GCN p16

""The most important pattern that will develop on your charts is that which is

known as the congestion area. It represents what is technically known as a trading

range and shows the struggle between the forces of supply and demand,

either at the bottom of the move where accumulation is being completed or at the

top of the move where distribution is taking place."VdV

"The market is made by the minds of men, and all the fluctuations in

the market and in all the various stocks should be studied as if they were the

result of one man's operations.

Let us call him the Composite Man, who, in theory, sits behind the scenes

and manipulates the stocks to your disadvantage if you do not understand the

game as he plays it; and to your great profit if you do understand it."RDW

 

"One large Holding" increases  the granular nature of the market. It creates HIGH and LOW and VALUE.

It does this by aggregating expectations. Consider this last point especially ! It is what "causes large price changes"

The one large holding is of course the holding of the composite man !

"The accumulation of a stock on a large scale  may be compared with the loading of the gun with powder. Absorption of the stock not only gathers it into one large holding but at the same time reduces the floating supply around the level where the accumulation takes place." RDW

consider this ==> THE IS WHAT MATTERS !

What makes large Price MOVES ?

And why is the figure chart the tool of choice in detecting ?

Charts from the top about a month of the .001 X 1

Note the rising supports and the different behavior at the tops marked 1 & 2

.001 X 1 of the current phase noting esp the HALF WAY POINTS

.001 with counts . They reveal as much when they are negated ( The NOT DOING )

5 REVERSAL CHART 

By changing the reversal P&F has a unique way of condensing the fluctuations without losing the NUMERIC POSITIONING..

To NOTE is the behavior of the three LOWS and TOPS

A most important indication is given by rising supports and lowering tops !

The recent qualifier being the TWO LAST COLUMNS

P&F charts really do have VELOCITY and ACCELERATION.

Changes in Activity are important

And why is the figure chart the tool of choice in detecting ? HINT==> The Point and Figure chart in relation to Volume is always Hunting.While Volume can move PRICE. It is  PRICE that makes VOLUME !

GCN- BACK-UP before a JUMP ?

Motorway