Volume Questions - from "Master the Markets"

tech/a said:

Sorry

Im having the Network upgraded here so my charts at work are not up so cant even trade---bugga.
Will have a look tonight or if they complete in time today.

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Just to add some more investigative analysis

"What do you notice happening to the right of the high volume down bar??"

What does this indicate going forward?

At left in the box there is distribution as there is a buying climax which is followed the next period by selling and little buying. Both wide ranging bars on low-med volume.
The selling continues on medium volume, punishing the prices, before someone steps in and starts buying, pushing the price back up, perhaps the seller has relented to allow some recovery, when the price reaches the previous high levels, selling resumes - in comes the heavy volume, a lot of stock changing hands, before prices start rising on subdued volume.

Weakness shown in the market at start of volatility, selling down of a large holding, you see large volumes passing on the down days and medium volume on the up days.

Buying is there but is outweighed by the selling. It seems that this distribution is serious enough that it may shake others out during the volatility.

So at last the chart is exposed.

tech/a said:

So at last the chart is exposed.

View attachment 44921

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I'll give it a crack.

Price falls on two down bars closing right near the low. Then the ultra high volume bar attempted to move higher but closed in the lower half of the bar, showing supply. Price then moves lower (albeit on less than convincing volume).
The final bar is the first attempt to the upside since price has settled.
This is a low volume narrow spread bar = no demand.

Can't see prices moving higher based on this information.

Look up the chart and see how you went.

tech/a said:

Look up the chart and see how you went.

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He was right.

As you said the volatility is also a good clue...that investors are getting edgy and ready to sell this thing if need be

tech/a said:

Look up the chart and see how you went.

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You beauty!!

Yep that last bar on the chart you posted looked like a good shorting opportunity. Enough information to see that there was no more demand.