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Mike
06-26-2011, 10:42 PM
Pascal,

I believe that you have read the new Midas book.
What intrigues me is the discussion about volume and volume periodicity in charts. This is the discussion where Richard Arms discovered that volume in a consolidation plays out in volume in the subsequent rise in equal proportion. The book talks about float turn over breakouts.

Somehow I think there might be something in this discussion relative to effective volume. You plot effective volume trends. You plot active boundaries which is really price based volume weighted average price over an active float. In this technique you might search for the active float parameter that best gives consistent inflection points.

Okay the point is that active boundaries is a price oriented chart showing percent gain of possible portfolios held over the period of the active float turnover. The Midas book is pointing to a volume oriented determination of inflection points. Of course they are working with total volume.

My thought is to compute total large player effective volume between price inflections and to use any discovered periodicity to predict in the future the large player effective volume where the next inflection point will occur. This might give look ahead capability in volume and approximately in time.