Module 4: Volume and indicators
12 lessons, in reading order.
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Trading Volume Explained: Volume vs Open Interest
What trading volume counts, how it differs from open interest, relative volume, climactic and drying volume, futures contract months, and volume's limits.
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What Is VWAP? Session vs Anchored VWAP Explained
How VWAP is calculated, with a worked example, the difference between session and anchored VWAP, why firms benchmark to it, and what it cannot tell you.
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Technical Indicators Explained: MA, RSI, MACD, Bollinger, ATR
What moving averages, RSI, MACD, Bollinger Bands and ATR measure, how each is calculated in plain words, why there is no universal ordering of every indicator turn, and what each one misses.
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Moving Averages in Depth: SMA, EMA, Lag and Crossovers
Simple, exponential and weighted moving averages compared: how each is calculated, why every average lags, and what crossovers such as 50/200 show.
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RSI and Stochastic Oscillators: What Overbought Really Means
How RSI and the stochastic oscillator are calculated, what overbought, oversold and divergence describe, and why strong trends can stay above 70 for weeks.
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MACD Explained: Lines, Histogram and What Crosses Mean
How MACD is built from two exponential averages, what the signal line and histogram show, which crosses describe the same comparison and which are distinct, with no guaranteed order, and why MACD lags price turns.
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Bollinger Bands, Keltner Channels and ATR: Measuring Volatility
How Bollinger Bands, Keltner channels and ATR measure volatility, what a squeeze is, how ATR feeds position sizing, and why bands do not predict direction.
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Divergence in Depth: Regular, Hidden and Why Most Go Nowhere
Learn what regular and hidden divergence describe, why swing choice and settings decide whether one exists, and why many divergences lead nowhere.
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Anchored VWAP: Averaging From a Chosen Starting Point
Learn how anchored VWAP averages price by volume from a chosen starting point, why the anchor matters, what VWAP bands show and what they leave out.
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OBV, Accumulation/Distribution and Relative Volume
Learn how on-balance volume, the accumulation/distribution line and relative volume are calculated, and why none of them can show who was trading.
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Overfitting and Repainting: When Indicator Results Look Too Good
Learn how overfitting and repainting make indicator results look better than live use, and how in-sample, out-of-sample and walk-forward tests work.
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Putting Volume Tools Together: One Session, Three Tools, One Plan
Give VWAP, relative volume and ATR one job each in a written plan, see three fictional replays, and learn why stacking more indicators shrinks the sample.