tape reader

Motorway understands the situation quite well. You can subdivide price data into equal bundles of time and the trend is not lost. But when you subdivide volume into equal bundles of time, the force of the buying and selling is diffused. It is lost in time. The wave chart, in which price waves and volume are not bound by time, often provides greater insight into market direction and turning points. In his tape reading course, Wyckoff explained how to recognize intraday turns on wave charts. He wrote: [The immediate trend] is likely to change its direction from one to three times in a single session. This is how you detect the change: In an uptrend, when the selling waves begin to increase in time and distance, or the buying waves shorten. Either or both will be an indication of a change in the immediate trend. Apply the same reasoning to a down trend." The attached chart is a sample.

Humphrey Neil, the author of Tape Reading and Market Tactics, said price represents the value of volume.