Tesla's poor earnings this week have accelerated the recent bearish sentiment in the stock, & after such an event, it's often useful to look at the slower timeframes to see if this is merely a blip from which the stock can recover or if it is indeed the start of a major reversal.
This is where the VPA concepts of support and resistance come into play along with the Quantum accumulation & distribution indicator. Considering the monthly chart, Tesla bulls do appear to have some respite ahead as the price action is poised on relatively strong support at the $177 level. What's even more encouraging is we also have the support on the weekly chart.
What will also determine whether Tesla continues lower is the volume, which so far for January is light considering the spread of the candle. However, we do have to reserve judgment until month end.
By Anna Coulling
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Despite a laundry list of risk factors that include inflation and geopolitical events, retail investors have been pouring their money into US stocks, and in particular stocks such as Tesla, which alone attracted almost $10bn since the beginning of this year. We can see this level of volume on the weekly chart for the stock, along with 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 major reversal for the stock. The Quantum indicators that come into their own in these circumstances 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...
Our volume point of control (vpoc) takes the analysis of price action and volume to another level and which also complements the volume price analysis methodology. In this video, David explains how the alerts work on the version for Tradingview.
https://youtu.be/QJ3x8LfuKns...
All traders and investors know that recognizing the most significant levels of support and resistance on a chart is key. There are many ways this can be done, from simple, hand-drawn lines to specialist indicators. Two such indicators from us here at Quantumtrading are the accumulation and distribution indicator and the volume point of control. The A&D indicator is price based, while the volume point of control (aka vpoc) includes both price and volume, and we can see how these work on the weekly chart for gold.
What is unique about the accumulation and distribution indicator is that the lines thicken each time the price is touched, thereby confirming the relative strength of that particular support or resistance level.
Meantime, the vpoc not only gives us the key levels based on price and volume but also highlights the congestion/consolidation zones where the price action is likely to pause or even struggle in its journey higher or lower.
Using these indicators together gives traders...
Support and resistance are integral to technical analysis and also a key plank in the volume price analysis. methodology. It, therefore, makes sense to use the best tools possible to highlight those areas and levels on a chart where the price action is going and perhaps stall. At Quantumtrading, we have developed price and volume-based tools to help traders and investors make sense of the price action, and we have a great example on old where the accumulation and distribution indicator, the volume point of control, and Camarilla pivot levels have all come together on the weekly chart.
The precious metal has recently found its mojo once again, lifting off a triple bottom at the $1632 region. It also coincides with the volume support and achieved the $1812 level, where it now faces its first major price resistance level in the form of the accumulation and distribution indicator. We can see this given the thickness of the blue hatched line. The...
Along with several volume price lessons on the 5 min chart for the YM E-mini, the futures contract for the Dow Jones, David explains how traders can benefit from trading this contract outside the heavily volatile US session. By looking at a faster chart we can see the activity increase at session crossovers such as the London open and by applying vpa & using the Quantum indicators, take advantage of some steady, measured price action.
And using the principles of volume price analysis and the trend monitor will also help to keep us in a trade.
https://youtu.be/KbMVv_dgwtM
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https://www.youtube.com/watch?v=b95ssPUkTHY
Support & resistance is a key element of classic technical analysis and one of the five pillars of volume price analysis. And when combined with support & resistance from both a price and volume based perspective will give traders and investors additional confidence in identifying whether a trend is likely to reverse or not....
