There are no big differences between red and green low test bar. The important thing you need to know is the read the price actions correctly. Ask yourself many “W” types of questions, such as:
• Why is there a low test bar near $2.05?
• Why is there a low test bar near $2.17?
• What prices are significant support and resistance?
I believe this is a correct way...
With the help of VectorVest, we knew that the Aussie stock market just reverse from the bottom on 22-Jun. Therefore we apply a Bottom Fishing strategy called "VST Mighty Mites"
Parameters modified as follow:
• Sector <> Energy, Materials, ETFs, Telecom Services, Utilities
Results of Top 5 stock descending by VST*GPE/RT are
HPI.AX, RFF.AX, GDI.AX, CDA.AX,...
TA: Broke trend line (yellow) on Solid volume (Pocket pivot)
MACD above 0
Stochastic crossed up
Price above 50 and 200MA
Bounced off pitchfork with a hammer candlestick.
FA: Company is in the defence sector with radio communication, metal/mine detection and gold detection industries.
Defence sector may be bullish with global geopolitical tensions.