Richard Wyckoff told his students to think of waves of price and volume. This in short is the essence of tape reading.

There are not many books that actually assist money making, yet Tim Ord's book below certainly helped this site. 

In the book above Tim Ord expands Richard Wyckoff's logic and how to review chart waves of price and volume. Let's use bitcoin as an example (code is within readtheticker.com Analysis chart, more examples here)

The chart below uses a fixed bar period to form a 'price wave' and sums up the raw volume for each price wave. Up price waves are blue, and down price waves are red.

To expand further, let's examine the consolidations A and B.

Consolidation A shows red volume higher than blue volume, blue volume is not substantial at all, hence there was little demand, little accumulation, and the consolidation result was one of re distribution to lower prices. 

Consolidation B shows blue volume higher than red volume, blue volume is substantial, hence there is solid demand, and strong accumulation and this consolidation is leaning to pure accumulation which is likely to lead to higher prices (of course this pattern does not mean a spike to a new low, like a terminal shake out, is not off the table). 

(Click on image to enlarge)

For those not interested in Wyckoff wizardry charts then here is a fundamental chart. Chinese juice and the change in BTC price.

More By This Author:

Bitcoin Has Found Its Natural Vibration
Silver Shorts Must Be Worried
Is Fed Balance Sheet Expansion On The Table In 2023?