Good question! First of all there is no consistent manner. What you want to do and what I can’t show you by simply posting charts is to figure out where and when the PLL was/is formed aka where and when the volume came in. Tradingview only shows you the PLL information based on the section of the historical chart you see. This is awesome and allows us to dissect the volume signature.

What I typically look out for by scaling and moving the chart section is this:

A) I check if there is a major PLL around current price levels.

B) Then I go on an check if this PLL was formed recently or if it is old. Post IPO PLLs are high in volume and I often neglect them.

C) You also want to check if the PLL is actually just forming right now and thus is not a reaction to former price & volume levels. If that is the case I see the support volume as less reliable.

D) When you had a recent high volume move it oftentimes makes sense to scroll the chart so that the recent move is not visible and thus doesn’t show up in the PLL’s. This helps figure out what I explained in C.

E) I also oftentimes switch from weekly to daily to get a better feel. The reason why I don’t always show the PLL on the daily is to have a more clean daily chart with less distraction.

Don’t forget that the PLL concept is only 2 years old. I am still improving and tweaking as my experience grows. Feel free to join me on this journey and stop trying to get precise and rigid rules from me. They are simply not there yet.

Was this article helpful?

What a waste of my time!Article was helpful & informativeGreat article, could boost my trading right away! (2 votes, average: 3.00 out of 3)

Feel free to ask us!

If you have a question regarding the article above please refer to our Q&A section first. If that doesn't help, feel free to sign up to our mailing list to receive our contact details. If your question is reasonable it will be answered in our Q&A knowledge base.

Disclaimer: This article is my opinion which stems from my own experience gathered trading real money in the stock market. It represents my style and it fits my personality and risk allowance. More power to you if you are a net profitable trader despite violating everything that’s written above!


No Category


No Tag
Scroll arrow icon