Secret Science of Price and Volume

TIMOTHY ORD is President, Editor, and Publisher of The Ord Oracle, which is an electronic advisory newsletter that recommends S&P, NASDAQ, and gold stock trades. He is frequently listed as one of the top-ten market timers in the country. Timer Digest ranked him the number-one gold timer for the one-year period ending January 13, 2006, and the number-two gold timer—and number-five S&P timer—in 2004. Ord introduced the tick index method in 1991, and the method is now widely used by short-term stock traders. He has also developed a new trading method (packaged in a software program) called Ord Volume, which measures strength in a rally or decline for a stock or index. His Web site is www.ord-oracle.com.

• Preface viiDedication ixAcknowledgments xAbout the Author xiChapter 1 My Path to Successful Trading 1Becoming a Broker 2First Foray into Technical Analysis 3A “Student” of the Market 5An Incomplete Picture 6Understanding Market Time Frames 7“Discovering” Wyckoff 8Price and Volume Relationships 8My Trading Methodology 9Chapter 2 Overview of My Method 11Time Frames and Trading 11Taking a Top-Down Approach 12Aligning with the Market 30Chapter 3 Physics of Price and Volume Analysis 33Determining Buy and Sell Signals Using Ord-Volume 39The Bullish Setup 54Conclusion 56Chapter 4 Price and Volume Relationships 59Volume Analysis at Swings 60Trading Gaps with Volume Comparisons 79Chapter 5 Combining Ord-Volume with Swing Price and Volume Relationships 87Combining Ord-Volume and Volume Relationships 88Understanding Volume Pushing Price and Time Frames 95Using Longer and Shorter Chart Time Frames 103Summing It Up: Swing Price, Volume and Ord-Volume 104Chapter 6 The “Wind at Your Back” Method 107Finding Market Direction 107Breadth Analysis 109Volume Analysis 120Momentum Analysis 125Chapter 7 Sector Analysis and Stock Analysis: The Importance of Sentiment 135Sector and Stock Analysis 136Investor Sentiment Helps Pick Market Turns 145Summing It Up: The Consensus of Indicators 154Chapter 8 Gold Stocks: The Big Picture 157Reading the Price Relative to Gold Ratio (PRTG) 158Elliott Wave Analysis in Gold 160Using “Third Time Up” and Volume Analysis 162Applying Breakout Analysis 163What Lies Ahead for Gold 165Concluding the Gold Discussion 165Chapter 9 Putting it All Together 167Step 1: Reading Market Sentiment 168Step 2: Evaluating Breadth, Volume, and Momentum 172Step 3: Picking the Strongest Sectors 183Step 4: Selecting the Strongest Stocks 185Putting It All Together 190Index 193