Volume Price Analysis – Guide to Divergence

Volume price analysis is the study of how volume and price work together.  Divergence is indicated when price goes in one direction and volume goes in the opposite direction.  Typically, when volume price divergence appears this indicates a minimum of a retracement and sometimes even a market reversal.

In this live event, Gail reveals how to align volume and price to more easily spot the divergence as it is occurring on the live edge of the market.  Although Gail uses her proprietary Directional Volume, in Part 1, she does show how to incorporate the same concepts using any standard volume indicator.  The main differences with her proprietary Directional Volume indicator is:

• Volume bars are colored according to whether price made a high, low, inside bar or outside bar
• Delta shows if buyers or sellers controlled the bar, which is then confirmed by price

Ideally, traders will use Volume Price Divergence to:

• Lower risk on entry
• Confirm price will move further in their direction
• To exit a trade early as both volume and price are identifying a move in the opposite direction