Tech/A,
This may be a stupid question but what is hidden selling?
Thanks to all those that have contributed to this thread, has provided some interesting ideas and thoughts based on volume.
I shout you all a beer if you were in the same pub.
Cheers
Before I get to the question also have a look at NWE its price action is classic.
To the question of
hidden selling.
Wide range Extreme volume days are usually bought about by massive selling rather than buying.This is often hidden and doesnt become clear until the price action of the next day.
If it
WAS buying then price would
CONTINUE to rise as buyers rush to snap up a bargain.
If you look at the chart above you'll see 3 examples of selling and one of clear buying. It doesnt mean that demand isnt there ---quite the opposite.
But for stock to rise there must be either.
(1) Sustained and continued buying
(2) Exhaustion of sellers
(3) Withdrawl of sellers from the market.
As traders we will always be on the look out for
LOW RISK buying opportunities so best to wait and see what the next day brings before rushing in.
Once the next day is seen we must then find evidence of (1),(2),or (3)
Then we have our low risk buys.
I think the charts mentioned above have shown some excellent examples.
Most are still waiting for the Stochastic signal to finish cooking but look classic at this point.
Agressive traders could take the setup before confirmation of setup if they judge risk to be acceptable V return.
Ive learn patience personally---sure you miss a few but you miss being stopped prematurely more often!