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Author: Admin | 2025-04-28
Algorithm shows that Ford has gone up nearly 90% of the time between August and September.But the question is — what did Jesse Livermore mean by the “pivotal point”?Well, we know that Jesse Livermore looked at VOLUME.Specifically, Keith Kaplan and his team at TradeSmith discovered that areas of VERY high volume indicate a “turning point” once the stock price hits that level.So, they set out to find a way to visualize these incredibly high-volume areas.They call it the “Volume at Price.”Now that may all seem complicated — but here’s the great thing. You don’t need to fully understand the ins and outs of volume analysis like Jesse Livermore did.Just like the Paul Tudor Jones’ seasonal cycle methodology, Keith and his team have created a simple visual that you can put on any chart for virtually any stock with the push of a button.Once you do — you’ll EASILY see where the “high volume” pivotal point lies.Do you see that big long rectangular bar?THAT is the single price range at which the most amount of volume has been traded.And do you see how the price of ford “bounced” off that high volume pivotal point?Well — that’s exactly why these price levels are so vital.Now — without worrying about all of the deep-level volume analysis expert traders like Jesse Livermore engage in, you can simply click a button and see if the price is at a “high volume pivotal point” in a matter of seconds.Finally, we come to the third criteria, borrowed from the father of candlestick and order flow analysis himself…Criteria #3:Make Sure The Price Is At A Support Or Resistance LineTake a look at this chart — the price of this stock hits $12 and then falls. Then hits it again — and falls. Then does it again for a third time and falls.THAT is a level of “resistance.”It means there’s a lot of people in the market SELLING at $12.Why?Who knows! But they are — and that’s what matters.Now take a look at this stock — when it goes to $10 it bounces up. When it gets back to $10 it bounces up again. And it keeps doing this.This is called SUPPORT.It means there’s a lot of people buying at that level. You can see these price patterns over and over gain in any standard candlestick chart…Homma called this pattern the “Three mountains” for example.Today — we refer to
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