Price/Volume Relationship

Hi Paul,

The term trend lines is just a word that's used loosely that can be used to identify an existing trend or identify a different type of price action within a trend.

They are lines drawn on your chart either manually or via a code.

Out of curiosity, if they aren't lines, what are they?

Also, I re-read your reply and tried looking at the chart without the purple lines as you recommended.

There is no double top unless your reference points are different from mine.

In fact, since 0944am est the swing points have been lower highs as shown on your chart.

http://www.elitetrader.com/vb/attachment.php?s=&postid=1357389

I do see lower price highs and declining volume.

In addition, there's lower price highs with declining volatility.

With that said, there is something I do see that does correlate with something on your chart.

The chart you posted is for October 7th Thurs 2004.

The price close of the interval you have circled is 590.80 with a hgh price of 591.10...that interval closed at 1044am est.

Price then declines on on declining volatility and declining volume.

Then the interval that closed at 1056am est has rising volume on a price decline.

That's the same interval you annotated with a red arrow.

Therefore, technically, there is price/volume divergence for the price action between 1044am - 1056am est.

Mark

 

I'm amazed when individuals get angry when they're introduced to something outside their comfort zone.

subjective - objective (these are opposites)

My rules in regards to Price are based on objective occurrences in its oscillations. Price IS consistent and perfect in its movement IF you know how to look and what to look for.

rigid - real (mean the same thing to me)

To me "real" is fact. Price is real because it is perfect. Once a price bar is created it is a "real" segment of the overall Price action of that particular market. This is a "RIGID" read on the market. If the price bar is a Volume Bar or Contract Bar then the ridigness is even better.

"intense hypercritical BS you overanalytical types subscribe to"

"Intense" - passionate yes, intense is a wee bit extreme though
"hypercritical" - I never considered objectivity to my trading environment as being hypercritical toward imperfection & inconsistencies in others but whatever.
"BS" - I love this. A perfect way to describe closedmindedness.
"overanalytical" - You can never over analyze price. (12 years of research on nothing but price proved a lot). You won't find it in another book because no one but me has spent the time or effort to build the proofs. It's too easy to get all of ones information for the work of others. I didn't I am glad of it.
"subscribe to" - Proved on my own. The information isn't borrowed from anyone else.

I see the country the rainforest is located, the individual forest, the trees that make up the forest, the bark on the trees and the wildlife and bugs that live there. Though unnecessary to me, I can see the microbes as well. When you can "SEE" everything, it is easy to then "SEE" what is perfectly consistent about the price environment.

 

Yeah right! Stoch and MACD are LAGGING indicators!

 

One of the best bottom lines on Hershey I've seen! EXCELLENT!

 

Genius? LOL! Here's Jack's twisted, self-congratulatory take on the "P, V Boolean Relation." Anyone with a brain can backtest it by buying the turns from 0 to 7 (see last page) to see that this is nothing more than another turd from the pied piper.

P.S. Jack and his minions will claim it's not a standalone method but for something that bills itself as "tomorrow's paper today," there should at least be some discernable edge.

 

LOL!

 

I've just read all 40 pages of this thread in one sitting — my embryonic trading mind is fried and spinning.

At the beginning of reading I was sure and hopeful that I was going to finish wiser. I have come away with a sense of the importance of the PV relationship, but no real direction as far as follow up — where do I go from here to attain the understanding you folks use for weapons (in the market and against each other, it seems)?

I'm not spoiled by years of 'wrong-thinking' — I'm not content to accept black-box solutions. I'm not against doing any quantity or quality of work that will enable me to truly understand this PV relationship better. But I don't feel I've gleaned any clues as to how to proceed, beyond staring at a chart for 12 years and (possibly) figuring it out for myself (re-inventing the wheel); or perhaps Tom Williams book?

I've walked in super-late to this debate, but if anyone's still out there who'd be willing to turn my head in a constructive direction — towards the latest PV information — I'd be truly grateful.

Many thanks.

 

a re-read is the shortest route.

 

Is there volume on the large contract of the spoos?

 

This is what works and I HAVE Backtested it.
Entry Rules
If P Up and V Up Buy
If P Up and V NOT Up Buy
Exit Rules
If P Down and V Up Sell
If P Down and V down Sell

Try it - This PV relationship works like charm