Anchored Volume-by-Price show what price levels experienced the most volume. Unlike traditional volume that’s plotted on the X-axis below the price chart, price-by-volume is plotted on the Y-Axis on the right side of the chart, with each bar representing the volume at the associated price. The further the volume bar is from the right of the screen, the more volume was traded at that level.
Volume-by-Price are helpful for identifying important price levels where a lot of traders have placed trades.
You can add Volume-by-Price in a few easy steps:
- Click on the … next to the Indicators button in the top menu bar.
- Search for “Volume by Price” in the indicator search field.
- Click on Volume by Price to add the indicator.
- Click on Apply to add it to the chart.
- Adjust the VbP Start Lineby clicking on it, holding and dragging it side-by-side to position it at the point on the chart from which you wish to measure the Volume distribution from.
To adjust the position of the Volume-by-Price Start Line, simply click-and-drag it to the right or left on your screen. This line, which is dashed and vertical from top to bottom, and says “VbP Start” along the bottom edge of it is movable. It indicates the starting point from which the Volume-by-Price calculation is measured from.
TrendSpider can also automatically identify a Start Line based on various price movements. For instance, you can automatically draw a Start Line following the most recent gap rather than manually setting the line each time.
See Automated Anchoring 101 for more information.
- PoC refers to the Point of Control – the most popular price level as measured from the point-in-time you have selected with the VbP start line.
- VWAP refers to the Volume Weighted Average Price from the point-in-time you have selected with the VbP start line.