XLK Monthly: VPA Anomalies Show the Tech Rally Was Built on Sand

XLK Monthly: VPA Anomalies Show the Tech Rally Was Built on Sand

by David Coulling Comment Closed
XLK Monthly: VPA Anomalies Show the Tech Rally Was Built on Sand XLK is the State Street Technology Select Sector SPDR ETF. It tracks the technology sector of the S&P 500 and is heavily concentrated in a few mega-cap names. The top three holdings — typically NVIDIA, Apple and Microsoft — usually account for around 40% of the fund, while the top 10 make up roughly 65%. When you analyse XLK, you are largely analysing the price behaviour of the biggest technology stocks. You can read any chart with volume and price. On the monthly timeframe for XLK, the anomalies are glaring and simply confirm what many of us suspected and commented on at the time: the tech rally was built on sand. The hard evidence is sitting right there in the ETF itself. The Candles That Tell the Story Look first at the two candles of September and October last year (red arrows). These show the kind of action we expect in...
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You’ve Read the Book. Now Learn Volume Price Analysis from the Person Who Wrote It

You’ve Read the Book. Now Learn Volume Price Analysis from the Person Who Wrote It

by David Coulling Comment Closed
You’ve Read the Book - Now Learn Volume Price Analysis from the Person Who Wrote It Price tells you what happened Volume tells you whether it mattered That is Volume Price Analysis. Anna Coulling created the modern method. She wrote the book thousands of traders still keep on their desk. Quantum Trading Education is where that method is taught in full — not in a chapter, in a complete programme. Keep reading if you are done collecting indicators and ready to learn how to read a chart. What happens after the book? A Complete Guide to Volume Price Analysis shows you the principles. Then you open a live chart, and the market does not look like the examples: The candle is wide. Is that effort or a trap? Volume is high. Is that buying or selling? The pair rallies on thin volume. Do you stay in or get out? You know the words: accumulation, distribution, effort versus result. You still hesitate on the next...
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Doji candle on the monthly DXY chart confirms hits strong price & volume based resistance

Doji candle on the monthly DXY chart confirms hits strong price & volume based resistance

by Anna Coulling Comment Closed
The Doji candle is often taken as a reversal signal, which can happen. Additionally, what this candle is really telling us is that, during its formation, the bulls and the bears were in a tug-of-war for control. Naturally on completion, there was no overall 'winner', leaving the project directionless. Therefore, this is why the candle is best described as a candle of 'indecision'. From a trading perspective, Doji candles can generate strong two-way price action. However, it more often causes choppy, volatile trading conditions. Fortunately, the example we have on the monthly chart for the DXY had a really wide range - over 200 pips which explains why this week the price action has been more muted. Understanding candle patterns and blending them with the Quantum indicators can help to determine where the price is likely to pause and reverse. In this example, we have price-based support & resistance from the Camarilla pivots and volume-based resistance derived from the volume point...
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