Consider these things:
Price is the value of volume.
Volume is simply transactions that have taken place
Volume can be low but price grinding up in a bull trend or bear trend the entire session. This Brooks calls SPBL (small pullback bull trends). It is program buying on low volume, purposely. Institutions are accumulating it. Buying every dip in small amounts. Every push by bearish forces is simply countered by bullish forces. Perhaps bullish programs are buying up in small quantities. Or perhaps sellers are backing off unwilling to sell at current prices so price is bid up and sellers are slowly feeding in out to buyers. It doesn’t matter. What matters is what is the picture being drawn…what is the story being told? It is more important “how” something happens than “why” it happens.
Why did Alabama beat Georgia yesterday? Ask
@speedo..LOL. It doesn’t matter why, it is more important how. They simply dominated on all fronts. They unraveled Georgia much like the markets unravel traders. If you could chart the game it would be a bullish trend for Bama. Every bullish attempt by Georgia was countered by a stronger bearish attempt by Bama. Georgia was stuck in consolidations and BO attempts failed and Bama faded BO’s. BAMA caused the BO’s to fail then went the other way with the ball! Saban is GS taking money from Renaissance ROFLMAO.
All session long bullish and bearish pressures are in play. The stronger side will win for a bit then the other side will win for a bit. Markets cannot go straight up or straight down without opposite forces acting upon present forces or we cannot have a market. As these forces play out, the chart it drawn.
A chart is nothing but a graphical representation of the extent and reach of market pressures as they are created and play out. Read that again! This is why price is king and volume is queen. But the queen often is the neck that turns the kings head! A cursory glance at Anna’s work (as I had never heard of her) would indicate she would probably appreciate that analogy.
See, those evolving pressures tells a story. Since 95% of the pressures are connected to institutions and 5% to retail it is imo safe to say we retailers don’t move the market. The market is “made” by institutions trading with and against each other. GS is not interested in yours or mine 10 ES contracts and the profit from them. They are interested in taking millions from some other institution or HFT firm…hedge funds etc ad nauseam. We retailers are potato chip money for them. We don’t comprise enough $$$ to be worth their time. That kinda shoots holes in the idea that smart money is out to get dumb money. Look the battle is smart money out to get smart money.
