The Price / Volume Relationship

[rs5 10]

Tuesday 11 May 2010....

[evroom1 10]

Finally some one who actualy has more than a guess about trading. well done

[rs5 10]

Wednesday 12 May 2010

[rs5 10]

Thursday 13 May 2010

[colossians 10]

thanks rs5 for posting the charts. I am wondering if after doing the drills of annotating, are you able to identify the ftts and FTTs comfortably ?

[ptunic 10]

Friday, May 14, 2010.

[cnms2 10]

Friday, May 14, 2010.

My suggestion for the area you found confusing.

[rs5 10]

Friday 14 May 2010...

Edited May 17, 2010 by rs5

[rs5 10]

thanks rs5 for posting the charts. I am wondering if after doing the drills of annotating, are you able to identify the ftts and FTTs comfortably ?

 

Some FTTs are very plain to see, and others I am still struggling with recognizing timely. Thus this is the area that I am still working on.

[rs5 10]

Monday 17 May 2010..

[rs5 10]

Tuesday 18 May 2010...

[ehorn 10]

Tuesday 18 May 2010...

 

I have noticed how your chart annotations are progressing. One interesting observation is how much attention volume is being given and how is is taking up more and more and more of your visible real estate....

 

I like it!

[rs5 10]

Wednesday 19 May 2010...

[rs5 10]

Thursday 20 May 2010

[cnms2 10]

Thursday 20 May 2010

I've annotated a lateral at 955 (your time).

[rs5 10]

I've annotated a lateral at 955 (your time).

 

Thank you so much. You are very right that it is a lateral indeed. I did not mark this sym lateral as it did not conform to the drill lateral (see attached for high and low of bar 1 and low of bar 3).

 

There has not been any discussion regarding the drill laterals in a while. I am still operating under the hypothesis that the Sym lateral from the drill appears to exit in the direction of the dominant move of the trading fractal. This is regardless whether the boundary test was made on the dom or non-dom side of the lateral. The boundary test are usually on lower volume than Bar 1's volume (as ptunic has already pointed out in his charts).

 

If anyone has discovered any other salient points of the drill lateral please share

[bspicer1 10]

Hello all. Very interesting stuff here....I'm new to this type of chart reading, and I've only been trading stocks one year.

 

After 4 hours of reading I have some questions: if no answer, then I'll keep asking.....thanks :-)

 

 

1) has anyone used this system of finding laterals to predict a move in the market, or is it all reflective interpretation?

 

2) does volume act independently, and can volume change show price change/ trend change ahead of time?

 

Please bear with me... I'm new and this is just review for you... I hope good review...

1) what seperates a ftp, fbp, and stitches.... they all look like stitches to me... The only pattern I could see was that ftp, and fbp have a flat top or bottom, and then shortly after those some trend lines are drawn?

2)I'm just learning about volume... other then the obvious signs of large investors ..... How the heck can you tell weather the volume line goes up or down... it's not like his first example where they all go up a hill gradually and then down gradually.... they zig and zag... how can I tell which way the line is to be drawn over it, and what do the arrows pointing of the top of the volume bars mean? sigh.....pant.....sigh.....

3)what is this methodology attempting to bring to light? what is the practical application of this so that I might try and reverse engineer it? THANK YOU!!!!!!

[bspicer1 10]

Also how can volume lead price when they happen simultaneously? I just dont understand that.... I dont know anything, when people are ready to buy/sell volume changes... this creates activity and price change... but it happens gradually does it not? in real time?

In the market it seems to me so far, that the goal is to get one step ahead of the market... does this type of analysis allow me to do that?

[nkhoi 10]

>3)what is this methodology attempting to bring to light? what is the practical application of this so that I might try and reverse engineer it? THANK YOU!!!!!!

 

you can't reverse engineering it since there is nothing for you to reverse from. If you try maybe you will end up with a handful of BBs (building blocks).

[ehorn 10]

Who doesn't enjoy a 40 point traverse!

[Spydertrader 10]

1) has anyone used this system of finding laterals to predict a move in the market, or is it all reflective interpretation?

 

As you continue reading, you'll eventually arrive at a drill involving Lateral Formations. By working through this drill you'll begin to see how the market provides subtle differences, which, when combined with context, and order of events, allow the trader to know what exactly has developed (in the past), what information the market is signalling (in the present), and what the market must do next (on each and every fractal).

 

2) does volume act independently, and can volume change show price change/ trend change ahead of time?

 

Volume leads Price - always. Note the chart examples others have posted. Can you see a Pattern within the Volume Pane as shown by the accelerating and decelerating lines? Note how this very same Pattern repeats on every fractal (line thickness). By learning to thoroughly annotate a chart, one can learn to 'see' that which most people believe cannot possibly exist.

 

1) what seperates a ftp, fbp, and stitches.... they all look like stitches to me... The only pattern I could see was that ftp, and fbp have a flat top or bottom, and then shortly after those some trend lines are drawn?

 

Pennants (FBP, FTP or SYM) and Stitches represent a few examples of Two Bar Formations. Pennants always have Bar Two (of the formation) showing less volatility than Bar One (of the Formation). Whereas, Stiches always have Bar Two (of its formation) showing increased Volatility (when compared to Bar One).

 

2)I'm just learning about volume... other then the obvious signs of large investors ..... How the heck can you tell weather the volume line goes up or down... it's not like his first example where they all go up a hill gradually and then down gradually.... they zig and zag... how can I tell which way the line is to be drawn over it, and what do the arrows pointing of the top of the volume bars mean? sigh.....pant.....sigh.....

 

Look closer to see that which currently eludes you. Continue reading in order to gain insight through the observations of those who travelled the road before you. Allow the market to provide the conclusions you seek.

 

3)what is this methodology attempting to bring to light? what is the practical application of this so that I might try and reverse engineer it?

 

The Price / Volume Relationship tracks market sentiment on each and every trading fractal. By learning to differentiate between that which appears to be, from that which actually is, one can learn to extract the market's offer on any trading day one chooses.

 

No need to reverse engineer, guess or predict. One simply needs to learn to understand the information provided by the market each and every day.

 

The information, guidance, drills and advice contained within this thread attempts to show (those individuals with an interest) how to teach oneself the process of 'how to learn to trade.'

 

Success is consequence of a fully differenciated mind.

 

HTH.

 

- Spydertrader

[ehorn 10]

Who can complain about a 12 point traverse... lol!

 

EDIT: 14:40 OB was a wash... Gonna enjoy a nice day here. Good weekend all!

Edited May 21, 2010 by ehorn
washed it

[innersky 10]

Who can complain about a 12 point traverse... lol!

 

Is it a traverse or tape?

 

--

innersky

[rs5 10]

Friday 21 May 2010...

[cnms2 10]

Who can complain about a 12 point traverse... lol!

 

EDIT: 14:40 OB was a wash... Gonna enjoy a nice day here. Good weekend all!

It might be interesting to discuss why at that point the right side of the market was still short, except if you traded ftt to ftt (FFs) and reversed short there again.