weekend charting spring 3r & 4th september, page-41

Ads - Thats just too good mate -Brilliant.

Now to make things really messy heres BHP

BHP Weekly



BHP weekly closer up



BHP Daily



BHP Daily closer up



Confucious Adsy's charts give us good examples of what we are looking for - get above the climactic action and then any low low supply tests and narrow spread down bars above the volume give us good low risk longs. The opposite is true for shorts - break down below the volume area then watch for an upthrust rejecting the area from below and then any NO demand (low volume UPBAR) trying to retrace through from below you can short. BHP at the moment is still congesting within that high volume area so there is no long term entry yet.
The other thing to note with BHP is that the stopping volume that shifted it sideways (so far) is not as high as some of the lows like the May 2010 low on the weekly. So this could just as easily slide further yet - ie they could be holding it up for redistribution - there is no long VSA entry on the weekly chart with plenty of background weakness and our background strength still being confirmed.

Short answer to your question is YES - you are right on track. You would probably benefit more by reading "Master the Market" in my sig and even more from the "Tradeguider" videos on youtube where they take live trades and explain the principles as they occur on the minute chart. They also have a couple recent webinars on there looking at ASX stock.