QUANTUM TRADING EDUCATION – TECHNICAL ANALYSIS MODULE

Description

QUANTUM TRADING EDUCATION – TECHNICAL ANALYSIS MODULE

For many traders and investors, price and the price chart itself are the beginning and the end of technical analysis,and this perhaps best describes those traders who classify themselves as price action traders. All they consider is the price and nothing else. However, for myself, and many others, this approach completely ignores the extension of price to its logical association with volume. The explanation generally given is that technical analysis is based on the underlying philosophy that all market sentiment is contained within a simple price chart. That a price chart encapsulates the views of every market participant at a given point in time.

Whilst this is undoubtedly true, what it fails to account for is the market manipulation which occurs in all markets and all timeframes. And in order to see inside the market, and what the insiders and market makers are doing… We have one tool at our disposal which reveals their activity instantly, and that tool is volume. Volume is the catalyst which when combined with price, provides the foundation stone which is volume price analysis. And if you think this is anew approach, think again. This method was first developed by the founding father of technical analysis, Charles Dow, more than a century ago, and then further developed by one of the greatest traders of all time, Richard Wyckoff. Iconic traders such as Jesse Livermore and Richard Ney used the same approach, and all had one thing in common. All used the ticker tape, reading the prices and associated volumes to interpret and forecast future direction .