Quote from bundlemaker:
THis happens all day long over and over.
No. It does not happen all day long over and over.
1. You have chosen an example which at Extreme Volume levels has not yet brought you to the "At some point" moment in time. Note the difference between the previous bars and your PRV. Can you give me one example where at Extreme Volume you only had 250 contracts in the final 2 minutes? or final one minute? In your example PRV levels are too close to the previous bar actual levels to know at the 2 or three minute bars. Therefore, you have not reached the point in time where you Know you Know.
2. Extreme Volume levels do not happen every bar. I have only witnessed one such day in all my years of trading.
3. The following bar (after a presumed Volume Peak or even not on a presumed Peak) does not always have the same Pace level. Check almost any flaw bar.
4. I am not discussing Red or Black
Because of the four explanations above, your assertion is not possible every bar, all day long. Even if it were possible to occur every bar all day long, you appear to be saying if you had 13999 actual contracts traded by minute 4, you have absolutely no idea using PRV whether or not you know you'd have increasing volume by minute five. such an assertion is ridiculous on its face value alone.
Once again, your example shows you not yet arriving at the 'At some Point" moment in time where you DO ALWAYS KNOW. Your examples shows a moment in time (several in fact) before you have reached the stage of Knowing you Know.
Each bar has a different moment where the trader reaches the "At Some Point" place where Volume cannot do anything else but where it is at that point. In other words, added Volume, even if it were to come in, would not change the outcome of increasing or decreasing compared to the previous bar. The converse is also true. "At Some Point", even if volume stopped arriving at its current rate, Volume could not end up decreasing with respect to the previous bar.
This happens every bar, every day, at different points in time for each and every single five minute bar. After the "At Some Point" moment occurs, volume cannot, will not does not flip-flop between greater than and less than the previous bar's volume. The only time such a 'flip-flop' scenario is possible is when actual volume (previous bar) is so close (as in your example), as a percentage of the pace level (VDU, DU, Low, Medium, High, Extreme) that PRV cannot nail down increasing or decreasing until late in the bar. Even in this scenario, you still know before the close of the bar - just not real early in the bar.
These are basic fundamental mathematical concepts. They repeat over and over again 81 times a day. If you still have difficulty grasping the concept then I encourage you to take a step back from the ledge and think about the problem differently.
- Spydertrader
) not sure.