The view up indicator is one of the best trend confirmation
indicators used in trading it stands for volume-weighted price average it gives
the average price as security has traded at throughout the day the aim of using
the view up indicator is to ensure that the trader executing the order does so
in line with the volume on the market, it is often used by traders and investors
who aim to be as passive as possible in their execution this is one of the few
rare indicators that mutual funds and pension funds actually use it provides
traders with the trend and value of a security based on both volume and price
it is best used for analyzing intraday prices intraday means the time frame
that are less than a day like the one minute three minute or hourly chart note that
you cannot apply the view up onto a forex chart due to the fact that many
software platforms do not account for volume data in this asset class usually
traders use the view up indicator to determine if they are
buying security either below or above average price the view up indicator is
very similar to a moving average when the price is above the indicator line the
price is considered bullish and when the price is below the indicator line the
price is considered bearish so the middle line in this indicator is actually
just a normal view up line this is the most important part of the indicator
because it serves as a determiner on whether a price is above or below average
this top line is called the 75 percent line if a price is constantly pushing
above this line, while also making the indicator turn upwards it means that the
price is on an uptrend the line below here is called the 25 line if a price
constantly breaks past below this line it means that the price is on a
downtrend usually also makes the indicator go in a downward shape
let's further look at an example you can see that AMD starts
off by breaking past below support creating a downtrend and it did it created a
clean downwards movement remember that when prices breaks past below support it
means that it has a high chance of forming a lower lows well let's look closer
you can see that the price actually reverses and forms a clean uptrend towards
the middle line notice that it broke past resistance from a clean upwards run
this is what made me cancel my short position because it's a clear trend
reversal the trend has clearly changed if these candles here were small
directionless candle I might consider a short position because it's going to
act as a mini pullback before heading to lower lows but instead it actually
gives a clean upwards movement towards new highs since it broke past the
resistance this middle line now acts as a support and the top line becomes the
resistance and
you can see that a couple of minutes later I identified
another trade potential you see that the price drops past below the support
line which indicates that it's possibly heading to lower lows and after it
breaks the support line notice that the price struggles to break above it which
means that there is a chance that it might explode to either upwards or
downwards but notice what happens next this candle here closes below these
directionless candles so this would be my confirmation that the price might
explode to the downward side so I take a short position here and this could be
a potential 1.27 percent in 18 minutes but of course it is very hard to time
the bottom like this so realistically I'd close my trade at the next candle
that closes above this candle 0.8 in 21 minutes still isn't a bad trade now
let's get in deeper in the strategy with another example so unlike other
channels that only shows you wins on a strategy I would also like to point out
the losses and mistakes that I made people are supposed to learn from mistakes
that is why I also want you guys to learn from my past mistakes
so here you can see that in this tesla chart the price shows
a clean upwards movement from the view up line all the way towards the 75
percent line while showing clear resistance there are multiple candles that
struggles to break past the resistance line so I thought that this candle right
here would be an indication that the price would fall back to the view up
indicator so I rushed in a short position here without thinking much because i
was overconfident that resulted me in hitting the stop loss at resistance which
resulted in a 1.52 loss in hindsight I should have known that this candle here
isn't a strong confirmation candle I should have waited for a bigger candle or
for the price to display a clean downwards movement before entering a short
position another way to utilize the view up to its maximum potential is by
combining it with another indicator such as the rsi
so let's analyze this chart you can see that there's a
strong price movement downwards towards the view up middle line you can also
see that the rsi hits the oversold levels but we haven't yet know at this point
that this is going to be a strong support so if you waited a couple of minutes
the signs of it becoming support starts to emerge you can see multiple small
candles hovering between the line which could indicate a strong support level
remember the longer it goes sideways like this the better it is to confirm that
this is a strong support line at the same time we can see that the rsi switches
to oversold well this is a great opportunity for us because it means that the
price is prone to breaking out so how do we know if it's going to break out
upwards or downwards well that's where the rsi comes in handy so you can see
that the rsi is oversold meaning that
there's a high chance that is going to go up to see what
happens next a green candle formed while the rsi is heading upwards so now
there are three signs the rsi slowly moving upwards there's a consolidation
before that and a big green candle formed this is a good opportunity to take a
long position so if you took a trade here at the green candles close you could
have made a point thirty-five percent profit but of course, it's impossible to
time the top like this so realistically I would have closed my position at the
next candle here so to summarize the view up indicator is a really good
indicator to define support and resistance especially if you pair it up with
another indicator such as the rsi defining support and resistance takes time to
master.