Here we go, I'll flog a dead horse so-to-speak in the hopes it...

Here we go, I'll flog a dead horse so-to-speak in the hopes it becomes easier to digest.

I've added the OBV indicator below on the hourly chart to really drive home the concerning volume profile (one that mirrors an expected H&S pattern perfectly). Reminder that OBV indicator shows buying and selling pressure, like other indicators it can be used to spot divergences between Price and Indicator level. In other words, does the OBV indicator mirror price action? If not, an opportunity to buy or sell presents itself.



The orange line, from 14.5 cents on Tuesday 26 September to 16 cents on Wednesday 4 October shows divergence in that price went higher but OBV did not foretelling a move downward. This is supported by looking at OBV indicator from that 16 cent mark on 4 October to 6 October where price was in a range but OBV dropped off a cliff.

The Red line, from 14.5 cents on Tuesday 26 September to 14.5 cents today, Wednesday 1 November shows an alarming divergence. While price has reached the same level, OBV is nowhere near.

This paints as clear a picture for me as I need and will gladly let this one play out from here.

Look for volume to increase on the way down to the neckline (12.5 cents) as we form the right shoulder. Once the neckline breaks, volume should increase substantially as you have a lot of liquidity trapped at 12.5 cents right now. I'll wait for the neckline to break before explaining what to anticipate once we hit the target of 9 cents.

I really hope you can all see that I'm not here to try and play 'who's correct' and argue. I'm hoping that I can show you some tools to utilise and hey, if I'm wrong I'll gladly accept it.