Kardec Trader explains why volume by price matters more than traditional volume bars. Instead of tracking volume over time, look at where volume actually concentrates across price levels. Low volume nodes, or price levels with minimal trading activity, can signal where price might move next.
"low volume nodes"
I'm going to call this strategy the low volume nodes. And this is just like a branch to order flow. You could use any tool that has to deal with volume by price. I find volume by price to be more significant than volume by time. A lot of traders draw like a candlestick chart, right? And then they have the volume down here. The volume increases, the volume decreases, the volume increases, that's fine. But this strategy, I find volume by price being more significant than this is volume by time. And now we have volume by price. So let's just say this is at $100, this is at $50 zero. Let's say at $100 there lot of volume. And we can see this by the volume building again by price. Then the market comes down to call it $80. Volume is a little less. And then at 50 bucks, volume is like really, really high. We can distribute volume by price and then volume by time. I find volume by price to be way more significant than volume by time because volume by price will tell us at what price was there a lot of volume and what price was there. Minimal volume versus volume by time will just show us volume at that specific time frame chart that we're looking at.
