Equivolume & Candlesticks: Together At Last by Richard W. Arms Jr.
A Better Way
Its the best of both worlds. Find out how this new and improved charting tool the Arms Candlevolume can help you identify where the strength is in any market.
When the market closes and all the emotions fade away, there remains a small amount of information. It is this information that is the ammunition of technical analysts. Strip away earn-ings, dividends, company news, or crop reports and weather forecasts and all the other myriad of influ-ences, and we are left with the truth, which is reflected in just five simple pieces of information. They are:
THE POWERFUL FIVE
Everything else is external information that has been run through the minds of millions of participants and distilled to the final output, and it is all that we know. It is the interpretation of those five simple pieces of information that constitute the true foundation of technical analysis. Trendlines, gaps, consolidations, flags, and so on all are just patterns formed by those few pieces of information and their interrelationship.
Depicting the data, therefore, becomes important. What you want is the most understandable and easily interpreted graphic method of including as much of the data as possible in a single entry or group of entries. It has to make the data apparent and clearly comparable.