This tool is what Brian Shannon uses which is similar to the VWAP (Volume Weighted Average Price) which can be used on the website BigCharts.com (witch I often use because it is free and handy).
Brian showed us how to use this tool to find possible areas of support and resistance. You can use it for different time frames and frequency...
Basically you go to bigcharts.com and pull up a chart. For my example I am using symbol GFG. For the first chart I used the 6 month time frame and the daily frequency. For the second chart I used the 5 day time frame and the 15 min frequency.
Looking at the charts you can see the areas with the highest volume by price became support and resistance. This tool can be helpful to find entries and stops when trading a stock....
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Great tool! Thanks for the info!!!!!
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