1 - Sign of strength: Ultra high volume on down bar that close in the middle and the next candle is up
2 - Lack of selling pressure (very low volume on down candle)
3 - Long spread candle on high volume that closes near its highs: effort to rise
4 - Sign of weakness: ultra high volume candle that closes off its highs and the next candle is down. There still are...
I see that we've recently completed a short-term AB=CD pattern. It was actually structured extremely well, with price reacting to the Golden Ratios beautifully.
What intrigued me, however, was how the Volume played a factor, at least retrospectively.
I didn't point this out on my chart but here's how:
From the bottom of A up towards to B, high volumes produced...