Sunday, January 29, 2012

A Study - CAUSE and EFFECT - THE COUNT

"Both the market as a whole and individual stocks are to be judged as much by what they do as what they do not do at critical points." RDW

Consider this. It applies to EVERYTHING !

Accumulation and Distribution can occur almost all the time. When the market moves, there  is an imbalance in supply and demand. Richard  Wyckoff's third law, the law of  Cause and Effect states that for there to be an effect (price movement), there must be a cause (accumulation or  distribution).

There is PRICE , VOLUME , TIME , WORK & ACTIVITY.

The LAW of CAUSE and EFFECT relates to WORK ( INTRINSIC TIME )  It relates to DEMAND ABSORBING SUPPLY or SUPPLY ABSORBING DEMAND.......... It is The SPECIAL WAY a "FIGURE" CHART reveals the STRUCTURAL CHANGES in market reality.....  THIS is INTRINSIC TIME... EVENT TIME.. WORK TIME !

It is the 45 degree movement !


Individual stocks are to be judged as much by what they do as what they do not do !


We can measure CAUSE to infer EFFECT--- YES ( what they do) !

But we can ALSO MEASURE EFFECT to QUALIFY CAUSE  ( what they do not do )


Now look at the charts of GCN
Understand and APPLY !

Do you GET  it ?

The COUNT is a TOOL. It QUALIFIES by QUANTIFYING 

It CONNECTS CAUSE with EFFECT
IT looks BOTH WAYS !
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The Objectives of COUNTS are either Fulfilled or Negated !
COUNTS are being generated and activated CONTINUALLY
By the Fluctuations of Market Activity 
Consider HOW many ways such information may be used.




THREE LAWS

DEMAND and SUPPLY
CAUSE and EFFECT
EFFORT Versus  RESULT

 The law of cause and effect states that the imbalances  that develop in supply and demand are not random but are the direct  result  of events in market action.

This IS the "FIGURE CHART"

It is because of what the Figure Chart does and does not do ==> It's special connection with the REALITY OF THE MARKET !

Motorway






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