where to from here?, page-162

bungi,

It depends whether it is an Up Bar Or a Down Bar (close to close)

If it is an Up bar, narrow spread, high volume, usually close in the middle.

It is being sold into by the Pro's heavily, and lower prices should be anticipated in the future with all the supply present.

Every buy order is being met with a sell order almost straight away & that is what causes the very narrow spread.

This would show potential weakness, a down bar the next day would confirm the weakness (or an upthrust or no demand bar, which are secondary signs of weakness).



If it's a down bar, the reverse is true.

A down bar very narrow spread, high volume usually closing in the middle, is a potential sign of strength.

Is being strongly bought, every sell order is being bought almost straight away, causing the narrow spread, and higher prices should be anticipated in the future (usually after testing, which is also a potential sign of strength)

Just remember that potential weakness, when it appears, will appear on an Up Bar.

and

Potential strength, when it appears, will appear on a Down Bar.


Those narrow spread bars on high or very high volume are usually potential powerful signs (of strength or weakness).



cheers