Category Archives: CAP

CAP [5229]: A Prediction Using Relative Volume Density (RVD) Analysis

Relative Volume Density (RVD) analysis is a proprietary technical tool that encompass the element of time in price-volume analysis. It can be seen as an extension of Robin Mesch’s market profile analysis as the underlying assumption that market moves from one equilibrium to another or deviate temporary from equilibrium and revert shortly thereafter is similar. By incorporating the most important element in the universe – time – RVD analysis is considered more superior than market profile analysis because of its ability in identifying not just the levels of equilibrium but also the timing of reversal. Such a creation is inspired by the inability of traditional technical tools in identifying pivot points of speculative shares with laser-sharp accuracy. Let’s look at how we can apply RVD analysis in catching the falling knife of CAP, which ran by 20+% in just 2 days.