S&P 500 E-mini FuturesEducation
Real waves
From all the dudes tryna solve it Wyckoff was the closest. He even figured out how levels get positioned as supports/resistances (he called it accumulations, re-accumulations, distributions and re-distributions). The only thing he was missing are the actual levels hehe (all these 4 volume absorption processes never happen "in the air", ain't no Phil Collins in this particular case, there's always a level). Levels & waves, one doesn't exist without another one.
It's all simple: every formation of a new level and every test of existing non-cleared level starts a new wave, either in the opposite or in the same direction.
Check the chart, I've marked some waves and made 2 schemes. Every distinct wave has a different color.
Why? How?
Wave sounds cool, "uninterrupted continuous order flow in the same direction" sounds lame and boring af.
Interrupted? Each level interrupts the order flow, even for a lil sec, there's always a volume absorption process happening when levels get formed and when levels get positioned, also when levels get cleared (consumption of liquidity at the level). So, checking the level-to-level buying and selling waves is a perfect way to measure order flow aka incoming volume.
Remember about fractal nature of the market => propagation of principles? It works on tick charts => it works on 1 minute charts, and on 1Q charts, and on every other possible resolutions.
It's all simple: every formation of a new level and every test of existing non-cleared level starts a new wave, either in the opposite or in the same direction.
Check the chart, I've marked some waves and made 2 schemes. Every distinct wave has a different color.
Why? How?
Wave sounds cool, "uninterrupted continuous order flow in the same direction" sounds lame and boring af.
Interrupted? Each level interrupts the order flow, even for a lil sec, there's always a volume absorption process happening when levels get formed and when levels get positioned, also when levels get cleared (consumption of liquidity at the level). So, checking the level-to-level buying and selling waves is a perfect way to measure order flow aka incoming volume.
Remember about fractal nature of the market => propagation of principles? It works on tick charts => it works on 1 minute charts, and on 1Q charts, and on every other possible resolutions.
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