We are great fans of volume to price studies, we are after all a Richard Wyckoff logic fan site. We also like to mix up Wyckoffian logic with Hurst and Gann logic for better returns, and it may surprise you that we are not much of a fan of the wiggly lines that go under price charts. Unless we can determine the benefits out weigh the eye strain and head aches of viewing many of these (mostly useless) indicators.
The wiggly lines we like the most are: Hurst Cycles, RTTTrendStatus, RTTMarketPulse and RTTTrendPower
The most important wiggly line is the Hurst Cycle as it display's the dominant cycle found by our RTT Cycle Finder Spectrum tool.
A Hurst cycle analysts has three decisions to make when applying the dominant cycle to price action:
1) Is price moving down with the cycle peak to trough?
2) Is price moving up with the cycle trough to peak?
3) Is price causing an inversion to the cycle action?
Price action and trends are supported by volume activity. The nature of volume activity can confirm or deny price action. Thus the need for a tool to make this task a little easier, introducing RTT TrendPower. RTT TrendPower is very smart money flow indicator and it helps us to determine if price action is supported by volume activity, and this is very much in line with Wyckoffian logic.
False break outs, false rallies, weak or strong trends are easily determined by reading the action of the RTTTrendPower indicator. Even though we state that we like to use this indicator during the determination of price action to Hurst cycles, you can use it for other technical studies like: confirmation of range break out, trend reversals, etc.
Learn more here: RTTTrendPower
Example:
In the Apple Inc chart we found a powerful long term dominant cycle at 216 periods. We applied the RTT TrendPower at half (approx) the dominant cycle of 109 periods. The indicator highlights each price surge very well, and shows up a few failed price rallies.
