CVD (Cumulative Volume Delta) Indicator

CVD is a strong volume-based indicator that tracks cumulative volume changes from buy and sell aggressors over a set period. You can combine CVD signals with other technical analysis tools to find more reliable market entries.

The Importance and Predictive Ability of Trading Volume

Volume is a key piece of information that most market participants often underestimate. In general, price action and volume should move in harmony. Any divergence between the two can be an early signal of unstable market conditions. For example, a major trend reversal or breakout should always be backed by strong volume. If a breakout happens without significant volume, it may not hold. Likewise, a market top or bottom should be confirmed by a clear surge in volume. If a price tops with only moderate volume, the market is likely in a re-accumulation phase rather than a distribution phase.

Wyckoff argued that when price action and volume move together, it shows an established trend with a high chance of continuing. But if price and volume move randomly, the trend is more likely to consolidate or even reverse. This is why volume is so important, and why volume-based indicators like CVD can be useful in confirming any bullish or bearish outlook.

Read more: CVD (Volume-Based Indicator)

⚙️ PriceMomentum: Introducing a New Chart Type from TradingCenter

A PriceMomentum chart improves a regular price chart by adding key features like intraday momentum and market volatility, giving traders a clearer view ️for stronger chart analysis.

️〽️ The PriceMomentum Chart: A First Look

PriceMomentum was created by Giorgos Protonotarios to offer a new way of looking at chart analysis. This chart type focuses on percentage changes rather than absolute prices. It also uses an algorithm that factors in market volatility and shifts in periodic momentum. It brings together three key elements:

• Periodic Percentage Change (%)

• Bullish/Bearish Periodic Momentum

• Volatility (measured by the daily high-to-low range)

Basic Features:

• Focuses on percentage gains/losses while ignoring price levels

• Closer to a logarithmic chart than a standard price chart

• Combines price action with intraday momentum and volatility, making it more accurate near market tops and bottoms

• Very sensitive to momentum shifts, especially when paired with high volatility (often seen near tops/bottoms)

• Technical analysis patterns and formations remain fully valid on a PriceMomentum chart

• Moving averages can be applied as usual

Read more: PriceMomentum Chart: A New Perspective to Chart Analysis

The Platinum Sequence of Numbers

This analysis uncovers a useful numerical sequence for trading global financial markets, based on a combination of Fibonacci numbers, prime numbers, and Fibonacci ratios.

Starting with the Fibonacci sequence, then incorporating prime numbers, and combining them while maintaining perfect harmony (2.62/6.85).

🌀 The Basic Fibonacci Sequence

The Fibonacci sequence is a series of numbers where each number is the sum of the two preceding numbers.

🧮 The sequence's first numbers:

• 0, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584, 4181, 6765, 10946, 17711, 28657, 46368, 75025, 121393, 196418, 317811, 514229, 832040, 1346269…

Main Features:

• Each number equals the sum of the previous two (e.g., 3 = 2 + 1 and 5 = 3 + 2).

• Each number is about 1.618 times the preceding number (e.g., 233 ÷ 144 ≈ 1.618).

• Each number is about 0.618 of the next number (e.g., 144 ÷ 233 ≈ 0.618).

Why Are Fibonacci Numbers Important?

Financial markets often form historical highs and lows near Fibonacci numbers. In particular, the 0.618 and 1.618 ratios are among the most important in trading.

⏪ Backtesting on the Dow Jones Industrial (1928–2016)

In my 2018 book Trading World Markets Using Phi and the Fibonacci Numbers, I examined Dow Jones Industrial record highs from October 1928 to April 2016.

As shown in the following table, there were many instances where the DJIA reached a record high close to a Fibonacci number.

Read more: Trading with Fibonacci Primes -The Platinum Sequence of Numbers

Mastering the Wyckoff Trading Method: Step-by-Step Tutorial

What is the Wyckoff Method?

Developed in the early 1930s by Richard Wyckoff, this method combines principles and chart schematics to identify market structure and predict major trends in their early stages. The Wyckoff method can be applied to all financial markets.

□ This analysis starts with the 3 fundamental Wyckoff laws, then reviews the 4 market phases, followed by detailed accumulation/distribution schematics, and concludes with the 5-step method.

MODERN TRADING WITH THE WYCKOFF METHOD

Wyckoff Three Laws

Three fundamental laws support Wyckoff's principles:

(1) Demand & Supply Law

The law of demand and supply is the core idea behind every economic theory. Prices go up when demand is greater than supply, and they go down when supply is greater than demand. When demand and supply are balanced, the price should stay the same.

The law of demand and supply cannot be broken in the long run. However, in the short term, it can fail, especially when trading volume is low. This is why Wyckoff insisted that price action should always be studied together with volume bars. Today, advanced traders also use the order book to analyze demand and supply.

(2) Cause & Effect Law

This is one of the fundamental laws of the universe. For every effect, there is a clear cause, and for every cause, there is a clear effect. According to Wyckoff, price action is never random; it is always the effect of a specific cause. This means price changes happen because of certain events. By studying the phases of accumulation and distribution, traders can make reliable forecasts about future price movements.

In Wyckoff’s basic chart, two consolidation phases create the cause that leads to future price changes (effect):

■ Accumulation is the cause of a coming uptrend (effect)

■ Distribution is the cause of a coming downtrend (effect)

With a simple chart, traders can measure the cause (Accumulation/Distribution) and estimate the size of the effect (Uptrend/Downtrend).

(3) Effort vs Result Law

The third law connects price action (result) with volume (effort). Price changes are the result of a certain effort, and this effort can be measured by looking at trading volume.

Read more: Wyckoff Method Trading Tutorial