Bride of If You Can Draw A Straight Line

[Hooti]

Quote from cmb:

im guessing u took this change of trend here? that was golden. would u mind to add any insight to it? or was it simply the well defined change of trend signal.

Heroic has it, read the minimalism for trading freedom posts at the first.

edit:
and while freedom in many ways, perhaps including from fear, may be found here

There is a quote from Justin Mamis:
..."relying on the assumption of responsibility rather than the laying off of the test on external factors."
The "test of external factors" being other things than the minimal approach described in the first posts.

Responsibility and freedom are perhaps a typical paradox found in stock market survival as well as life in general?

 

[Hooti]

It's peculiar also that even tho minimalistic and simple, it's not easy.
Don't be put off by it taking time to soak in. I'm still having "Aha's".

Let me see if I can post an image better.
eidt: Size is good, but it's still not as clear as the original. Hmmmmm.

 

[dbphoenix]

Quote from bmwhendrix:

Although we are not looking at volume, those that do would point out that the second leg was on much reduced volume.

And that means what?

 

[llIHeroic]

Quote from dbphoenix:

And that means what?

New territory for me, but I'll go out on a limb here. Perhaps it indicates less traders are comfortable with the current direction price is headed in?

There is either a lower consensus that price is currently a representation of fair value, or on the other hand less traders can perceive any advantage to changing their position.

They're either uncertain which direction price is going to head in, or they don't think it will be moving that much in the near future?

 

[dbphoenix]

Quote from llIHeroic:

New territory for me, but I'll go out on a limb here. Perhaps it indicates less traders are comfortable with the current direction price is headed in?

There is either a lower consensus that price is currently a representation of fair value, or on the other hand less traders can perceive any advantage to changing their position.

They're either uncertain which direction price is going to head in, or they don't think it will be moving that much in the near future?

Simpler than that. Lower volume means less activity. That's all. But how does one know whether demand is greater than supply or vice-versa?

 

[llIHeroic]

Quote from dbphoenix:

Simpler than that. Lower volume means less activity. That's all. But how does one know whether demand is greater than supply or vice-versa?

Hmm, I can't see how volume alone could indicate that. As far as I can get is that it might indicate the increased chance for a reversal. Activity lulls and it's almost like another decision has to be made, continue or reverse. As the dominant sentiment becomes clearer to an increasing amount of traders, volume picks up again.

The lines definitely seem to paint a clearer picture.

 

[Dora]

Quote from dbphoenix:

Simpler than that. Lower volume means less activity. That's all. But how does one know whether demand is greater than supply or vice-versa?

Hello Dbphoenix,

When supply line is broken demand is greater and vice-versa.

Best regards

 

[blakpacman]

The USD index is worth watching. It hit a downtrend line in July, then immediately turned down coincident with Fed's non-tapering decision, and continued almost to 12 month lows on further non-tapering. I think it's read to break down in the months ahead from its deformed head and shoulders pattern. That would be very good for gold. Catalyst for the break would be a combination of worse than expected economic data and another instance of taper talk that is followed by untapering, which would lower confidence and value in the Dollar from ongoing debt monetization. Also notice lower and lower highs on successive crisis. Greek crisis in 2010 was on lower highs, then the 2011 and 2012 European Sovereign crisis, which was of greater severity since in included Italy and Spain, saw even lower highs in the Dollar. A possible inference is the Dollar losing status as a safe haven. This conclusion supports the view of an imminent break to the downside on Fed's inability to taper QE and decreased confidence in the Dollar as a a result.

 

[DanioZ]

Quote from dbphoenix:

Simpler than that. Lower volume means less activity. That's all. But how does one know whether demand is greater than supply or vice-versa?

Hey Dbphoenix.

When supply line is broken and price is going up demand is greater imo and vice-versa.

Best regards

 

[dbphoenix]

Quote from DanioZ:

Hey Dbphoenix.

When supply line is broken and price is going up demand is greater imo and vice-versa.

Best regards

The supply line need not be broken yet, but the relationship between demand and supply is determined by price movement, as you suggest. Volume has only to do with activity.

IOW, if price rises, demand is greater than supply. Volume is irrelevant.