Antonychea
No SH isn't saying that, what he is commenting on is his observation that the spread of the bar narrowed today and volume picked up. When that occurs it means that buying in all probability is coming into the stock and that buying is stopping the price dropping further and as it does so it compresses the bar. look at it this way if it were all selling the bar would have been wider spread because there would have been nothing to stop it. However, we always need confirmation be it end of day intra-day whatever your timeframe is, so on an end of day basis we need to see a shift in sentiment from selling which we have seen over the last week to buying or demand coming in. A higher close tomorrow on an increase in volume with the close in the top half of the bar would be such a confirmation. Personally I prefer to buy on low volume pullbacks that 'test' for supply in a previous high volume bar but everyone has their own style.
Unless you are intending to short term trade this at the moment you need to look at the Weekly and once there's some positive stuff there then pan into the daily to buy on the smaller timeframe. Mitta outlined that strategy perfectly yesterday.
Cheers!
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