RTT On Balance Volume, excellent for Wyckoff logic anaylsis.
We are Richard Wyckoff fans and any indicator that merges price and volume is of interest to us. Our custom On Balance volume indicator (RTTOBV) measures the power of the close with the power of the volume.
(NOTE: To use RTTOBV within your own charts you must subscribe to a charting service with 'RTT Indicators'.)
RTTOBV is explained in this video (for indicator settings mentioned):
Please notice how the RTTOBV indicator steps with the price trend, these are momentum steps. The presence of momentum steps by the RTTOBV indicator that are supporting the price trend is a very healthy sign.
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With the RTTOBV you can also apply Richard Wyckoff logic of 'Effort vs Results', 'Ease of Movement' and 'Absorption'.
Bullish example, sellers could not push price down below support, selling was absorbed by the buyers.
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Bearish example, buyers could not push price higher, buying was absorbed by the sellers.
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Here is an explanation of up and down volume. The weekly up and down volume is used in the above charts.
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NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
Investing Quote...
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Jesse Livermore Trading Rule
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Mark Twain
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Peter Lynch
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Ayn Rand
The minute you get away from the fundamentals – whether it’s proper technique, work ethic, or mental preparation – the bottom can fall out of your game.
Basketball Legend Michael Jordan.