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Tuesday, April 7th, 2020, we're still stuck in quarantine. Here we go again. We're going to talk about coupling volume and trend. So last week, we talked about window dressing and the theory of that, and then we went into the psychology of all this trading and what type of psychology you need to have during this time. But now is when volume becomes a big indicator, almost outside of price, but it's always second to price. So before we do that, let's just talk about a little market analysis, and I want to show you guys this chart of gold futures. Okay? Meanwhile, the rest of us are sitting here in a bear market, and gold is fucking at all time highs here, or at least 50 to the week highs. I don't know all time, I'm not fucking going that far back in the chart. But point is that, yeah, it's probably at all time highs, but the fact that in a bear market, supposedly, something like gold would, in my mind, be at lows, but it seems like people are moving money from the market and putting it into gold, because there is that may be a little safer bet for them, but there's a lot of things that go into that. There's a lot of stuff that goes into that. So the point here that I'm trying to make is not just that the bounce may not be over in the market. It's also that, notice the volume, okay? Granted, we have jammed to highs, okay? But look at what the volume has done. The volume has just straight up trended off. So there's a bit of divergence here that I'm not the biggest fan of. So obviously you see we jam higher, but there's really no continuation or follow-through on the volume side of things. So that's when the push, yeah, that's when the push is not convincing. So there's not much market analysis that really can be done right now outside of just the basic thesis that we're fucking bouncing. And dude, that's really the truth behind the whole matter, because if we look at all of this, the situation we have here is, and I just did this for fun. So Orrin talked about the death cross last week. And so I just went about and made a little moving average crossover strategy that all it does is when the 50 breaks the 200 on the 10, really it puts a little red arrow. So one thing I want to point out here is like this period in time, right? Which is obviously more exaggerated than this period in time. But the point here being that we got the cross, okay? We officially closed here that confirms and then we panic and now we continue to bounce and bounce and bounce and reclaim. Once we reclaimed that 50, that was pretty much game time from there. Granted, we were not in the same market conditions that we are currently in here. And so for me and in my mind, I'm not entirely convinced the bounce is done simply because, like in this case here, you have the cross down, push into that, panic again, and you get the push. You almost always get the push back into these levels, okay? And so that's why when they talked about yesterday, do we go to 280 or 285 first? Or do we go back to 240, right? I don't think we're going to go back to 220. It's just my thoughts, my feelings. I really don't see us getting back here. I just don't see that happening just based on volume. There would have to be some significant, I think, virus. Something new comes out, something worse, but I doubt, like once that bottom's in, spies shown in the past, once that point of no return, bottom, Max Payne is in, then from there, stuff, buy the dip again. So you've got to expect some pullback. There's still uncertainty, but ultimately. And another thing to consider here is that even in this downtrend right here, we had slight downtrend in volume and then bounce, and now volume is increasing again. And so now the volume is starting to follow the market itself in the direction it goes. So here is what you would consider, you see this big bounce right there. But during the big bounce, you had a downtrending volume, even after the bounce perked, right? This is called divergence. So this volume is diverging away from the trend. That volume is in a downtrend, yet we are in a strong uptrend. So now the volume is trading roughly in the same direction that the market is. And so I think we found a range. I think we found a bottom. I think people are starting to get back into the markets because, for one, I personally, I don't see us going back to lows. Even with all the coronavirus stuff, even with quarter earnings, the new, each earnings coming out in the future, I just don't see us truly panicking again. I'm always up to chat about the market. So number one, volume confirms your trend. Volume can also confirm your revertful points, and volume confirms your support and resistance lines. Something very important to note here is that cumulative volume, okay? That means it adds up. For those of you that didn't know what that means, just had to spell it out for you. Confirm. Cumulative exam. Yeah, right. It's going to be on the test. Confirms support and resistance lines when identifying a line determined by a consolidation zone. So this is a method that Val uses that we all talk about, and it's finding a level that really has nothing to do with a wick or a high and a low. We're looking at a level that it has consolidated within for a lot. Let's say, for example, a nice little range consolidation. Yeah, it's a range consolidation. And so that becomes a way to validate your support and resistance lines. It's not just a pop, and then it pulls back. It went sideways at this level, or it dipped to it, stayed at it, and then pulled up off of it. But it trended there and stayed within a range for multiple, multiple days, maybe weeks. That is when you have a situation where you've got to take into consideration volume plus time spent at that level. Exactly. I was just going to say, because the emotional thought of someone holding through that consolidation, you've got to take that into account. It could be more emotions in play on a crack or break of that range of consolidation. Price signals are the single most important factor of anything, but volume should always be your secondary confirmation. A lot of people like to use tape as a secondary confirmation, but in reality, that's volume, so just look at the volume. Volume, tape, level 2. Yeah, re-tape. Yeah. It's all about just combining factors into your favor, so combine them all. But they're all secondary to price. So the lines are most important. So now I want to show you guys this. So this is, so yeah, JB3CK007. JBEC007 is what I'm going to assume that says. That is a good example of price consolidation. So you can see that now your range to choose from is 55 to 45. So on the pop back to it, you can consider 45, a consolidated support zone that turns resistance. If 45 breaks, your next line would be 55, based on this amount of consolidation. And if you didn't know what that looked like zoomed in, I did that for you. Sorry, I'm just kidding. You're going to go eat, you're still around. See you guys. We'll see you later. Peace. Adios. Thank you so much for watching our video. If you want to see more of our videos, please subscribe to our YouTube channel by clicking the button here. We do our best to post a new video every single day. If you have any questions about MIC or any general trading questions, please text Tosh using the number here. Also, stay up to date by watching some of our most recent videos right over here.