RXP continued to break down even lower with a profit downgrade issued this week.
I've identified strength in the close well off the lows of the high volume breakdown bar all of which was traded on market.
Jako's post 29667614 shows what I'm seeking, a test of the buying seen, followed by a positive response and breakout from the test.
In Summary:
Sign of Strength 1 - Close well off low on gapped down day.
Sign of Strength 2 (Pending) - Low volume, low spread, down bar (Test)
Sign of Strength 3 (Pending) - Positive response to Test bar
Sign of Strength 4 (Pending) - Response carries through and results in breakout of breakdown bar
Sign of Strength 5 (Pending) - Test of breakdown bar with positive response (I want to enter here)
