Though Redmont bases the trading mainly on theories of volume of Wyckoff he recognizes that «systems do not exist. It completely depends on the concrete person, how much it is good. I adhere to simple principles. I need to know, in what direction the market moves. Redmont protects theories of volume of Wyckoff, speaking:« They work, because they represent the market. You analyze the law of supply and demand ».
More in detail to explain substantive provisions of the theory of volume of Wyckoff , Redmont results a simple example: «you look at shares. In their first day 10 000 pieces are sold, and the price is lifted on one item. The same occurs for the second day. For the third day 20 000 pieces are sold, and the price increases on one item. For the fourth day 40 000 pieces are sold, and growth constitutes half-item. For the fifth day sell 80 000 pieces, and the price does not vary».
«For the third day it is necessary to apply twice more efforts to receive the same result, as in the first day, — notices Redmont. – The main thing in the supply and demand analysis is that demand dies away in itself. There are no urgent reasons (except fear to get« in short ») on which somebody would like to purchase something. But there are one million reasons for sale. When buying up has ended, and demand is satisfied, all the same there is an offer. That is why the prices decrease faster: because, the offer is always, and demand is not present. It is necessary to disappear to buyers, and the prices fall».
Though Redmont he considers that theories of volume of Wyckoff are applicable and futures: «What difference what to analyze — S&P, sugar, a clap or the Japanese yen? The analysis all the same». In the trading as marks Redmont, he observes after the sizes of deviations and rally of the markets: «Now, a code of number of Fibonacci became more popular, the market began to connect 61,8 % and 31,2 %. Now 50 %» are very seldom corrected.
Being based on works of Fibonacci, many technical analysts came out with the assumption that financial markets are inclined to be changed in sequence which can be measured by these numbers, including 61,8 % and 31,2 %. Redmont, however, notices: «if there is a movement upwards, and then correction it is necessary to expect volume falling, and to 61,8 %».
Though Redmont notices that the theory of Wyckoff approaches it, he suggests the future traders to read two books of Jack Schwager: Market Wizards and New Market Wizards. «Read them with one thought in a head: that 40 different people managed to become successful, attending to different things».
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