Community Volume Volatility Widget
This widget helps to identify specific price points that historically have been proven to be key contention points for a specific currency as well as the average entry points for traders who are long or short for the currency pair being analyzed. This is an extremely powerful and valuable widget for the Support and Resistance trader.
How is Community Volume Volatility calculated?
To start, a nightly analysis is run on all positions in our database, (currently we have more than $1B worth of transactions from all our traders and dozens of different brokers). We measure the volume collectively opened or closed at each price point and create a graph that we call “Market Profile”. This graph has the price as the X axis and the volume as the Y axis – an example of this graph is below. We take the graph and analyze all the peaks and valleys and identify three peaks above the current price as resistance points and three peaks below the current price as support points.
