How to Use the Volume Readings
Updated: 4 days ago
1. Identify Market Control
When Sell Volume Dominates:
60%+ sell volume = bearish pressure
70%+ sell volume = strong bearish pressure
When Buy Volume Dominates:
60%+ buy volume = bullish pressure
70%+ buy volume = strong bullish pressure
In this Gold chart, every major reading favours sellers. Examples include:
Sell 77%
Sell 61%
Sell 63%
The market repeatedly confirms seller dominance before each decline.
2. Confirm Supply Zone Trades
Volume is most powerful when combined with Supply and Demand. In the chart, price retraces upward into resistance. Many traders buy the pullback. However, QuantFlow Dynamics shows:
Sell 61% | Buy 39%
Even though price is moving higher, sellers still control the underlying flow. This often signals distribution. The result is that price fails and continues lower.
3. Avoid Trading Against Institutions
Most traders focus only on candles. Institutions focus on:
Liquidity
Volume
Order flow
A bullish candle by itself means very little. A bullish candle with:
Buy 23% | Sell 77%
is a completely different story. The move higher is likely being absorbed by larger sellers. This is exactly what happened before the major Gold decline shown on the chart.
4. Spot Continuation Trades
The strongest trend trades occur when:
Bearish Trend
✅ Sell volume increasing
✅ Supply holding
✅ Lower highs forming
✅ Price below resistance
Bullish Trend
✅ Buy volume increasing
✅ Demand holding
✅ Higher lows forming
✅ Price above support
The QuantFlow volume readings help confirm these conditions.
Why This Gold Move Was So Powerful
The sequence is very clear:
Step 1
Price rallied into resistance.
Step 2
QuantFlow Dynamics detected:
Sell 77% | Buy 23%
Heavy institutional selling.
Step 3
Price broke lower.
Step 4
On retracements, selling pressure remained dominant:
Sell 61% | Buy 39%
Step 5
On the next retracement:
Sell 63% | Buy 37%
Another bearish continuation signal.
Step 6
Gold continued collapsing to fresh lows. The volume readings gave traders multiple opportunities to participate in the move.
Why QuantFlow Dynamics Is Important
Most indicators show traders what price has already done. QuantFlow Dynamics helps reveal:
✅ Who is controlling the market
✅ Where institutional volume is entering
✅ Supply and demand strength
✅ Liquidity shifts
✅ Probability of continuation versus reversal
✅ Whether buyers or sellers have the advantage
Instead of guessing from candles alone, traders gain a clearer view of the forces driving price.
Professional Summary
On this Gold chart, QuantFlow Dynamics identified persistent institutional selling through volume imbalance readings of 77%, 61%, and 63% sell pressure. These readings aligned with resistance zones and bearish market structure, allowing traders to confirm that sellers remained in control despite temporary rallies. By combining volume flow, supply and demand, and liquidity analysis, the software provides a deeper understanding of market participation and helps traders align with the dominant side of the market rather than trading against it.
Conclusion: The Importance of Understanding Volume Flow
Understanding volume flow is crucial for successful trading. It allows traders to make informed decisions based on market dynamics rather than relying solely on price action. By utilising tools like QuantFlow Dynamics, traders can gain insights into market control and institutional behaviour.
Incorporating volume analysis into trading strategies can significantly enhance performance. It is essential to remain vigilant and adapt to changing market conditions. As traders, we must continuously seek knowledge and refine our skills to navigate the complexities of Forex and Gold trading effectively.
Please provide feedback or questions. Can you trade with the Institutions? Do you understand the concept?
Thanks
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