0
162
- In this point the price has broken previous up-trendline and continued mark-down.
- This is a wide spread bar on very high volume closing in the middle. For the next bar to be up, this high volume must have contained more buying than selling (sign of strength). This action changes the direction of the move, or causes the price to go sideways, away from its original downward direction, showing that professional money has stepped in and has taken an opportunity to accept the selling – usually from weak holders.
- Previous high has formed Long Period Resistance. Now this line will be a resistance for higher prices. We should watch carefully when the price is near this resistance.
- In this area we see several weak signals as the price approaches the resistance level. After these signal the price started downward move. It means that the resistance level has worked this time.
- Background is weak. Therefore we need to look for short trades. For short trades it is better to enter the market as high as possible after weak signals (supply or no-demand).
