buy hold protect, page-23

Hi Imic, As snowy has mentioned Mr Wyckoff looked at the market in waves, buying and selling, all we do that aids us is add the volumes in the up/down or supply/demand waves.

The tolerance or criteria that defines the turning points is obviously a variable in the closes of the bars.

Using this we can then see clearer how much is in each of the waves as a figure, much easier than a group of bar/candles.

We then use these figures in conjuction with the other principles of Wyckoff to see and take action at our low risk entry/exit positions.

On the chart below I've penned in a few waves and added the volume figures of those waves, anyone I think that has an understanding of the principles of supply/demand should imo be able to spot quite easily the 'tests' that appear after big down waves and the 'no demands' that appear after large upwaves.

Hopefully Imic thats cleared it up a little, also Awesome if your watching the next low risk buy suggestion will occur when all the moons align :), and we see either 'testing' occurring on this the daily timeframe, or to get closer, when we see them possibly occurring on the dailys running partner, the smaller 4hour timeframe

cheers





Hi meowmeow,

"...I saw ur chart, have a circle on the corresponding volume. I think might get a hint why it did not reach this target. Could you please explain the relationship between this low volume area and today's action?.."

Not sure if there is any relationship, maybe just the boys had moved it up as high as they wanted to today and then started to take some money off the table. Meow on the chart you can see that the abt 98cent level had been a fairly significant level all week.

Fridays action I think all will agree was fairly simple to read, after finding support beneath the lows of all those previous days that have been mentioned it then rallied, (note it moved thru the high of the mornings action, clue=).

The pros did the normal old trick (shaded red) of hitting it with supply (high volume upbar) and held it there for 2more bars. Note the second bar narrows (umm) and closes well off its highs (umm umm get ready to run). The third bar is actually made up of all the mums and dads, even Rorkes may be there who are still trying to buy and take it higher will no support from the pros, note it narrows even further and is much much less in volume (big big clue, exit stage right).

I've shaded also other areas of turning points, note how on Monday it broke the lows of that big big volume UPBAR, (ahh) and they then did the normal old 3bar trick (shaded red), which was firstly up on more volume, flip it and then the final harah, the good old 'no demand' which was most strong especially with that huge weakness/their supply sitting in the background.

Tuesday (shaded green) is a nice push higher from the open (hint) and note it stumbles at that same area abt 98c once again but this time we have 3strong bars with a nice 'test' the confirmation. Also see how huge the volume was to bust thru only a bar or 2later.

Wont explain all the turning points, everyone would be asleep by now :), but lastly is to say if we have a look at all the big high volume bars of which 3 really stand out, Q. which direction did the days price move after these bars ? Hopefully that wasn't too long winded, crappy weather here and had a moment free.

cheers



P.S. Rorkes wasn't buying there btw, that's where they flicked on their intraday hedge facility and put yet another 3cents in the piggy bank :)