2nd update -eur/usd 6-12-08

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For my students who probably knew better than I did and spotted the 4hr bear pivot on the 4hr let’s talk about that bear pivot reversal bar. Now, you are saying that the pivot bar formed on lower volume so why did price continue down.

And that question allows me to segue into the new videos I have been producing to augment the principles outlined in your book, Volume-The Archimedes principle.

I’m going to mention the market facilitator index (MFI). The MFI tells you who is doing the buying and selling. For example on the pivot bar the MFI is blue. When the bar is blue it means that professionals moved that bar. A.K.A. Operators.

So even though this pivot bar had lower volume it is more important who generated the volume. If operators move the market in a given direction they are going to protect their position. So here they are going to protect their shorts down to the next support level.
And you want to trade with them not against them.

When the next bar after the pivot bar closed lower on higher volume the momentum was sealed and the herd then jumped in as evidenced by the green MFI BAR. When you see a green MFI bar,that means public participation is moving that bar A.K.A. THE HERD… operators fade the herd.

I know this stuff is in the book but volume can be kind of tricky and hence the new videos to compliment the book. Anyone who has ever bought THE ARCHIMEDES PRINCIPLE will get the videos free.

I have sent to your mailbox a free ebook about volume. No I did not write it but, it will help you understand why volume is so important. They give free downloads of the book to introduce you to a software program that they say will interpret volume for you automatically. I have no affiliation to them whatsoever. A friend directed me to their book I thought, “Wow, they are selling this software for $1100 dollars to do the very same things I teach in The Archimedes principle. I don’t know if their software works but I know that I actually teach you how to use volume and with plenty of chat examples and now the videos.

Jerry