[freeflyva]

Hi,

I've studied every piece of Wyckoff literature I could get my hands on in the past and I was wondering if anyone here has his correspondence course?
I know SMI carries a course but I believe it's a mod of the original. Thanks

[freeflyva]

rsi,

It sounds like you're sincere in your search....so I'll give it a try. Are you familiar with the terms Db used (selling climax, technical rally, test and rally)? This is a very important pattern (given correct volume supports each "leg" of the move). You're basically looking for higher support on the next reaction (if long)....and the opposite if short. The best time to exit or enter (other than the potentially risky climax) would be at the confirmation of that higher support (volume drying up on the dip) Final confirmation would be rising above the top of the previous rally (if long) and the reverse if short. Accumulation and distribution doesn't always have to be a long sideways movement. It can be visible in the ^ movement you speak of....if on the upleg you see signs of distribution. You can also compare volume and gain of the current upmove to previous to gauge supply entering the market. Of course, previous levels and the ability of price to get through them (especially on high volume) are very important also. All of this followed by lower lows, highs and closes is a good sign the party is over.
Your stops should correspond to these key levels since breaking one is a significant event. They should also be moved even closer to current price if two or more conditions are present. Good luck -

[jcavalieri]

DB if buying and selling pressure is show in the actual candles then how should we view volume. i know its just amount of shares traded or activity and i know it shows effort or force. is there any other way i should be viewing it?

[Head2k]

Originally Posted by jcavalieri »

DB if buying and selling pressure is show in the actual candles then how should we view volume. i know its just amount of shares traded or activity and i know it shows effort or force. is there any other way i should be viewing it?

I know you asked Db, but I will try to write an answer. Db can correct it. I am learning how to view volume myself, so I can at least sort what I have observed so far.

I watch changes of volume in time. Little volume per time unit = low activity. High Volume per time unit = high activity. This is useful to watch in context or in relation to expectations. E.g. if resistance should be broken one would expect appropriate activity. If activity diminishes instead, the breakout is less likely.
I watch change of price on volume (volume chart is the best for that). This tells me when price moves smoothly without resistance and when there is a tug of war. The time factor is important here, too.
I dont watch single bars much, I rather switch to lower time frame and I watch swings inside those bars. For this I use volume chart with dense vertical time grid.
Single bars are usefull when they have a logical beginning and end, like daily or weekly bars.

[Head2k]

Standing limit orders act as resistance to price movement. Marketable orders move price. When there is a trade recorded it matches a standing limit order (passive buying or selling) with a marketable order (active buying or selling). I think of voume as of amount of willingness to participate actively, to move price. Because while limit orders are standing ready there, the volume depends on how many marketable orders arrive to match those limit orders. Therefore volume thows activity or effort to move price (in form of marketable orders).
Now if price moves depends on the other side - the standing limit orders which present resistance to movement. So by judging price movement on unitary volume you can observe this resistance.
Also you must watch all this in regard to time to distinguish activity x laziness, tug of war x indecision.
I am in the beginning of my journey, but this is the approach I adopted.

[NAVEEVIa]

So by judging price movement on unitary volume you can observe this resistance.?
Can you please elaborate on this

[Head2k]

Originally Posted by NAVEEVIa »

So by judging price movement on unitary volume you can observe this resistance.?
Can you please elaborate on this

I hope there is no misunderstanding. It is simple. Volume represents effort to move price. How price actually moves on that volume represents the result - in other words what were the opposing forces to that effort.
On a volume chart if you see an upswing which starts to round out you can say that price progress on unitary volume is decreasing. That means the forces moving and opposing are becoming equal. If you are aware of time as well you can say whether this happens due to intensive tug of war or due to reluctancy of the "movers". It is about watching the dynamics, changes in effort and resistance to this effort.
I didnt mean I can see at a glance resistance meant as a turning point. (But maybe it will come one day )

[NAVEEVIa]

At support /resistance levels is it better to switch to volume charts i.e. push-pull will be better reflected with volume charts