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Mastering Divergence With the VOLD Indicator

When it comes to understanding market internals, one tool often overlooked but incredibly effective is the VOLD indicator.

VOLD, short for volume-on-advance vs. volume-on-decline provides, a clear picture of market breadth by calculating the volume flowing into stocks that are moving up versus those moving down.

It’s an essential part of my trading toolbox, especially for identifying divergences that often lead to key turning points in the market.

Here’s the gist…

When the S&P 500 (SPY) moves in one direction and VOLD moves in the opposite direction, it’s time to pay attention. This divergence can signal that a current trend is losing steam or that a reversal may be on the horizon.

The beauty of VOLD is its simplicity — it’s not about overloading charts with unnecessary noise but about focusing on a metric that works.

On Thinkorswim, you’ll find the VOLD indicator labeled as $VOLD. On other platforms like TC2000, it might be listed under a slightly different name, but the core concept remains the same.

Volume and Price

The indicator tracks volume patterns and compares them to price action. For example, if SPY is climbing but VOLD is trending down, it’s often a sign of underlying weakness in the market. Conversely, when VOLD trends up while SPY trends down, the bulls may have a case to make.

It’s important to note that this indicator is best used intraday. I prefer 5-minute time frames — it’s short enough to capture the nuances of volume shifts without overcomplicating the picture.

The key is to look for significant divergences. Minor fluctuations between SPY and VOLD aren’t worth chasing, but when the divergence is clear, it can provide actionable insights.

Some traders mistakenly compare VOLD to on-balance volume (OBV), but they’re not the same. OBV measures cumulative volume changes based on price movement, while VOLD focuses purely on the net volume difference between advancing and declining stocks.

This makes VOLD particularly useful for spotting moments when the broader market’s strength — or weakness — doesn’t align with price action.

Another great feature? You don’t need to buy anything to use it!

Most major trading platforms include VOLD or its equivalent, so it’s accessible to anyone willing to spend a little time learning how it works. And trust me, it’s worth the effort.

If you’re serious about trading, mastering market internals like VOLD is non-negotiable. It’s not about reinventing the wheel — it’s about leveraging tools that give you an edge.

Start by adding VOLD to your charts, keep an eye on those divergences, and see how this powerful indicator can sharpen your market insights.

_________________________________________________

24 FOR 24 on Trade Alerts in the Last 7 Months!

It’s all thanks to one simple pattern-based indicator...

Right now, I’m eyeing up what could be the 25th win in a row.


	Target the Next One With Us Here!

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Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!


•		Telegram:https://t.me/+_vmfwkeP8fA5YWQ5

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

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Mastering Divergence With the VOLD Indicator

_________________________________________________

24 FOR 24 on Trade Alerts in the Last 7 Months!

It’s all thanks to one simple pattern-based indicator...

Right now, I’m eyeing up what could be the 25th win in a row.

Target the Next One With Us Here!

_________________________________________________

Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!

Telegram:https://t.me/+_vmfwkeP8fA5YWQ5

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.

Join the Conversation

Give us a follow on your social media platform of choice, and make your voice heard!


ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. The TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from The TradingPub are for your informational purposes only. Neither The TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. The TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit https://thetradingpub.com/terms-of-service/ for our full Terms and Conditions. Unsubscribe This email was sent to newsletter@newslettercollector.com by The TradingPub 101 Marketside Ave, Suite 404 PMB 318 Ponte Vedra, Florida 32081, United States Roger Scott

ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. The TradingPub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day.
DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from The TradingPub are for your informational purposes only. Neither The TradingPub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk.
DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. The TradingPub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit https://thetradingpub.com/terms-of-service/ for our full Terms and Conditions.

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