Breaking out of Descending Wedge, With Volume
Hello Everyone,
I know a lot of the news as of recent has been largely negative regarding the US banking system, as well as the War in Ukraine; but I wanted to share with you an alternative. If you examine the chart, you see that volume has significantly increased over the last four days. Historically, we haven't seen this kind of volume since the market bottom in October of 2022, June of 2022, and
which each resulted in a follows 20%, 18%, and 10 % movement to the upside in the following weeks and months.
If youll also notice, that the candles associated with the volume bars are compacted. Meaning that the volume being traded did not move the price. This can only mean that the amount of sellers is matching the buyers, AND A LOT of shares are trading hands relatively speaking.
Youll also notice that we have been declining about 10%, rather heavily, over the last 6 weeks in the SPY index, and that Volume spikes have historically marked bottoms when the market is declining, and marked tops when the market is rising.
Note that the market is risky endeavor and nothing is guaranteed, that we could move significantly to the downside (about 220) if the banking system fails in a systemic way, or something else catastrophic happens, but that in general, these patterns of volume analysis and price movement seem to hold.
Biden Banking Bailout is Bullish. CPI and PPI are neutral to bearish. J Pow speech will determine the move, but it seems the market is betting on a pause after SVIB.
Thank you for reading happy investing and trading.
I know a lot of the news as of recent has been largely negative regarding the US banking system, as well as the War in Ukraine; but I wanted to share with you an alternative. If you examine the chart, you see that volume has significantly increased over the last four days. Historically, we haven't seen this kind of volume since the market bottom in October of 2022, June of 2022, and
which each resulted in a follows 20%, 18%, and 10 % movement to the upside in the following weeks and months.
If youll also notice, that the candles associated with the volume bars are compacted. Meaning that the volume being traded did not move the price. This can only mean that the amount of sellers is matching the buyers, AND A LOT of shares are trading hands relatively speaking.
Youll also notice that we have been declining about 10%, rather heavily, over the last 6 weeks in the SPY index, and that Volume spikes have historically marked bottoms when the market is declining, and marked tops when the market is rising.
Note that the market is risky endeavor and nothing is guaranteed, that we could move significantly to the downside (about 220) if the banking system fails in a systemic way, or something else catastrophic happens, but that in general, these patterns of volume analysis and price movement seem to hold.
Biden Banking Bailout is Bullish. CPI and PPI are neutral to bearish. J Pow speech will determine the move, but it seems the market is betting on a pause after SVIB.
Thank you for reading happy investing and trading.
Comment:
Jan is the other bottom. No price move+lots of volume =anomolous inflection point or area of high market interest. Either a bottom or beginning of a large sell off. Pay attention to breaks of levels with steady volume to the downside, and mark ups on price to the upside