E-mini S&P 500 Constant Volume Bar Chart and TradeFlow Chart
Today’s example of the Constant Volume Bars applied to the e-mini S&P 500 futures contract, we see a strong rally. Notice that following the minor break to a new low on the session when the market traded at 1429.00, the RSI then started holding above 38, indicating trading range momentum. Then, when the RSI crosses 50, the bars are market green, and when the RSI crossed 62, an up trend is signaled. At this point, ahead of the FOMC statement, the RSI is flashing trading range readings (the RSI is locked between 38 and 62).
Using the one-tick version of the TradeFlow chart we can see neither buyers nor sellers are dominating as the buy volume line (green) is tracking the sell volume line (red) of the TradeFlow Volume Cross Study (TFVCrss).
Keep in mind, at this level, this view is a very short-term view, and the situation reverses if the buy volume line starts to peak over the sell volume line.
To read more about these two custom studies, please check out my article TradeFlow Custom Studies.