more gann45 hocus pocus, page-4

sierra, thanks for your post.

Chris, it’s unknown too many, but the market masters of the past used to use what is called a "space chart".

Depending on the volume on any given day they would make the price bar take up 5 time slots if there was a lot of volume and 0.5 slot if there was little volume etc.

At the end of the day any move in the market is just volume, to exhaust a bull market you might need 50m shares to exchange hands in a stock to satisfy supply/demand imbalance.

We cut the market up into nice neat days, but with the volume that passes through the market a stock might do the equivalent of 5 days trading in one – it’s not consistent.

Therefore a space chart is the only graphically way to take into account the three dimensions of time-price-volume.

Evidently that now opens a can of worms as to how you count time and technical analysis in general.

There is no formula to that chart, it’s just a candle-volume chart, it’s the best I can do at the moment and I think it achieves the above reasonably well.