As part of the Simple Approach series I thought I would do a post on how to use Volume Bars as a trade entry signal. You don’t really need anything on the chart except price and volume for this approach.
For this example, I bring you the Weekly chart of $CCI. This is a stock that I have been stalking this week:
- After at least 4 Red volume bars in a row you go long the next Green open
- Use your Stop process and/or utilize Options as appropriate
- There are 5 instances on this chart, including the one that has formed now. Will history rhyme?
Critical moment here as this rough HnS has formed, potential neckline test imminent.