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What happens prior to any price change?

It is important to know this so that you can look at a chart, interpret the action of the masses and stay AHEAD of them. Before there is ANY price charge the following sequence of events take place:
1. Changes in Volume This will the first sign that something is about to change. You will need to be
aware of the amount and speed of the volume and its relationship to price movement.
2. Changes in the Relationship of Highs and Lows with Respect to Volume After changes in volume, this will happen next. Examining this relationship will reveal if the price move that is
developing is strong or not. If the move is strong enough, it will cause the momentum to follow suit.
3. Momentum This is the last event to occur. It is the snowball effect of the volume supported by price movement, which if you capture BEFORE it occurs, will give you the HIGH RETURNS.

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