Reducing Volume

From: $14.99 / month

Highlight exhaustion to avoid poor entries and premature exits

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When price is moving, the move’s continuation is confirmed by volume. An upward price move accompanied by strong buying volume and buying imbalances provides reassurance and confirmation as to the strength of the move. Conversely, if we have reducing volume as a move progresses, it may be a sign that the move may be coming to an end and will pause or reverse.

Also important is identifying what is not happening. If we do not see reducing volume in buying as price rises (or selling as price falls) then by implication, the move has not yet reached the extreme and has the possibility to continue. This can be visualised with this indicator’s Demand Continuation and Supply Continuation subgraphs.

The Reducing Volume indicator analyses the traded volume at the extremes of the price bar and indicates whether volume is reducing at the extreme of the price bar, highlighting divergence between price and volume.

This indicator is particularly powerful when read within the context of significant daily price levels such as daily high/low and the initial balance. Also, when in a position with a defined exit point, the Demand and Supply Continuation visualisations can increase trader confidence in their trading decision.

The emoji trading Order Flow Suite Price Rejector indicator uses Reducing Volume as a factor within its calculations.

Reducing Volume may be licensed for Sierra Chart on a Lifetime, 1-month or 3-month basis, or as part of the complete Emoji Trading Order Flow Suite. Licences include all indicator updates and enhancements during the license period.


Input Name Description
Extend Zone Until Future Intersection? Select whether Extension Lines are enabled/disabled for the Reducing Volume price levels.
Extension Line Label Text indicator for the Extension Lines
Draw Location Select whether Reducing Volume is analysed at Both Ends of price bars or at the Bar Extremes, i.e. the upper end of up bars and the lower end of down bars.
Calculation Freqency Select whether Reducing Volume is calculated in real time or only at bar closure.
Maximum Volume at Price Extreme Select the maximum permissible ask volume at the bar’s highest price level or bid volume at the bar’s lowest price level for a Reducing Volume condition to apply.
Display Continuation on Current Bar Only? Select whether the Demand and Supply Continuation subgraphs SG9 & SG10 that indicate the lack of a Reducing Volume condition are displayed only on the current bar or on all historic bars.
Continuation Symbol Offset The offset in ticks of the Demand and Supply Continuation subgraphs from the bar’s top and bottom prices respectively.

Subgraph ID Subgraph Description
SG1 Reducing Bid Volume Zone Drawing High Use in conjunction with SG2 to highlight the highest and lowest price levels where Reducing Bid Volume occurred within the current bar. Follow this link for the Sierra Chart Notes about Top and Bottom Draw Style Pairs
SG2 Reducing Bid Volume Zone Drawing Low Use in conjunction with SG1 to highlight the highest and lowest price levels where Reducing Bid Volume occurred within the current bar. Follow this link for the Sierra Chart Notes about Top and Bottom Draw Style Pairs
SG3 Reducing Bid Volume Zone High Price Use to set the drawing properties for the Extension Line drawn from the Reducing Bid Volume Zone high price.
SG4 Reducing Bid Volume Zone Low Price Use to set the drawing properties for the Extension Line drawn from the Reducing Bid Volume Zone low price. 
SG5 Reducing Ask Volume Zone Drawing High Use in conjunction with SG6 to highlight the highest and lowest price levels where Reducing Ask Volume occurred within the current bar. Follow this link for the Sierra Chart Notes about Top and Bottom Draw Style Pairs
SG6 Reducing Ask Volume Zone Drawing Low Use in conjunction with SG5 to highlight the highest and lowest price levels where Reducing Ask Volume occurred within the current bar. Follow this link for the Sierra Chart Notes about Top and Bottom Draw Style Pairs
SG7 Reducing Ask Volume Zone High Price Use to set the drawing properties for the Extension Line drawn from the Reducing Ask Volume Zone high price. 
SG8 Reducing Ask Volume Zone Low Price Use to set the drawing properties for the Extension Line drawn from the Reducing Ask Volume Zone low price. 
SG9 Demand Continuation Use to set the drawing properties for the Demand Continuation subgraph that indicates a lack of buying exhaustion. 
SG10 Supply Continuation Use to set the drawing properties for the Supply Continuation subgraph that indicates a lack of selling exhaustion.