Demand doesn't make rising prices (It can, but not necessarily), but rising prices make demand. Yes, it's only to start to understand and apply the logic of the supply and demand with market working.
Yes, for example look the chart of GC today The 3 green arrows. These 3 is showing, at this context, that there is accumulation. First is the climax and the first demand coming in zone, next is the stopping volume where the demand has entered and up the prices, and the third arrow was the last buying bar where was an absoption of supply volume. This is a 5 minutes chart
please, a Wyckoff (?) question if i may, about this attached chart 1) Is this a Wyckoff case of price jumping the creek, 2) returning to ice, and then 3) resuming the move? NEXT: 4) What vol will be needed to jump the creek to the upside, next time price meets this 1545 level ? 5) after 4) above occurs, and upon return to the ice What volume will be requiredto jump the Ice? or is it a Creek? Is there a good online explanation of this? cheers .
I actually only started getting consistent results when I came across Wyckoff and volume-based trading. I currently use a few tools which I combine to achieve my results: volume profile and volume at price, weis waves, money flow index (MFI) and obviously the volume bars. The idea is I analyze each candle (volume bar), price move (weis waves) and general movement (MFI), with regards to the distribution of volume within the day's range and the volatility threshold offered by Bollinger Bands -- which also are quite helpful in spotting accumulation or distribution (when price begins to concentrate in narrow range, i.e., the market's volatility is drastically reduced). What I'll look for are signs of strength or weakness to the upside or downside. Particularly, when price interacts with the Bollinger bands, since it generally doesn't manage to move beyond them if there is no volume to back the move. In that sense, I just disregard the usual "oversold-overbought" rationale. If price makes it beyond the bands and I get, say, an overbought reading from MFI, that is actually telling me the move was strong and is likely to continue rather than reverse. A push beyond the bands with a low MFI reading tells the opposite: that price is unlikely to be able to continue in such direction. Additional volume and general analysis (say, knowing if price is moving towards accumulation or distribution) is then used to corroborate or invalidate this analysis.
I'm a day trader and I tend to gravitate towards scalping and short-term (10, 15 mins.) operations. My timeframes for the Brazilian markets are 1, 5 and 15 minutes. For EUR/USD and other forex pairs I use 5, 15 and 30 minute charts. If you have any questions, feel free to ask them
without visualizing the market using any method you understand, wave theory, patterns or any other VSA and Wyckoff method. - meaningless