Weekend Charting and Chat - 1st July 2016, page-8

  1. 19,112 Posts.
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    I have Data for the FTSE back to Jan 2008, and the volume generated after the Brexit Vote, was easily the highest I have since that time, and checkout the close back above mid bar.........and well off the daily lows.
    To my eye, this looks like a really massive shakeout of the market, and shakeouts are considered potentially strong or bullish.
    Note - that the next bar also had very high volume, but the spread narrowed considerably and the next bar was up, and closed bullishly, just above the close of the initial bar, and more importantly above the high of the previous bar.
    Also note that after initial two bars, how easily price accelerated higher on reduced volume, this strongly suggests that a supply vacuum was formed (this was because pretty much all of the supply had been bought on the two high volume downbars), which allowed price to rise with ease within it.
    Price closed Friday having a look over the important line @6432 which has restrained price since early October 2015

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