Visualizing Volume Flow: Lesson + Charts with Jake from TrendSpider -- Looking at the Markets with David Moadel
hello and welcome to looking at the markets with David Modell I'm excited to
have a guest today for you you're gonna want to watch this whole video his name
is Jake and he's from trend spider comm he's going to teach you about volume and
looking at volume in a totally different way to help you with your charting and
to help you hopefully become more profitable more accurate in your
charting and to make it easier and more automated as well so we're gonna bring
on Jake from transpiler right now Jake welcome back to looking at the markets
thank you for having me yeah it's always so educational when you're here it's
like a mini seminar its power packed folks you're gonna want to watch this
from beginning to end otherwise you're gonna miss the nuggets of information
and you're gonna miss the cool tools that you can get in it really is easy to
get this there's even a free trial so you can check it out before you buy well
we'll learn more about that but first of all what are we looking at right now so
what we're looking at right now it may look a little foreign to a lot of you
but essentially this is a raindrop chart on our charting platform and before I
really dive into this particular chart I want to go back and just explain what
the raindrop is the raindrop is a volume-based
candle so rather than having a you know an open on your left and a closed on
your right like a typical bar chart you're going to have the volume weighted
average price on the left-hand side of the candle and then the volume weighted
average price for the second half of the period on the right side so you know
whatever candle you're looking at this could be the daily candle this could be
the 10-minute candle it's really showing how volume can really flow throughout a
period rather than just looking at you know the wicks in the bodies and open
and close can some time's be an arbitrary price so we
really want to see what's really moving price which is volumes so this
particular case we've got a green raindrop but there are two other colors
here we've got a neutral raindrop which can be really a reversal possibly candle
as well as just a confirmation of the trend there's a lot of different
examples of that I'm not going to necessarily go too deep into the blue
raindrop in this particular case study that I'm going to go over we're gonna go
over more of the bullish raindrop but I definitely check out some of the
documentation on transmitter.com in our blog the bearish raindrop is essentially
the opposite of the bullish when the volume weight average price for the
second half of the period is lower than the first similar to if the close was
down here in the open was here but in this particular case the bullish
raindrop is really something that is useful around resistance areas and today
I'm going to go over a particular case study on Netflix where we've got a daily
chart here of the raindrop and then we've got a daily chart of a hollow
candle and so you can see here on the left hand side this raindrop we can see
that a lot of the volume is focused around the top part of this price range
yeah over here we've got this wick and you really can't see you know is this
just a little bit of volume pushing this up or were you know where buyers really
in control and so this is kind of showing us that there were buyers
absorbing any supply that was being you know let go here yeah you can really see
the difference when you put it side-by-side like that the rain brought
raindrops have so much more information it's just visually really cool yeah it's
definitely something very unique and new to kind of the way that you can look at
volume in price action it's not just telling you you know how much volume
happened it's telling you where that volume happened and kind of relatively
where that volume is located within the range and so this is just one example
this is another example on you IND this week where you had this
descending resistance line you finally have this breakout and then you've got
really some you know some volume really at the top of this range and then you've
got a two-day continuation up to the anchored view app here so the anchored
view app is something that was created by Brian Shannon and at this point I
just anchored it from this big gap down from earnings and you can see how well
the price has respected this area you know multiple times here and then so
after we broke out this was the natural area for price to kind of find some
supply and then pull back so something that is really unique about the platform
is are the raindrops you will not find these anywhere else
yeah totally unique proprietary and it's people have been raving to me about this
people who've gone on to trend spider comm tried it out and I've gotten
fantastic reviews about it will tell you more about that or you can just go to
trend spider comm right now if you want to what are we looking at right now so
this is IWM this is just another case study here same thing we've got
resistance here that essentially three different candle three different candles
have found resistance in this case horizontal resistance and then you've
got that big bulge of volume above and then you've got that two day
continuation so something that's really unique here is it happens a lot right so
you've got the same thing here you've got this resistance kind of breaking out
you can see a lot of that volume at the top of the range and then you've got
your impulse to day move to the upside same thing here we could see after we
broke out through this resistance you can see a lot of that volume was above
the resistance line you've got that continuation out for the next two days
so for those that like to play options this is definitely something to keep in
mind one thing that people are gonna ask you know the question and I get it all
the time is you know do these candles form during the day and the answer is
yes so they're constantly forming and they're updating during the day so as
volumes coming in they're forming so the way I like to use this is to look
at the particular candle maybe 15 minutes before the close because in that
case the you know the volume is really not going to change that much for you
know the next day or excuse me for the second half of the day you know within
15 minutes you're gonna have a general idea of where that volume bulge is and
so sometimes I'll just buy into the last 15 minutes based on kind of how that
candles looking nice okay very good very good
yep so uh so I wanted to mention we also have a scanner coming in the next few
weeks and that's something we are really excited about it's going to be just
another way that makes the platform unique and the thing is we currently
have the strategy tester so if you wanted to let's say code in your own
conditions currently and most systems you need to have some type of you know
coding language well here you just need to know the condition you're looking for
in this case this is just the MACD cross so without having to code in the
condition you essentially just have the visual interface here to kind of go over
that well it's a good thing because I'm certainly not a coder so I'll let
transporter do that aspect of it for me yeah yeah I it's something that you know
I'm not a code or either our development teams awesome and they take care of all
that and so it's really nice to be able to have that visual interface without
having to know Python or pine script or anything like that so you know I just
wanted to mention as well the scanner will be just like this so you'll be able
to scan the market for these conditions as well
and we do have a Holiday Sale that just started today 40% off the annual pricing
and 25% off monthly wait wait was that first 150 5500 50% off 40% off annual
and 25% off monthly I'm sorry forty forty percent off of the
annual pricing correct and all that's fantastic
all they need to do is go to the link below in the
video and they'll be able to check out the deals and the coupon codes to go
about locking that in got it okay so people can click on the link in the
description below this video to get it for yourself or if you're still not sure
you could always do the free trial but I know you're gonna want to get the you
know get the full package there especially with that forty percent
annual discount I mean you're not gonna get that anytime probably again soon so
that's a limited time right there definitely so we had we had a big
response to Black Friday and we want to extend the deal for those that were on
the fence and so this deal will be going on until January 2nd if anyone has any
questions please feel free to reach out to us hello at trend spider comm or you
can DM us on Twitter just at trend spider fantastic alright any other
charts for today or anything else you want to explain to people um you know I
just want to really explain that transpire is a new charting platform out
there that is trying to innovate the process of technical analysis and
innovate the way you're thinking about technical analysis so there are
different things on the platform rain drops I would definitely say are the
most unique but we also have ways to automate how you can draw trend lines
Fibonacci levels so it's really and let me just do an example of an automated
trend line example on Home Depot so what we have here and this is just another
you know example where we've got these balloons forming right you when you've
got a lot of the volume at the top of the range here you can really see how
there's continuation a lot of the time now when you're in a downtrend these
things can have false breakdowns right so it's not it's not an end-all be-all
just like any indicator but it is a great tool to have in the toolbox when
you're doing technical analysis in this case I'm going to switch back over to
candles and then I'm just going to turn on the trends here by simply clicking
trends and so without me having to do anything you can see these trend lines
are popping up and the thing I mention here is it this seems noisy but
these this is just a few of the like thousands of different ways someone can
visualize this chart so for me you know this isn't something that I'm gonna keep
on the chart all of these lines what I want to do is I just want to lock in
this line to kind of show this previous support that it found and then I want to
lock in this line here and then this line here to kind of show the current
kind of area the price has been respecting recently so then I just turn
off the trends and now the charts cleaned up and I have the lines of
interest that I really want to check out so here you can see that this particular
previous support is now acting as perfect resistance and so I can go in
create an alert at this line and tell me whenever the price breaks through this
line I want to be alerted whenever the five minute candle does that so instead
of a kick-ass sanaa see I'm gonna make this previous support previous s
breakout and then I'll just do expires in 10 days and the alerts created so now
whenever the price breaks through this line if it does I'll be alerted without
having to be there watching the price action by the 5 minute candle so it's
really there to make your life a little easier make the whole process of
technical analysis more efficient and we can't wait to actually have brokerage
integration where you can actually hook up your own broker data and trade
through the platform and you know use these alerts to actually make trades
very nice I love how you can so easily put those lines up there there's so much
automation here it makes it not only better but also easier so you know just
drawing all those lines you can do it manually on the platform of course or
and or you can have it draw lines automatically like we just saw and super
quick and you know different types of ways that you can you know if you can
alert when it comes close to a line or pierces the line so many
so many ways to adjust it so many options here very cool so again if
people wanted to get this if they want to get this platform right now how would
they do it right now they want to get this platform right now they can go to
trends fighter comm and go to the pricing page and that's where your check
out the coupon code as I mentioned as well you can just go straight down to
the link below and click that too and it will take you right to that page so you
don't have to go through a secondary kind of step there so make sure to check
out the link below and click click to check out the deal going on now until
January 2nd and if you have any questions please feel free to reach out
absolutely I know you're gonna get a great response you always do people
always ask me when is Jake from translator gone gonna come back so here
you are yeah and I'm sure it's not gonna be the last time again 40% off limited
time holiday offer you might not ever see this again so go check it out all
right go to your browser trend spider comm go to the pricing page check out
all the features or click on the link in the description below this video
Thank You Jake for coming back again to looking at the markets I appreciate it
very much thank you for having me and everybody have a happy holiday