HI, this looks like a classical retest-after-breakout setup
Line A is the previous resistant at B, then price broke up at C with strong volume (effort to rise).
Price later retraced back to line A, and the last downmove 1 was associated with low volume, thus showing lack of selling pressure (No Supply)
After retesting line A at D, price moved back up ( up move 2) with strong volume.
The latest down move 3 is a retracement of the up move 2, and this downmove 3 again had lower volumes, which may indicate no supply again.
If I'm gonna buy this counter, I would buy once the Heikin Ashi candle turns green again, provided that price did not break below D.
I used Heikin Ashi candle to smooth out the bars and the Weiss wave , especially on small time frame. However, the actual appearance of the bar is still important especially the position of the close as it will help tell the balance between buyers and sellers. (At the breakout point C, the actual breakout bar has a close that was near to the high, indicating a valid breakout).
Trade at your own risk, comments are welcomed.
Line A is the previous resistant at B, then price broke up at C with strong volume (effort to rise).
Price later retraced back to line A, and the last downmove 1 was associated with low volume, thus showing lack of selling pressure (No Supply)
After retesting line A at D, price moved back up ( up move 2) with strong volume.
The latest down move 3 is a retracement of the up move 2, and this downmove 3 again had lower volumes, which may indicate no supply again.
If I'm gonna buy this counter, I would buy once the Heikin Ashi candle turns green again, provided that price did not break below D.
I used Heikin Ashi candle to smooth out the bars and the Weiss wave , especially on small time frame. However, the actual appearance of the bar is still important especially the position of the close as it will help tell the balance between buyers and sellers. (At the breakout point C, the actual breakout bar has a close that was near to the high, indicating a valid breakout).
Trade at your own risk, comments are welcomed.