Volume Price Analysis – Guide to Divergence

The Guide to Divergence shows how to track volume and analyze divergence.

Volume Price Analysis – Guide to Divergence

The study of how volume and price work together is called volume price analysis. When price and volume go in opposite directions, Divergence is indicated. Sometimes a market reversal can be seen when volume price divergence appears.

Gail shows how to spot the divergence between volume and price on the live edge of the market. Gail shows how to incorporate the same concepts using any standard volume indicator, even though she uses her proprietary Directional Volume. She has a proprietary Directional Volume indicator.

• Volume bars are colored according to whether price made a high, low, inside bar or outside bar
• Delta shows if buyers or sellers controlled the bar, which is then confirmed by price

Volume Price Divergence can be used by traders.

• Lower risk on entry
• Confirm price will move further in their direction
• To exit a trade early as both volume and price are identifying a move in the opposite direction