davelansing

DB, I will respectfully disagree with your assessment that "buying pressure" comes in to stop downward price movement.. even on your chart above, just before the 11:14 bar, price bounces off support on relatively low volume (relative to the bars you've pointed out with the arrows...)... my argument is this... for every significant bar movement associated with high volume "buying pressure" or "selling pressure", you can find an equal number of bars with low volume that have bounced off of S/R lines to start new trends... and how many times do you see a bar with high volume and price doesn't significantly move up or down (i.e. churning?)... maybe we should define "buying pressure" and "selling pressure" without associating the volume with numbers... which means that using volume to define price movement is an "after-the-fact" assessment... As always, just my 2 cents.... BTW, DB, I've learned a lot regarding price action by reading your blog and your posts on the ET forum... Dave

All this talk about the use of Price AND volume is silly.... volume is meaningless... for every "up" or "down" move on high volume (supposedly representing buying/selling "strength"), you can look at any chart and find a corresponding price move on "low" volume-does this mean that a "low" volume price move was made on buying/selling "weakness"? Of course not... breakouts from S/R lines can occur on high AND low volume- if you don't believe me just look at any chart. Up and down trends can start on high OR low volume-based breakouts or bounces of S/R areas.... I don't know how many times I've seen a P/V guru mark up a chart pontificating about the importance of high volume when on the same chart a huge price move or S/R breakout occurred on relatively "low" volume, yet the guru would ignore these price moves... why? I suspect because "low" volume price moves don't fit into the guru's mindset of what causes price to move.... all I know is that until "volume" can be broken down specifically into categories of whose buying/selling because: 1) they want to enter the market, 2) exit an existing trade for profit, or 3) exit an existing trade due to a loss, then volume otherwise has no usefulness and can be thrown onto the growing scapheap of useless indicators... maybe I'm wrong, but my account tells me otherwise...

self similar? please explain.... I mean if the trend on the 60 min chart is "down", obviously its because price on the 5 min chart is moving "down" and not the other way around (since the 60 min chart is made up of sequential 5 min intervals). So how can analysis of a higher time frame aid in the analysis of price movement on the 5 min chart? Thanks!

Hi, I understand the concept, to some limited degree, of the fractal nature of time-based price data... but wouldn't one expect that? Doesn't the price movement on a 5 min chart manifest itself on a 15 min chart which manifests itself on a 60 min chart which manifests itself on a daily chart, et cetera? How can one "predict" where price is heading by multiple time frame analysis using the trend of a higher time frame (e.g. 60 min) to assess the movement of a shorter time frame (i.e. 5min) when its the shorter time frame that ultimately makes up the higher time frame movement? My only answer that I can come up with is that there are "more" large traders that follow price movement on the higher time frames (i.e. 60 min and above) whose decisions and actions based off higer time frame chart points (S/R levels, pivots, et cetera) manifest themselves in the "immediate sense" at the level of the shorter time frames. I've struggled with this for a long time, so any feedback would be greatly appreciated to help clear up my muddled thinking! Thanks!