Thank you Pete. This would be a fantastic experience for myself and all readers of this thread - newbies as well as seasoned ones. Newbies can learn/discuss alongside with me, the veterans can also jot down their thoughts, Pete can see if we’re interpreting right. This thread would be pretty exhaustive. I’ll be posting every weekend. As I told before, I’ll be posting stocks (Daily charts) and not forex - don’t mind with why and which but these are from live markets. So, here we go:
In the charts above at position:
#1) “Weakness - when it appears, it appears in UP bar” I remember this line. In that bar we see that it’s an UP bar. The next bar closes down. Volume is very high - the pro showed their hand. So, we see signs of weakness. But that very bar closes at higher half! Was there more buying then selling?
#2) The market gapped down considerably. All bulls are trapped. Again, the volume is huge! - pros created huge selling pressure overnight. The bar closed almost at middle.
#3) High vloume with wide spread bar. The bar closes at upper half. next bar closes down - it’s a down bar. More weakness?
But, as the bar closed at upper half, we can conclude that there was more buying - again “Weakness - when it appears, it appears in UP bar”
#4) Down bar with relatively higher volume than before. Second buying wave from pros? Maybe a sign of strength?
#5) Down bar with volume higher than #4) - Third wave of buying from pros? Maybe a sign of strength?
#6) Up bar with almost same volume as #5). What just happened here?
#7) Very wide spread UP bar high volume compared to last couple (10) days. Bar closes at higher half. Who’s buying? Why’s spread so wide?
#8) Very wide spread UP bar ultra high volume! Bar closes at upper half. What’s going on? Next bar closes down. Is this buying or selling from pros?
Overall, I see a shift in sentiments of the pros in the above chart from selling (left half) to buying (right half of chart).
So, these are my thoughts about this particular chart. I might missed or overlooked couple of factors in here, feel free to point out those and also say it where I’m getting it wrong.