The Secret Science of Price and Volume: Techniques for Spotting Market Trends, Hot Sectors, and the Best Stocks

Preface vii

Dedication ix

Acknowledgments x

About the Author xi

Chapter 1 My Path to Successful Trading 1

Becoming a Broker 2

First Foray into Technical Analysis 3

A “Student” of the Market 5

An Incomplete Picture 6

Understanding Market Time Frames 7

“Discovering” Wyckoff 8

Price and Volume Relationships 8

My Trading Methodology 9

Chapter 2 Overview of My Method 11

Time Frames and Trading 11

Taking a Top-Down Approach 12

Aligning with the Market 30

Chapter 3 Physics of Price and Volume Analysis 33

Determining Buy and Sell Signals Using Ord-Volume 39

The Bullish Setup 54

Conclusion 56

Chapter 4 Price and Volume Relationships 59

Volume Analysis at Swings 60

Trading Gaps with Volume Comparisons 79

Chapter 5 Combining Ord-Volume with Swing Price and Volume Relationships 87

Combining Ord-Volume and Volume Relationships 88

Understanding Volume Pushing Price and Time Frames 95

Using Longer and Shorter Chart Time Frames 103

Summing It Up: Swing Price, Volume and Ord-Volume 104

Chapter 6 The “Wind at Your Back” Method 107

Finding Market Direction 107

Breadth Analysis 109

Volume Analysis 120

Momentum Analysis 125

Chapter 7 Sector Analysis and Stock Analysis: The Importance of Sentiment 135

Sector and Stock Analysis 136

Investor Sentiment Helps Pick Market Turns 145

Summing It Up: The Consensus of Indicators 154

Chapter 8 Gold Stocks: The Big Picture 157

Reading the Price Relative to Gold Ratio (PRTG) 158

Elliott Wave Analysis in Gold 160

Using “Third Time Up” and Volume Analysis 162

Applying Breakout Analysis 163

What Lies Ahead for Gold 165

Concluding the Gold Discussion 165

Chapter 9 Putting it All Together 167

Step 1: Reading Market Sentiment 168

Step 2: Evaluating Breadth, Volume, and Momentum 172

Step 3: Picking the Strongest Sectors 183

Step 4: Selecting the Strongest Stocks 185

Putting It All Together 190

Index 193