4DS chart, page-295

Hi @theawkkwa - Yes it can be very confusing can’t it. Buy side always higher volume than Sell side in the Order Book, but SP seems to be going down (or at the best sideways). The current price action is nothing unusual for 4DS. Have a look back at the previous Ultra-High Volume Supply events in the past, i.e. November last year and January this year (this is a chart thread so I am assuming readers have access to and can read a chart). When the market gets excited about 4DS, volume and volatility increases substantially, and so the pattern repeats.

One possible explanation for the apparent contradiction regarding the Order Book Buy-Sell volume distribution and the falling SP could be that “Smart Money”, this could also be Professional Groups operating in collusion, are testing Supply following the large Supply Event. They try to drive the SP lower to see how much volume is available at the lower levels. I wouldn’t be surprised if the Smart Money was present on both sides of the Order Book, i.e. buying and selling to themselves. If at the end of the day or week their buys were larger than their sells then they were Accumulating. The alternative of course is that they were Distributing. My current bet is on Accumulating.

To get a better of idea of what is exactly going on you would have to do some research aimed at trying to identify the Smart Money and the Brokers that they use. The Broker data net volume traded would then give you a better idea of what’s going on.