1.The primary reason for analyzing and using charts in trading is not to predict the future but to develop strategies to respond effectively.

2.From a trading perspective, identifying support and resistance on charts to buy when support is confirmed and sell when resistance is reached is one of the simplest and most powerful trading strategies if consistently applied.

3.Trendlines and moving averages also play important roles in determining support and resistance, but one of the most visible and strongest support and resistance levels is the price volume area.

4.In actual candle movements, support and resistance roles must be performed clearly and definitively, so it is essential to pay attention to them.

5.There are people who predicted that Bitcoin, the leading cryptocurrency, would drop and converted to cash, only to experience a crash when they hurriedly jumped into altcoins that they thought had strong defenses and wouldn’t drop.

6.The defensive strength of these altcoins is often related to the price volume areas. Additionally, in a rising market, if an altcoin that was performing well starts to stall and other coins begin to take off, it’s because it takes time to digest the upper price volume area.

7.Understanding these aspects can help set benchmarks for profit-taking and stop-loss points.

8.Of course, in actual trading, multiple factors must be considered in combination, not just the price volume area.

● Definition of Price Volume Area

1.The chart on the top is a daily chart of Bitcoin, and the yellow horizontal bar graph visible on the chart is the price volume area.

2.The definition of a price volume area is very simple.

3.The total volume of transactions that occurred in each vertical section during the specified period (the period shown on the screen) becomes the price volume area.

4.In other words, the more transactions that occur in a section during the period shown, the thicker the price volume area becomes.

5.The more candles and volume in a section, the thicker the price volume area.

● Price Volume Area as Support and Resistance

As mentioned, the price volume area acts as support and resistance.

● Meaning of a Thick Upper Price Volume Area

1.A thick upper price volume area means that a lot of transactions have occurred in that price range.

2.It means that there was a lot of selling in that area and a lot of buying by those who purchased at that level.

3.People who are stuck at that level, colloquially called “bag holders,” will sell when the price rises to that area due to a breakeven mentality, creating resistance and hindering price increases.

● Meaning of a Thick Lower Price Volume Area

1.A thick lower price volume area means that a lot of transactions have occurred in that price range.

2.That price range is a good area for buying, and if the price drops to that level, many people will participate in buying again. This acts as support and defends against price drops.

● Meaning of a Thin Price Volume Area

1.Whether the price has risen or fallen in the past, a thin price volume area means that the price has moved with little volume.

2.Contrary to the previous examples, because support and resistance are empty, when the price enters such a zone, it is likely to continue moving in the existing direction.