what is "the intensity of action (activity)"

Discussion in 'Technical Analysis' started by Gary186, Sep 11, 2024.

  1. Gary186

    Gary186

    Wyckoff said,
    what is intensity of action (activity) ?
     
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  2. MarkBrown

    MarkBrown

    he's talking about something that being on the floor, having a squakbox or only modern math algo's are capable of detecting. it's a feel for excitement of market activity coupled with a good guess of directional mo.

    it's a feel you develop. mostly after you have lost your ass a few times being unaware of it.

    m
     
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  3. Gary186

    Gary186

    I think there is a formula for activity. Wyckoff draw some lines based on activity.maybe it’s relate to ATR or Volume.
     
  4. schizo

    schizo

    From our trusty ChatGPT:

    Wyckoff's reference to "intensity of action (or activity)" refers to the energy or force behind market movements, which can be gauged through trading volume and how aggressively prices move during a given period. In his methodology, Wyckoff emphasized that price movements alone are not sufficient for accurate analysis; the strength of those movements, indicated by volume and the pace of transactions, offers deeper insight into market sentiment and trends.

    Here’s a breakdown of the concept:

    1. **Volume**: The number of shares or contracts traded over a given period. A high volume indicates significant participation, which often reflects stronger conviction by market participants. Wyckoff encouraged correlating volume with price movements to understand whether trends were strong or weak.

    2. **Intensity (Activity)**: This involves both the size of the price movement and how quickly it happens. A high-intensity move suggests strong buying or selling pressure, while a low-intensity move, even with a similar price change, indicates a weaker or more uncertain market.

    In essence, Wyckoff suggested that combining volume with price movement helps traders assess whether a trend has strong backing (e.g., large volume with a sharp rise or fall) or whether it’s weakening (e.g., smaller volume with sluggish movement). By focusing on this "intensity of action," traders could better time their entries and exits.
     
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  5. Gary186

    Gary186

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