Here we have todays candlevolume and equivolume in comparison on the Nikkei futures. Notice the break of the 30min range low was on a wide tall candle bar. This indicates a valid breakdown to the downside with a target at the previous day value high.
When price reached the
VAH pivot, we saw a fat squishy candle (slightly tall) but wait.... the next bar is a skinny toothpick looking bar. Thus a classic
VAH play can be taken.
The run up on the bounce of the
VAH is followed by skinny bars indicating no demand. This is a warning signal and is followed by a power supply bar downwards to test the
VAH once again. Notice the test is now on a skinny bar compared to the last test.
The bottom chart shows equivolume. I personally find candlevolume a better way to visually see price action and volume combined.
