RE:RE:Understanding the pattern...EastCoastBound wrote: Could you explain it to some of us neophytes?
Notice on the first down day, the selling volume is quite large as oppose to next selling day where it decreases. Once selling is done, then we have few more days of buying where the buying vollume goes up. The bigger the price gain, the bigger the selling volume will be on the day when the price goes down. We are approaching the point where selling is almost done, which means new cycle begins in buying. Also note, that by looking at the candle stick on the selling days, the bottom shadows of the red candle sticks are long which represents a strong support or BASE. This gives us an idea that the trend is healthy and it is going upwards, but slowly