Volume Accumulation Setup
In this article we gonna learn Volume Accumulation Setup.
- As we learn previously in Volume 2, the big institutions who move and manipulate the market build up their massive trading positions in sideways price action channels (rotation areas).
- After they accumulate enough volumes – meaning after they fully enter their positions, then they initiate strong and aggressive buying or selling activity to move the price.
- They strive to move the price in the direction of their newly accumulated positions. Based on this, we know, that if there was a sideways price channel followed by significant uptrend, strong buyers were accumulating their buying positions in the price channel.
- If, there was a sideways channel followed by a strong sell-off, then we know, that strong sellers were entering their selling positions in the channel.
Price Action Sideways: Long Position (Accumulation)
Price Action Sideways with Volume Profile: Long Setup
Price Action Sideways: Short Position (Accumulation)
Price Action Sideways with Volume Profile: Short Setup
Logic behind Accumulation Setup
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In the next article we learn about trend setup.