mashala signed, page-96

Hi Andrew and co

Just thought I'd post up a chart showing what has been going on the last couple of days to show the relationship between volume and price and what the smart money does etc. By the way the smart money is not necessarily the professional institutional traders either. They get fleeced just as much as anyone else. But that's another story and i digress.

Todays finish was good and really served as confirmation of what was going on yesterday and this is usually the case, we wait for the next bar to confirm our suspicions. What we saw yesterday as I stated was a high volume down bar full of perceived selling. That was indeed the case but it was also full of hidden buying, (remember the sm always buy on down bars and sell on up bars) we could only guess it was a possibility yesterday because of the high volume, but was confirmed by our narrow spread bar today still on good volume, that finished within the range of yesterdays bar and finished with a higher close. The narrow spread indicates a very tight buying and selling range. What I would look for now as a signal for a safe entry to buy more would be a low volume narrow spread bar sitting right where todays action was or even a little below it. This indicates the sm is standing aside to see if the price will fall further due to increased selling. When they are certain the sellers have dried up they will take it up again, the last thing they want to do is buy from hordes of willing sellers. they would rather do that at the top, hence the high volume you see at the top of the chart before it drops off.

Well hope that made things a little clearer, its a hard concept to grasp straight away, but i'll be around for a while and i'll post up a chart from time to tme to explain.

Remember whether you are a short term of long term holder you can use this on any timeframe.

Cheers!