Volume-Price Analysis Lesson 3 — Two Peaks, A Fireworks Show
I believe everyone has a basic understanding of volume-price analysis after reading the last two articles. Based on this, let us combine two charts to look at the manifestation model of volume-price analysis. Selling peak
Figure 1 Selling peak This is a typical example. It signifies the insiders' phase of selling off their holdings (i.e., distribution) is coming to an end. We define it as the fireworks signaling the end of distribution. During this process, the price is pushed towards the opening price 2-3 times, High trading volume serves as a tool for our manifestation, assisting in the judgment of this pattern. The market often breaks down and accelerates its decline after this phase.
Volume-Price Analysis Lesson Two - Accumulation and Distribution
"To understand the practices of professional traders, investors should learn to think from the perspective of a merchant trying to sell their stock inventory at retail prices. While clearing the inventory off their shelves, for profit purposes, they will buy more goods at wholesale prices." Volume-Price Analysis: The market interpretation method of volume-price analysis founder Wyckoff - Anna Kulin In the past content, we briefly introduced volume-price analysis through several candlestick charts. Today's content is somewhat dry, but in order to establish a complete volume-price analysis system, please allow me to elaborate.
Volume-Price Analysis Lesson One - A Few Charts to Introduce You to This Tool
As one of the most intuitive data that traders can see in the market, trading volume is my most important tool in practical trading. Please take a cup of tea's time to lightly taste the fruit of this volume-price analysis with me.
“When using volume-price analysis as an analytical tool, we are simply looking for two things.”
Volume-Price Analysis: The market interpretation method of Wyckoff, the founder of volume-price analysis - Anna Kulin The rise or fall of prices is only considered real when accompanied by trading volume. If the volume supports the price, then the continuity of the price is more trustworthy; but if the price and trading volume are inconsistent, it may indicate that changes are about to occur in the market.