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The CO has to sell on the way up and he has to buy on the way down.

( At least he starts to... 1- No turning points otherwise 2- The CO's volume is the volume of the mkt ...The CO is the one on the other side of the spread to "Mr Market" )

The pendulum swings Up and Down...

Each swing up is building a cause for the next swing down

Each swing down is building a cause for the next swing up

The CO uses the liquidity that is generated by those swings .

Liquidity created by  emotions & by  corners  ( opes prime ?, poor FA & TA , broken investors, stupid investors  greedy investors !)

Technical positions are being constantly created

People under water ( The press is full of it... ) Hold their breath for as long as they can  , but until they stop , those waters will not recede..

( Risk risk RISK , Money is put at risk, always there is risk)

"It only goes up after you sell,

 It only goes down after you buy"

Mkts can move in only three active ways ( they can also do nothing )

UP

DOWN

& SIDEWAYS

We define movement by a series of highs and lows

UP is a series of higher highs and higher lows

Down is a series of lower lows and lower highs

Sideways is a series Higher Highs  & Lower Lows

         or

A series of lower lows and lower highs

here defined are all possible patterns

trending , expanding . contracting ( dampening )

By measuring these swings

their thrust their duration & the Volume

In the context of position

We can identify the actions of the CO

and Hitch a ride on these swings

Keeping our heads above water

Riding waves not being smashed by them

The largest participation occurs at tops and bottoms

like moths to a flame or lemmings to a cliff

when trends are just about to enter Corners

( Just read through Saturday AFR , You name it it blows up ------The corner is always up ahead  )

The action of the market unfolds by a series of waves

because action always gathers a following

We can measure this following

and so we can identify when the following meets opposition ( selling into the trend ) or simply wanes ..

how urgent , climatic etc

Price .... how far ( result )

Volume.... how much ( effort )

Time......how long ( duration )

backing and filling

information and  manipulation , create following

The swings build causes

And in the context of STEP ONE  ( That is why it is No-1 )

Are we coming or going ( what is the trend and what is the position in the trend )

Little swings build into bigger swings,, Same principles just different degrees

So The small trader can wait for those swings , those waves .

and ----->

http://www.wyckoffstockmarketinstitute.com/corner.htm 

SMI is putting up some good material...eg all of The Five Steps

motorway