Timepass's notes

hi timepass

Stoch and RSI has a Bullish reverse divergence with the double bottom levels formed today and the double bottom at 5200 levels.

"Bullish reverse divergence" is when price is making a low and higher low whereas the corresponding level in the oscillator is making a low and lower low.It can signal that a sizeable swing in the direction of the stock's underlying trend is about to take place.In this case it's a double bottom and not a low and higher low, so will wait and watch how it turns out.

adding the chart below

I have been looking for that ever since you mentioned it the first time... will revert to you about it

Here i am posting one of my article dtd.07.10.2007 which may be useful for trade-learners
Since its my writing , definitely i am not violating any rules,......to show you the requirement of understanding the markets.
...............................................................
THESE R HARD CORE FACT BASED ON OBSERVATION OF MARKET FOR LAST 6YR
.................................................. .................................................. .....
AUCTION CONCEPT IS VERY IMP FOR TRADING, NEGOTION OF BUYER AND SELLER ..A VALUE ZONE,HIGHER UNJUSTIFIED A SELL PT,....LOWER AGAIN UNJUSTIFIED BUY PT.
...FOR A DAYTRADER LAST 0.5HR..TIME TO CLOSE TRADE[IRRESPECTIVE OF PROFIT/LOSS]
PROFESSIONAL MONEY MANAGER WHO BELIEVES IN TA LOOK FROM LONGER TIME WEEK/MONTH.....START BUY THEN AS THEY HAVE MONEYPOWER.
normally we all lower price ....use for buy oppurtunity and use higher price zone for profit booking oppurtunity.
in normal condition market stay at top or bottom a little .and stabilise at price equilibrium pt
IF WE LOOK FROM LONGER TIMEFRAME WE HAVE BETTER ANALYSIS TO TRADE
IMBALANCE OF PRICE IS OPPURTUNITY
HENCE PRICE TRY TO REACH QUICKLY TO BALANCE.
NOW TIME TO REACH THAT...IS OPPURTUNITY
WE must study behavior of market to understand it.
define ;RANGE DEVELOPMENT
NORMAL DAY
TREND DAY.....UP AND DOWN [nothing told consider up to put sp idea]
VOLATILE DAY
................
RANGE HELPS TO DEFINE DAY IN TIME
...............
CONCEPT OF CONTROL ; BUYER $ SELLER
................
PRICE NORMALLY GREED DRIVEN IS UP
PRICE UNDER CONTROL OF FEAR...DOWN TREND
MARKET MOVES FROM IMBALANCE TO BALANCE
THROUGH PRICE EXTREME/RANGE EXPANSION OR VALUE AREA..SLOW MOVE
..............
LONGTERM TRADER WATCH FOR OPPURTUNITY, SEARCH FOR A PRINT[REPEATATIVE TENDENCY OF EDGE 'GIANT FOOTPRINT'
WHEN LARGE BUYERS COME PRICE MOVE UP AND WHEN BIG SELLORDER COMES PRICE FALL DOWN.
IN UPMOVES LIKE RESPONSES COME FROM GREED DRIVEN OBSERVER
..................
HENCE MARKET BEHAVIOR STUDY FURTHER BREAK UP 2SUBTLE ISSUE
1]IMBALANCED DIRECTIONAL MOVE
2]BALANCED ROTATION OF MONEY IN CYCLE /FOR SECTOR ALSO DUE TO CONSTANT CHANGE OF PARTICIPANTS PSYCHOLOGY[GREED AND FEAR]
OPENION...Longterm openion of price reflects true value of stock
current value=todays value[all known and unknown openion hidden in price]
its imbalance we search for.....in weekly chart we see value shifting higher to see oppurtunity of longterm buy
range extension[predictive] shows biasness of close,normally in a range day DAYTRADER do active participation[whether earn or lose] at day top and at day bottom
now continuity of price at extension towards end of session provide biasness of watcher[better skilled trader] to put money for future oppurtunity to earn with trend[continuation]
AT CLOSE TIME HIGHER PRICE BUYING ACTIVITY SUGGEST LONG TIME STRONG HAND BUYER ACTIVE [OPPURTUNITY EXISTS TO EARN]
HENCE STUDY FOR OPPURTUNITY TO CONTINUATION OF IMBALANCE IS IMP WITH THE HELP OF 3 TOOL......PRICE,VALUE AND MARKET ACTIVITY
wide expansion is good for daytrade.....from range to wider range ...to be watched for
now narrow range suggests 'side ways market'.....
INITIATION OF TRADE
.............................
1.WATCH[OBSERVATION]
2.RESPONSE i]extreme......STOP
ii] favourable[ continue to hold or add]
other factor....problem of hope
3.now study specific case[with past data ,if ieod very good
4. failed expansion....too much too soon
5.trend termination...........trend of opposite....if proffesional fading coming with volume
..............
always ask current condition , value with mean [open high low close..mean] vs close price
HOW LONG TERM PLAY TRADER R THINKING ? R THEY UNCERTAIN ??
IF YES , DONT PUT MONEY......OBSERVE, LET OPPURTUNITY SLIP BUT DERISK
.....so now u test idea
check imbalance & direction of price move.......to reach a value in time and rupee from imbalance to balance.
IF FAILED EXPANSION CAN GIVE FADE....OPPOSITE DIRECTION TRADE[VICIOUS MOMENTUM
NEXT COMES STRENGTH OF BUYER AND HOLDING POWER....VS MARKETING STRATEGY ADOPTED BY MEDIA.....TO LURE THE WEAK MIND IN FORMING A CROWD RUN/CHASE
.....same way at bottom imbalance occur .........if new directional trend fail ? study....
oppurtunity or risk!!!
study neutral day and volatile day
...........................day 1,day 2, day 3, day 4, day 5.......@TOP ZONE AND BOTTOM ZONE
...........R U GETTING THE SIMILARITY ......HOPE NOW USE IT STOCK SP. CASE
now we actually watch this constantly unfortunately positional holding [blocked openion of direction] CRIPPLE OUR READING[ANALYSIS CAPACITY]
...............
IMP OF LONGTERM TRADER, ACTIVE PARTICIPATION CREATES BULLISH BIAS . ON THE CONTRARY AGGRESSIVE SELL BY THEM CAUSE DOWNFALL
WHEN THEY R UNDECIDED , WATCHING.....market stays in sideways .
another imp observation ,....one first move fail[neutralise by counter selling] THEN AGAIN MOVE ...........THIS NORMALLY HELPFUL, ACTUALLY 3RD MOVE HAS MORE STATISTICAL UPBIAS .
MIND IT ALWAYS.......PERCEPTION OF VALUE ITSELF IS VARIABLE
U MUST STUDY RELATIONSHIP WITH PREVIOUS DAY/WEEK......WHAT IS HAPPENING NOW?IN MARKET ,IN THIS SESSION ..TODAY....THIS HR??
STUDY BALANCED DISTRIBUTION WHICH NORMALLY HAPPENS BUT AWARE OF POTENTIAL LIQUIDATION PT
a bull is ready to liquidate for profit .......but where??
adding of new info [+ive dimention].....no risk....hence hold further for bigger profit.
but opposite direction move starts.....bull must liquidate to book money profit.
hence excess of profit[desire].....act a new dimention to an existing trade
.......VOLUME TO STUDY....BIG MEANS MORE ATTRACTIVE BUYER OR SELLER
HENCE STUDY AFTER OPENING WITH RESPECT TO YESTERDAY CLOSE .......HOW MARKET IS BEHAVING TODAY [1/2 HR]...CRUCIAL .UNDERSTAND WHAT IS A TREND IN CONTINUITY..
WHETHER IT EXISTS AND FURTHER CHANCE OF CONTINUITY , ON THE CONTRARY imbalance and move to extreme or mean reversion balancing move[no trade oppurtunity exist then]
ON THIS CONDITION ON ACTUAL MARKET CORRECT TRADE EXIST.....AND THIS IMBALANCE AND MOVE TO EXTREME FACILITATE A TRADE[ CONTINUATION TYPE BUY SYNDROME TRADE WITH TREND.

HOWEVER ANOTHER DIFFERENT BALL GAME CHOSEN BY A FEW PRO.
LOGIC..change can happen rapidly .observe[perception change of participants]
normally its dificult to understand change of trend due to bias[ so being minority these pro r in right side of trade,unexpected event due taken care of]
study session 1 hr chart bias & gap fill..session 2 ...session 3...session 4 session 5
similarly in day 1 day 2 day 3 day4 ....day5......WHEN OPPSITE FORCE ATTACK ?
HOW IT ATTACK ........INDIVIDUALS PERCEPTION OF VALUE......MOMENTARILY WEEK HAND GO IN UNCERTAINITY MODE AND ACT FOR SELF SABOTAGE.....THROW AWAY IDEA [IF AT ALL] IN PANIC.......AND supply money to this cold blooded pro......as if natural loser[being weak disciplined person]
HOWEVER STRONG HAND ALWAYS PROVEN RIGHT DUE TO CONFIDENCE[JUST LIKE RECENT ENTRY @BSE14200......]STICK TO AND READY TO BUY , ABSORB AT FALLING PRICE CONSIDERING IT AS FURTHER BUYING OPPURTUNITY
hence perception of same event has 2fold outcome/influence.......weak hand seller and strong hand as buyer
.......as a normal person we r fearful of uncertainity , so any event which has financial implication we watch, and try to derive its influence in short term and those who can think for long term,......size and visinity.....a cluster zone can be created considering upper boundary price tag[target]....and lower zone value [entry pt]
all we know condition affects price.......so plan should be ,
1]change of price up...sell oppurtunity
2]low zone...considerably buy idea....provided new percept not so bad
........dynamics of each case stock specific is different
....hence another idea .....surprise event
unlikely event
expected event ......has to be added
in expected event normally mean reversion towards value equilibrium occur
another 2 factor.....fundamental impact of an event and understanding time frame r imp.
normally higher time frame ,say weekly......has more bias...
however in case an unlikely event ,occurs as a shock, price and its value both move together towards a directional bias until stability
hence give priority to surprise event as it act as oppurtunity
on the contrary if u r in wrong side , book loss early if possible reverse position
......remember for expected event after announcement normally price reacts to opposite direction
THIS INSIGHT HELP TO UNDERSTAND RISK BETTER IN TRADING .

buyers /sellers confidence and uncertainity r imp factor
actually buyers' dominance /sellers big volume attack....this 2 greatly influence price and so called direction into 'oppurtunity' [threat to a fool]
wild move suggests thrust, when participant transfer from hesitent to aggressive ...wide range occurs.where as openion based participation without rigid parameter and future uncertainiy cause wide fluctuation [volatility]
hence a feel for value is vital
oppurtunity=price away from actual value
normally price fluctuate above and below value
execute=how quick u can act
depends on how much clearly u can visualise with certainity
always study from long term prospective,..what chance is there from present balance to go to quickly imbalance and stabilise higher[new] balance zone
.....now ask ....will sombody buy at higher,if yes....ok..buy now.
for shorting , if u see big seller may come or not.
hence mean reversion is a good theory to apply in market
..........................
hence u check if at present
1] current market is undervalued or not [strategy]
2]study of imbalance in buyer'side
3]continuity factor
..................
hence reaction to news is an imp study to understand internal strength of market
...........................
confident trader[longterm mature buyer] vs. novice day to day [trouble lover]
...........................
remember current perception of value r always reflected in price
............................
be ready for atleast 2 different event 1]unlikely.....2]expected one
play plan for both r entirely different

for unlikely event,if u r in otherside ,damage is very costly,hence prepare for it,..as then price and value both quickly goes against u,shockingly bigger loss
hence be ready in mental level for it[worst case scenario]
experience helps to understand this price/value/event relationship and expectation of people vs. news and its reflection in price
this i call market dynamics of watchers
hence confidence and uncertainity of watchers[potential buyer/seller] gives only directional bias.with uncertainity more rotation occurs ie. distribution phase
.................................
price distribution study
........................... study of ask vs. bid
1]10 -1030..first half hr

2]13-1330 lunch hr
volume or order flow study based on
3]15-1530[presently upto 16oo]close hr tick data[pib]
.................................................. ..............................
this study of tpo...time price oppurtunity concept u have to do for u [own research]
mine shall not validate ur plan....however i suggest to distinguish to understand
up day
down day
volatile day
.................
first half hr ..opening initial balance with yesterday close
lunch hr...observation of biasness development
closing hr...time to take action
................
most imp is long term holder[strong money] r participating or they r sensing danger...hence selling delivery [distributing] to sit on cash andor taking money out
.............
normally all buyers want to buy low and sell at profit[high]
so categorise buyers......short term and long term in trading percept.
long term trader search for unfairlow price with bigger view with higher holding period
shortterm player search and book profit with quick imbalance
hence when break out style is visible ,ranging is moving up with interesting higher pivot break pt, with perception of imbalance to continue.......long term player put big chunk of money near day end with high bias of continuity

so short term day trade type player ,skillful in execution take its advantage ..with their computer generated signal [an edge to take !%profit] continuously take profit with him as per his comfort level ......he is happy , as his scanner suggest oppurtunity every now and then.....based on %up list/volume up signal /a quick pivot break up.
however for long term buyer its not that easy........he has to search continuity of directional bias , ruthlessly buy out volume at top with money power to prove break out.
hence study on eod /weekly chart of impulse[main direction] and distribution [reaction]..
where this phenomena is going to happen now
hence i repeat again ,good 1-2 day mometum players use to play to trade in the side of big money player.
some other skillful player trade ..buy and sell in small targeted zone.
however when other players,new players vs. strong money players maintain equilibrium ....
hence plan of small profit with sector rotation occur as equilibrium tradezone facilitates buy low at support and fade at weekly resistance pt.
so long term fund is out and watching as imbalance creation is aim for strong hand......with watch when they found without news some strong resistance zone is touching again and again ,they test with good money power ..can they break it? ,if yes, put it....and pull price price out of that resistance to new imbalance with a hope of continuity ,luckily greedy buyer or fearful short seller, sometimes media with news help them to fulfil target.
this balance area of around resistance line is test ground .....against new buyer by other pro seller or experiment field for short term players, however ...continuity or holding several days over this new acquired land [from bear]....severity of opponent comes down ...as a true pro they leave to win against bull in other stock where high price on top may attract short seller.
corolliary: market moves directionally unless opposite [reaction against impulse]...strong orderflow comes[attack by big sell].
......................
concept of whole [market] vs. part[individual stock]
..................
nifty component imp one r to be checked .....similarly for summation of total effect ie. play plan of nifty.
similarly for intraday........first playplan
i]range is defined ....high/low in first 10min...[for av trader 1/2 hr]
balancing of flow in it.....when and where it showing range expansion.....show direction defined
ii]so verifying continuity of imbalance in mental level
[i do it,u can use suitable software for it]
enter the trade.....as strong order flow is coming inyour direction ,while breaking predefined pivot ........
yes its the real intraday trade.
[however unless u know control of mind /experience.....hit of moment its not possible
_top,high
I 1UPPER ZONE
I_
I 2MID ZONE,EQUILIBRIUM VALUE
I_
I
I_3 LOWER ZONE ,BEARISH BIAS

..............LET US STUDY THIS FIGURE, KEEP STRONGLY IN MIND
FOR OUR SIMPLICITY WE SEE AS A DAY BAR, HIGH.MIDDLE,LOW

middle maintain balance,some body called mean value....with a random +/- small value
a zone of equilibrium ,trade will try to facilitate near to it.
now total day bar.....dissect in 3 part, 1part top
2 part middle
3 part bottom
hence a daily range divide in 3 sect.......further study of a day activity.
imp thing is close, by defn end of day close defines....after fight by full day among bull vs. bear....final score.....where they maintain equilibrium
some body use crude 1/3 each, somebody modify total range 0-20 top
20-80 middle
80- 100 low
its in percentage of total day range, for deep study of close
i prefer for indian market , top 15%upbias
15-85%middle equilibrium range where fluctuation normal,mean reversion works
85- 100% bottom value for -bias
somebody prefers to calculate with pivot idea,someone with mean range ...top..bottom,
whatever may be chosen ...structure is same .........a top bias ,an mean equilibrium,a bottom bearish bias
.................we have to think now where is close, that way the biasness.
closing on top........strong upward bias
middle zone....any thing can happen
bottom....suggest bearish bias
now after day close.....all news info,new development...money extra available to put market
reflect quickly with next day opening.
as to facilitate trade day trader search for balance ,longterm player search for imbalance....entry idea and exit plan for both of them r different[in longterm we search for continuity]
now this similar concept can be put in hr bar range and weekly bar
normally higher time frame has more influence
however for simplicity we study hr bar here to understand impact on day trade from microlevel,
now on that particular range closing on top suggest we r interested
next hr bar more wide...moving with higher price zone decides to enter bullside..with big order flow coming in same direction
continuity 5-6bar creates a total day picture......with further strong bias
hints....friday close bar study ,close at bottom .....has given me computer generated short signal in my simple 10hr dema,close cut down]
.............role of observant and vigilant
..................................................
all we know ftse market of opening .....affects around 14hr in trading......and opening bias of nasdaq in tech shares.
now beginning must be observed carefully[in fluctuation as well as orderflow]
price must be treated as supreme ............holding of price over a particular value ...in a particular duration suggest lot of things
yes its the secret of trading
hence study of imbalance and test trade r imp.
...now after new price discovery it has a typical tendency to reach new balance , old resistance bounce .....idea of test validity of new price strength
somebody puts in oldway of impulse......and distribution [reaction]....upto a particular retracement value,
however next flow is all imp .......as it gives all important continuity of imbalance.....as seen in pennant and flag pattern
in other words orderflow or new money is vital.
imp oppurtunity occurs if continuiity can be seen,......VISUALISE for higher time frame .
the delivery trade by close........drying the float uplift price normally further up

some of us in this field of trade experiment put this mean value +/- 2sigma.....a balanced zone with typical past data calculation for 'sigma' value...in this days of statistics,for them monthly once new value based on 20 trade day better.......however i warn too much math make trading less profit worthy....as its the execution and sense of survival that counts after stoping self sabotage,...holding the profitable trade sufficiently take care of u and ur family.dream big should not be motto,learn big and live in reality
.................
normally high value order occuring in the stable zone slowly seen....as all r ready to watch for volume play.market moves as perception of value[fundamental] changes.as all [different time ,different style players participate in market simultaneously view and analysis is not so easy[in fact very difficult time consuming process for me six year to learn and i am putting this hypothesis].......thats why an organized analytical view help.
key component r 1]interest of shortterm buyer[intraday]
2]interest from weekly chart[view from intermediate term]
3]interest of swing style [eod study followed by av]

hence organize trade from this 3 element[put 3 different power spec. to see different view
and now give weightage]..........VISUALISATION IS KEY TRADE TOOL, IT ONLY HELPS TO ACT WHEN OPPURTUNITY/THREAT COMES .........otherwise fear/greed put u wrong trade..
put u in info paralysis,courage not to act.......u can be an analyst but not a trader.
larger time player has thats why better judgement,as considering temp fall they can buy in strong bull run.
report publication and its impact change in near term value.......later when bruice die down they enter slowly if long term view is that really good.in all time frame balancing occur through movement of price from quick imbalance[impulsive] to reach next probable balanced zone. volume suggests aggressiveness of participant
study of std 1-2-3 pattern[a-b-c named by others] is always helpful to understand change in value perception
successive session continue ie. biasness of trend.uncertain buyer/seller can not hold trade
linda has suggested first this simple break up of a range bar in 3sect......higher as 1, middle equilibrium and 3 low as down bias......now close gives more mathematical judgement than foolish openion style trade,.....see at close where more activity is ,in tick chart volume by more activity suggest buy by short term moody buyer or deep pocket longterm player .....
study of time and distance move by price clears it......
time when it breaks and move up very imp.
influence of current pice[close of last] also to be seen.close shows final sentiment of that particular time frame ..balance pt of bull/bear.now come influence ........if influence of price towards back[rationality].....price goes back to mean reversion.
if confirmity of irrational by price........up and up or by gap up ......concept of greed or trend fulfils.now most market participant believe [mean of total ie. market majority] it shallmove up....really it will move up.
this is the forward move of price......confirmity.
........................
normally most of time market maintain balance[equilibrium].
short term break of balance shown in long term chart[weekly]...gives oppurtunity when strong money players[biased] participate in trade with a vbiew to hold.
imbalance strength can be studed by volume , price roc also imp.....also study distribution [price relationship}
majority time after new value discovery price move quickly occurs by impulsive move to reach new stable zone. a forward price driveness occurs in market, based on earlier close and feed by media.among all timeframe player higher time frame has max influence [dominance]
.......................recognisation of trend..............

to define a trend ,a ref pt has to taken..it may be yesterday close ...mean pt. or opening stabilise
another factor,.....market needs time to develop trend [continuation]..ie. market must show some move , then opposite direction force has to be neutralised, then only new direction strong trend move possible .
step 1; study in 'balance area'
so which direction imbalance is building up
step 2; now in relation to bigger picture ...how a trend may form
so fairly low..fairly high] ...which one is breaking with thrust ....govern..move in future
....................
however sometimes stabilisation occurs ,hence price flatly fluctuate high/low of a range...in side ways.hence a band study is critical and how many times it touches to break at top or bottom[say 3].now when at what context reversing in price with volume thrust is very imp
now if down value is not breaking , then upthrust may bring easily a move of trend .
the path of least resistance .....another concept to be put forward.similarly market if can not trade up ,anticipate a test in downside ,
hence check reverse at top.....unfair top value, reverse at bottom unfair bottom value.
.....however equilibrium in middle not to trade........and watch only
.................................................. ............................

we also watch condition that affect value .it helps in our decision making process of trading
1]imbalance in move
2]balance of rotation in money [sector rotation] as uncertainity play plan
3] about to; termination and sharp move in opposite direction
4]continuation of past main strength
..pl use this concept in actual trade.
cashflow[money flow] is based on news flow....new development causing watcher participate to join , samely if big sell occurs cash go out of system, causing downfall of market

till now last 6yr back test data showing bar by bar ......based on yesterday close and next day trend ,increase of bank balance by trade ....loss in greed ,methodologically i can say in indian market,in a weekly range bar, close near upper 15%value....has up bias
close near bottom 15% has -bias, and in between 70%,35%+/- is unpredictable .
so around top, new money entry into the system break the top........always consider this longer time frame view , u trade or not.
note....central mean area has tendency of price cluster.
............................
imp of av price .....it shows the activity out of noise,hence very valuable for intermediate term study.say take study of 6day, a weekly chart of 5day with data of yahoofinance helpful ,to understand continuity.........near term activity[predictive mode].
anticipate future is another style......or hope and hold ,expecting break out in future[long term bullishness like indian market].remember av has price bias of direction in long term

present condition of market
..................................
what exist now? imbalance or balance
long term view and short term view
if imbalance exist ,go with the move .....in balance case fade or watch.
now in weekly frame imbalance bias of upside must be taken as buy oppurtunity .
next question is where position should be held longer?
so normally unless normal signal is not valid,..short the same trade in smaller size .....allow it to move to price restoration .....again take small position and watch
.....hence this 2 factor ..1[price and 2]participant r governing factor......when phenomena is controlled by price ....its better to buy at break pt after break out.....also sell by fade at rally.
memember money flow is mother of all activity .longer timeframe has more control ...to guide duration.calculate different av [ma] to continuity in intermediate term
.........
near term whether top is holding or not, very critical part of study

theory of short at top
..............................
is it a major resistance?
no strong buy observed at higher pt
if it cannot trade up, logically it should now test a bottom /mean value .....in downside .
as participant r uncertain ,so they shall definitely liquidate position by following law of volatility.....with this evidence we may join in short.
....where to liquidate?if with liquidation at bottom , new selling r coming .....hold further.
.......when market slowly reach upside ....and again start coming down ....go short.
prepare playplan first.....its not easy
first clear with holding position.....exit from all long position
...............................always judge possibility vs. actual ....and concept of part vs. whole
....only after some yr case basis trade ....then only trade aggressively.
.....
but remember....longterm frame has more influence ......hence short against trend not commendable .......[seen the masacre of bear last 2days]

volume
..........
volume confirms liquidity and price distribution, actually used for confirmation of price strength.it may help in your decision making tree.
1]trend is going to continue??purpose is react early
ask question ...to clarify ...what market imp.participant r doing ?buying or selling..or in distribution [watching]
in trade zone ....again see as per range in middle no participation , near top.....high volume participation with good % delivery.......take risky entry
near bottom low volume participation ...again take entry....support buy.
...........
can we distinguish buy volume vs. sell volume?in higher range with price up,volume up phenomena is good .
in lower range , higher volume suggest sell volume.
........
next question is at lower volume at down day who is buying it?....definitely long term informed buyer r buying with good idea on company /near future.remember long term buy is done at comparative lower price ......with different play plan of sleeping money.
cash flow up
...............
higher volume near top suggest interest by strong hand .....a short term aggressive play plan.
total volume tool
.................
creating momentum more than double volume ,compare to 10day av. is good.observe when down volume brings strong buy .....quick up move [not allowing to stay in bottom].......it suggests whenever good news flow comes , probability of strong upmove.

similarly if low price brings more activity ,price shall have to go down .....to stabilise first.decrease in volume in low price ......stock has no more interest,however bottom is near.
if low no trade @top,.....buyers seem to be not confident .......hence fall is imminent
in general volume pick up suggests more participation of public in direction of price.
advertisement of commercial when marketing.....play to lure participant is natural....
so it can be a tool for oppurtunist trader ........
more activity [normal type distribution ] @ av zone.......is balancing action......watch only.
ultimate shift to topside or bottom zone has some utility.hence expected behavior in trade zone .........buy at lower value and sell @higher value [channel play]
but who is behind to change it........to create a new trend?
hence sudden sell by pro at lower value means they expect bottom further, similarly buy by them at top.......means they have reason to be greedy[unexpected event ]
...............................................................
Hope you enjoy this article , can guess what shall be discussed in future webinar