1. The law of supply and demand determines the price direction. When demand is greater than supply, prices will rise, and when supply is greater than demand, prices will fall. Using a bar chart, one can study the relationship between supply and demand by monitoring price and movement over time.
2. The law of cause and effect provides an insight into the extent of the coming price move up or down. In order to have an effect you must first have a cause, the effect will be in proportion to the cause. This laws operation can be seen as the force of accumulation and distribution within a trading range - and how this force works itself out in a subsequent trend or movement out of that trading range. Point and figure chart counts are used to measure a cause and to project the extent of the effect.
3. The law of effort versus result provides an early warning indication of a forthcoming possible change in trend. Disharmonies and divergences between volume and price often signal a change in the direction of a price trend.
CCC Price at posting:
56.0¢ Sentiment: None Disclosure: Not Held
