1. Up thrust - high volume, wide spread and closing well off the highs. This indicates excessive supply entering the market.
2. Shake out - reasonable volume, wide spread and closing well off the lows. This indicates excess supply entering the market which the buyers absorbed so aggressively as to push the price well off the lows. It's low matches that of the bar 2 to the left of bar 1. Coincidently this is just below 0.2 which is a psychological round number.
3. Test bar? - low volume, narrow spread closing just off its high. This indicates an attempt to review if supply is still present at these levels. By pushing the bar below bar 2's close if supply was still present much higher volume would have been experienced.
I'm not sure if 22/19.5c gets drawn out as a support level same with 26/23.5 gets drawn out as a resistance level.
I'm not sure on my interpretation of bar 3.
I'm not sure on where I would be putting entry/target/stop loss.
