[DbPhoenix]

I don't recall W saying anything about it specifically. One can infer certain things, but I've seen inferences become axioms, and that can lead to all sorts of trouble. One can infer, for example, that the "smart money" hasn't a clue, which helps to explain a lot of what's been going on. But there's not much one can do with that unless he can become especially sensitive to volume surges, breakouts, and fades. There have also been very good trades on both the long and short sides in what anybody would call very dull markets. So, again, one has to be sensitive to flow and pay little or no attention to individual bars.

One of the few rules-of-thumb that appear to hold up is that one can't expect one trend day to follow another in the same direction. There has to be a rest of some sort at some point, even if it's only a turn in the opposite direction (e.g., the /\/ pattern we've followed the past three days).

As for the daily range, no. As I understand auction market theory better, I rely more on support and resistance. Auction market theory also adds another level to Wyckoff, which enables me to become more sensitive to flow. A side-effect to this is that I don't trade as much, which can be a good thing or a bad thing, depending on how one looks at it.