Candle and chart patterns are an important aspect of volume price analysis, but it's also important to recognize that some have a higher probability of playing out. For example, double and triple tops & bottoms have a high probability of playing out, which we have seen on the Apple weekly chart. First, we had the double top, with the stock subsequently rebounding from the deep valleys at the $168 area. However, as shown on the weekly chart above, Apple now faces the possibility of a triple top. This results from Apple's failure to take out the highs of the double top peaks at $199 and yesterday's daily close of a bearish engulfing candle in high volume does not bode well for the stock. Interestingly, yesterday's price action was against the background of Apple's new announcements at the WWDC24 (Worldwide Developers Conference), where the focus was on AI & the integration with ChatGPT.
Based on comments in my X-feed, the jury seems...
Trading With Multiple Timeframes On SPYCore Points[00:00 ~ 05:57] Introduction to the session on stock trading and investing using volume price analysis (VPA), highlighting the global audience and the inherent risks of trading. Announcement of the completion of a comprehensive “Complete Stock Trading and Investing Program” covering the entire spectrum from fast, short-term trading including zero-day-to-expiry (0DTE) options to long-term investing and asset allocation. Emphasis on the overlap between trading and investing disciplines despite their differences, and the intention for the program to serve users for life with ongoing updates.[05:18 ~ 08:24] Recognition of significant changes in the trading landscape, especially post-pandemic with the surge in 0DTE options trading, which involves not just retail traders but also institutional participation. The program incorporates these new market realities. Introduction of newly developed volume-based indicators, including the Volume Relative Strength Indicator (VRSI) and advanced VWAP versions, which are integrated into the program and existing clients receive them free of charge.[08:29 ~ 12:45] Market overview focusing on the SPY (S&P...
Most traders and investors get very frustrated with consolidation phases of price action on a chart, but as VPA students, we know these zones are the spawning ground of trends. One such example can be found on the daily chart for Meta (formerly Facebook), which has risen over 60% YTD. This turnaround in fortune has been driven in part by strong retail inflows at the beginning, but the groundwork was laid in December, as we can see on the daily chart.
The charts in this post are from my TradingView account, and we can see immediately the accumulation during this timescale with the accumulation and distribution indicator (blue hatched) thickening as the phase developed, confirming it would provide a strong platform of support for any move higher. Note also the yellow pivots in the consolidation, which helped to define the highs and lows.
On the weekly chart, we can see the vpa lessons and how the outermost support line of the volume...
