The Price / Volume Relationship

[sscott 10]

Gaussians

 

The Volume Sequences (represented by Dominant and Non-Dominant Gaussian Formation) when matched with the above drawn trend lines for each trading fractal create the B2B 2R 2B (uptrend) cycle, as well as, the R2R 2B 2R (downtrend) cycle. Increasing Volume in the direction of the current trend represents dominant Volume. We represent such phenomenon with an increasing Gaussian line in our Volume Pane with the goal of syncing our trend lines with our Gaussian lines of equal weight See Attached.

 

 

To Be Continued ...

 

- Spydertrader

 

 

This quote is from the first page of this thread, also posted there is a guassian diagram

[rs5 10]

From the volume pane it appears the dominant price trend in the channel is down, so an upslope thick guassian to show dominance with a red color to show price direction would be the proper annotation. Unless of course you believe that todays channel represents a non-dominant retrace of a dominant up channel from yesterday. Context???

 

Thank you so much for your input. And thank you for reposting the volume diagram.

 

It is a constant struggle for me as I compare the diagram information to the real time volume pane. The diagram indicates that in the context of the price in a downtrend the red gaussian increases until price cannot go any lower within the downtrend. But doesn't the red volume bars appear to reduce in height from left to right across the day on yesterday's volume pane? What to do when there appears to be different messages from the price and volume panes?

[TIKITRADER 10]

But doesn't the red volume bars appear to reduce in height from left to right across the day on yesterday's volume pane?

 

 

it is typically normal to see volume decline as noon ( lunchtime ) approaches. although overall volume may decline from open until noon, there still exists a price volume relationship for the context during that segment of time . Same stands for the overall volume from open until close regarding context of the price volume relationship. Common also to see the saucer shape to the entire days volume, open to close , but within that ' saucer ' exists price volume context for each container built within the day

[sscott 10]

T But doesn't the red volume bars appear to reduce in height from left to right across the day on yesterday's volume pane? What to do when there appears to be different messages from the price and volume panes?

 

Yes the red volume does decrease in the afternoon, but which was dominant all morning?

RED!!! the dominant slope is up, the price direction is red. Dominant trend price was going down, so the dominant (red) slope is up. We may have had a change in channel dominance in the afternoon, but we really won't know for sure until the market builds three traverses in a new up channel (WMCN)

[rs5 10]

Friday 18 September 2009

[ehorn 10]

Friday 18 September 2009

 

Your annotations are progressing nicely as you work with the foundation building blocks. Ask questions along the way (if you have them).

 

Early on in my foundations, I kept a few snippets of encouragement which provided inspiration for me to continue the progression. I will share some here:

 

"The trading day provides us all with examples of trades and the segways to other trades.

 

The setting of any trading day is an incredible display of the potential of the market to deliver money to traders. The opportunity is there. It is clear and always providing output to any kind of successful trader. A vast array of successful methods are always at work harvesting profits. The H/L range of any day provides anyone with a vast excess of earning power to achieve any goal with even a low efficiency and effectiveness.

 

Now look at what succeeding by achieving 4 points of movement per day, gets you:

 

Nailing 4 points a day for each contract in use lets a person go from 1 contract to 10 contracts in about 40 days by doubling from 1 to 2 to 4 to 8 then adding 2 more to 10 contracts. This can only happen, however if there is knowledge, skills and experience in place. When they are, then 4 points a day is not what is being made daily. It is an entirely different picture where greater effectiveness and efficiency are at work. 4 points of price movement is in hand soon after any morning begins. 6 and 1/2 hours of seamless continuous trading every day yields a good portion of what the market offers daily. All of this happens day after day within the annotated projections you are beginning to do. You see how doing the gaussians immediately take you further towards understanding.

 

Work very Hard."

 

Have a nice weekend.

[ehorn 10]

it is typically normal to see volume decline as noon ( lunchtime ) approaches. although overall volume may decline from open until noon, there still exists a price volume relationship for the context during that segment of time . Same stands for the overall volume from open until close regarding context of the price volume relationship. Common also to see the saucer shape to the entire days volume, open to close , but within that ' saucer ' exists price volume context for each container built within the day

 

I have attached a chart which I found very informative, which lays out a "typical" session and the opportunities which exist within it.

Money Velocity.pdf

[ptunic 10]

Monday, September 14, 2009

[rs5 10]

Monday 21 September 2009

 

Seems like several gaussian formations were possible today.....Looking forward to others, more experienced views of today's three fractals formations. Thank you!

[rs5 10]

Tuesday 22 September 2009

[ehorn 10]

My view of the day...

[ptunic 10]

Tuesday, September 22, 2009

[Spydertrader 10]

The Las Vegas Traders Expo held at Mandalay Bay Resort & Casino runs November 18 - 21. I currently have plans to attend the event, and for those interested, I can plan another session - similar to the one held in NYC. However, unlike the NYC event, Jack Hershey plans on attending and presenting. I have tentatively scheduled time for Friday (November 20) morning, and have cleared the remainder of the day. Should enough people show an interest in attending, we can do the same thing as we did in NYC (presentations, lunch, drinks, etc.)

 

In order to keep this thread on topic, anyone with an interest should send me a PM and include a contact email address (just like we did last time) in order to facilitate the exchange of information, and so I can provide additional details moving forward.

 

Additional details as we move closer to November.

 

- Spydertrader

[TIKITRADER 10]

Long term look at the Dow

 

DJI Monthly bars. September 23 2009

This chart spans from February 2003 to present day.

 

 

 

 

*posted elsewhere

 

[rs5 10]

Wednesday 23 Sept 2009

[Mr_black 10]

Thursday Sept. 24 2009

[rs5 10]

Thursday 24 September 2009

[ehorn 10]

Monitoring the Sequences, Taking Data Sets, Continuation or Change...

[Spydertrader 10]

It's come to my attention that The Las Vegas Traders Expo has scheduled many of the Live Trading Sessions (Carter, Netto, The Pristine/FX Trader Challenge, etc. ) for Friday November 20, 2009. As a result, I'll reschedule our event for Thursday November 19, 2009 - in order to alleviate any possible conflicts.

 

More updates to follow.

 

- Spydertrader

[ehorn 10]

Thanks for accommodating Spyder... and Nice catch Ezzy ...

[rs5 10]

Friday 25 September 2009

[cnms2 10]

From Spydertrader's post #41:

...After completing the 'tape drawing' drill, and after one begins to 'merge' the individual 'two bar' tapes into longer trends which continue the current 'tape fractal,' stop annotating 'tapes' within Lateral Formations. Begin to note the significant shift in Pace which develops inside every Lateral Formation. Note as well the changes which develop as Price moves from inside a Lateral Formation to an area where the Lateral Formation ends. ...

[ptunic 10]

Friday, September 25, 2009

[ehorn 10]

Thanks for posting the charts. I see similarities between the 16:00 ET and 10:55 ET formations. PFC has me looking for that PT3 so I will be watching volume and the BO of that EOD lateral.

[ehorn 10]

My view of the recent daily fractal...