Let's dive deep into understanding and displaying volume on Webull! This guide will not only show you how but also why volume is such a crucial indicator for any serious trader.
Mastering Volume on Webull: Your Ultimate Guide
Are you ready to unlock a powerful secret that can significantly improve your trading decisions? We're talking about volume – a fundamental indicator that tells you the strength behind price movements. Without understanding volume, you're essentially trading with one eye closed! Today, we're going to embark on a journey to not only display volume on your Webull charts but also understand its profound implications.
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| How To Show Volume On Webull |
Step 1: Let's Get Started! Are You Ready to Uncover Hidden Market Insights?
Before we even click a button, let's acknowledge why you're here. You've probably heard experienced traders talk about volume, or perhaps you've seen it fleetingly on charts and wondered about its significance. Well, you're in the right place! Get ready to transform your Webull charting experience and gain a deeper understanding of market dynamics. Open your Webull app or head over to the Webull desktop platform. We're about to make some powerful changes!
Step 2: Navigating to Your Chart Settings
The first hurdle is always knowing where to find the right controls. Webull, like many trading platforms, keeps its chart settings tucked away for customization.
2.1 Accessing Chart Analysis
On Mobile:
Open your Webull app.
Navigate to the "Markets" tab or directly to a specific stock you're interested in.
Tap on the chart area to expand it into full-screen mode.
Look for an icon that resembles a gear or a settings cog. This is usually located in the top right or bottom right of the expanded chart. Tap it!
You should now see a menu with various chart options.
On Desktop:
Open your Webull desktop application or go to the Webull website and log in.
Select a stock to view its detailed page and chart.
On the chart itself, right-click anywhere, or look for a "Settings" or "Indicator" button usually located near the top of the chart window.
Alternatively, sometimes you'll find a small "gear" icon directly on the chart toolbar. Click on it to bring up the chart settings.
2.2 Finding the "Indicators" Section
Once you've accessed the chart settings, you'll likely see several categories such as "Chart Style," "Time Frame," and most importantly for us, "Indicators" or "Technical Indicators." This is where all the magic happens!
QuickTip: Read actively, not passively.
Scroll down if necessary until you locate this section.
Step 3: Adding the Volume Indicator
Now for the core task – adding the volume indicator itself!
3.1 Searching for "Volume"
Within the "Indicators" or "Technical Indicators" section:
You'll often see a search bar or a long list of available indicators.
In the search bar, type "Volume".
Alternatively, if there's no search bar, scroll through the list alphabetically until you find "Volume."
3.2 Selecting and Confirming Volume
Once you find "Volume," tap or click on it.
You might see a small checkmark appear next to it, or it might automatically add itself to your chart.
Sometimes, after selecting an indicator, you'll need to click a "Confirm," "Apply," or "Done" button to finalize the changes and see them reflected on your chart.
3.3 Visual Confirmation
Go back to your main chart view. You should now see bars at the bottom of your price chart, typically colored green and red. Congratulations, you've successfully added the volume indicator!
Step 4: Understanding What Volume Tells You
Adding the indicator is just the first step. Understanding its message is where the real power lies. Volume represents the number of shares or contracts traded for a particular asset over a specific period.
QuickTip: Take a pause every few paragraphs.
4.1 What Do the Colors Mean?
Green Volume Bar: Typically, a green volume bar indicates that the closing price of that period was higher than its opening price. It suggests buying pressure dominated.
Red Volume Bar: A red volume bar usually means the closing price of that period was lower than its opening price. This indicates selling pressure was dominant.
4.2 The Significance of Volume Height
High Volume: A tall volume bar signifies a high level of trading activity. This means a lot of shares were bought and sold during that period. High volume often confirms the strength of a price move.
For example, if a stock surges upwards on high volume, it suggests strong conviction among buyers.
Similarly, if a stock plummets on high volume, it indicates strong selling pressure.
Low Volume: A short volume bar indicates low trading activity. This suggests less interest or conviction in the price movement.
A price increase on low volume might be a "fakeout" and not sustainable.
A price decrease on low volume might not be a strong bearish signal.
4.3 Volume and Price Action: The Dynamic Duo
This is where volume truly shines! Always look at volume in conjunction with price action.
Strong Uptrend: Look for price increases accompanied by increasing green volume. This confirms the strength of the bullish trend.
Weak Uptrend/Potential Reversal: If prices are rising but volume is declining, it could signal that the uptrend is losing momentum and might be due for a reversal. This is a divergence and a key signal for savvy traders.
Strong Downtrend: Look for price decreases accompanied by increasing red volume. This confirms the strength of the bearish trend.
Weak Downtrend/Potential Reversal: If prices are falling but volume is declining, it could suggest that the downtrend is losing steam. Buyers might be stepping in soon.
Breakouts: When a stock breaks above resistance or below support, high volume is crucial for confirming the validity of the breakout. A breakout on low volume is often a "fakeout" and likely to fail.
Consolidation: During periods of consolidation (sideways movement), volume often dries up. This indicates indecision in the market. A sudden surge in volume during consolidation can precede a breakout.
Step 5: Customizing Your Volume Indicator (Optional but Recommended!)
Webull allows for some basic customization of indicators. While the default volume settings are generally fine, it's good to know your options.
5.1 Accessing Volume Settings
Go back to the chart settings (Step 2).
Under the "Indicators" section, you might see the "Volume" indicator listed with a small gear or settings icon next to it. Click on this.
5.2 Common Customization Options
Tip: Compare what you read here with other sources.
Parameters: For volume, there usually aren't many parameters to adjust, but sometimes you can change the period for a moving average of volume (though simple volume bars are usually sufficient).
Style: You can often change the color of the volume bars if you prefer different aesthetics, or adjust their thickness.
Visibility: You can toggle the volume indicator on or off from here without removing it entirely.
Experiment with these settings if you wish, but remember that the core interpretation of volume remains the same regardless of color or thickness.
Step 6: Integrating Volume into Your Trading Strategy
Now that you can see and understand volume, how do you use it?
6.1 Confirmation is Key
Always use volume as a confirmation tool. Never rely solely on volume for your trading decisions. Combine it with:
Price Action: Are you seeing bullish or bearish candlestick patterns?
Support and Resistance: Is the price at a key level?
Other Indicators: Moving averages, RSI, MACD, etc.
6.2 Spotting Divergences
As mentioned in Step 4, divergences between price and volume are powerful signals. When price makes new highs but volume makes lower highs, it's a bearish divergence. When price makes new lows but volume makes higher lows, it's a bullish divergence. These are potential reversal signals!
6.3 Validating Breakouts
Crucial point: A true breakout above resistance or below support must be accompanied by a significant increase in volume. Without it, the breakout is suspicious and often fails.
6.4 Identifying Accumulation and Distribution
QuickTip: Go back if you lost the thread.
Accumulation: Smart money (institutional investors) often buys quietly during periods of consolidation. You might see subtle increases in volume on up days and lower volume on down days even within a sideways trend, indicating accumulation.
Distribution: Conversely, distribution is when large players are selling. You might see higher volume on down days and lower volume on up days during a sideways or slightly declining trend.
Related FAQs
Here are 10 common "How to" questions about volume on Webull, with quick answers:
How to adjust the height of the volume indicator on Webull? Webull typically automatically adjusts the height of the volume indicator based on the maximum volume for the displayed period. You generally cannot manually set its height, but you can zoom in/out on the chart to change the displayed period.
How to remove the volume indicator from my Webull chart? Go to your chart settings (gear icon), find the "Indicators" or "Technical Indicators" section, locate "Volume," and uncheck or tap it again to remove it. You may need to click "Confirm" or "Done."
How to change the colors of the volume bars on Webull? Access the chart settings, go to "Indicators," find "Volume," and click on its individual settings (often a small gear icon next to it). You should find options to change the "Style" or "Color" for the up and down volume bars.
How to view historical volume data on Webull? Simply scroll back or zoom out on your chart. Webull will display the volume bars for the historical periods shown on your chart.
How to add a moving average to my volume indicator on Webull? While you can add a separate Moving Average indicator to your chart, Webull doesn't typically allow you to directly overlay a moving average on the volume bars themselves as part of the standard volume indicator. Some advanced platforms offer this, but it's not a common feature for basic volume on Webull.
How to interpret low volume versus high volume on Webull? Low volume indicates low trading activity and less conviction behind price movements. High volume indicates strong trading activity and often confirms the strength or validity of a price move or breakout.
How to use volume with other indicators on Webull for better trades? Combine volume with price action (candlesticks, support/resistance), and other indicators like RSI (to identify overbought/oversold conditions) or MACD (to spot trend changes). Volume confirms the strength of signals from these other elements.
How to identify volume spikes on Webull? A volume spike is a dramatically taller bar than the preceding ones. Visually scan your volume histogram for these unusually tall bars, which signify a sudden surge in trading activity.
How to set up alerts for high volume on Webull? Webull allows you to set price alerts, but as of now, it typically does not offer direct alerts based on specific volume thresholds for individual stocks. You might need to use a scanner or manually monitor for volume spikes.
How to use volume to confirm a breakout on Webull? When a stock's price breaks above a resistance level or below a support level, look for a significant and noticeable increase in volume during that breakout candle. If volume is low during the breakout, it's often a false signal or "fakeout."
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