Appreciate you taking the time to share such a detailed posts Jako.
For mine, what’s key to understanding TA, is the underlying logic that the practioner was attempting to quantify when creating the methodology & interpreting price action, for me, comes down to understanding it's drivers.
For mine it is:
On one side is supply(bears), on the other side is demand(bulls).
Bulls think price is going down (or have other reasons to sell), they need to get out and feel time bound.
They also want to sell as high as possible.
Bears think price is going up (or have other reasons to buy), they need to get in and feel time bound.
They also want to buy as low as possible.
They test each other & take what they can without showing their hand. (Today this is often aided by algo's aiming to be x percentage of flow or ADTV.)
When there's equal market moving forces (sum of all entities) on either side and volumes are equal, the stock range trades.
If one side (bulls or bears) have competition that impacts their ability to obtain or offload the stock (or they have orders to execute x volume within a limited timeframe or they anticipate imminent competition), they need to jump the queue, pay the touch and move price.
If price is moving and volumes remain high, it indicates the price taker is winning bluff and has more stock to move than the other side anticipated. It also indicates the price chasers underestimated the price takers available flow.
This situation skews price action against the price chaser on the assumption that their buy or selling pressure will dry up.
Conversely, price moves on low volume suggest the price takers have limited flow and suggests price should continue in the current direction.
For mine, the price action potential gets exciting when price is moving on volume, the volume drops and price momentum stays steady or accelerates.
If price is moving on volume then the volume spikes, it indicates a reversal.
