FATHER OF TECHNICAL ANALYSIS

VOLATILITY AND TRADING RANGE

COMPREHENSIVE ANALYSIS

“In Honour Of My Mummy”

KING GEORGE-11
EMAIL tradinglegacy11@gmail.com

BAR BY BAR ANALYSIS

1|Page
FATHER OF TECHNICAL ANALYSIS
RISK DISCLAIMER
Trading in Foreign Exchange Markets and Indices expose you to substantial
potential gains as well as significant financial risks. You can incur loss of all your
investment or capital. You should always be-aware of the capable risks and be
ready to take full responsibility when they happen. Don't trade with money you
can't afford to sustain a loss of, don’t trade with borrowed money.

The past performance of any trading system or method is not necessarily

indicative of future results.

“Trading In Stocks is more than a business; it is an art, a science, a profession-

whichever you choose. It demands study and concentration if one is to make a
Success at it.” Richard W.Demille

BAR BY BAR ANALYSIS

2|Page
FATHER OF TECHNICAL ANALYSIS
This PDF is written in honour and respect to my sick mummy. She will always be
at heart as she is always sick. Nothing breaks my heart as much as realising you
are always sick mummy. Love you mummy. I wish you can read the things I
write. But no pressure, much love and respect mummy.

BAR BY BAR ANALYSIS

3|Page
FATHER OF TECHNICAL ANALYSIS
This Pdf will focus on Waves in terms of Volatility and Trading Range
methodology. You can only understand the information found in this pdf if only
you have once been in my class of Advanced Pure Price Action Course. As such
the information found herein is solely and strictly for the Advanced Traders. But
if you think you have the guts and audacity to try to the best of your ability to
assimilate the information herein, then who am I to stop you? King George11,
Lol! No offense folks. No offense. Just little humour is imperative in life always.

I won’t explain things as if am explaining to a normal trader because like prior

said. In my mind I know that for you to study this Portable Document Format
(Pdf) it means you have gone through my Advanced Course. So let’s make a
transition to business now. By the way we will start with Waves, you know what I
mean right? Probably.

1. WAVES (VOLATILITY)
We have learnt about Waves in the Advanced Pure Price Action Course.
And we said that Bullish Waves goes up and Bearish Waves Goes down
always. Let’s do a little revision. During an Uptrend, Up-Waves or
Impulsive Waves must be bigger than Retracement or Down-Waves and
during Downtrend, Down-Waves or Impulsive Waves must be bigger than
Corrective or Up-Waves. Why is such a case? Bigger Impulsive Waves
during Uptrend shows the Trend strength and same but the opposite is
true for Downtrend. You all know what am talking about here folks. Lets
see the Scenario on the Charts Below.

BAR BY BAR ANALYSIS

4|Page
FATHER OF TECHNICAL ANALYSIS

The chart above its for uptrend. We just doing little revisions about
Waves. As we can see Up-Waves are progressively Big than Down-Waves.
Let’s see for a Downtrend now below

BAR BY BAR ANALYSIS

5|Page
FATHER OF TECHNICAL ANALYSIS

Same for downtrend on the chart above aswell. The Down-Waves are
progressively bigger than Up-Waves. Those are trend Characteristics. But
this is not the purpose of this Portable Document Format (PDF). Let’s
quickly go to the main reason for the birth of this Pdf. Determining Waves
in terms of Volatility. For it is the more professional way of talking about
Trends weakness and strength.

Volatility. What is Volatility by the way?

- A measurement of change in price over a given period. It is usually
expressed as percentage and computed as the annualized standard
deviation of the percentage change in daily price.
Chartschool

How do we measure Volatility in Waves? The size of the Wave shows us how
much that wave has moved from point A to B. It shows us how volatile that move
is. One Wave is always more volatile than the other. Let’s now get to the charts
and see the volatility.

BAR BY BAR ANALYSIS

6|Page
FATHER OF TECHNICAL ANALYSIS

Like you can see from the above Chart. There is Waves from 1 up-to 10. Both
up and down waves. Because we are in Bearish Bias trend, the Volatility to the
downside is more than to the upside. But as the trend continues volatility to the
downside start to decrease and the one to the upside is now increasing. This
could have been much more better illustrated if I used trading view to show you
the Volatility increase and decrease as the trend moves. So what is the essence of
talking about volatility? It shows when the bears are exiting and bulls coming in.

Wave 1 and 2 has much more high volatility or it is more volatile than all the
Waves. This is a good bearish sign. Wave 3 came in with useless volatility
showing us that bulls are trying to push in but to no use. Wave 4 shows
decreasing in Volatility, price did not move much but still we have to look at
more factors to consider a good trading decision. Wave 5 came in and produced
volatility which is almost equal to the previous volatility. Wave 6 came in with
much more volatility than the previous two waves confirming more bearish bias. I
can keep on going and going. But like you know the concept is the same with
waves. Here we just talk in terms of volatility to get much more sense. As such,
you can go and with the analysis. Know this, when the trend is about to change,
volatility in the direction of the trend decreases continuously. Let me see if I have
any chart of trading view so that you see volatility on trading view.

BAR BY BAR ANALYSIS

7|Page
FATHER OF TECHNICAL ANALYSIS
Sorry by the way I don’t have such a chart of trading View. Am not one person
who likes moving from platform to platform. But I wish to provide one in the
future soon.

From the chart above you can see that as price was progressing downwards with
Big Volatility. It reached a point where it showed constraint volatility to the
downside and unconstraint Volatility to the upside until the trend reversed. We
can call that as Ease of Movement in price waves to the upside. Lol! In honour of
mummy, it’s Ease of Movement in Price Waves. Ok! Let’s make a transition to
our second Theme called Trading Range. We will apply volatility and EoM in
Trading Range to identify Institutional Trend Riders and to be able to ride the
trend with them. Lets move on.

BAR BY BAR ANALYSIS

8|Page
FATHER OF TECHNICAL ANALYSIS
2. TRADING RANGE
This is not a new topic to you I know that. When we talk about Trading
Range. We are simply referring to what you call Consolidation, Range
Markets, etc. And like I taught in my Advanced Pure Price Action Course.
We mainly trade when price is out of the Trading Range or when about to
get out of it. How? I didn’t clarify on that. I only said Accumulation and
Distribution etc.
Before I go and explain on how to trade them, let me tell you something.
Just for the sake of you knowing. There is four types of Market Participants
namely:-
i. Institutional Contrarian (Market Makers, Cos, Big Boys)
ii. Institutional Trend Riders (Market Makers)
iii. Professional Trader
iv. Retail Trader

Institutional Contrarians are responsible for the whole market move, they are the
ones responsible for shaking out Retail Traders during Accumulation and
Distribution.

Institutional Trend Riders just follow the trend the moment it start moving. They
don’t trade the Trading Ranges. They jump into the market after Institutional
Contrarians are done with shaking out Retail Folks then price is about to trend up
or down, that’s when Institutional Trend followers jump in and Ride the trend
together with Contrarians.

Professional Trader can also be a Retail Trader and Proprietary trader. These
have medium skills, knowledge and not sentiment driven at most time. Don’t live
in hope at many times. Less panic and excitement. They are shrewd and most of
the time know what they are doing. They are very patient and always wait for days
to take a trade because that’s when there trusted setup comes and when it does,
they ride the markets as-well. A professional Trader can be an Institutional Trend
Rider as-well if properly trained and with proper knowledge and skills. But it
takes years of study and some kind of Frustrations. Lol! Am telling you. He can
be a Contrarian as-well, but that is another story of Pain and deep study because
you will need to understand everything that goes on the Chart.

BAR BY BAR ANALYSIS

9|Page
FATHER OF TECHNICAL ANALYSIS
Retail Traders. Lol! I call these gullible traders. Nice name for the naïve ones.
These chaps trade and look for breakouts, points of panic and excitement, chart
patterns such as double tops, triangles, wedges and head and shoulders etc. They
have many rules and quick to shift from one thing to another. They are sentiment
driven, they have lower skills and knowledge. They live in hope all the time.
Enough of this. Let’s make a shift to our topic.

Without wasting much of the time. Lets take a look at a Trading Range.

How do I know that, it’s accumulation? Apart from looking at the background to
see if all the phases are complete, you need also to gain the dexterity to identify a
phase, by using phase analysis. Ok? I know you are saying “yes!” Lol! So let’s put
waves in there we see more clearly.

BAR BY BAR ANALYSIS

10 | P a g e
FATHER OF TECHNICAL ANALYSIS

In Accumulation Trading Range, we have to see Up-waves or Volatility to the

upside is increasing more than to the downside. That’s one characteristic about
Accumulation Phases. And we have seen from the chart above. Lets look at the
same chart again below we bring out new information from there.

BAR BY BAR ANALYSIS

11 | P a g e
FATHER OF TECHNICAL ANALYSIS
You might ask that why is the Wave numbered 11 shows much Volatility to the
downside? Yes it’s normal, Institutional Contrarians wants to create panic so that
Retail Traders sell on that level. Let me show you where Retail Traders sold even
though am saying someone sold, but I know there where people who sold from
that wave for real. Yes they were there. I know.

Some sold on those arrows. Yes they did. And if they are scalpers, yes they
gambled and left with their profits. But watch out next time. When it goes against
you. You will blow your account. Lets see another point where they sold below

BAR BY BAR ANALYSIS

12 | P a g e
FATHER OF TECHNICAL ANALYSIS

You see again. They sold on that and they got shaked out as price reversed to the
upside. Ok we have seen Retail traders lack of skill and knowledge. Let’s catch
another last one folks. Because some retail traders bought at the bottom below,
they bought early and they were stopped out by institutional Contrarians. See
below

BAR BY BAR ANALYSIS

13 | P a g e
FATHER OF TECHNICAL ANALYSIS
That was a right and good decision to make. That’s a nice buy trade. Because me
too, I could have bought from there. But unfortunately I could have been
stopped out if I had my stop loss just below my entry point. Lol! Whoever bought
from there was right because he bought together with Contrarians. But they just
reversed the price to Hunt the stops of Professional and Retail Traders before
advancing the price to the upside. How did they hunt them? See below

You see from the above chart, If anybody placed their stops just below their entry
points, then that move in the black circle could have stopped them out. Ok
enough of this lets now see how we can trade together with Institutional Trend
Followers. We jump in when they jump in. But we can jump in together with
them at the same time, but now i don’t know how to explain that possibility. I
want to explain it but I just can’t write it down, I don’t how to write it because it’s
not an easy explanation. As such I will just show you how to jump in when they
jump in. Let’s see the chart below

BAR BY BAR ANALYSIS

14 | P a g e
FATHER OF TECHNICAL ANALYSIS

You see that blue big up-wave on the chart which breached the Supply line? Yes I
see it. Lol! Yes, good that’s the Institutional Trend followers buying together with
Institutional Contrarians because they have seen that now all Retail Traders are
out, lets ride the market now. You see all this while during the Trading Range,
Institutional Trend Followers weren’t participating in the trades, they were waiting
for the right course of action, opportunity. Patience folks. While Retail Traders
were busy buying and selling and losing on top of that. So how do you jump in
after they enter? Lets see below

BAR BY BAR ANALYSIS

15 | P a g e
FATHER OF TECHNICAL ANALYSIS

You have to jump in on Test after the breach of the Supply line. I hope am clear
on how to trade the Trading Range.

The opposite but the same is true for the Distribution. Because I won’t go on and
explain about distribution. Just do this on your own folks. All the things I have
done in this lecture. Apply them for distribution but in an opposite way. But
same things.

To conclude, For Accumulation, Volatility has to be rising on up-waves and

decreasing on down waves. And for Distribution Volatility has to be rising on
down-waves and decreasing on up-waves. Get the sense. I have tried my best
hopefully.

Am ending this lesson here. No more secrets or knowledge to regurgitate for now
which you can understand.

MAY JEHOVAH GOD BE WITH YOU

BAR BY BAR ANALYSIS

16 | P a g e
FATHER OF TECHNICAL ANALYSIS
King George-11, The Market Maker and Wyckoffian
Father Of Technical Analysis
Universal Technical Analysis
Whatsapp +260764479764, Call +260963976343
Telegram @tradinglegacy11
Facebook Group: Trading Legacy Academy
Facebook Name: King George II
Twitter: @tradinglegacy11 OR Mwape George
Instagram: Mwape George
Linkedln: Mwape George

BAR BY BAR ANALYSIS