the Simple Approach using Volume Bars

part of the Simple Approach series

In this post I will show how you can use Volume Bars for Buy or Sell signals. To illustrate let’s take a look at the Daily chart of $CBK:

CBK_volume_bar

  • There have been 5 Sell signals (short after 4 Green volume bars in a row)
  • You would have been Stopped out on signal #1
  • The next 3 signals would have provided large returns (you likely did not take #4 if you had sold short on signal #3)
  • There is a signal now
  • RSI would have been an additional guide, clean area to reinforce the short entry as it neared the 70 level (overbought)

 

3 thoughts on “the Simple Approach using Volume Bars

  1. You had to wait one more day to get the first Red volume bar for the short to trigger. Now back under the $9 level.

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