I thought I’d post this here in case anyone hasn’t experimented with it, it seems quite interesting. I had to change the colouring as the standard colours didn’t make any sense to me. I couldn't tell you if I’m reading it correctly, but how I read it is:
- Blue line = general market volume increasing or decreasing
- Red line = bearish pressure increasing or decreasing
- Green line = bullish pressure increasing or decreasing
If the blue and green go up it’s a buy. If blue and red go up it’s a sell. If all go down it’s a dead/sideways market or time to exit.
I’ve highlighted some possible entries on the diagram below:
I’ve aslo been experimenting with layering this with cumulative volume (with MA) for extra filtering and confirmation. Just playing around if anyone else wants to explore it:
