The Anchored Average Method is all about volume and price and how they interact with each other. To begin, we simply look historically on a chart for an obvious turning point (trend reversal) and we begin to count the volume of buyers and sellers and reflect those as a support or resistance average on the chart. If we are looking for price to rise, we wait for price to retrace to an up trending volume average and then look for confirmation of the support. The reverse is true if we are looking for a short at a retrace to a resistance average from a historical high.
The method is simple to implement and trade and it works on any market with volume. Give me a market – I’ll show you a trade.
You can purchase this system here: Anchored Average Method
Here are 2 examples with CL – my favorite instrument.