Quote from Spydertrader:
Close, but I want to make sure you look at the whole picture here and not oversimplify the process.
We know form Jack's Jokari Window how the price volume relationship operates. When we see increasing red volume bars (selling) combined with slowing of a price increase, we can anticipate a change in trend. Since the current (intermediate term) trend remained up, we look for the short term trend to head down. The next morning, we see an increase in volume (based on PRV levels), but this time, we see falling price. Again to the Jokari Window we go and note, with increasing red volume (selling) and decreasing price, we expect the trend to continue (to head lower). We also note the high levels of Unusual Volume present using a UV sort of the Final Universe. In other words, of all the stocks we watch, DTLK has the highest amount of activity. We again anticipate continued direction of the current trend and we see this confirmed when price breaks through our short term down channel on an increase in volatility expansion.
In other words, we never stop anticipating what comes next. By doing so, we force ourselves to monitor the market looking for confirmation or invalidation of our expected outcome.
- Spydertrader
