Yeah, well you all mostly got it right.......well done. Firstly,...

Yeah, well you all mostly got it right.......well done.

Firstly, looking at those two bars in the box.
The first bar had a narrower spread when compared to the previous bar, and it still had quite high volume, but more importantly this time the next bar was up.
The next bar being up suggests there was buying or support within that downbar.
It was not really a bullish two bar reversal (IMO, it would have been if the upbar had closed above the downbars high), but yes, the two bars together would probably suggest 'stopping volume' of some degree.
Finally on those two bars, just remember that price had only just broken down prior to those bars, and the buying that is inferred is probably speculative or preliminary at this stage, so there is no entry on this timeframe, and the high volume will probably be tested (or washed out) at some stage anyway.

After that the next two bars on much reduced volumes, are not saying very much in particular, apart from the suggestion that the support shown so far may only be 'temporary support in a downtrend'.

Then came the little narrow spread downbar on high volume....and I think everyone saw this as a potentially bullish E/R failure (Effort vs Reward or Result).
There was very high volume, or effort, but the narrow spread downbar did not show a decent result for all that effort.
There is little doubt that there was some decent buying/accumulation/support on this bar.
No, this bar on its own did not show shortening of the thrust (but on a a shorter intraday timeframe, it may have), but it did show narrowing of the spread, which in some respects is a similar thing, but on a larger timeframe.

It might be worth watching this to see how it turns out, I won't be surprised to see the current lows washed out to some degree, and perhaps what has happened so far will appear as preliminary support when we look back.
I also note that the price of Uranium (futures) are still in a nasty downtrend, and show no sign of any reversal so far, so a wash out of the current lows on the PDN chart seems even more likely (putting maximum pressure on current holders to capitulate).

So if the trading remains with average to narrow spreads, and volume remains average to low, a grind even lower for a bit would suggest that the positions taken recently continue to be held.
But if there is a widespread downbar on very high volume (one that does not turn out to be a shakeout or reversal), would suggest that the new positions mentioned above have been dumped, and the downtrend will probably resume.




When Wyckoff was trading, most of the time he traded the 'markup' (or markdown) phase, and he didn't get involved prior to this phase beginning.
He did however take note of trading such as this,  as one of the criteria of the stocks he traded , was for some decent buying or support to be in the background.
He did not usually get too involved in these type of smaller speculative stocks though.........Wyckoff was more interested in the Parent index being potentially strong, then would look towards the stronger sectors of the parent, and the stronger stocks within those sectors.


cheers to those who had a go.....good job