- PPF Points
- 2,039
When traders are in search of alternatives to volume indicators, besides price action tools and market structure analysis, they also consider these to be quite helpful measures. Following these tactics enables the investors to estimate the strength and activity of the market without using the volume data. One of the best strategies here is to use candlestick patterns that not only determine market sentiment but also can be linked with price movement within shorter time periods. Another trustworthy device is the Average True Range (ATR), which denotes the variability in the market and can be utilized to detect if the market is in a strong or weak state. The most commonly used predictors by traders are Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) which allow them to assess the strength of the trend as well as its direction. Although these indicators are not substitutes for volume directly, they do provide some information about the increased and decreased price movement power. The identification of the order flow and footprint charts, primarily in the futures and forex markets, are the trends nowadays and provide a very clear picture of the buy and sell activity at different price levels without employing traditional volume data. Furthermore, the trendlines, support-resistance zones, and Fibonacci retracements can be employed as contextual tools to identify possible price reversals or continuations. By practicing these strategies, traders will be able to read the market using the lens of price dynamics instead of trade volume, thus offering a much more informed view of supply and demand imbalances.