LARGE volume at key levels can tell you alot

[MC]

They are selling into the strength. That's what changes trends, when all the big money is out and bad news or something else hits the herd runs too little too late. Buy low on panic, sell high on news that creates herd greed.

If you have seen my past posts I refer to hidden selling. This is how markets work. I can also see where they bought in. Let me update that chart for you and you will see something if you have an open mind.


Scaling in at lows 1,2 and 3. Hype rally then selling at 4. Rinse and repeat.
Also noteworthy is the supply line (volume by price)...they sold at the same key level both times with large volume. Then notice the limited volume that follows the hidden selling, that's big money showing no demand. This is how the market cycles and why I say retail moves nothing and big money is the coattail to ride. It's also why I suggest noting key levels at least as heavily as trendlines if not more so.

Good trading guys.

[Carl Icahn]

I was looking further into this MC, after you posted it earlier. Then I started going over the charts last couple years and it clicked after my mentor told me without me even aware of it. Something else has changed big time over the last couple months. If your an intra-day trader maybe you already noticed but the dead zones(dolddrums) arent what they used to be. Key turning points in the market have been happening midday.

Another point the volume increase is expo recently and the technology has been feeling it as well; a lot of weak platforms not naming any, but whoever dont adjust will go out of business

[MC]

Bump.

The chart I posted back then shows another aspect I didn't catch till a few months ago. Early on I only thought volume drove price...and it does to some extent. Not as much as I had thought though. The reality is PRICE is what drives volume initially and that's why I say volume measures the success of the auction...like my sig line says.

This isn't to say you should be blind to hidden selling or accumulation since big money absolutely has major impact in the mid-longer term. I liken the market to juggling 10 chainsaws, that's probably why many fail. The data you need to process can be quite overwhelming.