Continue reading...Many say that charting is nothing more than predicting the direction of a price between significant support and resistance levels. We know that a support level is a price level which a stock has had difficulty falling below. This is where a lot of buyers tend to enter the stock.
Similarly, we know that resistance is a price level above which a stock has difficulty climbing. This is where a lot of buyers take profits and shorts enter. Typically, a stock’s price will range between these levels until it breaks out or breaks down. Hundreds of different methods can be used to locate these areas of support and resistance, but one of the most underrated methods is simply using price by volume, or PBV, charts.
In this article, we explain what PBV charts are and explore techniques that you can use to make effective trades using these charts. Trendlines, chart patterns, pivot points, Fibonacci lines and Gann lines are among the most popular methods used to identify areas of support and...
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