Volume candle intraday 90% valid - with alert

How it works

The signal identifies the candle with the highest volume that creates a new daily high or low on the M15 timeframe. It compares long and short volumes specifically, looking for candles that meet a 90% volume validation criteria compared to the previous highest volume candle of the day.

Traders can set a range of bars to ignore from the beginning of the day, allowing for more precise volume analysis. The method focuses on identifying significant volume moments that potentially indicate market exhaustion or absorption at key price levels.

Why it may be useful

Volume signals provide critical insights into market psychology and potential trend reversals. By identifying moments of extreme trading activity, traders can gain a deeper understanding of market sentiment and potential turning points.

This approach helps traders recognize when buyers or sellers have expended their momentum, potentially signaling a shift in market direction. It offers a unique perspective on market dynamics by combining volume analysis with price action at daily highs and lows.

When to explore it

This signal is most effective on M15 timeframes during periods of significant market movement. It works best when there are clear daily highs and lows with notable volume spikes that might indicate market exhaustion or absorption.

Traders should use this signal in conjunction with other technical analysis tools to confirm potential entry or exit points. It is particularly useful in markets with clear trends and significant intraday volatility, providing insights into potential trend reversals or continuation patterns.

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