Hey Guys
Here goes my attempt SXYs chart...
View attachment 156609
1- This bar gaps up on above average volume/spread and has a very strong finish at the days high.
2- Bar 2 also gaps up on above average volume and makes a new high, it appears then that it encounters supply and accelerates down with a large spread before retracing up but closing lower than the previous close (jako this looked like an absorption bar to me but we know from the next bar that it wasn't, is the volume the key here - not enough?)
3- Bar 3 gaps down from more selling and manages to close the up gap created by bar 1, once that gap is closed demand returns and the bar finishes strongly at its high for the day.
4- With demand returning the day before this bar gaps up with average volume/spread and with a bit more supply coming in it touches the resistance line from bar 1 and closes half way down the bar.
5- I think that this bar is test, with the bar going lower on low volume before closing flat.
6- This bar attempts to go higher, again touching resistance from bar 1 but without demand fails and closes lower than the previous close with a larger spread but still low volume. If the previous bar was a test it failed.
7- Bar 7 gaps down on open from the weakness shown the day before (people expecting price to go lower and getting out) but the goes higher on limited volume with a largish spread.
8- Low volume again on this bar it attempts to go higher but fails and closes lower.
The chart software I am using is technician app which is the best that I have been able to find for a mac, unfortunately there is no average for the volume, I have to go and buy a PC so I can get a better charting program.
Cheers
