Greetings from Mexico … Mayakoba to be more precise, checking out new places to hold our events when everything is back to normal as well as getting a bit of winter sunshine in!
The last two weekends have been occupied with my WiseTrader event, which was our best stocks event yet, and provides a new standard for future events.
In today’s market review I wanted emphasize the real reasons why a chart setup might be so potent in the context of our Big Money Footprints.
Take the Volume Pocket … and let’s focus on its bullish version. What is it actually telling us?
When you see the bullish (green) volume pocket in the context of other Big Money Footprints, the reason it provides such value-add is because it is directly influencing the amount of shares inventory available for trading. This in turn means that it will be easier for the stock price to reach its P1 if it breaches the consolidation breakout level.
Think about it …
- There’s a green volume pocket, meaning that many shares have been acquired. The question is … are they being actively traded or accumulated? If the latter, then those shares are effectively out of the picture, unavailable for further trading until the holders sell up. Therefore supply is lower.
- Now combine this scenario with the presence of other Big Money Footprints such as OVI, recent price thrust, and cross-and-hold of a Key Level.
- And what if there’s also the presence of shrinking retracements and a consolidation?
With several of these Big Money Footprints in evidence, the odds of the volume pocket representing accumulation become significantly higher, meaning fewer shares are likely to available for trading, meaning lower supply.
It then won’t take that much buying pressure to result in sufficient upward motion from the breakout level to a conservative P1.
Note, at least two of the other Big Money Footprints need to be there too …
Also, can Big Money be around even without a volume pocket?
Yes! In fact we do often see big OVI action with seemingly little share volume, meaning that the big options traders have cornered the information market before the big share traders and investors. Again though, we would want to see at least two other Big Money Footprints recently in evidence.
When you think about charts by way of buyers vs. sellers, and you have the tools to make the proper evaluation, AND find the opportunities, then you have a massive advantage … which is why so many OVI Traders are so successful.
Here’s today’s OVI Market Review.