For many traders, price and the price chart itself are the beginning and the end of technical analysis. All they consider is the price and nothing else. However, for myself, and many others, this approach completely ignores the extension of price to its logical association with volume, which together reveals the market’s true intent, and whether a move is genuine or fake.

It was good enough for them

This approach was first developed by the founding father of technical analysis, Charles Dow, more than a century ago, and then further developed and codified by Richard Wyckoff into his three laws, and what I now call Volume Price Analysis. It was an approach used by many of the iconic traders, and on which they built their vast wealth. To them, it just made sense and revealed the truth behind the price action, and will do the same for you in the world of forex.

About the Author