combined with wide-range candles.
What do the shadows/wicks tell us ? Well there's much conviction here. Whenever buyers are in control, they get very aggressive. Anyway, sellers still manage to bring the price back down (buyers are still in control!).
Obviously, everytime the price gets over-extended it retraces, usually on low . This shows that sellers are : 1) not being aggressive, 2) not being numerous. In other words, whenever prices get down, it's not a shift in investors/traders minds, but rather the natural course of profit-takers.
The trade is pretty clear here. After getting rejected from the resistance (and breaking out from the range), the stock comes down, on low , showing low interest in selling the stock. The hint here, is the indecision coupled with a spike in . This means, the stock has arrived at an important historical zone and buyers are stepping in.
Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer.
***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities and that it only takes ONE trader to deny your trade.***