Even just a quick cursory glance at this chart tells us where the major buying

occurred. It is so obvious, and proves the point about VPA. Your eye should
be
drawn instantly to those anomalies, of either extreme highs, extreme lows, or
concentration of volumes in certain areas. From there, you then dig deeper
and take
a more forensic view at the macro level. This is a classic chart with the
market
rising, then rolling over a little, before rising further, then rolling over again
with the
classic rounded tops.
The market makers came into the market strongly over an eleven week period
(the
yellow box), and then continued to stock up over the next six to eight weeks
at this
level, so the market was consolidating in this region for 4 - 5 months. This is
the
length of time that accumulation may take, and no move will be made until
they are
ready.
The question everyone is now asking, is how much further can this market
go, and
the answer is to look at the volume. Since the accumulation phase, the index
has
climbed steadily on average volume with no particular extremes one way or
the
other. For a major reversal to occur, we need to see signs of a selling climax
in this
time frame, and this is certainly NOT the case at the moment.
If and when this does appear, then as VPA traders we will see it instantly,
whether
on the monthly, weekly or daily chart. Volume CANNOT be hidden from
view, and
no matter how hard the market makers try, and they do have tricks to hide
large
block orders, most of the daily trading volumes are free for all to see. They
may be
clever, but have yet to work out a way to hide volume from view!
Now in the next chapter I want to highlight some of the price patterns, that I
believe
help to give us additional pointers and guidance in our analysis of price
action and
the associated volume.