Published By TradeSmith Customer Success
As you work in TradeSmith Finance, you might notice some bars on the position chart.
What are these bars?
THIS REPRESENTS VOLUME AT PRICE (VAP).
Volume-at-Price measures the amount of volume traded at a particular price level. You can use Volume-at-Price data to identify current and future support and resistance levels. Price levels with heavy volume indicate elevated interest levels that may influence future resistance or support (supply and demand).
Total volume is made up of buying volume and selling volume. Buying volume (green bars) is the number of shares, contracts, or lots that were associated with buying trades, and selling volume (red bars) is the number that were associated with selling trades
The length of the volume bar will show you how much was bought (green) and sold (red) in that price range.
By combining volume and closing prices, this indicator can be used to identify high-volume price ranges to mark support or resistance.
*Note – The tabs and features you see on your TradeSmith Finance site will vary based on subscription(s) and subscription level(s). Pictures in our Education Center articles are taken from a TradeSmith Platinum account.