THE HAndbook oF TEcHnIcAl AnAlySISWe may also use this two‐dimensional form of volume analysis to locate the
most significant support and resistance levels in the market. To do this, we first
locate the largest volume by price range. In Figure 6.29, we selected the $74 to
$80 range as the range with the most significant volume by price. We then locate
the largest volume by time intervals. We find the area of intersection of these two
large‐volume representations. This area of intersection is indicated on the chart as
fIgure 6.28 Volume by Price versus Volume by Time on the Daily Chart of 3M Co.
Courtesy of Stockcharts.com
fIgure 6.29 Locating Significant Support and Resistance using Two‐Dimensional
Volume Analysis on the Daily Chart of 3M Co.
Courtesy of Stockcharts.com