- Investigate compression as a hidden dimension of market behaviour.
- Price is visible at all times, compression is not visible.
- It is found using (Compression = Volume / Price Range).
Is compression increasing or decreasing ?
What effect does compression have on price ?
Anyone here familiar with Ohm's Law that describes electrical circuits ?
Current(amps) = Voltage(volts) / Resistance(ohms)
What happens to current if the voltage is going up and down ?
I was studying Ohms law when I was about 11 years old for my ham radio licence and experimenting with all kinds of circuits in my workshop with power supplies, meters, varistors and all that stuff, so I have a crystal clear intuitive 'feel' for electrical circuits. (zzaaappp Yoww!)
- Can the metaphor of Ohms law be applied to markets?
- What are the relationships between time, volume, order flow, price movement, and resistance to price movement ?
- What comes first volume changes, price changes, or something else ?
- How much 'pressure' or 'voltage' is required to move the price in a new direction and how long does it take to apply that pressure ?
Fact: Lots of orders not moving price must be encountering opposition.
Is this (like) a high voltage and high resistance circuit with low current?
Fact: Lots of orders moving price a lot must not be encountering opposition.
Is this (like) a high voltage and low resistance circuit with high current?
Compression as an Idea to Describe Market Activity
Trading Chaos by Bill Williams
Structure of Forex by Darkstar
Compression.mq4 latest version in Post #15