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, 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...
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...
Support and resistance are integral to technical analysis and a key plank of volume-price analysis methodology. It therefore makes sense to use the best tools possible to highlight the areas and levels on a chart where the price action is going and where it might stall. At Quantumtrading, we have developed price- and volume-based tools to help traders and investors make sense of price action, and we have a great example of how the accumulation and distribution indicator, the volume point of control, and Camarilla pivot levels have all come together on the weekly chart.
Gold
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 primary 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 line thickens and...
https://www.youtube.com/watch?v=b95ssPUkTHY
Support & Resistance Trading & Candle Patterns
Support and resistance trading forms the backbone of technical analysis. These levels act as barriers. Price often bounces or breaks at them. Candle patterns add confirmation. They show buyer/seller battles at key zones. 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.
Key Candle Patterns at Levels
Reversal patterns like hammers or shooting stars shine at support/resistance. A hammer at support signals buying pressure. Doji candles show indecision. Engulfing patterns indicate strong shifts. Volume price analysis (VPA) validates these—high volume on reversal candles confirms conviction.
Practical Application
Combine levels with patterns for better entries. Wait for candle close at support/resistance. Check volume for strength. Quantum indicators on NinjaTrader or MT5 highlight levels and...
