This chart showed the end of a down trend with indications of buying (narrow spread bar on high volume, next bar up), then an automatic reaction (which confirms the buying support at the previous low), then a pullback to retest the initial low culminating with a bullish two bar reversal (or shakeout), that formed a little spring. Then following the two bar reversal were two (minor) upbars. Now while these two upbars were not particularly strong in themselves, the fact there was not any down move in response to the reversal suggests the two bar reversal is strong, and will most likely be respected.
So there were plenty of indications strength was coming in, the chart was telling what was going on.
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This chart (below) was a bit questionable.
There was not much supply drawn out at the previous highs (so there was not much obvious price action to say a high was in, or distribution had begun). Then price came back a little, and there was high volume on both a downbar - which closed within the previous bars range, and next bar was up (potential demand), and then an upbar - which was unable to close above the previous bars high (potential supply). This suggests a fine balance between supply and demand had formed.
It would be hard to know for sure which direction price would move......and so price moved sideways.
