Original subtitles

Hello everyone, today is December 3rd and this is session number 13 of Wyckoff

Practicum course.

As usual, we're going to discuss the bias game, we're going to talk about the

anatomy of the trade. I thought, you know, it was very interesting action

yesterday.

We'll have some Q &As, market update, then we'll talk about the horizontal

volume, and then...

If we have a chance, we'll go to the exercise.

In the announcements, December special is on, and again, highly

recommending it because it's in line with everything that we've talked about.

Here will be in a more systematic way, kind of like a system reveal on the

long term, some of the swing trades.

This is a continuation of the trilogy on the swing and intraday.

And then for those of you who would like to continue, you know, to stay with the

practicum, you guys are welcome to register now. Go to our website. You

alumni rate, and that alumni rate is also discounted right now until, I

January.

So anytime you register before that, you get that deep discount.

And what it does is just for 15 sessions, 15 weeks, even if you're just

the videos, but you're playing the game, you're playing the bias game, you're

always thinking, you're always contemplating about your homework, and

what's useful.

So that's why...

We like our alumni to come back, obviously at the lower rate, and just to

through that again because the bias game never repeats.

It's always something new.

All right.

All right.

As always, everything is for educational purposes.

Let's discuss the bias game. This one was.

because for the first time, you know, I kind of was thinking about Thanksgiving,

you know, to spice things up.

It's holidays, so how to spice this up? Well, let's have a typical chart,

right, a typical chart. So P &F came to mind, and then

I wanted to see how you're doing with the current bias.

I wanted to show you guys the current bias from a different perspective, from

the perspective of...

a PNF picture.

And as you might know, this was the S &P, the current chart of the S &P.

So I don't really have an answer for you whether this is truly a reaccumulation

or a distribution.

I think that this is a reaccumulation. At least that's how I'm playing it out,

given with the last two days' reactions.

It doesn't bring us any...

Any new information yet, it has to be more profound. We'll talk about this in

the market update.

So that was kind of like an interesting game on its own.

I think that the volume and the columns that you go

through are very much a tape reading skill that you have to have to read

And a lot of you just excel in that. So this is really pleasing to me because...

I'm a tape reader at my heart.

I just see how the market moves, changes, and all that stuff.

And that's what I'm teaching you guys here in this class, especially in the

practicum. So this is probably one of the easiest ways to do that.

It's kind of interesting that today we're going to talk about different type

volume representation, volume visuals.

We obviously could look at the volume on the vertical bars, and that would be

one representation, one visual, you know, for us to look at the volume.

We can look at the volume on the PNF. This is going to be more condensed data,

so the volume signature is going to be condensed as well.

Look, and that's what we're going to do today.

And it was kind of like white witching.

I've prepared the slides for this session last week.

Usually on Friday, Saturday, Sunday, when I have a chance, I love to prepare

the whole week.

So I put in the horizontal volume signature, and this is what we're going

through today.

And we're going to do a couple of exercises on this.

And then Dimitri, you know, emails me today.

and ask me about the price and volume.

So kind of like wide vision, we're going to do this today.

We're going to go through that material.

That's the third way of how we could see the volume.

Other ways of how we could see the volume, we could see the volume, let's

through the cumulative wave.

David Weiss' cumulative wave comes to mind. David, obviously, is not the

originator of the idea behind cumulative volume.

Probably the most famous cumulative volume indicator is OBV by Granville.

But David looks at the cumulative wave as a function of a sweep.

And that's a really good innovation right there. And again, not something

has not been done before.

And then also, we want to look at the volume in other different ways.

look at the up and down volume for each bar. And I think that's probably the

most telling information, but it could be most confusing.

So for now, we're just gonna concentrate on three, right? So vertical, PNF

volume, and horizontal. And that should be enough because you would be able to

judge the action from the volume and price signature.

And if we would look At this whole picture here, and we would start drawing

our Wyckoff story, we definitely would start with the huge uptrend that is

on. There's some kind of climactic run. We see that up to this point, the price

stops, goes into the trading range, so an obvious buying climax, automatic

reaction, several tests as uptrend.

where we have our consolidation after the volatility.

So this is like a testing ground absorption for what? For the next rally

that materializes into the upthrust.

That upthrust brings a lot of supply into the end of the rally.

And please note that the rally is of different quality than the previous

So less demand.

definitely not committing significantly above, and then quickly

coming back into the range on relatively modest selling,

but a lot of supply came on the last push to the upside.

And then we don't see a lot of activity here until we go into the shakeout

action.

And then that shakeout is being resolved really quickly with the momentum rally

that is confirmed also by the increased demand signature.

After that, a trading range and the apex structure with all of the elements

that we want to see in the apex formation value supply.

Produces a change of character.

Automatic reaction, so some kind of sign of strength.

Buying climax, concluding this rally.

Secondary test, phase A.

And then this is probably phase C.

Volume is diminishing into the apex.

Some demand is coming in, some demand is coming in, and then we are breaking to

the upside.

So still bullish. There is really nothing here of bearishness

that we could see. If you are thinking that maybe there is some kind of

upsloping structure and this is an upthrust and we had something like this

the last couple of days, right?

So there is still nothing damaging yet to that picture. What would be damaging?

Would be damaging to see something like this.

with an attempt to retest and then with the subsequent failure below this level,

right? So overcoming this level right here as well, trying to rally again and

then dropping again.

So, and there are some analogs that, you know, we could look at, you know, price

behavior in that way, especially the leadership could be distributed this

you know, on the way up, but The economy is actually stable to

slightly improving, slightly moderate.

So a lot of the money managers are looking at that.

So earnings are kind of like hit and miss, but overall, they are sustaining

uptrend that we are in.

And more importantly, consumer spending is a...

the really good levels.

So money managers, when they look, they're going to look at, obviously,

first in general, then economy in segments, the corporate economy,

economy, and then look at the Fed, look at the government and the monetary

policies. And obviously there, the whole tariff story is just something else.

We'll talk about this in the market update.

There is really nothing here on this picture at the point of where we look at

the picture.

Nothing bearish about this.

There might be just some short -term supply that's coming in.

All right, some examples of your work. I thought I'd want to show some of the

examples. This comes from Eric N.

And I really like how Eric just goes through the explanation of all of the

that he has here.

from green, you know, to pink, to yellow, and so on and so forth. So there

that continuation of the story where analysis is being done, and I would urge

you, you know, to stop here the recording and just read this analysis,

great.

Another example, this comes from Sean, and I like how there is this, you

know, comparison, constant comparison of the...

analogous price actions.

And then again, step by step analysis and it comes to a specific conclusion,

which in this case was accumulation.

All right, so here's my take on this bias game.

My answer is accumulation.

I don't know yet whether this is a correct answer or not. So that was kind

like a trick.

or a tricky bias game for Thanksgiving that we have or that we had.

I'm going to try to come up with something fun on Christmas as well, New

well, just for us to have fun.

Look at the counts that we have.

And I'm kind of gradually coming to a

conclusion that

We could have two types of rally here. We could definitely have more of the

runaway rally like we had in 99.

We could have a slow running rally like we had in 95.

We could also have a very moderate rally.

And I think that it's prudent for us to think about the targets that are the

closest. So there are...

A couple of targets here from the low of the shakeout into the climactic action.

And that target from the line of 2350 takes us to 3525.

And then the trade count that we have in the upper part of the structure brings

us to the same target, 3500.

So two confirming targets, this is something that I would want us to see

happening every time we look at the targets. So that's

the moderate target. There is a much higher target of 5 ,000 that I presented

the WMD, but this is something that I want to keep kind of like between us

we get over the hump of 3 ,500.

So we still have...

to see what's going to happen here did you guys have any thoughts question

additional maybe thoughts on this before we go away

no

all right great well here's your next bias game

do i dare to ask you

what bias it is how about this i'm not gonna ask you but for those of you

who are curious you know go ahead answer but at your own risk if you're gonna

you know contaminate your mind you think that you're gonna do that you know then

um you know don't do that don't don't write it down and for those of you who

answering you know oh i still would urge you to go and do the analysis from left

to right uh you know divide the chart into you know logical segments uh what

you've seen and then uh you know come up to the bias solution by

the end of this chart all right great let's jump to the

next segment okay market charts let's look at the market

This deserves some attention.

So for those of you who are following us on Twitter, this is

probably not going to be anything new.

This bar right here had an increase of the supply.

that was suggestive of some kind of potential stop in action

and maybe some kind of reaction.

We had a little bit of the climactic run.

And then by the end of the day, and that was the key, you know, how do we close?

We close bullishly on the increased effort. So there is some demand behind

suggesting a rally out of this.

So we want to see what kind of rally we're going to have.

Well, the rally goes, does not come to the extreme overbought condition,

overcomes and overthrows in the upthrust type of manner.

The long -term daily resistance, which is upsloping as well, and then it

produces a change of character bar. This change of character bar is the largest

bar since the low of this bar in October.

This is the largest reaction.

So right away yesterday on Twitter, you know, as it was unfolding, I said that,

you know, this change of character is going to bring a continuation.

Not only did we break the trend line here, but we're also coming in on

increasing supply.

And we are producing the bar that is so different than anything that we've seen

before.

The next step for us is to judge our current bar against the

analogs that would exist in the same type of context, right? So maybe like

or this, obviously this, and I wanted to text,

not to text, but to Twitter Dimitri because he was showing one

of the traits.

based on this bias.

So one, two, three, okay.

All right.

So let me just pick another color. So we're looking at number

one.

Yeah, number two this was the largest bar since this low

Number three number four

number five

So

we want to understand what kind of strength we have for this reaction and

want to judge the extent of the possible reaction through the force that

comes right away.

And I wanted to say, Dmitry, because I was following that trade of yours, that

you could have a scenario like this, where you are committing to the

supply is increasing, and then you just have absorption.

I think it's a mistake just to think that once the change of character bar

happens, supply increases, that that's it, we're going down.

There is definitely a predisposition to do that because effort increases to the

downside and result is increasing.

But as we know, on the emergence of the supply, there are two things that could

happen.

Absorption, and that would be in line with, let's say, the previous trend.

in the uptrend, or

there's gonna be a reaction.

So in this first case, we see that there is no continuation of that selling.

It starts to deteriorate, and then instead of continuing to the upside, it

actually reverses. So that's

how quickly absorption could happen and could have all of the elements that

we're talking about preceding this bar and even some of the elements that go

after this bar, right? So, for instance, at number one, we have this last

climactic run, then commitment to the downside, and then some testing action.

Well, let's look at number four.

We have somewhat of an exhaustion.

still somewhat overrun, but into the exhaustion.

Then we have the increase of the supply type of bar.

And then we have the test.

So the difference between these two scenarios is that we have

an instant continuation of the initial bias to the downside after

the test. And here we have the reversal.

So you could see how, with an exception of the short -term causality in case

number four, everything else was somewhat the same.

We could make an argument that there was a little bit more demand in case number

one than in case number four. So only those two nuances, short -term causality

prior, and there is not a lot of causality right here, and then there is

demand. this bar then let's say in this bar right here but everything else was

the same so looking at the current bar and judging you know the effort

was which the reaction starts kind of suggests that we are

gonna have more or less meaningful correction more or less meaningful

than what then what we've had before so what corrections did we have before on

the way up here is a correction here is a series of corrections here is a

correction here is a correction here is a correction so we're definitely going

to have reaction more than that we're probably going to have the reaction of

same magnitude that we have had um you know in all of this uh four instances um

i'm sorry in instance two three and four and we're thinking that um uh you

know probably we are seeing a contraction here

in reactions, and we might see that contraction again.

There is enough space for us here before falling below 3 ,000 to

have a reaction and maybe some kind of consolidation.

We just hit the old time new high.

There is definitely a lot of consolidation on the profits that needs

We see a lot of institutional profit taken. They are actually moving really

fast, closer to the end of the year.

Those positions where they feel that they have made a lot of money, they're

going to take the profit off.

So Apple comes to mind, just a great example of where institutions are taking

profit right now.

just because of such a big run up of more than 60 % for the year.

So that's a big result for them.

So I'm kind of expecting, or at least at the beginning of this bar

yesterday, during the day, there was a lot of selling coming

in. And there was an expectation that, yeah, that's going to continue for some

time. You could see that selling on the intraday right away.

And the way how to look at this is, again, you want to look at the

reactions from the beginning of the rally.

You want to look at the quality of the reactions, the texture.

What is it about this structure that allows the trend to continue?

They kind of look the same, either by the distance that they travel or the

intensity of the reactions, the effort behind them. There were only a couple of

spots of vulnerability during the whole uptrend, right here and then right here.

This is where the selling has occurred.

in more meaningful way you know and we stated you know just that this is uh you

know somewhat of a vulnerable place if supply is being observed then there's

going to be a continuation in both cases we had that absorption of the supply

what's the difference in the last case well look at the texture as to how the

price was moving down yesterday so right away even on this bar and this is just

an intraday bar You know, on the break of that trend, that bar breaks that

trend. And you're seeing a lot of supply coming in. Behind that supply, there is

a news catalyst.

And this news catalyst just ripped the market for the last almost two years and

created the structure that we are in right now.

This big trading range since the beginning of 2018.

So this is the news that is capable of...

you know, producing significant moves.

Yet the economic environment is such that it reminds me a little bit of like

2017, like at beginning of 2017, when we had a lot of

news about North Korea.

And every time we do and where, you know, we still were not used to how

President Trump.

you know communicates and all of that um so something like this where we have

single events that produce

some kind of abnormal uh volatility but yet the background

is still pretty much bullish so i think that the

strategy here and i was

in my head i'm talking to dmitry a lot um right now because he had this

volatility trade on um or at least the directional what was the trade that i

forgot dmitry i mean obviously put to the downside but i forgot what what did

you buy uh did you buy volatility or did you buy um

okay let me

know um but This looks like something very similar to what we've been

going through. This is on a slightly different scale.

But also look that these reactions are not that deep.

We didn't have a deeper than 3 % reaction on the run into the 2017

high. So I'm not necessarily kind of like expecting here.

you know, a clean run, it's probably going to have some kind of reactions.

And then look at the last bar.

Again, I don't know, Dmitry, if you kind of, you know, looked at my message

today on Twitter as something else that I was saying here.

So I tweeted an expectation that you might see this. There was a demand

in. today on the intraday. And some of my positions that are usually momentum

-oriented positions that misbehaved yesterday and today in the morning

to pick up and started closing all of the losses that they have had today.

And you kind of see that a very strong demand comes in and picks up a lot

of liquidity that is available so easily.

on this news.

In a way, I thought that this trade was lucky.

Why? Because the news cycle continued into today.

And then when they announced today that, well, maybe

it's better to postpone this issue after the election in 2020.

Well, that made a lot of sense to me because now they are taking pressure off

themselves for the election.

This is something that they could always say during the campaign that, you know,

we're going to return to this later because, you know, the actions, and I

suspect that, you know, there is some play with the

election deadline, you know, from the Chinese side.

That's how I would negotiate that.

So probably it's easier just to eliminate this altogether and just to

concentrate on the election for the current administration.

So I think that in a way this issue is being taken away. I

just don't know what will be the resolution in between. So I want to

like, what are they going to do now? Are the tariffs still staying on or not? Is

this another way to negotiate or not?

So I don't know, maybe we will have a resolution.

Maybe this is just a part of the negotiation.

But definitely the news cycle helped this trade.

Yet our technical recognition came right here on this bar.

And you could see that even if you open in a position somewhere here, whether

you're buying volatility or you're just directionally trading this, you could

definitely have a really good chunk in a very short period of time.

you know, one day.

And your exit should be somewhere here.

This is definitely a change of character to this reaction.

And we're seeing how some demand is coming in. There is a tail.

There's a lot of volume signature.

A lot of volume signature, no progress to the downside.

A lot of volume signature, no progress to the downside.

Ease of movement to the upside on lower volume, suggesting that supply has been

diminished. confirmation that supply uh is small at this point of time and then

obviously after that we're going to have some kind of momentum rally which still

has some supply stop in action and we're in the testing period right here so

into the end of the day we actually have seen quite a lot of you know bullish

activity whether that's going to materialize somehow

we still have to see i would say that for the bulls the best scenario is just

keep closes above this level right here so don't close below if you're closing

below then most likely you know you're going to kind of retest a much lower

ground but if you're staying above these levels there's really nothing dangerous

about that we came out you know sign of strength and now if we consolidate here

and then continue to the upside or consolidate even in a much shorter

where maybe we have like a big bar vertical absorption and then we are

here, then we would be still in this uptrend and the price might continue

up.

So demand is strong and selling is

strong on news and on profit taking.

So a very interesting market where you have to be going in and out of themes

as institutions are doing the same. They're going in and out of specific

And obviously, the key here is just to observe, would we have more damage here?

If we do, then we definitely are going to reconsider this whole scenario.

So crude is also very interesting in the way that it

doesn't want to go down. So the bullish call that we have had here is still

on. And I was thinking, you know, what is the tactic here for the stop losses?

And I think it just depends on how you trade in this whole thing.

And obviously, December 3rd is going to be a big meeting.

Hold on a second.

It's today, right? So did they do this already?

Okay, I'll have to, yeah, okay.

Oil up on OPEC optimism. Okay, so they're going to obviously announce the

in the production and that's why it's holding up. So the strategy here could

either hold on to your original stop loss because we still did not really

true breakout.

There are multiple attempts to do so and then all of them fail, but still the

trend is kind of sustainable.

In the last couple of weeks, I think volatility is all related to the OPEC

meeting that's unfolding.

And I would say that for more aggressive traders, you don't want to commit to

the downside below this level because that would constitute a retest. It would

suggest a retest of 50 -51.

And I would rather probably just not participate in the move to the downside

just have even like a break -even or a small win.

And then maybe, you know, if this is a true phase C, to kind of reload the

position here, to reestablish the position here.

These are kind of like thoughts aloud.

But it looks like, you know, the news are going to drive the price for the

retest of 58, possibly.

So the suspect, you know, for me personally, was this bar right here.

I'm sorry, not this one.

The Korean bar.

And the reason why it was a suspect is because there was some supply that came

in on this bar.

Was a little bit more than, let's say, those analog bars.

And I thought that, you know, we're going to have some kind of stop and

reaction. The price went up.

So I decided to wait.

and see what's going to happen next.

And such a draw, but no commitment to the downside.

So it was a little bit of a confusing picture in this case, and we just needed

to wait.

And that's what I'm continuing to do. So hopefully on the news, we're going to

have some kind of continuation.

Any closes above 58, and especially 59, are going to be extremely bullish. But

then we're going to go into the...

By the way, please note how I did that. Why did I do the resistance like this,

right? So 63 .60.

Well, I'm looking at the supply that comes at that level.

So on this bar right here, and then on this bar right here.

And we know that if the price goes to this level, there's gonna be some kind

resistance as, you know, some selling will happen again as the same type of

sellers are going to come and they will remember this level and they will try to

sell.

Okay, gold really quickly was due for some

kind of pop -up.

We have structural strength here on the test.

We're seeing that supply is diminishing.

For some reason, I'm kind of, Not really impressed with gold in

terms of how it reacts to the upside.

I don't know what it is about this. I think that my judgment is a little bit

obscured with the market action itself.

But I know that there are instances when both the stock market and gold can go

up at the same time.

So we shouldn't underestimate this. Having said this, I still have a long

campaign in my IRA account, so I'm not exiting that at all.

I'm probably going to see how this whole thing is going to resolve itself.

All right, Francis saying that Russell 2000 showing some relative strength.

Yeah, so this low compared to everything else, right? So a low, a low, a high, a

low, a low, a low, and then a low, low here as well.

So yeah, absolutely, you know, and we should see how that's going to unfold,

know, this.

very encouraging that the price does not come in below this level but once it

does then you know we definitely will be talking about a different scenario okay

well that's it for the market update let's look at some questions this one

comes from simon

So here is that question.

Was my bias deduction to the downside incorrect?

Or was it correct at that moment in time and I would need just to

exit based on my stop loss? Have I made some key observations?

Okay,

I know how.

Hi, Simon.

Are you there?

Hi, Roman.

I'm good, thanks. How are you?

Good, good. I'm going to put you on the spot here.

So why don't you explain to us so that we wouldn't go into all of these

So where is the point where we have to make a decision? Which bar?

Okay, at bar B18, so just where you got R3,

and I sort of see that there was a downslope in apex, so I sort of

thought that was weakness due to the background context, which is you have

falling ice, the lower lows and the lower highs.

And so I thought the breakout of B16,

would have been like looked weak.

And then I was waiting for the retest. So B16 I deemed to be the action

bar.

B17 was the test. And then B18 was the confirmation.

And that's when I would have taken the short entry.

Right. So the first thing that catches my eye is diminished

supply.

So we are going down on this reaction, and we're diminishing in

effort, and we're also diminishing in the result. The spread here is different

than, let's say, spread here, spread here, or spread here.

So it looks like selling is exhausting itself.

But let's say that we've entered this position. Then where would we get out of

this position?

So, Romain, just a quick question then. So on that reaction

down to B19, and this is where I'll probably get confused between

a reduction in selling to the downside, accompanied with that volume,

and an ease of movement to the downside.

And I remember you saying that an ease of movement to the downside is when

you... through a key support area.

And that's when I sort of thought that that broke through a key support area,

which was B0, way back at the start of the left -hand side of the chart.

So then I thought that was more of an ease of movement to the downside.

Right. And it is because we are going down and we're still committing

to the downside, and that happens on the diminished effort. So we have that

element of the ease of movement.

But the way how it moves, you know, we say that it moves with ease just because

there's not a lot of effort required.

In comparison to the previous movements to the downside, we've seen

deterioration of selling.

Yep. Okay.

So I'm not against this trade per se, right?

red bars here, and you're initiating the position on bar number five, red bar

number five.

Then you could see, and even before that, so maybe like seven, bar number

right?

So here, so you could see how selling deteriorates. We had big spread, and

on the breakout, that spread diminishes, it diminishes more. Yes, we're

committing to the downside. Yes, there is this ease of movement in terms of the

effort being lower and the price still commits to the downside but um you know

we have to compare it to the previous price actions and we've seen

and please note that we still have lower low here after that so it's not like

we're done with selling

I think that if we're missing the character here, and let's say that we've

entered, Simon, how would we get out of this position? On which bar?

I would have put the stop loss back up towards where B15 high is.

So it wouldn't be for quite a while.

Okay.

If it was to go against our initial short position to the downside.

Yeah. So, okay, so that's initial stop loss. And where is the exit?

I think it would be on the B25 bar.

Yeah, somewhere here in this area and even the bar before.

Because you have B23 that commits below the support.

and then it quickly comes back into the trading range. And that's on the

background where you had a downtrend, you're in the oversold, and your volume

is diminishing.

Now the price still goes down, which creates the divergence.

And that suggests a different behavior, suggests some kind of rally.

And B25 is the first bar where, and you could see this from the momentum.

The volume comes right here, but yet there is no progress

to the upside.

So result to the upside is diminished.

And yet, you know, it actually almost commits to the upside.

And then on the third attempt, we see that it doesn't require as much volume

signature.

to move the price in a much better way.

So there is, first of all, synchronicity between

effort and the result.

I'm sorry, effort is decreasing.

Well, it's not even synchronicity. I can't even say that this is

This is more that concept that we've discussed in the November special, the

of movement where, you know,

the effort that is required to move the price in a much better way is less than

on the previous rallies.

And that's what we are looking for. This is the timing tool for us when we

observe this type of behavior out of this type of conditions that the rally

done.

I'm sorry, the downtrend is done, yeah.

So what you're indicating is that...

Prior to B25, there had been some absorption of the supply already and

allowed that ease of movement to occur.

Yes. So when we are judging the movement, we have to judge, you know,

story, right? So we can't just take one piece and out of the context create the

story about that.

So we are kind of seeing that the story develops.

into the condition that suggests an oversold condition and exhausted

supply.

And then from there, series of tests, and we see further deterioration,

non -progress to the downside, and then B25, that's going to be the area

where... We see a true reversal. Now the effort moves the price to the upside

rather than to the downside.

But obviously a lot of preconditions before that happens.

Right. And when you say that it's moved into an oversold condition, how do you

identify the oversold condition? Is that by your trend channels?

You could use the trend channels just visually.

Let's say if I'm looking at this whole chart, where would I... have let's say

overbought conditions probably here probably here right because these are

moments when the price rallies and on any type of let's say momentum indicator

we're going to have those spikes and then um so

definitely this would be considered by us an overbought condition where you

just visually would we have oversold condition when the price goes down

And then we are going to be in those oversold conditions, especially short

when there are, you know, big moves like this. You know, the indicators are

going to move really fast.

And then just visually without not thinking about the indicators, but

these are going to be the times where, you know, the price will be close to the

resistance or to the support and therefore will be oversold and

But also, just think about the downtrend. By the end of the downtrend,

definitely going to be in some kind of oversold condition, either short -term

long -term.

Right. Cool.

Okay. All right. Well, Simon, thank you. That was great.

Thank you, Roman.

All right. Let's go to the next segment, anatomy of the trade.

Yeah, let's look at this.

And I'm really curious as to what you guys are going to say, and this is going

to be a poll, not going to be a poll, you know, that I'm going to post, but I

want you guys to vote and tell me what you think we should do now.

So currently we are in this position as a class, right? So

the position was originated on this bar.

What do we do here, guys?

Let's vote.

Let's just vote to exit, and we could exit either as of yesterday or as of

today. As of today, even better.

You could exit. You could add to the position.

You could stay in the position, keep the position. So what's your verdict here?

What do you think?

All right.

All right. So majority of you are staying in the position, holding,

keeping it.

There is one exit here.

And I think that, you know, the way

how this last two days unfolded, and especially for the technology, I

think. The money managers who move the market are kind of

a little bit trigger -fearful, not trigger -happy,

but trigger -fearful in the way that they want to sell any of their positions

that had big, quick run -ups and good profit almost right away.

to take the profit and to secure the profit for this year because the profits

this year for them were quite good.

And any type of news catalyst, especially related to something like

tariffs, is going to be that trigger for them

to sell.

And to sell what? To sell the stocks where...

They have some profits, and this was a big, quick run of, what, about 50

% in less than one month.

So they definitely want to take some profits. Also, technology -related, so

saw yesterday a lot of technology stocks being hammered, a lot of momentum

stocks are being hammered.

Why? Well, because this is where the profits are. So they're taking the

off the table that produces that reaction.

So I don't know necessarily whether we should be considering closing the

position right here. I think that we should still see how the test develops.

The test of this shakeout, is it going to stay here or is it going to go lower

and retest the lower lows?

So I would probably just keep it and maybe just even wait for the... uh next

test because if the next test comes and it's you know testing correctly then

there might be opportunity to add to this position as well francis asking

is it the backing up of the october november minor trading range uh yeah

we could definitely you know think this way so we're thinking about this range

high enough strength and then backing up action starts with the supply obviously

yeah we it's a possibility yeah it's fine thank you all right so i

guess we're just skipping it

all right let's talk

about something else let's talk about the horizontal volume signature

um again

I'm figuring out how to teach properly volume.

Yeah, it kind of sounds funny.

It's going to be soon, what, soon it's going to be

10 years of my teaching, over 20 years of just, you know, studying and trading.

coming up with this statement, figuring out how to teach volume correctly.

I think volume needs to be taught with different

ways of how we look at volume signature because in its essence,

the volume that we have on the vertical bars, the vertical volume bars, is

not very telling. It's actually hiding a lot of the information.

that we would prefer to have.

What exactly?

Well, for instance, you know, there's a never -ending question about the dark

pools.

You know, does it obscure our interpretation of the volume,

especially for something like ETFs?

So that's one of the pieces of information that might be closed.

The second and the biggest piece of information is we can't really figure

from the vertical volume bar signature what was

supply level and demand level on that particular bar and where it

came from.

So this piece of information...

are hidden from us, but they could be extracted from other tools.

One of these tools is a horizontal volume. Another that I've shown you, a

condensed volume signature on the PNF chart. Another one that I mentioned is

cumulative swing signature.

Another one could be an up and down volume.

So we'll talk about those.

different tools and how they show the volume and so on so forth so there are

quite a few ways for us to think about volume why the horizontal volume is so

important is because it shows on the levels

of support and the resistance and we anticipate that around

those levels which are based not necessarily on the price but on the

signature of the price.

This is where we would be expecting some kind of stopping action

because one force is going to be more than another.

There are different ways of how this technique is called.

I just, for generalization purposes, I call it horizontal volume so everybody

understands instantly what I mean. But there is definitely a market profile,

volume profile, a couple of other names that this technique has.

On this chart, you see both the vertical and horizontal volume signatures.

We're first going to look into the yellow square.

This yellow square shows the price of Nautic 100 futures. This is a daily

This is the beginning of 2018, that first initial change of character

that we had.

And horizontal volume signature works extremely well in the trading ranges.

Why? Well, because it contains all of the data that is being shown on the

daily basis, on the daily charts, as to where the majority

of the volume came, at which price level. So therefore, sometimes we call

price on volume, or volume on price.

however you're going to call this.

And the information from the vertical volume bars is

being translated into the horizontal volume signature. By the way, in July,

had a special with Damon Pavlados, and he was an institutional trader

for... multiple decades he created the volume profile signature

for TD Ameritrade when it was think of think of swim

so he has a lot of knowledge about you

know how to construct this what it means and so on so forth so we had a really

good special with him you could still find that on our website and buy it if

you're interested but I want you to know the basics because when we look at the

vertical chart, I want you to identify where the volume was the highest, and I

want you to start anticipating what's going to happen next as the price

progresses. So in a way, it's helpful in the trading range, and it's also

helpful for the upswings that happen after the downtrend, after the

accumulation, because we could...

recreate a potential structure as to how the price might advance or might

decline. All right, well, we'll do that. But first, let's look at this yellow

box.

And we are seeing that by the end of this box, by the time that the new high

has been made, we have this horizontal volume signature.

What is it based on?

It's based on the levels of the price where we have had

the highest volume signature.

All right, so something like this as well.

And we're going to have those kind of like peaks of where the volume has been,

you know, the highest.

And what it does...

it incorporates not just, you know, one downside, but all of the information

that is contained here in the price action. So, for instance, this largest

bar, we definitely see that there is a lot of volume signature that's coming in

on the down bar.

Then we've seen that there is some volume signature that's coming in as a

temporary stop in action.

Then there is a consistent volume signature here.

So that all still kind of like goes into that horizontal volume signature. Then

look at this stop in action.

Definitely has a lot of both supply and demand.

By the way, this is just another example of how quick reaction could be

observed.

And then next bar as well contains quite a lot of volume right there.

Next one.

And so we could see that by the time that we are done going through this

level, we could accumulate quite a lot of volume on this level.

So our expectation is that when the price comes to that level, let's say

one, this one, or this one, we might have some kind of hesitation stopping,

pausing, just because we know that opposing effort.

has come and presented itself at this level in the past all

right well let's kind of practice now so we are here and this is

our uh horizontal volume signature so what could we expect if

we're saying that this bar right here acts as maybe the up thrust and the

reversal type of bar reversing the last commitment to the

downside to the upside, I'm sorry, and then has some kind of test and then has

some kind of confirmatory bar that closes definitely below the big

bar. And that suggests that we are done with the up move and we are in the

downswing.

Well, how do we look at the movement in this downswing even prior to the

confirmation? So let's say again, we are somewhere here.

what would we expect to happen as the price moves to the downside?

We probably would be expecting that we're going to have some kind of

this level.

There is both an increase in demand, and by the way, I like when the horizontal

volume signature divides supply and demand like this. I hope that this

information is actually accurate.

We're still seeing that supplies would be somewhat dominant at this spot. So

we're expecting good volatility in this area or going into this bar.

And then demand could pick up. And we see that there is definitely this demand

tail that brings us slightly up into the close.

Oh, I'm actually, hold on a second, guys.

Am I doing this correctly?

All right, okay, yeah, I think we're, hold on a second, let me just double

check.

All right, yes.

Okay, so we're expecting some demand to come here. We're expecting some demand

to come here. So kind of like in this cluster where we would expect some

resistance from the demand.

And here is that demand coming in. We see this in the vertical bar as well.

And it just cannot produce a meaningful rally, so there is still some selling

behind it.

But this is how we would recognize the...

support cluster as to where the price could fall and demand could actually

increase just because it increased in the past.

So where is the next time where demand might increase?

Well, somewhere here into this bar.

And look what happens at this point. We see that this bar, the spread is

slightly diminishing.

and the volume, the effort, is slightly increasing.

So there is some demand that is hidden in this volume signature, and it's just

being shown to us prior to that, prior to the price reaching to

that level.

And all of this information that we look at has been accumulated on this bar

right here.

So we are expecting some kind of... a rally from here here is attempt it's

successful than the previous attempt so we probably would be uh thinking that

this is the beginning of the stopping action all right so uh you kind of could

see how we could even draw the movement of the

price based on information that we have

Well, let's try it now without looking at the chart, right? So here is on the

right is horizontal volume signature that is being given

to us on this last bar. And that includes this whole information, this

trading range. And that's why, you know, trading ranges are so useful when we

use horizontal volume signature is because

All of the price swings are contained within some kind of structure.

All right, well, let's look, let's see what we could extract from this OIM

signature.

We're probably thinking here that this is bullish.

Just because of how effort has increased, there is a stop in action.

So this means that demand is present, and we're expecting some kind of rally.

we are seeing that supply has been observed significantly and now on lower

demand signature, on lower effort, the price starts to move up.

So here is the time for us to jump into this position and we want to know how

could possibly the price move from this point?

Could it move in a specific way and could we figure out beforehand how it

move? Well, we see...

on the volume profile that there are some instances when supply is starting

increase, supply is starting to increase.

Then again, supply is starting to increase, supply is starting to

And we want to look at the supply because, you know, this is where some

of resistance are going to come.

And then we want to look at the structure and just say, does it make

this is where supply might come?

All right, so would it make sense if the price rallies and then it meets the

supply and then it reacts?

Probably it would because we had the previous attempt to do the same. So

probably outlining this cluster right here as the first potential move.

If this is going to be a sign of strength, we could potentially even

that and then come back.

And come back where?

Come back where the demand started to increase, right? So maybe into this area

right here.

Or let's say if we're going to just go to this level, then where would demand

increase? Somewhere here. We see that demand was increasing. So come back into

this area first.

Hold on a second. Let me just redraw.

Like this.

Or like this.

And this would be the minus sign of strength or a sign of strength.

And then from there, up,

down, up, down.

Again, demand is increasing somewhere here.

And then probably overcoming.

and heating that resistance.

So this is just an approximation of how we could possibly move here, just based

on the supply and demand signature.

Let's see how we moved.

All right, so first we're going to this level of the resistance.

Now this was our clue here, you know, this level.

We would experience some increase of the supply.

It comes in like... in this instance, has a rapid

deterioration in price and comes to the area where demand started to become

active.

So we're thinking that it's going to fall into this area. It does.

Next time, because it's a bullish bias and obviously we have to have

here to confirm it, but...

Once it starts to break out, we're thinking, where is the next target for

Well, we said here supply is going to increase.

Stop in action here.

And then where would it stop? Well, we saw that there was an increase of demand

into this area right here. So we were thinking that it's going to go to this

level. Didn't go exactly to that level, just kind of showed more strength.

So which was suggestive that maybe this level is going to be not as important

and the price kind of like goes through that level.

Again, you know, why is this important? When we select stocks

for our portfolio and we look at the character of the next potential move.

and we look, let's say, as to how the price could potentially move through

levels, you could select a stock that would suggest that the movement is going

to be much easier and faster, where supply is not going to be predominantly

present, and this will allow you to profit more and to have

a much enjoyable trade, which emotionally might not compromise you.

All right.

Well, let's see how we understand this concept. So let's do the exercise.

A volunteer, maybe?

Say yes, and I'll unmute you.

And this chart, I'm actually taking from stock charts.

So you could create the chart where you see both the vertical bar.

and also the horizontal bar volume.

No volunteers? All right.

Let's do it.

Okay, so we're coming in into some kind of formation right here. First of all,

let's quickly think about the bias here.

What do you think the bias of this formation is?

what do you think the bias of this trading range is

okay

all right great majority of you are thinking that this is an

accumulation there are a couple of uh just a redistributional pattern. So

quickly go through this.

Increase of the supply and increase of the result, such as a bias to the

downside.

Continuation of the move.

Let's look at how it happens.

Momentum, momentum, increase of the momentum, and kind of increasing the

signature.

What looks like an attempt to stop here.

So this could be a selling climax or preliminary support at this point.

What happens after that?

After that, you know, kind of like a climactic attempt.

Test.

Test is not progressing too much.

And then some kind of shakeout and then the next test is at the higher low.

Now in between it has the rally.

It has the characteristics of buying on the way down and then buying on the way

up. So there is definitely some sale buying that happens here.

Probably this was value buying as well.

Attempt to stop.

And then into the oversold condition, the price goes down, comes back up

really quickly. So it acts more like a spring.

And then the high -low acts more like a test, and test happens on diminished

volume characteristic.

If we would have a commitment below, we probably would be thinking about this in

a slightly different way.

But we don't have that commitment. Also, look at the rally in between, that

yellow rally. Again, I talked about the volume characteristics, but also look at

the result. This is the best rally in this whole trading range.

So it has a lot of bullish characteristics.

The last reaction also has a lot of bullish characteristics, and then we are

taking off here. So yes, accumulation, we probably would be

labeling it like a downsloping range, phase A, selling

climax, automatic reaction, secondary test, sign of weakness in B.

minus line of strength in B, phase C, last point of support,

and then probably we're in phase D.

Okay, so now that we know the biases to the upside, we kind of want to

understand, you know, what kind of movement we're going to have to the

Our target loan term is $90.

And we see that the causality here is somewhat okay, about half a year.

So that causality could sustain a move to the 90 and actually

above. So we're probably thinking that we're going to hit $100 on that type of

move. How would we go there?

What would be the path for us with which the price would move? Could we actually

figure this out?

Well, let's try.

So looking at the horizontal volume signature, we are seeing that

there is a lot of supply that comes in at around 5860.

So we probably would be expecting, if this is phase C, a break through 60.

And then where would we go? Where is supply increasing again? So we have...

decrease of the supply, we have increase of the supply, we have increase of the

supply. So we're probably thinking that the sign of strength could go to this

area, 64, 66, and then would come back somewhere.

Where would it come back? Probably where demand is increasing, right? So think

in terms of movement up, supply is increasing, movement down, demand is

increasing. Why do we need to see those increases in supply and demand? Because

this is where supply is stopping the price from moving further up, and this

where demand is stopping the price from further moving down.

And that's how we are finding the resistance and the support.

Please note that we could have picked maybe 62 as the resistance.

We could do that.

could have picked maybe what um yeah 60 as the support as well

but it's going to be a little bit more accurate if you use the actual price uh

volume on price uh just because this is where supply has occurred so you are

anticipating that you know that supplier demand is going to be available there

okay so let's say that this is the first move then what happens next

Well, we are probably after the sign of strength and

the backing up action, and we would be thinking, you know, what kind of supply

is going to come here.

At the lower level, there is quite a lot of supply, so there might be some kind

of testing action that we would anticipate.

And then after that, there's going to be an attempt to overcome the previous

high. and go to the next level where supply has increased right so we're

probably thinking this level right here 70 64 68 um and

even coming to 72 and then encountering some kind of resistance again

and what are we going to do again we're going to consolidate to the point

where we're going to have some kind of increase in demand

In this case, probably I'm thinking like this is the increase in demand, this is

the increase in demand that we could have.

So after, let's say, we're heating this cluster, we could come to

6664.

Maybe another attempt to consolidate here.

And then the next attempt to overcome 72, 74, and probably come to the next

point where supply is going to increase more dramatically, 80, 78, so something

like that.

Demand is going to increase into this bar, 74, something like that.

And then next attempt to go up is 86.

Supply is diminishing here, so the movement has to be a little bit better

this area, so not with reactions that are not going to be as substantial

as at the beginning, just because the levels of supply here and here

are quite substantial, so it's going to take some time to go through this level.

Okay, well, let's see.

how we did.

Okay, so here is our original horizontal volume signature and this is what has

happened after the price has advanced.

So you could see how everything changes because there is more data that comes

and that changes the whole horizontal profile.

So we're looking into this picture, picture number one. We said that most

we're going to have the move to

above this highs right here, somewhere where supply has increased

into 64 .66.

Okay, so I would say that we're very close.

Then we said that we're gonna have some kind of reaction back into 60

.58.

Okay, that was perfect.

And we said that most likely this is going to be a sign of strength because

this structure, we know where we are. So we are combining the information from

both sources.

We are thinking about, well, where is the supply going to come that's going to

stop the swing?

And if this is going to happen, then what kind of labeling we're going to

for the swing? So a sign of strength, a backing up action.

We said that supply is probably going to come, so we need some kind of retest.

Retest is here.

And then we're going to advance to the next level where supply has increased,

7068.

And then we said that probably is going to come back a little bit into this area

right here, 6664.

Didn't go there.

suggesting more strength and then after that we said that this is the next big

level 72 74 comes right to that level and from there

we could have the reaction again into where into 66 64

somewhere here yes so came there um

and then we know that next time it's going to overcome

72, 74, it does so, and then we said that this is where supply is gonna

start diminishing, so we are expecting the movement with the reactions that are

not gonna be of the same character, that the reactions are gonna be much smaller

than what we've had before, just because of what we've seen prior to that.

So you kind of could see how this is such a valuable information that we

extract from the volume signature if we're thinking horizontally.

If we're thinking vertically, then we will be in the way interpreting the same

information only in a different way.

So definitely, most definitely, we need to look

at... horizontal volume signature now the problem with students and myself

including is that when we look at the horizontal volume signature we are being

distracted it's a different visual information and therefore when we

look at it we sometimes forget about the vertical on volume bars did you have

that switch always happens to me for some reason

When I look at the horizontal volume signature, I forget about the vertical.

So the key here, I think, is just to look at the vertical and try to

find the horizontal volume information in the vertical bars.

How would we do that?

Well, we want to identify the bars that are going to have the majority of the

volume. Those are usually going to be volume spikes.

And then you want to project that.

into the future and you're going to say, okay, well at this level, we would be

expecting some supply to come in. So if the price moves up into this area, this

is where it might have some encounter with the supply and therefore the price

might stop.

And then as the price goes further up, you keep doing this.

You keep thinking, okay, where is the next level where supply has emerged?

and was able to move the price in a meaningful way.

Here, here, here, here.

Kind of like the same information,

excuse me, here,

here, here, and here,

here, here, and here.

This is how quickly I've constructed this horizontal volume signature.

We kind of could see that from the vertical.

And when you don't have the horizontal volume signature, that's what you should

do.

Just think about those levels.

And think about the price movement.

of how the price is gonna move.

Could be from support here,

could overcome this level. If it does, it's gonna retest it

and then move to the next level, retest it, move to the next level. When supply

is gonna start diminishing, it's gonna move in a different way, in a different

character.

So I know that a lot of you

still having some problems mentally adopting

the terminology of the character of the move.

Because there is not enough definitions there that I gave you guys.

Methodology does not necessarily, you know, talks a lot about the character of

the next move, but this is something that I want to develop as a knowledge

then as a skill.

for our community because a lot of this will help to define

your selection.

If you have, let's say, 10 stocks and you only can open five positions and all

of the 10 stocks you think that will go up, which ones do you select?

Obviously, momentum characteristics might come to mind first.

long -term causality for the long -term investors, and so on and so forth.

But regardless whether you are a swing trader or a long -term investor,

you would be thinking, how would the price move?

Would it move in the accelerated way?

Would it have a lot of supply ahead of it?

Where is the most beneficial place for me to... have some

kind of of a swing trade so for instance if we know that there's going to be

a resistance somewhere here and then here then is this a good

place for a swing trade or maybe where supply is going to

diminish maybe in this area a swing trade would be better and we kind of see

it from the way how the price moves right so more distance where supply is

less available um you know and maybe even a better movement although momentum

here you know is slightly better than let's say here but definitely not here

so that's why

So analyzing potential character of the move is important because you're

creating a much more efficient trade and you're extracting more profits. And at

your level, guys, you know, you should be thinking about those things. And even

if you don't apply it, you should still think about this. Please do.

Because these are very important concepts, you know. And even if you,

look at the stock before you open a position and When you go through the

analysis and you look at, let's say, at the causality, you do the PNF, think

about extra question there.

How would the price move?

Would it move quickly?

Would it move with some kind of laborious move, grinding move, because

available there? Would that benefit your portfolio if the speed, the velocity

with which the money is made is lower?

Or would you rather have a selection that has that kind of like explosiveness

behind it?

All right.

Let's do this one more time.

Here's another exercise.

A trading range as well.

So let's talk about the bias here.

Let's...

let's figure out the bias first what do you think uh the bias is for this latest

trading range guys

All right, guys, let's see what you're saying, okay.

All right, so more than half of you are saying that

this is redistribution or distribution.

All right, so let's go through the bias.

Here's our bias game.

A range right here, and we're seeing how that fails.

Interestingly enough, a spring type of, situation going into the sign of

strength up thrust and it's being resolved as an failed up thrust attempt

commit temporarily and then failure right away on the way down we have a lot

of supply that's coming in so the bias is definitely to the downside on

the climactic action we've seen a lot of buying

behind this bar.

So the open was with the gap down and then throughout the whole day there was

big rally that was unfolding.

So that suggests that there is a presence of the demand.

We want to see what kind of demand we have. Would it take us where?

To which level could we come? So we are coming first to

just an intermediate resistance level.

And look at how we are not coming down.

So that's a very interesting thing. So somewhere here we're thinking

that only one day the price went down so low and then it recovered

so quickly.

So there is definitely some demand behind this bar because of how

quickly the price has recovered and also look at the test.

The secondary tests are so high above the actual selling climax low, and

that's on the background of diminishing supply characteristic.

And then after that, after the test, the price still creates an upthrust.

So this is a lot of bullish activity that is happening. And I would say

that at this point,

we still would be anticipating the retest of the previous low.

And that retest would either confirm

or this

bias is to be failed on this reaction.

And this is something that you and I, we've been discussing about the bias

The key is to have the correct bias by the end of the chart.

So let's say that I'm not sure about this rally.

It looks bullish.

This looks bullish. The tests look bullish.

The up thrust look bullish.

But before that, there was a very distinct downward movement, down

bias.

So what do we do?

Well, we say.

I see bullish characteristics, but I'm not sure whether it's bullish.

So I want either to confirm or I want this bias to fail.

How would we confirm that bias? Again, we've talked about the character of the

move. So what is going to be the character of the move?

Into the climactic action, we see a lot of momentum to the downside. We see

velocity increase.

We see supply increase.

We see a result to the downside increasing substantially.

What is the character of the next reaction?

We are not making the new lower low. We are making a higher low. Result is

diminishing. We are diminishing the momentum, diminishing velocity compared

the previous move to the downside. As we see how the down spread on

average.

has diminished characteristics.

So we understand that the selling has

deteriorated on this reaction, therefore confirming a bullish bias

that we found on the way up.

And if we are not confident, if we still think

that the bias is to the downside,

then we would be

looking for the signs of confirmation of that bias, right? So whatever bias you

have, you either confirm or you deny that bias.

So here we're saying, okay, going into the reaction, the character is bullish,

volume is diminishing, high, low.

momentum is diminishing, and we're just retesting the low that we had before.

We're not committing significantly to the downside.

Okay, let's either confirm that or deny again. The next rally does

not have a lot of effort behind it, so we're kind of expecting that it's

probably going to fail.

At the same time, as we look on the way how the price moves, to the upside,

it's actually very encouraging because all of our reactions to the upside were

not very volatile reactions.

So that also tells us that in this case, we are

observing both demand diminution and supply diminution, but yet the price is

going up with somewhat limited result.

Well, two thoughts that come to my mind.

just on that first of all we're expecting a reaction and then we want to

what kind of character of the reaction we're going to have and then secondly we

are probably in phase b why well because this is the place where there's going

to be exhaustion by both demand and supply why is that

well because of this action right here this is a um

of two big efforts.

One is demand, and behind it is some value buying.

And one is supply, and behind it a very strong force.

Capitulation, general capitulation, based on

fear.

Both are extremely strong.

The value buying is strong because there is a lot of force behind it. There is a

lot of intention and intelligent thought behind that buying, whereas general

capitulation is almost always a herd mentality.

This is where more primal thinking exists, and we are trying just to dump

stock at any cost.

Okay, so we kind of...

Thinking, yeah, we're in phase B.

This rally looks a little bit more bullish than bearish.

But because of the limited result, we're expecting a reaction.

We want to see what kind of reaction we're going to have. Would it confirm or

deny our bias to the upside?

We are temporarily committing below.

commitment comes on even lower supply signature.

So that is suggestive of the spring.

Usually that type of spring with supply coming in, we need some kind of retest

that comes on the next low, and we see that this is a higher low, supply

diminishes again, and we are able to recover from that.

So I would say that this is an accumulation bias.

Confirmation of that would be overcome in 98.

And here, with the accumulation bias, we're thinking, okay, well, how would

price go up?

So we're thinking tests in phase A, test in phase B, and then test in phase

C. So we are going into phase D. We're going to have some kind of sign of

strength.

We are having somewhat of an apex formation. So a sign of strength does

have to overcome 108.

It could really only overcome the downsloping line and just to have

that sign of strength into 2008.

So we're expecting a move like this into 2008, perhaps,

and then some kind of backing up action, sign of strength backing up action.

Okay, could we confirm that?

with the volume, with the horizontal volume.

All right, so we are seeing that supply increases here, here, and then

definitely here. So this is our major zone where supply would increase.

So probably 106, 108 is that zone where we would be expecting the price first to

go into some kind of maybe even minus sign of strength.

or out of the apex formation, you know, we could say that this could be a sign

of strength backing up action.

And this is where supply might come, you know, in a significant way. So we'll

have to see what kind of reaction we're going to see here.

The reaction probably to where?

Where demand started to increase?

Maybe to 100, something like that.

So 106, 108, 100.

So this is where supply is going to be the most.

And then after that, because supply has increased, we need to test.

Some kind of test.

And then after that, we're going to jump above 108, 100, and

probably would come to this area right here.

So 122 and 116, something like that.

And look how supply is diminishing throughout these two bars.

So this movement here should be very easy. So we should have some kind of

momentum increase in this area.

And then only here we should have some kind of hesitation.

with let's say the move to 116 again and then again smaller

supply so something like that so we would be expecting this type of action

well what is valuable from this information

well first of all gives us an understanding

about the character with which the price is going to move. So it's still going

to have some interesting spots where we are going to have some vulnerability,

especially here.

This is where we're expecting supply to come in a meaningful way for the first

time.

Because of this absorption of the supply, maybe this area right here is

going to be as problematic.

Also,

you know decrease of the supply in this area right here uh is suggestive of the

momentum move uh in this area between 108 and 116.

so just to summarize you know and to kind of think is in terms of like okay

what what what else could we extract from here if this is the path

i could construct the whole trade

And this is just approximation. So I'm constructing an approximate path for my

trade. One of the issues that I have with my current trade and, you know, a

commonality of my mistakes is all in the add -ons. How do I add to the

profitable position?

Well, it seems like we could define the tactics and, you know, tactical

scenarios as to where we would be adding to the position.

I think that anything that we add in this zone right here would be okay

this is the zone of point of no return.

I think that this point here could be also favorable as an add -on because

this could be the lowest low as supply has increased.

I also think that before this level right here, we could add another

And here the strategy should be highly leveraged

plus short

term.

Why is that? Well, because if momentum is going to increase in the shortest

period of time, we're going to cover the more distance.

And then let's say after that right here, there could be also a good

that we could expect on the way to the upside as supply might be diminishing.

So anything really after the first backing up action is quite favorable for

a swing trade.

This is a favorable long -term trade as well.

So I would be thinking on...

how to actually play that.

Another possibility here is just to think about this possible supply

itself as a potential hedge.

So you could, let's say, sell premiums, sell call premium.

Or you could just open a short -term directional put position.

kind of like is possible in this area.

So you're trying to find the way how to optimize your trading in this way

and how to extract the majority of the money and to create the most

efficient trading path.

All right, well, let's see what's gonna happen.

All right, so here is the price data.

Let's see.

how correct we were we said that our first stop in action is going to be

somewhere in this area right here and

we are

yes

so we are going so one oh uh what is it one oh ten one oh ten

And here is 115, 110, and 102.

Okay.

All right. So we are kind of overshooting this area with the bind

climax conclusion with the small distributional range that leads to this

reaction that has an increase of the supply. So that's probably that.

major sign of strength that we've talked about. We thought that maybe it's not

going to have overcoming of 110. It actually went higher to 115

up to this area. So overcame this high, so that was a mistake.

Then we said that this supply is going to have that reaction into

this area, into 100.

And we are there.

Okay, great. Then we set that out of the backing up action.

We're going to break to the upside first because of this increase of the supply.

We're going to have some kind of test.

And then we're going to, because supply is so low here, diminishes so

drastically, we're probably expecting the momentum move here.

And it happens out of the feather.

on earnings, and we have that acceleration.

So think about, again, that information that we were looking for as we looked

at, you know, horizontal volume.

We were expecting a sign of strength, and we said supply is going to come, so

could actually sell short -term puts, or we could, you know, sell, I'm sorry,

buy short -term puts or sell calls here.

a hedge to our main position so we could extract some money here we could

extract some money from the premium as the price still recovers to those levels

you could do both and then you could add to the position here on the lower low

lowest of them all here then you could add somewhere here so

add add

And then we said anything here is going to be favorable for us to initiate the

position. So three major points where we could open a position before the

acceleration. And then we said that supply might come at around 122, 120.

We didn't really see a lot of supply at 120,

122 that has produced.

some kind of meaningful reaction.

But we definitely see increase of the supply in this area.

It just has been vertically absorbed.

And that's such an interesting indication of the bullish scenario where

price is, the volume is showing to you, you're gonna have some supply here,

increase of the supply.

It did happen.

But then when, again, I'm gonna repeat myself.

When supply increases, the tendency for students to think that this is bearish

right away, not true.

Why? Well, because there are two ways of how supply can resolve itself through

the absorption.

And current market, current rally is kind of a really good example of that

vertical absorption.

And then we could also have horizontal absorption as well.

Or some kind of reaction.

There is no reaction here. The test is successful, and we said that with

diminished supply signature, this could be an area for a good swing trade.

But this we wanted to avoid. This was the point of vulnerability. We knew that

supply is going to increase right here.

Is it valuable?

And if we're thinking about the character this way, and we're thinking

the trade, then we might compare possible trades that we have on the

And we can say, in this stock, I would rather participate in this area,

let's say, than stay in the position in this area right here.

Unless you're a long -term investor, and you started getting in somewhere here,

then, you know, you would be thinking, okay, how do I actually protect my

position? Could I hedge here?

You know, could I have some puts? Could I have, you know, sell some calls? Could

I maybe sell a pair, spread, you know,

maybe sell highly correlated stock to this one, which is

underperforming?

All right, where are we? Five o 'clock.

All right, questions, comments. Let's see. How did you deduce the higher low

104 in that it would only react to 104 before continuing up?

Is it on this one chart, Simon? Is it on this chart?

Okay, so one of four and then react to one of four, right?

So I think that when you look at the reactions, you're basically looking

demand would start to increase. So let's say that you had this stop in action in

the supply, you're thinking on the horizontal volume, okay, when is the

time when demand would increase if we would have a reaction, if the price

go down? Well, somewhere here.

So that was it.

But I don't recall 104 here.

What were we talking about 104?

Yeah, we said that we're going to have a move to 108.

It overcame it to 115.

Then we said that we're going to come back probably to around this area. So

100 and then...

I think it came back to right about that time.

Well, if the stopping action in the actual structure does not appeal to you

with this type of technique, then think about at least the

character with which the price can move once it overcomes specific levels of the

supply, right? So, for instance, this momentum move, this deterioration of the

supply, So these are the spots where the price is going to move really fast, and

you could have an edge here, and we could kind of see that, that this edge

has been persistent in this move.

So this is from about 100 to 150, about 50 % return

in six months.

All right, great.

Let me see. I wanted to cement this a little bit more.

Okay, so here's a choice, guys.

We can do either one exercise on the bias, or we're going to do the exercise

on the horizontal volume.

So which one would you prefer?

Going once, going twice.

Interesting. Everybody's saying horizontal volume.

Okay.

Fascinating use of horizontal price volume. Hope you had a wonderful

Thanksgiving. Thank you, Sharon. Yes.

Yeah, I had a really good Thanksgiving.

Thank you, guys.

I hope you had a really good Thanksgiving as well.

All right. So let's go to stock charts.

And what I thought that we might do is take any stock.

and then just to go through what we could possibly extract the information

as how the price could potentially move, you know,

and use it as a horizontal volume signature. Okay, so which stock would

to discuss, guys?

You can just give me the symbol.

A trade desk is good. Okay. Yeah.

Let's look at this.

So look at where we are. This is the horizontal volume signature. And let me

just get rid of this.

Let's leave the momentum on. Let's get rid of the relative.

Okay. So this is the whole data for this stock that we have over three

years of data.

And this is the horizontal volume signature on the last day, on the last

of this chart.

If I were to, let's say, look at the initial trading range that we have here,

that volume signature is going to change.

Because now, it has less data and the less data it

has uh the more change we're gonna see okay

so let's just say that before the breakout and this is where

the usage of this particular technique is going to be limited so for instance

i'm looking at this ipo uh and i'm thinking okay well Is this bullish? Is

bearish? It looks bullish, right? So there is some kind of decreased

You know, we are seeing that in the volume signature as well. We're seeing

in the spread.

We're seeing higher lows.

We're seeing some kind of apex formation.

So the only usage that we could possibly have in this picture is

the levels of the resistance in this formation with the levels of the

So we could be thinking that if we overcome this supply right here, which

so abundant, we're kind of seeing that trading range, right? So these are the

boundaries where supply is increasing and demand is increasing.

If we overcome that level, look at the next one. Supply is so low in

comparison to the previous level. If we only would overcome that, we would be in

a great shape.

So supply is somewhere here, supply is somewhere here, supply is somewhere

So every time there is an attempt to overcome, supply is coming in. So supply

could be seen in this bar, in this bar right here, somewhere here in these

in these bars.

And then it's hard to see this volume signature button in this bar right here.

So this is where supply resides. This is where they're selling into the

strength. But every time they sell into this level, what happens? We have more

and more muted reaction, more and more bullish reaction, where from high

volatility, we go to the low volatility.

And that confirms the bullish scenario.

And look at how the price now resides at this level that we needed to test.

So from here, the only conclusion that we could extract from the horizontal

volume signature is that if we are going to have a break to the upside, it's

going to have some kind of momentum behind it because there is no supply

it at all.

And we would be looking for some kind of run -up and then a climactic action.

That's what we would be looking for.

Okay, well, let's see.

how that changes, and I want you to see how the picture changes as the price,

you know, starts moving. On the last bar here, we have some supply coming in.

Why? Well, supply tail, volume increases, and we know that this price

has that supply, so we're expecting, you know, some kind of supply come in and

stop in action.

This is a really good bar for us as the test bar as well.

We've tried to go up, still some supply is available, but we're not going down

that much.

Excuse me, guys. So I would say that as the price comes back to 32,

there are multiple options to open this position.

Kind of trade it. So here is this bar.

Suggest what supply has come and there is no more selling.

If there is no more selling, you know, you could actually think

that there is going to be a continuation and this is actually a really good bar

to open the position.

Here is that continuation and look at how everything changes in the profile.

The price.

goes above uh everything below it kind of stays the same because now the volume

on this bar does not influence everything that is below

next bar have some supply and that's why we have this

uh red supply um column here horizontal column to appear

okay supply looks to be you know substantial

And here is one of the mistakes that is very common in students'

work. So, for instance, everything is identified correctly.

Bias, timing, and even the character, we might be saying that there might be

some acceleration right here. But then supply comes like this, and students are

saying, well, the rally is done because supply has come.

Not true.

What do we do here?

Supply increases.

Two options.

Absorption, you know, whether vertical or horizontal, or we're going to have

some kind of reaction.

What do we see on this bar itself?

Did we close below the previous low?

No, we didn't. So even though the effort has increased,

we did not have the progression to the downside, at least here.

So we would be keeping this position.

And if the price would have, again, some kind of rebound, this could potentially

be another way to enter this position or to accumulate more.

And obviously we want something of like what we've had here, the bar that's

going to cover the whole body.

Okay, something like this where through the intraday we could definitely enter

on the way up to 33, 34, 35.

Okay, here we probably would be just staying in this position. We've come up,

you know, multiple times into this position and there's no reversal yet.

There's some kind of gap in that suggests that maybe we're, you know,

close to the Indian action.

But this could be also a little bit of a runaway gap as well.

Again, gap where we do have small supply, but it's not really that big.

So we kind of see that the character that we were thinking is going to happen

availability of the supply would lead to the momentum move.

And again, I want to quote our mentor, R .G. Wyckoff himself,

judge the market by its own action.

You can judge how the price will be going up from this moment if

you understand how supply is being present in this particular

structure, at this particular price level.

All right, well, something more significant here, and I'm not going to

bar, guys. You know, this is a different type of exercise.

Let's just kind of like go to the next formation. So this looks climactic. This

is probably where we would be thinking, okay, at least we're going to get out of

some of the size that we have, some of the, you know,

part of the position.

Here we would be expecting maybe a stop in action, that climactic action, and

this was a very nice rise, less than a month, and we are traveling about, what,

about 40 % or so, or even more, yeah, not 40, so

30 to 40, yeah, 33, about 30%. Okay, so

let's look at the next trading range, because that's what we want.

Okay, so something like this, right? So we are looking at the next range and

we are thinking, okay, what could happen here?

There is not a lot of selling that is going on.

We look at the horizontal volume profile. We're seeing that this is,

of like the level that we were sitting in here and supplies at the resistance,

and we just need to overcome that.

in order for us to have what kind of supply? Well, maybe just a small supply

somewhere here on the way out. But then after that, we don't see a lot of

supply. So that's our expectation, again, that we're going to have some

move to the upside.

Selling is very, you know, not present. So we still probably rely on some kind

of momentum move.

right here, maybe of the same quality, of the same distance, maybe of the same

character, maybe slightly different, but

probably it's gonna overcome this high, most likely, just

because there's not enough selling here, and this could be another good short

-term swing trade.

Okay, let's just.

see where we would get in into the position. So all of these last four bars

actually quite acceptable for opening the position.

This is definitely a really good confirmation bar.

It has some supply signature behind it. And again, we kind of expect that at

this level. Why? Because of this supply right here. Then our next goal is going

to see, you know, in 42, we're going to have something more substantial.

Really good bar next time.

It just shows that supply has come in. It was not excessive, and it was

observed. So could be an add -on right here.

Okay, so supply is still present, and please note that how it came to 42.

had that supply tail so supply is is there we could have maybe like a smaller

reaction here um unless you know we just vertically are absorbing the supply

that came on right on this bar and these are acting as the test bars if we

overcome 42 you could add to the position here as well

okay so that reaction happens

We would not expect this reaction to go below, let's say, 37 .5, 37.

Okay, and that's a jump most likely on earnings.

Again, here we are thinking, what do we do here? Most likely we're just closing

the majority of the position. This was a big run, and it suggests a lot of the

supply that has come.

Once we have some kind of done bar, Here we're going to have the supply

signature on the horizontal level.

We would be thinking, you know, we're going to have the reaction where we

become. So I would still allow the volume signature to develop a little bit

more.

And here it is. So here's that supply that came at this level.

All right, and as we go through the trading range, you kind of could see how

volume starts to persist more in this area than, let's say, in

this area or in this area right here.

So there is more participation by

institutions.

And we're probably observing some kind of potential attempt to...

At least that was the thought at that time.

And what do we need to do in order for us to overcome this level?

Well, we definitely need to overcome 54, 56. We need to overcome the supply.

Supply is still present.

But once we do that, then we could have a favorable continuation.

If the price goes to 56 54 and then comes back that will become

you know very bearish okay so here

is the uh sprint scenario uh is unfolding um this was i believe actual

that i had all right and this was very interesting because the

move to the upside kind of has

The same characteristics as the previous moves, maybe not as strong as you would

expect. So that was a little bit of a suspect, but momentum is showing that

there is some buying behind it.

So we're still going with this scenario.

And the only decision here, would we be selling into the climactic action?

We're thinking that this is a sign of strength, backing up action.

is gonna be somewhere here.

So unless backing up action support fails, then

we would get out.

If there's gonna be a continuation, then we would add on.

Okay.

Looks very favorable.

Again, not that we could use the volume profile here a lot, but we are

definitely in the know that between 57 and 47,

there is a lot of both supply and demand. So if the price is to come back

this level, the action here is going to have a lot of momentum just because of

how shares have been exchanged in this area.

I'm gonna go bar by bar here.

So again, favorable, kind of feeling like I'm reliving this trade again.

Still favorable.

Momentum is diminishing and that becomes a little bit of the concern.

And now we have the formation here that needs to resolve itself to the upside.

If it goes below 60,

That starts to jeopardize the whole structure a little bit. You still might

thinking, well, I could be in the backing up formation.

So it needs to rebound off 60 and definitely don't have something like

this, like a bar that commits below some support or the bar that commits below

the local support.

We don't want to see that. And especially if the bar is going to have

of supply signature.

And I believe that we were pre -earnings here.

This was also pre -earnings, actually earnings right here.

And we kind of, let me give you the history of this.

Earnings, earnings,

earnings, and then earnings somewhere here, expectation,

right?

All right, let's see what happens.

Here it is.

That's the bar.

That's what caused me to think about closing this position.

And that was pre -earnings.

I don't know exactly, you know,

how it came about. It's just that I look at that and...

it looked like there was more supply than I wanted. It looked like the

was not there. And that is during the pre -earnings. So we are not having a

demand from institutions like we had here, like we had here.

We're having more of a picture like this, where we go nowhere pre -earnings.

And then we have this type of bar that is suggestive that maybe we're done.

So at least scale out some before earnings if the stock is behaving this

There are other better ways of how the stock could behave.

If that was not enough, then there is the second bar.

That is kind of giving you an indication that supply is there, supply is

increasing. If we're going to have on earnings some kind of negative reaction,

then where would we go? We probably would just jump somewhere here or here.

So here is our target one, here is our target two.

So this is the way how, you know, this could be helpful.

The horizontal volume could be helpful.

So, one and then two. So

somewhere here between 50 and 42.

It makes sense, you know, this support level a lot. It makes sense for the

oversold here.

It's kind of like the next level where we had some demand.

So let's see what happens.

We are dropping on the earnings reaction right into the 50 zone.

And that is that logical zone where we had some demand

before it came.

Demand actually came on this bar, and this is where a lot of the

has happened, also right here in this area.

And just a side note on that.

I think that we should follow the advice of Wyckoff himself.

And I keep repeating this phrase.

Judge the market by its own action. It's always as if Wyckoff was saying that

all of the information is given to you already as to the way how the price,

the price will do and how it will do so.

So in this example, we are seeing this reaccumulation pattern.

And in some instances, we would probably say that

reaccumulation happened from phase A to phase C?

Not necessarily.

Sometimes reaccumulation could happen in phase A, phase B, and then nothing

happens in phase C.

Sometimes phase C is more important.

So we really have to think non -linearly about how accumulation or distribution

happens. It could happen in so many ways.

And so many different stories that could have, you know, be created, you

know, as a wake -up story.

All right.

Well, let's see what happens next really quick.

All right. So we're still going down. We go to that, you know, next level. Look

at the horizontal volume, how the profile changes. We still have this

5545 as.

you know, an area to overcome.

Either way, this is the highest OEM signature in this area.

If we're going to go up, we want to be buyers.

If we're going to go lower, we want to be sellers.

This could be just an oversold condition and could go up and this could be a

sign of weakness and then LPSY.

What is the best to figure it out?

Wait, wait for the test.

Okay, definitely a test. Right on this bar, you kind of could see that the

temporarily committed to the downside and then quickly rebound up.

We see that the momentum is increasing and improving.

Volume is improving, so there is some kind of synchronicity with which the the

effort comes and the price moves up.

This could be the beginning of the next move.

Now, because of the supply, we might have more retesting. So we might have

consolidation in this area. So we're not immediately attracted to this, although

momentum behaves really well. For the long -term investor, you could consider

this even in phase B, because you're not that concerned about the stop losses.

And that's why the short -term swing trader would rather wait.

The long -term will just have like a small partial position at this point.

Okay, really good development here.

This is the synchronicity bar, and we are on the momentum close to the zero

line.

for the second time. So this is where we could start moving up in a better way.

So this is where the swing traders might come.

This is where the long -term investors could potentially add to the position.

Another day where we could potentially add.

So this day suggests some supplies present, but we kind of know this from

know, this red bar that we had before and multiple other red bars in this

We know that supply is coming in, but look at how on that supply, incoming

supply, the price actually is holding up nicely.

So unless more supply comes, then it could, you know, dominate the price to

downside. Otherwise, it will try to overcome.

There's not a lot of momentum here on the latest rally, so we should

be a little bit cautious, but you kind of see how we're approaching this. We're

scaling in carefully.

Yeah, so not necessarily the best price action here.

So anything above, let's say, 51 would be a really good call to the upside.

This type of move also suggested that maybe there's gonna be an attempt to 45

a retest.

Okay, good bar here.

Really good bar here.

If it breaks to the upside, we could add more.

Again, supply is less.

So there is some kind of absorption that is going on here.

Again, I wonder if this is a bullish case scenario and then we're seeing some

kind of

attempt to shake out at the end or we're gonna have like more of the explosive

move. So let me just show you the bars that we've talked about.

Okay, so long term investor, short term, long term, another add on and possibly

as we overcome this level somewhere here.

If the shake out happens, I think that our conviction is too strong so we can't

get out of this position.

Okay, so break out on the upside.

That's another way to add here, and then we should wait.

And here, what's important is now we could use some horizontal volume

So we know that there is a lot of supply here, but then after that, diminished

supply, diminished supply.

So maybe some increase here.

We would be expecting an increase right here on this volume signature.

we just need to overcome this area of 52 and a half where there's a lot of

supply. And then after that, relatively quickly we should come to

the high of 56, 57 and most likely this time we're gonna overcome it again like

we did here, like we've done here, like we've done here. So just overcoming it

and then Again, we need to see what kind of supply we're going to have at which

point. So at this point, we don't know because we don't have the horizontal

volume signature above 67.

Let's see.

Okay. I wonder if this is that shakeout.

Here we go. So very interesting bar right here.

What would we do, right?

Let's say for the long -term investor, this is of least.

uh concerns why because we have this volume signature and

then this is the supply that comes in plus it has a tail it tried to spring

and it's sprung below phase below now it kind of makes a lot

of sense that probably it's like this it's not a sign of weakness because we

would want the commitment below this level And the way how it acts, it's more

sprainy rather than a sign of weakness.

Again, the volume signature.

No momentum to the downside, at least that much.

So we need some kind of confirmation.

If we're going to have some kind of confirmation here, I think this is

add -on for a long -term investor.

And then as we overcome 52, this could be another add -on.

for a swing trader.

And if we're swing traders, and let's say that we are two units of risk into

the position, how do we deal with this?

Well, if our convection level still is high, then we need to see some kind of

test of the last bar.

Would we have a more bullish bar next?

If we do, then could we get in?

Could we jump into this?

And then could we overcome this supply level? Because remember what comes next.

Momentum comes next.

All right. Let's see what happens.

Good bar.

There is no continuation to the downside.

Volume comes.

There is not enough to put it above the previous bar high.

But it's enough not to produce, you know, that type of selling. So let's see

what happens next.

Not a favorable bar does not, you know, negate, you know, our

bias. We would need to be closing maybe below 43.

Okay. Also not the greatest of the bars, but again, it just kind of keeps us in

this position.

And here I would be doubting the whole bullish case.

And here maybe even just considering scaling out of this long -term swing,

sorry, swing position. Long -term still we would stay on.

Yeah, a swing position here probably would be closed.

But the move to the downside has those bullish characteristics, right? So it

that.

Tail, tail, and look at the spread.

It's not that impressive.

And it still looks like a spring and then a low, low test

on the diminished supply.

All right, well, probably swing will be gone here.

Even on bullish characteristics, I don't think that we would be able to hold on

to those two units.

But the long term, still pretty much in the position.

Favorable bar, most favorable bar, swing trader might come back.

You know, if you have the mental capacity to come back to the trade,

after you lost, then this could be a potentially really good trade.

So the key here was, again, a little bit too early on the swing if we're

thinking that this is phase B.

expecting some kind of shakeout after this type of character move.

Maybe not coming in on this bar would be also a solution where, you know, the

breakout is not confirmed.

And then I still would prefer to get out of the, you know, train that is

kind of like going down and then to re -enter here.

It's just a better entry, much cleaner entry. I know that, you know, you're

taking the loss there.

You could potentially go through this whole formation and then find that place

again and just add.

But if I'm adding, I'm definitely adding above of what I have. I want my

positions to become profitable first.

But if you don't have the position, okay, your assumption is phase C.

Confirmation.

And then again, we were talking about the volume.

Where is supplies increasing? Here. And then after that, decrease of supply,

increase of the momentum.

So you could add on this bar.

Test. A couple of tests.

You could add on this bar on the intraday picture. Now it becomes...

More apparent that it was face see it was kind of like a spring action now.

We're in the sign of strength We are not hitting the resistance yet.

So all of these bars are going to be okay to add All of those actually this

one as well so this whole move from 43 to 50 you could literally add each

dollar

some kind of supply.

Well, let's see what happens really quick because we're already at 530.

Okay, I move to the upside. We overcame that supply and then we were expecting

some kind of reaction, right?

And then a continuation on the momentum. That did not happen this way.

So what is going on here? Let's say somewhere here.

Okay, so here we're thinking a sign of strength, and it's interesting that

this bar should contain a lot of horizontal volume signature, but

it comes more as the demand rather than supply.

So this is actually an interesting but good sign, I would interpret it like

that.

Happens on the momentum, so that's great too.

And then we're still going into the area that has some demand behind it.

The next one, 42,

47.

So long -term investor would stay in. Short -term, a swing trader might

getting out somewhere here.

and that would be a very short -oriented swing trade,

still profitable.

All right, so here, we're still kind of like in this area, in this area of the

demand and the supply, but again, once we get out of this, that's when we're

gonna have that acceleration, which happens.

And these are all four or five bars that could get you back into this position.

Earnings. And here is that momentum that comes in.

And, you know, the supply that has been residing in this area

had multiple times to be observed.

Here and slightly here.

Then there was some supply around this area right here, here, some here, and

then before it went up.

So all of this has been affirmation where a supply

that came before occurred again on the earnings and required this much time to

be observed in order for the price to start moving up again. And it only moved

on the excitement.

It only moved on that earnings report.

So it had to be some kind of catalyst to move the price like that.

All right, guys.

Well, as you could see, obviously, we need to train our eye to see those

We need to train our minds to understand the concepts behind this type of tools.

We need to understand the benefits of these tools, how we can use them.

what kind of edge we can create, and definitely something that is not

necessarily highly intuitive.

You have to spend time with this.

And again, I'm not insisting on you using the horizontal volume signature,

am extremely insistent on...

you understanding the concept and seeing this concept on the vertical volume bar

chart and kind of expecting that you're going to have areas of the resistance

and support based on the availability of the supply and the demand in certain

periods you know at certain prices so and we kind of gone through this

multiple times today so hopefully it landed well hopefully you guys seen the

benefit of this, and next time you're analyzing the chart, think about these

concepts. Think about how you could extract the supply -demand

presence information from the vertical bar, and then project

that into the future of your analysis, and that would be very helpful.

All right, guys. Well, with that, we're done for today. We have...

Two more sessions, so I would like to start thinking about the questions for

last session on the 17th, session number 15.

Send me those, send me those with charts, and I will start creating a

for us to go on that day.

Could be questions about the methodology in general, could be questions about

the market, specific stocks, could be questions about specific concepts, ideas

that we discuss here.

or in references to our past exercises.

All right, guys. Well, with that, I will either see you tomorrow at WMD or I

will see you next Tuesday.

Thank you and bye -bye.