Despite a laundry list of risk factors, including inflation and geopolitical events, retail investors have been pouring money into US stocks. In the stock’s weekly chart, the lines also thicken each time the level is tested, giving us a visual of the level’s strength. Weekly chart for the stock. Additionally, the levels Tesla has to overcome if the price is to continue higher.
In such circumstances, using volume price analysis will help to determine whether this retail cohort will be left stranded at the current level. Or whether it is indeed the start of a significant reversal for the stock. Several Quantum indicators come into their own in these circumstances. Two examples are a combination of the volume point of control and the accumulation and distribution indicator, where key levels are not only clearly marked on the chart, but the lines also thicken each time the level is tested, giving us a visual of the strength of the level.
The indicator is available for Tradingview, Ninjatrader and Tradestation.
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By Anna Coulling
NB – This post is for educational purposes only and does not constitute financial advice and must not be taken as a recommendation to buy or sell any of the instruments mentioned.