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Volume Flow AnalysisThe Key to SEEING the MarketVolume is the lifeblood of any market. Weknow that it is the imbalance in supply anddemand that makes a market move. Andclosely related to this is the concept ofliquidity—how rapidly a market will absorbour shares when we decide to sell them.A quick look at any chart will tell you thattrading volume is not uniform, but rathercomes in waves or spikes. We know that onlarge volume days, sudden buying or sellinghas entered the market for a reason, anddepending on supply and demand for theshares, price will either continue a priortrend or form a reversal.Volume Flow analysis is the study of pricemovement in the context of these unusualvolume events. In Volume Systems 2.0, webuilt several indicators designed to show ushow much movement potential exists in achart at the point one of these events occurs.Volume Heat, shown on this page anddiscussed in the article on page 5, is afabulous visual tool for quickly SEEINGthe events, because you can’t miss thechange from red to green. Using VolumeHeat as our base technology, we developedour Volume Flow Oscillator, described onpage 6, and additional Volume WeightedIndicators, Systems, and Strategies thatare showing phenomenal performance.The study of Volume Flow can show thetell-tale “signature” of professional traders.On the next page, Jeremy Williams’ articleexplains this phenomenon and expands onthe Volume Heat concept. I am extremelyproud of this research—Volume Systems 2.0is going to give our customers a decidedadvantage in their trading.Bearish VolumeHeat PredictsDecline.Volume Heat in action. By examining past price and volume behavior, theindicator can predict changes in trend, as shown here.Bullish VolumeHeat PredictsRally!Volume Heat makes it easy to see changes in trend. The other Indicators andSystems in Volume Systems 2.0 are based on this.3