Summary of Anna Coulling's A Complete Guide To Volume Price Analysis

Everest Media

Description

Please note: This is a companion version & not the original book.
Sample Book Insights:
#1 Volume Price Analysis is a technique that has been around for over 100 years. It was the foundation stone on which huge personal fortunes were created, and iconic institutions were built. It can be applied to every market.
#2 Charles Dow was the founder of technical analysis, and his principle was that volume confirmed trends in price. He believed that if a price was moving on low volume, then there could be many different reasons. However, when a price move was associated with high or rising volume, this was a valid move.
#3 The Richard Wyckoff Method, which was a correspondence course, remains the blueprint which all Wall Street investment banks use today. It is a simple economic principle of supply and demand, and Wyckoff believed that by observing the price volume relationship, it was possible to forecast future market direction.
#4 The second law states that in order to have an effect, you must first have a cause, and the effect will be in direct proportion to the cause. The simplest analogy is of a wave at sea. A large wave hitting a vessel will see the ship roll violently, whereas a small wave would have little or no effect.

Sujets

• Investing
• Personal Finance
• Economics
• Business

Informations

• Publié par: Everest Media LLC
• Date de parution: 24 juillet 2022
• Nombre de lectures: 1
• EAN13: 9798822547292
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Insights on Anna Coulling's A Complete Guide To Volume Price Analysis
Contents Insights from Chapter 1 Insights from Chapter 2 Insights from Chapter 3 Insights from Chapter 4 Insights from Chapter 5 Insights from Chapter 6 Insights from Chapter 7 Insights from Chapter 8 Insights from Chapter 9 Insights from Chapter 10 Insights from Chapter 11 Insights from Chapter 12
Insights from Chapter 1

#1

Volume Price Analysis is a technique that has been around for over 100 years. It was the foundation stone on which huge personal fortunes were created, and iconic institutions were built. It can be applied to every market.

#2

Charles Dow was the founder of technical analysis, and his principle was that volume confirmed trends in price. He believed that if a price was moving on low volume, then there could be many different reasons. However, when a price move was associated with high or rising volume, this was a valid move.

#3

The Richard Wyckoff Method, which was a correspondence course, remains the blueprint which all Wall Street investment banks use today. It is a simple economic principle of supply and demand, and Wyckoff believed that by observing the price volume relationship, it was possible to forecast future market direction.

#4

The second law states that in order to have an effect, you must first have a cause, and the effect will be in direct proportion to the cause. The simplest analogy is of a wave at sea. A large wave hitting a vessel will see the ship roll violently, whereas a small wave would have little or no effect.

#5

The price action on the chart must reflect the volume action below. The two should always be in harmony with one another, with the effort seen as the result. This is where we start to analyze each price bar, using a forensic approach, to discover whether this law has been maintained.

#6

The ticker tape is a system for communicating stock prices and order flow, originally developed in the mid 1860's as a telegraphic system for Morse code. The ticker tape was adapted to provide a system for communicating stock prices and order flow, and it appeared on a narrow paper tape which punched out the numbers throughout the trading day.

#7

The first great trader was Richard Ney, who exposed the inner workings of the stock market and the tacit agreements between the regulatory authorities, the government, the exchanges and the banks. His books are still available today and just as relevant.

#8

The truth behind the numbers is revealed through volume. Whether you are trading in manipulated markets such as stocks or forex, or ones such as futures where we are dealing with the major operators, volume reveals that manipulation and order flow in stark detail.
Insights from Chapter 2

#1

The market makers are the wholesalers of the market, and they are professional traders who have been approved to make a market in the shares you wish to buy and sell. They are usually large international banking organizations, and they make vast amounts of money.

#2

The market makers are the officials who make sure the markets stay balanced. They will know the balance of supply and demand at any given time, and will act accordingly. The only way to fight back is through volume, which reveals when the major operators are moving in and out of the market.

#3

Tick data is not a perfect proxy for volume, but it is 90 percent representative of true activity in the market. Volume is activity, and in this sense can be reflected in price. If the price is changing fast, this means that there is significant activity in the market.

#4

The analogy between activity and price is a valid one, and all volume is relative. Volume without price is meaningless.