Price & Volume

Introduction

The concept of Price and Volume does not refer to any particular stock trading system, it much rather refers to the interpretation of the market movements keeping in mind the two most objective criteria we can find when studying a chart. On the one hand, the Price, the “real” movement of any asset, is determined by an agreement between seller and buyer at any given moment. On the other hand, the Volume, which quantifies the number of agreements executed in each tick of the price movement. As we can see, both concepts are “real”, straight from the market, and “direct”. They are not derived from any past / outdated data and they are presented in real-time.

Hence, the first thing we need to comprehend is that “Price and Volume” is not only a system of entry and exit points, but much more. Mastering the system will result in knowing the philosophy of the market. Therefore, it will be neither quick nor easy, nor automatic. It is based on the assumption that we, as operators, have to assimilate a series of concepts that, individually, are simple, yet just as useless, if we are not able to see them in a more global context.

• 1.-Introduction:
• 2.-Volume:
  • 2.1-Accumulation and Distribution Processes.
  • 2.2-How do we recognize Accumulation and Distribution Processes?
• 3.-Price structure:
  • 3.1-Basic Concepts.
  • 3.2-Elliott´s Theory:
    • 3.2.1-Elliot’s Theory Rules.
    • 3.2.2-Nuances to Elliott’s Theory.
    • 3.2.3-When is an Impulse Pattern Completed?:
    • 3.2.4-Variations to Elliott’s Theory.
    • 3.2.5-Impulse Waves inside a Pattern.
    • 3.2.6-Corrective Patterns.
• 4-Technical Analysis:
  • 4.1-Basic Concepts.
  • 4.2-The Main Trend.
  • 4.3-Change patterns:
    • 4.3.1-Shoulder-Head-Shoulder (SHS)
    • 4.3.2-Exhaustion Wedges.
    • 4.3.3-Failures in price structures.
• 5-Analysis of price and volume:
  • 5.1-Intentionality, Testing, and Dry up:
  • 5.2-Relevant Zones and Operational Levels:
    • 5.2.1-R.Z. in Charts of High Time frame (Weekly and daily)
    • 5.2.2-R.Z. in Intraday Charts (240 min, 45 min, 15 min)
    • 5.2.3-Operational Levels in Operational Charts (7 min, 3 min)
  • 5.3-The News: Why does it exist, what is it for, and how to analyze it?
  • 5.4- Deceptions: How to recognize them and when to act?
  • 5.5- Divergences.
  • 5.6- The Countertrend: Professional support withdrawal to an impulse movement.

• 6.-Searching for targets: The market leaves hints.
  • 6.1- Targets in Continuity Structures:
    • 6.1.1- Projection of a «P100» Impulse.
    • 6.1.2-Extended Projection of Impulses.
    • 6.1.3-Projection of a Corrective Range.
    • 6.1.4-Projection of Triangles.
    • 6.1.5-Projection of Channels.

• • 6.2- Targets in Structures of Turnaround:
    • 6.2.1-Change Patterns or “Turnarounds” and their Neckline.
    • 6.2.1- Failures in Structures and their Implications.
• 7.- Peculiarities of the miniSP500. Price Structure: Corrections
  • 7.1-«ABC» Corrections.
  • 7.2-“V turns”.
• 8.- Conclusions

• ANNEX
  • 1.-How to Analyze a Correction from Start to Finish?
  • 2.-How to Prepare for the Beginning of the Market Session?
• BIBLIOGRAPHY AND REFERENCES