Void of Buyers vs. Corporate Buyback Patterns

Today’s TradingView tutorial explains how to recognize a Void of Buyers and Corporate Buyback candlestick patterns on a stock chart. These are entirely different price-and-volume patterns, and the Accumulation/Distribution indicator provides important confirmation.

When there is a Void of Buyers, the retail news will usually find some “reason” for the decline in the Dow 30, NASDAQ 100, and S&P 500. Yesterday and several times last week, there was a Void of Buyers. The retail news claimed that “investors feared…”—one of its favorite explanations—and blamed the declines on investors selling stocks.

That is NOT what happened.

If you study stock charts properly, you will see that the candlesticks were very small and volume was declining. These indicators reveal that JNJ stock fell NOT because of heavy selling pressure or panic selling, but because there was a Void of Buyers. Understanding the difference is a critical part of accurate stock chart analysis.

JNJ also has a large corporate stock buyback program. Once you know what to look for in the candlestick patterns, volume, and Accumulation/Distribution, you can see where the JNJ buybacks triggered and moved the stock price up several times.

Corporate buybacks—not individual investors—were responsible for those price moves.