I'm not sure how to draw the lines like @Incongruous did but my observations are:
- there have been large Spreads with High Volume, which can mean that there's been a fair effort to push the price down even though the price has Closed near the Bottom of the Bar;
- then we find support - at a certain Support zone and this has been achieved by a lot less Volume, meaning effort;
- to me this appears to indicated that there is still Supply present at a certain level and is being absorbed at a low cost by the market. Why I'm saying this is because if the market wanted to buy at any cost, they would not allow the price to come down so much; maybe there's been accumulation at the lower price, plus a shake-out of the weaker holders to get the supply out of the way and the price ready to move up with little effort;
- also, if the Supply was overwhelming, the price would have continued to come down as the Sellers had more than their fair chance to do this but they did not i.e. there was no follow through to the downside;
- so, in Summary = to me it looks like Accumulation going on and the Price should move Up. However at this stage there's nothing too obvious but I would be prepared to enter the market right now with a Stop Loss just below the previous swing low (7th last bar).
