GCN pt 5

This chart could be called -->Why am I here !

Notice the HUGE VOLUME

Notice the CORRECTION in progress 

NOW !

Be clear a P&F chart being woven from PRICE VOLUME & TIME will reveal all we need to know.

(In time-- that is it reveals in real time )

Richard D Wyckoff  in one of the last things he wrote . Made special emphasis --> That we would do better by allowing the "FIGURE CHART" to filter out the NOISE FROM SIGNAL.

And who could disagree ? Especially anyone  who really has understanding ?

The Figure Chart  will adapt to the flow of effective--> VOLUME & TIME

and reveal through THE PRICE  what we need to KNOW ( that is the price that is transacted. Not just price. The Figure chart is not just a chart of just price !).

A Figure chart just needs to have a sensible scale ( more on this soon )

Hint . RDW dealt with a market in Eighths of a Point

We are in a decimal age .. A MAJOR difference to be BEWARE OF.

MAJOR !  ( see eg the new book in the reading list at the bottom )

So we will often do better --> BUT .. If we do want to drill down to the Molecular or Atomic level

It is then that looking at the individual dimensions of market activity will often reward .

Wyckoff tools applicable for this purpose are  THE TAPE READING CHART and THE WAVE CHART !

This chart below  is a  3 box reversal course of sales chart  of just the correction from .059

JUST The last eight columns of the chart above.

The Boxes represent Zones of Volume

The green Box= 200 mil shares

The Gold box = 100 mil shares 

The Red Box = 50 mil  shares

VOLUME IS FOLLOWING PRICE DOWN

In to the TURNING POINT.

Compare how these zones have changed since the last chart !

Also remember that EVERY BOX is both a RESPONSE ( to the Box PREVIOUS ) and a TEST ( To the Box that follows ) ...TEST RESPONSE<++>RESPONSE TEST.

It is through this process of testing and responding that we are able to define ACCUMULATIVE and DISTRIBUTIVE.

That is so with any P&F CHART ( This is a very important point .It is the Difference between Appearance and Character )

This is TAPE READING ! THE STUDY OF RESPONSES !

Another book in the reading list==> Value in Time , By Pascal Willain

Again some worthwhile exposition on a number of Wyckoff related THEMES.

Some very important .

Motorway