Green, Red color indicator that highlights the direction in which a market is moving, and also attempts to provide entry and exit points. This indicator stands for ‘stop and reversal’. The indicator is a series of dots placed above or below the price bars.
Scalpers use volume indicators for multiple reasons. Green, Red color and price have a very strong, short-term relationship, but changes in trading volume usually happen before sustained price movements. Paying attention to Green, Red color indicators makes it possible to take advantage of these movements before they actually occur. Using candlestick charts can also help scalpers get a quick view of the market. Candlestick charts contain more information than simple price charts (such as daily price ranges), allowing traders to understand current price trends.
In this case, it took a break. There were fewer buyers and sellers at the time (traders making trading decisions). Then they picked up and continued to the upside. Our strategy takes advantage of this pullback before the price action continues upward in this example.
So in this analysis step to the strategy you need to check out the volume indicator. Based on what you now know, make a good trading decision based on the current price action. Using our example, you should see a steady uptrend followed by a pullback/retracement phase.