what is "the intensity of action (activity)"
- Thread starter Gary186
- Start date
he's talking about something that being on the floor, having a squakbox or only modern math algo's are capable of detecting. it's a feel for excitement of market activity coupled with a good guess of directional mo.
it's a feel you develop. mostly after you have lost your ass a few times being unaware of it.
m
it's a feel you develop. mostly after you have lost your ass a few times being unaware of it.
m
From our trusty ChatGPT:
Wyckoff's reference to "intensity of action (or activity)" refers to the energy or force behind market movements, which can be gauged through trading volume and how aggressively prices move during a given period. In his methodology, Wyckoff emphasized that price movements alone are not sufficient for accurate analysis; the strength of those movements, indicated by volume and the pace of transactions, offers deeper insight into market sentiment and trends.
Here’s a breakdown of the concept:
1. **Volume**: The number of shares or contracts traded over a given period. A high volume indicates significant participation, which often reflects stronger conviction by market participants. Wyckoff encouraged correlating volume with price movements to understand whether trends were strong or weak.
2. **Intensity (Activity)**: This involves both the size of the price movement and how quickly it happens. A high-intensity move suggests strong buying or selling pressure, while a low-intensity move, even with a similar price change, indicates a weaker or more uncertain market.
In essence, Wyckoff suggested that combining volume with price movement helps traders assess whether a trend has strong backing (e.g., large volume with a sharp rise or fall) or whether it’s weakening (e.g., smaller volume with sluggish movement). By focusing on this "intensity of action," traders could better time their entries and exits.
Wyckoff's reference to "intensity of action (or activity)" refers to the energy or force behind market movements, which can be gauged through trading volume and how aggressively prices move during a given period. In his methodology, Wyckoff emphasized that price movements alone are not sufficient for accurate analysis; the strength of those movements, indicated by volume and the pace of transactions, offers deeper insight into market sentiment and trends.
Here’s a breakdown of the concept:
1. **Volume**: The number of shares or contracts traded over a given period. A high volume indicates significant participation, which often reflects stronger conviction by market participants. Wyckoff encouraged correlating volume with price movements to understand whether trends were strong or weak.
2. **Intensity (Activity)**: This involves both the size of the price movement and how quickly it happens. A high-intensity move suggests strong buying or selling pressure, while a low-intensity move, even with a similar price change, indicates a weaker or more uncertain market.
In essence, Wyckoff suggested that combining volume with price movement helps traders assess whether a trend has strong backing (e.g., large volume with a sharp rise or fall) or whether it’s weakening (e.g., smaller volume with sluggish movement). By focusing on this "intensity of action," traders could better time their entries and exits.