* Red/Green volume : Explained in detail * (Below is an attempt at putting this myth to rest and for some to learn something at the same time)
Sell/Buy volume going by bar colors is a myth and mistake, the green/red color code actually corresponds to the
last tick that candle had @ that
time frame, the volume bar then closes @ the
same color. The volume bars always close the color of their respective candles at their respective time frames.
For example : If SPY on 1min the candle closes green, the vol bar will also show green, does that mean the entire 1min was buying ?
Of course not, it was just the
LAST TICK that was @ the
offer/ask and hence the color became green during that
time frame/interval. For example : if SPY on 2min the candle closes red, the vol bar will also show red, does that mean the entire 2mins was selling ?
Of course not, it was just the
LAST TICK that was @ the
bid and hence the color became red during that
time frame/interval. This works for all timeframes, 1min, 5min, 60min etc...I think that everyone should know this and forget the whole "look at the buy/sell volume" when instead, its an erroenous read (lots of Pinksheet video guys misinterpret that color and therefore lie and mislead newbies)
Hope this helps.
As for determining if its buying/selling, the 1sec tick comes in very handy. 