jcavalieri

" I must admit that I had just been thinking that "price advanced" was the result, how though can we hope to determine how they stopped or were stopped & what difference does it make to the bigger picture? " if your observing a buying wave that has just cleared a prior hi and making its way up to a higher hi and you notice that volume is contracting and price is losing momentum you can infer that demand is lessening because being that price is at a relatively high price supply should be readily available. so the low activity and loss of upward momentum suggests less demand to fill up all the supply and therefore supply is overcoming demand and a reversal is likely. on the other hand, if your observing a buying wave in the same situation, but this time volume is expanding and result in price is getting less. and on continued expansion in activity price reverses sharply to the downside you can infer that supply was beginning to overcome demand and did eventually completely. so the rise was attracting increasing interest from buyers and sellers and at a high enough price demand was no longer able to absorb the increasing supply.

i think we need to solidify the definition of buying and selling interest and buying and selling pressure. interest is defined by amount of activity therefore if volume is high, interest is high for both buyers and sellers. what determines whether prices rises or falls is the amount of buying or selling pressure. correct? also where is DB's post on AMT located?

with increasing volume on rallies and decreasing volume on reactions would that not indicate that buying waves are attracting more of a following than selling waves as bears hold on for higher prices indicating the path of least resistance is upwards? or is that what you were saying head and i just misunderstood

in Wyckoff's composite average analysis he mentions several times the occurrence of minor climaxes. does this have to do with both location and amount of trading activity associated with the climax? i also wanted to thank you for all your hard work DB and willingness to help others

i do actually see a technical rally there. my vertical line for # 10 should have been over 12:00 directly after the culmination of the tech rally and the beginning of the secondary reaction. following the successful light volume test price breaks the high of tech rally and volume comes in on the rise

db or head, i was wondering if you could go over my analysis and tell me what you think. i am interested in your opinion.

yes read all section 7m and all the other stickies as well. starting from the beginning would probably help.

yes there is a chart at the bottom to follow on

definitely read section 7m on the stickies section at the top of the forum bruno

the tenth vertical line should be over 12:00 am slightly to the right of where it actually is marked on the chart, i just realized.

this is a chart of the Q's from friday 1/30. i just want to see if my thinking is correct. my analysis covers from the open at 9:30 to 11:00 then 11:00 to 12:00. these time ranges are separated on the chart with vertical lines. also i have marked 8 vertical lines above areas of price/volume flow which correspond to my analysis. the line above the open corresponds to number 1 and the last corresponds to 10. price/volume observation: 1. price opens on top of a price range from EOD 1.29. Price rallied slightly with strong effort/high activity, but the rise in price was not in proportion to the substantial rise in activity indicating the presence of supply. This proves to be the case as the rally is halted and reversed just below the mid point of another range from 1.29 suggesting weakness. 2. Recognizing price is at resistance and further buying is likely to be unprofitable, experienced bulls withdraw opposition and price declines with minimal effort. 3. As price travels through the mid point + bottom of the range price sat atop at the opening, activity begins to expand with proportional result in price. this expansion in activity is different from the type that typically culminates the current price move in that the context and behavior of price/vol. suggest that supply is eating through demand present at potential support levels at mid pt. + bottom of range. this behavior gives us early warning the support zones will not hold up to this decline, most likely. 4. Following the break of demand line, price levels out and activity dries up. probable swing to equilibrium preceding continued weakness. 5. price then drops to a lower low with expanding activity although much less then the previous reaction. result in price appears to be proportional to activity. less effort + less result indicate a lessening in supply. 6. following the reduction in supply, demand rotates in and produces a minor rally with contracting activity. the rally is stopped + reversed at the mid pt of the prior reaction (tech weak). the contraction in activity as the rally unfolds and the weak result in price movement indicate bulls are not interested in transacting at higher prices and their disinterest causes a reduction in demand. 7. Following the tech. weak rally, bears recognize the bulls are weak and put pressure on price, causing a reaction. price moves to a lower low with expanding activity. although price is declining, the expanding activity shows both buyers and sellers are increasingly interested in this area and showing their support through their purchases and sales. also the extent of this reaction is less than the opening reaction despite similar activity levels. this suggests the presence of demand and possible minor selling climax. 8. following the potential minor selling climax, demand rotates in causing a rally, but with similarly weak effort as previous rallies also exhibited. the rally reaches the mid pt of previous reaction - reverses to test the lows and does so successfully with light activity indicating bears are done for the time being and at a higher low. price breaks the hi of automatic rally following successful test for supply at lows, but an influx of supply at a lower hi as price approaches a potential resistance level from the left stops and reverses price. 9. The fact that price reversed at a lower high suggests downtrend may continue - and does so as price breaks to a lower low. activity increases as price pushes through potential support from climax lows, which is to be expected as effort is required to break through important zones, but downward movement starts to round off despite activity remaining high suggesting demand has filled all the supply at current levels and is starting to over power supply. 10. Following the application of breaking power by the bulls to retard the downward movement, price rallies with much less activity than previous decline and reverses at the mid pt of that decline to test the lows. test takes place on very light + contracting activity indicating bears are done for the time being.

i have done a volume observation but i have no idea how to post my chart because it said the file was too large from my paint program

DB i have read a few of your posts where you state that trading activity (vol) is most important to watch at S/R levels and i understand that perfectly. however, how am i to interpret bullish or bearish activity where vol. is expanding (up trending) w. a price up trend or vol. is expanding w. price in a down trend respectively? i understand, for example, w. price in an uptrend and vol. is also expanding that means that steadily increasing demand is overcoming steadily increasing supply. is there anything else to it?

if your able to enter at the right place and the right time you have a good chance of being profitable regardless of your strategy or exit. what do all of you think of that? i would like to hear some opinions.

DB if buying and selling pressure is show in the actual candles then how should we view volume. i know its just amount of shares traded or activity and i know it shows effort or force. is there any other way i should be viewing it?