THE HAndbook oF TEcHnIcAl AnAlySISIn Figure 6.26, we see a short‐term downtrend in the S&P500 accompa-
nied by a bearish rising TRIN. We also notice that the tick is largely absent of
activity between 1:45 p.m. and 2:45 p.m. This represents a short‐term bearish
signal.
two‐Dimensional Volume analysis We may also analyze volume two dimen-
sionally, via:
■ (^) Volume by price
■ (^) Volume by time
Volume by time represents the total volume traded over a specified time in-
terval or period. Volume by price identifies the total volume traded at each price
level. Figure 6.27 depicts a large volume turnover around the $17 price level in
SLV. This level therefore represents a significant support. Notice that this volume
information is not obvious from conventional volume bar action.
In Figure 6.28, we see a lot of volume turnover between $77 and $86 on the
daily chart of 3M Co. This price range represents the most traded range, with
some resistance coming in at the $90 to $92 level. These price ranges represent
potential future support and resistance levels in 3M Co.
fIgure 6.25 Tick/TRIN Interplay Indicating Bullishness on the Daily Chart of the
S&P500 Large Cap Index.
Courtesy of Stockcharts.com