Very good. The only thing to add is that those extreme oscillations on the slower chart is where I define "Trend". Then the extreme oscillations on the faster chart are my entry and exit points.
We live in an imperfect world and in a trading environment we can not eliminate ALL variables but we can eliminate as many as humanly possible. When it cans to VIEWING price movement we only have a chart. Yes, you can SEE price movement in the DOM but you can not see the FLOW. This FLOW is important the same way one see music FLOW. The more seamless and smooth the better it sounds (LOOKS). To us as traders, what we VIEW is important. TO be able to VIEW the markets with as much clarity as possible is important to our consistency and overall profitability. All charts are based in either time, transactions or range and all of these contain a varying number of shares or contracts traded per individual bar. This varying nature of the construction of those bars cause you as a trader to see unnecessary noise in the way price FLOWS. In other words, there is no stability to the volume contained in those chart bars. Think of it as static while listening to a piece of music. It adds to the confusion of the environment. I know this is a "left field" statement in relation to price movement but once you build a chart using volume bars and put it next to a simple chart using; time, ticks (transactions) or range you will SEE what I'm talking about. The price chart smooths out. this smoothing effect works into all of your indicators as well. this is why I only use a single indicator. With a clear picture of price direction and it's relative strength, why would anyone need more than a single indicator to confirm what they are already SEEING in price movement. Hope this helps.
How do you interpret the varying range of volume bars? The longer bars show you that the price fluctuated across a broader price range and the shorter bars, like a doji, so you that price consolidated around a value. So like a doji, do you see that these shorter volume bars mean there might be a reversal headed your way? (Excuse the analogy as I know it's not quite right, but you get the idea.)
The individual bars only become relevant once you have a trade set up begin which starts with price oscillations. Here is a sep by step look at what I want to see is a typical trade. 1. Trend - As specifically defined on the particular chart I am Trading. (SEE Chart - Trend is listed in upper left corner of indicator portion of chart) Trend is only good when used as a sign of the overall strength of that particualr chart. 2. Trade Set Up - Where price is creating a PPF (Physical Price Failure), price pysically failing to create a HH or LL where prices' TARGET is a Breach (a HH or LL). 3. Momentum Confirmation - Where momentum (histogram) has confirmed with the creation and completion of a top or bottom at an extreme level (above the Prime line). That is the black horizontal line on the indicator. This is confirming that price will now drop to at least challenge the last oscillation, support at 1216.50 for the first trade and 1212.25 on the second. 4. Trigger or execution point - a faster oscillation of price again showing a failure to create a HH. If I can confirm that a Bear Trend exists on the particular chart I am trading AND I can confirm in real-time that price is making an oscillation LH compared to the last confirmed oscillation Resistance top, then at my trigger I go short with a target of the last confirmed support bottom. I only trade when PERFECT set ups like this exist in the many markets I watch. Patience is a virtue.