The candle volume chart type is overlooked by most daytraders. Candle Volume charts makes Volume Price analysis much easier. Price and volume action is plotted on the same candle stick.
This chart type is very useful for intraday traders trading on lower time frames like 1 min. Candle Volume Chart helps you get a visual depth of market volume and its affect on price movement.
Analyzing the market on a candle volume chart is like watching the trading floor from a birds eye view. Helps you assess the real Demand and Supply situation on the trading floor. When using the candle volume charts, Imagine yourself standing on the trading floor. The Candle Volume chart helps you feel the aggressiveness of the buyers and sellers on the trading floor to know who has an upper hand in the market.
Also, helps you get the real sense of price movement, whether price movement its based on volume or is it the market makers filling orders at bids or asks to manipulate the price.
I have found the candle volume charts very useful in these situations:
1) The candle volume charts helps you identify the strength of reversal candle patterns at important price points. It is a good analysis tool for entering or exiting trades at the right time.
2) Candle volume charts helps you identify those fakey breakouts that market makers play on you. It clearly identifies price movements which happen on very thin volume. This is when the market makers quickly fill up the top bids or asks to manipulate the price to trap you in. Well, the candle volume charts helps to analyze the visual depth of volume for the corresponding price movement. This is a very important chart-type for breakout traders.
3) Has it happened that after you enter a trade, the price goes the wrong way and then moves in your direction after you have closed your position ? Well, the candle volume charts is useful in these situations too. By analyzing the candle volume chart you can know if it is really important you close your position or average it down.
The candle volume chart types are available on the Fyers One, Zerodha Pi and KITE trading Terminals.