I'll only somewhat disagree with that I'm familiar with principles of Wyckoff, but I'm asking about the terminology "volume flag".
We're both Christians. I've known him for several years. He's one of the rare who can look beyond the noise, see the big picture, react, and fill up his account with pips.
The Strong Hands were already wanting to take this up while the weak hands were squeezing their buttocks together. The Smart Money is the driver. Re. flags, basically yes. Also my own software does another calculation to double check and posts flags. While I am posting what everyone sees, I have a few tricks that I am not posting.
Think about what he's saying by the word "flag." Btw, here is something you may like: http://www.pring.com/articles/article15.htm Last, I hope Xspurt doesn't get bombarded with pm's. He's a busy cat. Best thing is ask questions in the thread imo. Once you "figure him out" (if that's possible lol ), you'll understand his terminology, and the thread will imo flow well.
Thanks Leap! I just posted this about 30 minutes ago in the CL thread, how ironic! Any thoughts on my chart by the way? I did take the nice long at the end there (but did not hold it nearly long enough, just took it to my target). http://www.elitetrader.com/vb/showthread.php?s=&postid=3268039#post3268039 EDIT: My little asterisk with the "volume leads price" statement is that it still takes the "other side" to move price the opposite direction. For example, in the chart in my post from above, each subsequent push up (out of the primary three before the final one) had relatively less volume than the last. Perhaps 3 or 4 times out of 5 this will excite sellers, who will then take the reins and sell it off. However, each decline was also accompanied by declining volume. So, declining volume on a rally may indicate a coming short-term correction in prices due to lack of buying interest at the top, but it in no way signals a reversal of great magnitude unless seller strength is demonstrated. That's all I meant by the statement I made earlier. btw, I have no intention of buggin XSpurt (except on this thread as I have been doing already! )
What is this based on exactly? I've read the thread but I'm a little confused, as earlier you were talking about the "sucker rally" yet you're saying the strong hands were wanting to take this up? Please forgive my state of confusion!
I would like to say that Xspurt does have quality posts, no drama, no ego, great understanding of markets, and good to have people like him/her here.
1. This price pattern usually has an ABC move, this drop being A and the sucker rally is B with the real move as a big C down. Sometimes the market is so weak there is little or no rally and this is the decision point we are at. 2. Regardless of the extent of the rally, the strong hands can play a reversal and dump it at any time. The objective is to buy cheap, suck the dumb money in and sell higher to them. There was a clear example of that in the 5 min chart posted earlier in the thread. 3. Strong Hands and suckers always go together. It is the basis of wealth transfer in the Change of Hands. 4. I looked at your chart linked above and couldn't read Wyckoff off that. It looks more like Jack Hershey's volume reading. In order to answer your question and show exactly what this is based on I would like to check your Wyckoff reading of the 4hr chart attached. What does it tell you?