 bar.

WHAT YOU'LL BE ABLE TO DO

Say what a volume bar counts and what it leaves out.

Quote what high and low volume paid against their own controls.

Read a sample size before reading the number attached to it.

Say how often three popular indicators actually agree.

Test a confirmation rule instead of repeating it.

AN HONEST NOTE

Volume Analysis is a clue, not a crystal ball. It describes what price has already done. This guide contains no win-rates, no backtest results and no promises about what you will make, because nobody can verify those and you should not trust anyone who prints them. What it hands you instead is a set of rules you can test yourself on TradingView in an afternoon. Educational, not financial advice.

Instant download. 46 pages, PDF.