Understanding price and volume action with a Richard Wyckoff logic eyeball, allows you to win with profitable trades as well as Davy Crockett shoots.
Below is a chart with readtheticker.com custom indicator called RTTOBV. Essentially it is our version of the standard 'On Balance Volume' indicator. The indicator simply gives a greater bias to each bar's volume when the close is strong or weak and adds it up. Therefore you could say it expands the positive and negative to see the true price volume force in the market.
The blue and red arrows market below are ideal places to place an option credit or debit spread that would likely return 50% to 100% per trade.
Of course if the RTTOBV is an ugly picture, then the trend is will be ugly. So stay away from charts like that!
Example of the RTTOBV on SPY
Investing Quote...
"...If we wish to avert failure in speculation we must deal with causes. Everything in existence is based on exact proportion and perfect relationship. There is no chance in nature, because mathematical principles of the highest order lie at the foundation of all things. Faraday said: `There is nothing in the Universe but mathematical points of force." ~ William D Gann
"...Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected." ~ George Soros
