Sunday, August 21, 2022

1, pulls back, but with ordinary to low volume, so well, while higher volume here would be indicative of buyers stepping up to push the price higher, we don't have high volume prior to that, indicating that there was no major selling, so...well ok, this isn't really low, so I shouldn't really be looking for low prices attracting buyers here after all, since this is a 50% pullback, so this isn't really low--you should have s/r on here too, but you don't--in fact what you do see there is steadily increasing volume, followed by a massive bar

2, this massive bar would indicate selling at resistance, its retracement back to the high, and sure enough, stock goes down

let's actually redraw this



why not buy this at the 14ema? probably because it doesn't break into new ground (fader)

you want it to decrease as you go lower or vice versa


maybe the best way to look at this is, look for the relatively high volume bits, so for the first box, we get high relative volume, cause/effect, stock goes down

then the next time we get high volume, or higher volume at least, it's in the context of the stock going up


 this one really isn't trendING


for some reason this one feels like the best application 

1, we have a change in trend, as indicated by the moving average cross, so now it's trending and we want to catch that momentum 

2, then, buyers do not step up when sellers pause selling, so this is a test, we stay stagnant because of a lack of selling and a lack of buying, as verified by volume drying up, if buyers were stepping up then there would be increase volume at these levels

last one:


50ema indicates downward momentum

we get a double bottom pattern kind of, after which we get a kind of divergence between the direction of the momentum and the upward direction of the stock

you could have shorten this I guess if you would have known that 2-300k isn't sufficient volume for you to go higher, which is good in this case:  2-300k isn't enough to break the trend

you also have trending down volume on that day which isn't pointed out

k, can't stop


300k


1.7mil



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