Steemit Crypto Academy | Summary On Homework Task Week2-Season4
As the second week of Season 4 of the Homework assignment ends on September 18, 2021, I would like to thank the 58 students who tried and worked this week by submitting their essays to answer the assignment.
This week we have presented the most important and best volume indicator trading methods in a detailed explanation for you to use and incorporate into your trading strategy.
Trading volumes (volume) are the number of shares or contracts that were traded during the different trading sessions, usually calculated on one day, and the higher the trading volume, the greater the activity in the stock’s movement, and given the importance of the trading volume index side by side Along with the stock price and other technical tools, most technical analysts analyze the volume movement when analyzing the chart in addition to the price to give a broader and more comprehensive view of the expected future movement of the price.
For us as technical analysts, the price remains the primary indicator and the first engine on which we base our conclusions regarding the expected future price movement, but with the addition of trading volumes to the chart, this helps mainly in identifying several signals.
I hope that all users who have studied this week will benefit from the set of information and analysis provided to get acquainted with the type of trend in the market “is it bullish or bearish?” As well as knowing the strength of the trend in the cryptocurrency market.
We always state that the main goal of our Steemit Crypto Academy community is to ensure knowledge and promote opportunities for quality learning that are equitable and inclusive in the cryptocurrency field for all.
Next, I asked the students a few questions to assess how well they understood the topic and to assess the cognitive gains they made from reading the lesson.
The questions to be answered are:
1. Explain the volume indicator in your own words.
2. Use a platform other than Tradingview to present the volume indicator on a chart and show how to configure its parameters by justifying your choices. (Screenshot required)
3. What is the link between Volume and Trend and How to use volume to predict a trend reversal? (Screenshot required)
4. How to use the volume to have a signal confirmation? (Screenshot required)
5. How does the volume reflect the evolution of prices in the charts and why does the volume sometimes anticipate the price? (Screenshot required)
6. Is it better to use the volume indicator alone or use it in parallel with another indicator when trading? Justify your answer
7. The volume indicators are multiple, choose one of them to briefly explain its usefulness in crypto trading.
8. Conclusion:
Explain the volume indicator in your own words
Volume measures the amount of security traded over a period of time, therefore it tells us the level of activity in the markets and allows us to confirm the relevance of support or resistance or a tendency, in short it allows us to reinforce the quality of a chartist analysis because of their strong psychological aspect.
Volumes can be represented in different ways depending on the quotes graphs, so the vertical lines below the prices are the most commonly used mode of representation, they can also be represented by price level, which allows to offer a easier reading of supports and resistances.
For every buyer, there has to be someone who sold them the shares they bought, just as there has to be a buyer for a seller to get rid of their shares.
This battle between buyers and sellers for the best price in all the different periods creates movement as technical and fundamental factors play in the longer term.
Volume is an extremely important metric to consider when performing technical analysis.
What is the link between Volume and Trend and How to use volume to predict a trend reversal?
The strength of a major trend line (bullish or bearish) can be confirmed by following the trading volume, on the four figures below:
- Increased trading volumes with an upward trend (a healthy movement that is expected to continue in the same direction)
- Increased trading volumes with a downtrend (a healthy movement that is expected to continue in the same direction)
- Low trading volumes with an uptrend (the recent rise of the price is questionable and the price may accept the opposite of the trend)
- Decreased trading volumes with a downtrend (the last drop of the price is questionable and the price may accept the opposite of the trend)
If the above four principles are difficult to memorize a bit, then remember the following: A high volume with an increase in price (whether a downward or an upward trend) means a healthy trend and is expected to continue, the difference in the volume from the main price trend means an expectation of a reversal of the trend or a correction.
How to use the volume to have a signal confirmation?
The volume should increase or expand in the same direction as the existing trend.
In bullish trends, the volume should increase as the price increases and should decrease or contract as the prices fall.
In downtrends, the volume should increase as the price drops and should decrease or contract as the price increases. Many are confused here. Even in bearish trends, the volume must be supported to confirm the downward trend. But be careful because in downward trends the volumes could also fall for lack of buyers. (this is not the case with crypto, however).
The volume must confirm the price trend (rising volumes and rising prices, increasing trend confirmed)
In bullish trends, divergences occur when the breaking of a previous high is accompanied by a decrease in volume. In the latter case, the volume signals that the buying pressure is decreasing. And the trend could be reversed.
Stock market volumes in an uptrend
Even if the volume shows a tendency to peak when prices fall, one should start to suspect that the uptrend has problems.
Volumes are useful for confirming not only trends but also technical analysis numbers.
In general, the resolution of each formation (its breaking point) must be accompanied by high volumes, if the signal is real.
This second week of the fourth season, which took place from September 11 to September 18, 2021, witnessed the participation of a respectable number of students, which amounted to 58, which is a good number in terms of changing the conditions for this season in order to urge users to raise the level of their reputation and their yield from SP.
We note the availability of articles with excellent content, which represents 33% of the total writing, with a high percentage of articles with good content up to 31%, as well as articles with medium content , It is rated at 21%.
To pass successful homework and generally reward the 85% versus the 15% who fail to achieve above average grades, if that is anything to be said, the earnestness with which students get what is asked of them and how keen they are to learn and do the best to get better grades and best results.
We also see 2% posts plagiarism which we are looking forward to combating and it remains our great hope that students will continue to write articles without these practices which remain the first and most important enemy towards improving their level and advancing their knowledge.
Two articles were classified out of competition due to non-compliance with the conditions of participation, and it must be remembered that the conditions of participation require a reputation of 65 and 600 SP with a commitment to the expiry time, so we invite participants to adhere to these conditions so that the preparation effort is not wasted without obtaining the evaluation and reward.
We would like to first thank all the participants for their challenges and inspiring achievements, and we hope that the spirit of this competition will continue for as long as possible, and we hope that the culture of challenge and facing obstacles will spread in all communities.
We are pleased to announce the names of the three winners of the 2nd week of the 4th season competition :
Cc:-
@steemitblog
@steemcurator01
@steemcurator02
Hello prof. Thanks for the great work you are doing. My home work wasn't visited by @steemcurator01, but I understand the work load. Please kindly help me out. This is the link to my homework. It has expired already because it's remaining 3 hours to payout. Should I do a repost? I would love to follow your directions. Thanks a lot.
Yes you should repost it! please tag me in the new post.
Thanks prof. I will do that. I'm grateful for your swift response. You're wonderful.
Thank you, Sir, for this appreciation. This means lot to me as it is a booster for me to carry on hard work.
To be considered for a Rank 1 is a great honor and a privilege, thank you @kouba01.
The Topic and the questions are much interested as it allows me to learn, study, research more on it.
Also, congratulate @mawattoo8 and @lavanyalakshman for great work.
Thank You.
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Thanks sir. And I also congratulate you, Sir @stream4u and @lavanyalakshman for wonderful work.
Thank you very much and congratulations you to you my friend.
Thank you very much and congratulations to you too.
Thank you very much for mentioning my post.
.
Respected Professor @kouba01, can you help me in this regard. Professor Yoha2on has rejected my post. I am using no bot service right now. I have un-delegated all the delegated power after the new rule was made at the beginning of this season.
It is an humble request to clarify this matter. I will be thankful to you.