Wyckoff trading method, page-206

  1. 16,642 Posts.
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    Yep, exactly right Glads......good pick up.....that question should always be considered on widespread upbars, especially those with very high relative volume.
    At the time, on the day of that bar, it would have looked and felt strong, but must have actually been full of (hidden) selling (in hindsight).
    Then some form of minor confirmation came the next day, with a downbar, that never looked like ever moving higher (why wasn't the next bar up, if all the prior days volume was buying ??).

    When a bar of this type arrives, it is usually wise to mark the low with a horizontal line.
    Then use this line as a guide as to whether price will remain strong, or if that widespread bar is actually a serious sign of weakness.
    If or When price breaks below that line, especially if it is a widespread downbar closing low, then it is probably time to leave the stock for a bit (sell).
    (but if price continued to trade within the body of the widespread upbar, it can be given the benefit of the doubt, and the trader needs to make their own decision)
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    Last edited by Jako8557: 13/01/16
 
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