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Updated November 12, 2021
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December 20th, 2013, 09:06 AM
Naperville IL
Experience: Intermediate
Platform: ninjatrader
Broker: NT broker
Trading: NQ ES 6E GC CL
Posts: 963 since Feb 2010
Thanks Given: 1,189
Thanks Received: 662
Traderwolf
Remember a simple concept that will keep you out of trouble:
"Price Structure Trumps Everything Else".
... And I mean EVERYTHING else. That includes volume.
Volume is just a supporting cast to price structure.. In the case you reference , price tried to break out of a
trading range twice. Both times the break out bar could not close outside of the
range even though on higher volume. This is indicative of a Wyckoff spring or failed
breakout . It is that simple..
Don't be as concerned about if you get accumulation or distribution correct. Identify when the market is in a trading range or trend and watch how it acts between the interface between the 2 phases...
Hope this helps. Best trading to you.
Wolf
that simple concept is misleading.
Volume represents trading activity, especially around support and resistance area, it will tell you if the trend continues or stops, volume can confirm or modify what you get from price action ....
Can you help answer these questions from other members on NexusFi?
Best Threads (Most Thanked) in the last 7 days on NexusFi
December 20th, 2013, 09:28 AM
Raleigh,NC
Experience: None
Platform: Versatile and Stable
Broker: Reliable and Accurate
Trading: Money
Posts: 249 since Feb 2012
Thanks Given: 154
Thanks Received: 1,028
supermht
that simple concept is misleading.
Volume represents trading activity, especially around
support and resistance area, it will tell you if the trend continues or stops, volume can confirm or modify what you get from
price action ....
My point exactly.. volume is a supporting character to price structure. There can be many other supporting characters to price structure depending on personal preference...
Best Trading..
Wolf
December 20th, 2013, 09:38 AM
Ontario Canada
Posts: 27 since Nov 2013
Thanks Given: 25
Thanks Received: 22
metobi1
My thoughts are on the attachment. Try to think in terms of the balance between buyers and sellers, in every
range you encounter, and determine who has the upper hand, hence which direction the market would go.
Always thinking in terms of accumulation or distribution has a way of making one biased towards a direction and for many it makes for refusing to admit error and shifting towards the proper direction. Sometimes it also causes confusion as , everything could point to accumulation in your mind and analyses but the market would sell greatly for a while before going back up.
Markets would ultimately go where they would go, even the heavy investors (smart money) get it wrong many times. So first be sure to understand the concepts of listening to the markets and then look for where the balance shifts always.
Traderwolf
Remember a simple concept that will keep you out of trouble:
"Price Structure Trumps Everything Else".
... And I mean EVERYTHING else. That includes volume.
Volume is just a supporting cast to price structure.. In the case you reference , price tried to break out of a
trading range twice. Both times the break out bar could not close outside of the range even though on higher volume. This is indicative of a Wyckoff spring or failed
breakout . It is that simple..
Don't be as concerned about if you get accumulation or distribution correct. Identify when the market is in a trading range or trend and watch how it acts between the interface between the 2 phases...
Hope this helps. Best trading to you.
Wolf
Thanks. I was so ingrained on accum/distr not recognizing the trading range. I need more practice and develop intuition.
December 21st, 2013, 03:09 PM
Naperville IL
Experience: Intermediate
Platform: ninjatrader
Broker: NT broker
Trading: NQ ES 6E GC CL
Posts: 963 since Feb 2010
Thanks Given: 1,189
Thanks Received: 662
I am following this stock, current situation looks like end of accumulation, but that huge volume selling bar bothers me, I haven't entered yet, perhaps the safe trade would be JOC retest, I 'll see if it could break 11.00 level, then trade its pullback
this is weekly chart.
December 21st, 2013, 03:20 PM
Ontario Canada
Posts: 27 since Nov 2013
Thanks Given: 25
Thanks Received: 22
supermht
I am following this stock, current situation looks like end of accumulation, but that huge volume selling bar bothers me, I haven't entered yet, perhaps the safe trade would be JOC retest, I 'll see if it could break 11.00 level, then trade its
pullback
this is weekly chart.
What's the stock symbol for this?
December 21st, 2013, 03:21 PM
Naperville IL
Experience: Intermediate
Platform: ninjatrader
Broker: NT broker
Trading: NQ ES 6E GC CL
Posts: 963 since Feb 2010
Thanks Given: 1,189
Thanks Received: 662
bbburaot
What's the stock symbol for this?
oh, forgot mentioning that, this is a china stock, symbol is 300112
December 21st, 2013, 03:43 PM
Ontario Canada
Posts: 27 since Nov 2013
Thanks Given: 25
Thanks Received: 22
supermht
oh, forgot mentioning that, this is a china stock, symbol is 300112
Dont have a chart on this. A successful test would be your best bet.
I watched a stock before. I thought at first it was an upthrust. But turned out to be accumulation. Here's JKS chart.
December 21st, 2013, 09:43 PM
San Jose, Ca
Legendary Market Wizard
Experience: Beginner
Platform: Ninja
Broker: AMP/CQG
Trading: Something moving
Posts: 1,582 since Nov 2009
Thanks Given: 2,335
Thanks Received: 2,527
bbburaot
Dont have a chart on this. A successful test would be your best bet.
I watched a stock before. I thought at first it was an upthrust. But turned out to be accumulation. Here's JKS chart.
Just because a bar looks threatening does not mean it is. Up thrust bars are good in down trends like springs are good in up trends. There is no weakness in the chart. The structure is a strong up tend, so no reason to think shorts as a longer term trade.
When I took Gary Dayton's chart reading course he drilled in to us that "structure trumps all". The look of one bar is not enough to make a call.
D
December 21st, 2013, 09:48 PM
San Jose, Ca
Legendary Market Wizard
Experience: Beginner
Platform: Ninja
Broker: AMP/CQG
Trading: Something moving
Posts: 1,582 since Nov 2009
Thanks Given: 2,335
Thanks Received: 2,527
supermht
I am following this stock, current situation looks like end of accumulation, but that huge volume selling bar bothers me, I haven't entered yet, perhaps the safe trade would be JOC retest, I 'll see if it could break 11.00 level, then trade its
pullback
this is weekly chart.
I think that if the high volume down bar is bearish you should have follow through to the downside. So far it has not. Structure seems to changing with HH and HL. It could still take time to play out. I think best thing would be to define a couple scenarios. For example, go long if you get a spring, or wait on JAC and retest as you mentioned. Or, if it breaks down below ice them maybe a short. Make the game plane and wait.
D
December 21st, 2013, 10:15 PM
Ontario Canada
Posts: 27 since Nov 2013
Thanks Given: 25
Thanks Received: 22
David_R
Just because a bar looks threatening does not mean it is. Up thrust bars are good in down trends like springs are good in up trends. There is no weakness in the chart. The structure is a strong up tend, so no reason to think shorts as a longer term trade.
When I took Gary Dayton's chart reading course he drilled in to us that "structure trumps all". The look of one bar is not enough to make a call.
D
You're right. Here's the bigger picture. 3yr chart. The upthrust wasn't selling here. Let me know if my analysis is correct.
Last Updated on November 12, 2021