Saturday, February 21, 2009

Weekly Chart and Levels

Hey there,
Here is my weekly chart and levels I am looking at. You need to be doing this kind of thing yourself.

Hope it helps.



  1. Hi MG, Thanks for the post. I'm continuing to enjoy your blog.

    Can you please explain your definition of initiated selling or buying? I ask because I'm familiar with the terms from Mind Over Markets / Markets in Profile where they are used in a different way. For example, your areas of initiated buying in 750s would probably be termed responsive buying by Dalton as the market was below value e.g. buyers responding quickly to lower prices and forming a tail.

    Anyway, interested to hear your thoughts. I thought you were perhaps using single prints/low volume to highlight areas where price has moved quickly e.g. 'other timeframe directional conviction'. However, looking at the areas on this post would suggest otherwise as they have relatively high volume


  2. Hello,

    Thanks for sharing your charts I find it very helpful... I would like to know how you determine initiated buying or selling.


  3. Michael,
    Good question. I have shown this concept in action in some of my earlier posts and I will continue to clarify this concept in future posts.

    However, it's too much to go into in detail now. My suggestion is to look over earlier posts. I show this concept more clearly in my 1 day 30 minute chart examples.

    In this weekly chart, I had to compress the data to make it visible. Uncompressed, you would have seen the market take off with statistically high volume from the areas I marked. The market either has yet to test these levels or has tested them and failed. The concept is that when the market returns to an area of statistically high initiated volume, the people that were wrong will be overjoyed to get out breakeven. Thus, even if the market eventually breaks thru the area, you will usually get a couple of points in your favor and can get out with no harm done.

    The guy I learned this concept from is Bill Duryea of IOAMT. ( I suggest you do a free trial in his room and watch as many of his plentiful free videos as you can. I still take advantage of studying with him all that I can.

    Hope it helps,