Ok, here is your chart analysis
View attachment 157090
Looking at Bar 1 its gapped up on volume to break through that 22c resistance line, above avg volume on the day and bar closing on its high.
Yep, that is fair enough
Bar 2 looking like an upthrust bar higher volume than previous day did attempt to go higher than previous bar close but selling pressure taking the SP all the way down just below 22c and some potential stopping volume with the bar closing just off the middle of the day (may have been some potential hidden buying in this bar).
Yeah, it is a bit upthrusty from the top of the bar down to the close, but there was also some support from the close down to the day's low. That said, no matter what, the trading on this day drew out supply. So the thing to look for in the next few bars, is whether the supply that is coming in will be absorbed by the buyers (which would be short term bullish), or if the supply will overwhelm the demand, and knock the price over (short term bearish).
Bar 3 to me looks like a potential little shakeout bar, well above avg volume, price dipped below the 22c mark until it reversed to close on its high although it is a down bar looks like there was definitely buying in this bar because Bar4 has gapped up next day.
Yep, spot on. It was an attempt to shakeout the supply coming in from above, and clear the way higher.
Bar4 has gapped up next day but looks like a no demand bar, volume below avg and less than the previous two days,
Yep there was a bit of no demand in bar #4.
Although if you used the full true range (from the previous close), and note that the volume was actually about average (and not really low), then it probably wasn't a serious problem bar. Perhapsmore likely, the big traders were just a bit wary about making a serious attempt to mark it up again, without some further testing etc.
Bar 5 again no demand bar even lower volume and less than the previous 2 days volume.
Nope, a no demand bar is an upbar or at least a level closing bar (or has traded by far the majority of the period as an upbar).
Bar 5 is clearly a test bar - which closed level, but by far the majority of trading was done during the period (daily) as a down bar.
A (generic) Test ber = Narrow spread down bar, roughly closing mid to high, on low volume (it can close as a level or slight upbar, if by far the majority of the trading was done as a down bar). And the mirror image is a No Demand bar = Narrow spread up bar, roughly closing mid to low, on low volume (can close as a slight downbar, if by far the majority of the trading was done as an up bar).
Bar6 bit of supply not much vol , below avg vol, bar closing just off the low potential buying in this bar confirmed by the next bar closing up, next Bar 7 could poss be classified as a no demand bar an up bar with low volume, closing off its highs with a bit of supply coming in....
I bundled together bars 6 & 7, as to my eye, this was a small two bar reversal (or shakeout).
But what you say is basically right, price was rammed down to panic weak holders, and was probably deliberately closed low, then the next bar closed higher on reduced volume, suggests buying in the previous bar, and a potential supply vacuum allowed price to move higher on slightly reduced volume.
Also note that the second bar briefly traded below the low of the first bar (bar 6), before it began its move higher. This is generally a bullish move. And if the close was then above the previous bar's high, it would have been the perfect textbook reversal.
how's that ??
I guess I will have to have a look at what it did today now..... I expect there will still be some supply to 'mop up' (absorb) around the 24/25cps level, and that will be the task to achieve in the near term.
cheers
