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Waves

Real wavesFrom 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.
CME_MINI:ES1!Education
by gorx1
Imaginary wavesAgain as with the levels, first ima tell how to locate both real & imaginary waves, then I'll explain the principle itself, what are they, why it works etc, why we need em & how to use em. It's really easier this way. Let's start with imaginary waves. First, pls read the linked "Imaginary levels: fair price aka value", it has an explanation and another common example & about the imaginary levels. As with imaginary levels, imaginary waves are, well, imagined xd, when there's nothing else, but a decision has to be made. Look at the chart as if you're in 2k13 (when ASAP dropped Trap Lord) as in the previous example in the linked study, we have an overridden wave 520-1923.7, we have an imagined fair price level somewhere around 1200. When we have an overridden wave -> we have the imaginary fair price level somewhere ~ in the middle of this wave -> that fair price level divides the real wave into 2 imaginary waves. As with imaginary levels, imaginary waves can be used for further processing.
COMEX:GC1!Education
by gorx1