Hi Jako Ok, interesting re your remarks about the close and the...

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gamefisherman

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30/01/17

23:52

Post #: 22232570
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Originally posted by Jako64 ↑

I expect price has responded (positively) to the potential buying we identified over the weekend.
Pushing up higher, absorbing the supply above, clearing the way for a move higher, then the stock, or the short term traders in the stock, were left to themselves into the close.
The poor close like that can often appear weak, but is quite often a tactic I see fairly regularly now. It appears to serve the purpose of flipping out short term and momentum traders (as they anticipate potential weakness). As it is those short term traders who will thwart gains by taking profits early as price accelerates higher, and forces the markup to buy or absorb their stock at a higher and more expensive level (much better to flip them out at a lower level if possible).

So yes price may come back and test the previous lows, but I often see price just accelerate higher quite quickly after a bar like this.
It probably depends on how much supply was encountered when price initially pushed higher earlier in the session. If supply was quite strong, price may pull back again to flush out more supply. But if supply was average or lower, there is a decent chance price will just accelerate higher, regardless of what the bar actually looks like. or appears to be........

Can you follow that OK ??

cheers

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Hi Jako

Ok, interesting re your remarks about the close and the change which you have noticed, or the way in which it is 'managed'.
Yep on board still. Thanx Jako
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Hi Jako Ok, interesting re your remarks about the close and the...

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