This mornings pattern scan for anyone who may be interested.
Plus noted your comment HLL, about FAS, and have done up a simple intraday chart which clearly shows the sell setup that was presented for all the new traders.
cheers
dyor
First chart is a nice slow old 12min, followed by what the day bar finished like with an EOD.
On the intraday chart, note the volume, spread of the bar and its highish close for the opening bar #(1).
It closes high with ultra high volume and wide spread, ummm, careful,.
Now watch out for testing of that huge - potential hidden selling.. But all good, spot over the next few bars the reduction in volume/spread etc and that their lows stay well within the upper parts of bar #(1), ALL GOOD.
It then pops higher on one bar BUT THEN along comes #(2), note its spread and close are less attractive than that of #(1)... yes... careful..
#(2) bar is up on also quite high volume (hidden selling), closing well off its high, and has narrowed in spread, all signs of be blooming careful, especially if one is thinking the unimaginable of buying after these signs of weakness have appeared.... but to be sure we wait a tad for confirmation.. some dont though, not me I'd be out like a flash..
And wham bam thank you, the very next bar after #(2) is your confirmation to RUNNNN is a no demand bar.. The activity in this no demand bar would be made up of the Johnny come too late, who beleive its all good and nothing to worry about with higher prices to come..
THIS is NOT the case, this is the time we EXIT and dont look back, the only buying being done here is by the new, inexperienced traders. This is out time for us day traders, no ifs or butts.. This is a typical sell setup that may and does occur on any timeframe..
Just like to add, if you still where holding on at that no demand bar, further proof all was not well, was delivered over the next three bars.
The bar immediately after the ND, was one that snapped lower, trapping in the newbies, followed by a nothing ND type bar,,,,,, and then if you're still hanging on for grim fear of missing out on higher prices .. the knockout punch of bar #(3), note the huge pickup in volume, spread and low close,,, .. Will zip it now, no more blabbing on :))
