Tick volume signals: what do you actually read from them?

Tick volume counts price changes, not traded volume, but it still carries information: activity spikes around news and breakouts, and trends fade on falling ticks. The art is knowing what the proxy can and can't say.

Tick volume signals: what do you actually read from them? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

How do you use it?

  • the signals you derive from tick volume
  • how you combine it with price structure
  • the false signal it gave you
Tick volume signals: what do you actually read from them? — support and resistance diagram
Price bouncing between support and resistance

The candlestick guide explains the data underneath.

Background: How to read candlestick charts

Candlesticks pack four prices into one shape. How to read the body and wicks, what timeframes mean and why single patterns are weaker than they look.

What do the wicks on a candlestick mean?

The wicks show the highest and lowest prices reached during the period. A long wick shows that the price moved there but was pushed back before the candle closed.

Are candlestick patterns reliable?

Not on their own. They are more meaningful at important price levels and on higher timeframes, and they should be combined with a clear plan for risk.

Read the full guide

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…