Volume by Price bars
Some thoughts on the new toy ... I like setting it for 80-100 on the parameter. As noted in the post I am replying to, they seem to be indicative of support and resistance. If you click back and look at the chart, the vol by price bars that were biggest are indicated by the blue dots, the green/red support lines are based upon ADX signals. I think the vol by price bars may serve as confirmation for other sources such as trend lines or those obvious pivot points in the past.
Now investigating their application on intraday. Only watched for one day but using a 1 day or two day 1 minute chart, they did show reversal points or channels for later in the day. Will keep watching for validity.
One observation is you need to mentally adjust for the number of times the stock travels thru the price ... meaning if the stock went up and down thru a price 4 times and made a long bar it is not as significant as the long bar traveling thru only once.
Warning - All posts are JFDAO (Just Fred's Dumb A$$ Opinion)
