The Basics Of Volume Analysis
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The Basics Of Volume Analysis

Learn strategies to spot and track money trends. Volume analysis is a key skill.
Bestselling
4.5 (55 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
605 students enrolled
Created by Hari Swaminathan
Last updated 2/2013
English
Current price: $10 Original price: $60 Discount: 83% off
1 day left at this price!
30-Day Money-Back Guarantee
Includes:
  • 1.5 hours on-demand video
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Understand the importance of Volume analysis when trading the financial markets
  • Why the activities of "Smart Money" is revealed through Volume analysis
  • How can we track "Smart Money" in all major stocks and indices
  • Take your analysis skills to cutting-edge levels
  • Position your trades in harmony with the "money flows"
  • Become an expert in Chart reading skills
View Curriculum
Requirements
  • Basic understanding of financial markets
  • Interest in Technical analysis and chart reading skills
Description

VOLUME ANALYSIS AND TRACKING SMART MONEY

Volume is perhaps the most under-rated indicator in the markets. Volume shows the activities of the big hedge funds and proprietary desk traders,  players we often refer to as "smart money". Good volume analysis shows critical points at which markets turn around, when activity levels are low or high or when smart money is active or inactive. In this course, we analyze various stock charts, and combine volume analysis with price action. Volume also provides a storyline to the markets. Constructing this storyline correctly is critical in terms of trade entry and exits. 

Smart Money or Big money has always tried to (legally) manipulate  the markets to their advantage. Their goals are to conceal their activities as much as possible. But Volume is one indicator they cannot conceal. In many ways, this course levels the playing field for the average retail investor. Once you take this course, you'll know what to look for, and you'll be in a position to track smart money as they're entering a Stock or they're running for the exits. And your objective is to "follow the smart money". When you position your trades in harmony with the money flows of smart money, you're adding a whole layer of high-probability characteristics to your investing activities.

This is an exciting course ! 

What you will master
  • Why is Volume the most under-rated indicator
  • Identify the activities of smart money precisely
  • "Swim with the tide" - increase your odds of success
  • How to read long term and shorter term charts
  • Identify points of major market reversals (before they happen)
  • What is Distribution and Accumulation
  • Put short term price action in context of longer term charts
  • All of this explained in simple terms
  • Study of various charts on various timeframes


SECTION I

In this Section, we explore why Volume is a critical indicator to study, and why this is the only indicator that clearly shows the activities of Smart Money. What can Volume analysis tell us about activity levels in the markets. Volume is sometimes referred to as the "fuel of the markets", and this is very true. This Section also defines some of the rules of "Smart Money". These rules form the basis for the games and that Smart Money play, and the tactics they deploy to manipulate the markets to their advantage.

 

SECTION II

This section is a deep-dive into the methodology for spotting and tracking "Smart Money" using Volume analysis. A perfect timeframe for analyzing these activities was during the period preceding the financial crisis of 2007/2008 and the period after the bottom in March 2009. And there is no better instrument to study this than the S&P 500 Index itself. This section is a fascinating and shocking analysis of how we could spot Smart Money doing the following - 

- Start selling in March 2007, about 6 months before the top in October 2007

- They sold ("distributed") for about 9 months with barely a move in price

- Ran the bear market down to their liking

- Start "accumulating" stock by the end of 2008

- Finished accumulation phase over a period of 9 months

- Are running the Bull market right now to their liking

 

SECTION III

Detailed case studies of major stocks analyzing Smart money activity points - 

1) BIDU - Smart Money is in, and they are not leaving

2) CAT - Similar to BIDU but more choppiness

3) FSLR - Gave a clear signal of smart money entry

4) NFLX, PCLN and FXE - Gave various signals for entry and exit

5) Silver Case study - Smart Money left Silver and has not come back yet.

Who is the target audience?
  • Anyone interested in Financial markets and trading
  • If you trade Stocks, Futures, Options, ETFs, Gold or Currencies
  • If you want to improve your skills in following the "smart money" flows in and out of stocks
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Curriculum For This Course
13 Lectures
01:42:30
+
Introduction to Volume Analysis and Smart Money
3 Lectures 28:49

  • What or Who is “smart money”
  • Importance of trading in harmony with smart money
  • Tracking “smart money”

Preview 05:59

  • Study of Volume
  • Supply and Demand
  • Wyckoff methodology (www.richardwyckoff.org)

Preview 11:16

Volume has to be analyzed with price

And apply a market methodology to this context

Volume shows when smart money is exiting and when they are piling in

But first we must understand

What does Volume tell us

What price did on that volume

Where does this fit in with the market story

Most importantly, we must understand what are the "rules of smart money"

How does Smart Money operate in the markets
11:34
+
Tracking Smart Money
4 Lectures 28:38
This lecture is a fascinating look at the period between 2003 and 2007 in a bull market. The S&P 500 Index is analyzed in detail for critical information about the activities of smart money. And in particular, the period leading upto the top in October 2007 where we can clearly spot Smart Money running for the exits.
Tracking Smart Money in the S&P 500 Index ETF SPY
09:19

How does Smart money actually get out of its holdings and how they avoid the prices going lower during this time. The Distributing phase is when euphoria levels are high, and the average retail investors are left holding or buying stock at the highest levels.
Smart Money - Distribution Phase
05:29

Once smart money is finished with distributing stock, they are ready to run the bear market down. Stocks must move in an up and down cycle for smart money to make their money.
Volume analysis and the makings of a Bear Market
05:50

Once prices have gone down far enough, its time for Smart Money to pick up stocks at the lowest price. Stocks are a bargain at this point, and the panic stricken public is dumping stock at ridiculous levels into the waiting hands of Smart Money.
Smart Money - Accumulation Phase
08:00
+
Case Studies - Detailed Volume analysis and Smart Money activity in various Stock charts
6 Lectures 45:03
Case Study of a 3 year chart on BIDU. Smart Money has piled on to BIDU and they are still in it.
Case Study - BIDU
07:14

Similar to BIDU, Smart Money was able to get into CAT at ridiculously low prices.
Case Study - CAT
06:27

Smart Money and volume analysis clearly show money coming into FSLR in this case study.
Case Study - First Solar (FSLR)
05:59

General case studies of NFLX, PCLN and FXE. Many a time, there are no signals. You only trade on strong signals, and not try too hard to find a signal where there is none.
Case Study - Netflix, Priceline and Euro ETF
09:21

A case study on the Silver chart for the last 3 years. Smart Money ran for the exits (but they did give enough signals that they were running), and they have not come back again.
Case Study - Silver Futures (/SI)
11:28

Volume analysis and Smart Money quiz
5 questions

This is the concluding lecture capturing key elements of Volume analysis 
CONCLUSION
04:34
About the Instructor
Hari Swaminathan
4.4 Average rating
3,289 Reviews
28,236 Students
27 Courses
Options Mentor, Financial markets educator, Trader, Investor

Knowledge. Strategy. Execution.

Hari Swaminathan is the founder of OptionTiger, a cutting-edge Options Mentoring company, and a full-circle educator in all areas of Financial Markets, Hari has developed several proprietary Intellectual Property "methods and approaches" around enhancing base case Options strategies (which favor the Market Makers) and turns that deficit into a massive EDGE on the trader's side.. Like building a powerful Strategy "for all Option Strategies". 

Hari is self-taught in Options and actively trading these instruments for almost 10 years, mostly through trial and error. Trial and error in general, is an excellent method of learning, but applied in this context, trial and error CAN BE EXPENSIVE. My courseware focuses on this aspect mostly, so you can avoid losing money in the 1 to 2 years when you're learning. Yes, it does take that long, if not more. If the markets were indeed simple, you'd have everyone involved in it. Patience, Diligence, and Determination are what you need during this time.

Hari has a Bachelors degree in Engineering from India, and MBA's from Columbia University in NYC and London Business School in London UK. 

More than ever, its become important for normal people to take charge of their financial situation, and truly understand how financial markets, and the various asset classes, trading nuances really work. Investing in the financial markets is no longer a HANDS-OFF ACTIVITY. There's no point blaming financial advisors after the fact. Now, it's become crucial for everyone to do "their OWN homework", so you can decide for yourself whether something is good or risky. This is of course easier said than done, and that's exactly where we come in.

My mission is to educate everyday people on the deep, strategic underpinnings of the stock markets, and exploit that knowledge with the use of OPTIONS.  THERE IS NOTHING RANDOM about the markets. There are surprises all the time, but there's always a method behind every madness. And my goal is to get you to this point of understanding and awareness. That's when it starts to fit in. 

Knowledge, Education, Crafting Breakthrough strategy, Technical analysis, Following Smart Money, Risk management, Disciplined Money management, and near flawless Execution approaches are just a few of the crucial points emphasized in all the Courses. Video-based education courseware, Practical workshops, several elite proprietary Advanced systems, a 4-week Live Mentoring program are just a few things we offer. The goal is to provide a "full circle" education in the Markets, which is necessary before it starts "fitting in". 

Let's break down the Options game in a realistic manner. 

The Pluses

1. Options were invented out of thin air. And the people who invented them won Nobel Prizes for their invention (Fisher and Black). It is purely a "Mathematical" concept. 

2. This gives rise to very complex but interesting  analytical scenarios. It also gives us the ability to model Options with a set of tools like a car dashboard. This data is embedded in the mathematical formulas that underpin Options structure itself.

3. Because everything in Options is defined in mathematical terms, its also important to realize that OPTIONS will always be the same. Forever. Unless they discover serious flaws in the formulas and models used by these Nobel winners. 

4. Options and Chess have LARGE overlaps. You may agree that Chess is a game of "skill". It's a game of Strategy and depends upon how well you can plan (ahead) to attack, defend or take a neutral position. We also believe that Chess is strategy-focused and depends upon certain mathematical principles. Why or How do we know this - The reason we know its a game of skill is : Try to play 100 chess games with Kasparov or Anand. Normal people are almost guaranteed a loss in all 100 games. So it has to be a game of skill. And why do we know its underlying features are mathematics based. The fact that a computer like Deep Blue beat the GrandMaster Garry Kasparov in 1997.

5. Lastly, You MUST believe this completely -  Options, just like Chess, are a "skill set", and requires acquiring a deep set of analytical skills much more so than most skill sets in the world, and THEY can only be MASTERED over a period of time. Once you understand Options better, you'll realize how true this is. But, there is a very powerful light at the end of this tunnel. You build a skill set for life.  Age, Geographical location, Lifestyles, or Weather are no longer a barrier to creating consistent income streams, regardless of who you are, where you are, or how old you are. 

This is very POWERFUL stuff. 

Now let's look at the negatives. This is what most people will NOT tell you. Anyone that tells you Options are SIMPLE, and you can make extra ordinary income easily, is JUST NOT TRUE. I will tell you Options can be brutal if you simply apply speculative methodologies. And once you can develop a SYSTEMATIC approach to every situation (which is the Real Game), you'll be well on your way to consistent performance.


MINUSES


Options are easily the most fascinating financial instrument with several upside benefits, but also an equally powerful set of negatives. 

1. Options have a steep learning curve. Don't expect to become Kasparov in a couple of months. Market Makers who are 99% of the time, the counter party to all Options trades, are Options professionals, with 10 to 20 years of experience, in performing their "legal duty" of providing liquidity. 

2. If you're interested in Options, try NOT approach it with a mindset or requirement of making money. This is not only NOT going to happen, but its a recipe for disaster. It's like a student of Medicine wanting to practice their skills after 2 months of study. 

3) As someone that has self-learnt Options and through making mistakes from Trial and Error, I can tell you Options trading is not something you should take lightly. You will hear people talking of fantastic triple and quadruple digit returns. I'm here to be brutally honest with you - 

- Be very very careful in the first 12 months of Options trading. 

- This is when everyone is the most vulnerable to losing money. 

- Your main objective during this time is to focus on learning this craft 

Having said that, if you can get past the first 12 months and acquire the expertise in a Systematic manner with Systematic approaches to every situation, true financial independence awaits. But you have some serious but exciting work to do before you get there, and I'm here to help you in this journey. 

And join me in my UDemy courses, where I share cutting-edge theoretical knowledge mixed with practical insights, strategy and impeccable execution approaches, through live trading examples. How do we know it's all this (don't just go by my word). Check what 30,000 students have to say in 3100 Reviews, with almost 2800 of them being 5-Star or 4-Star

If you have any questions at any time, please feel free to message me on Udemy.

The order to follow on my Udemy courses

Comprehensive guide to Financial Markets, Investing and Trading

Options Trading Beginners Bundle (3-course Bundle)

Advanced Options Concepts

Options spreads and credit spreads Bundle

Technical analysis and Chart reading Bundle

After this, the order does not matter. You can take any of the courses as per your interest.