S&P 500 Volume 20 Year Annual
This is A Moment for Great Opportunity...
The Risk is being on the right or wrong side of the trade.
Volume is Like A Tug Boat Pushing the Price Barge UP And
Down the Chart.
The Resistance line is like a narrow passage in the river .
The resistance Current can be very strong against forward progress.
Once the price is pushed through the resistance line, the strong
resistance current lessens significantly and the price will continue
to move easier in the same direction. There will also be an extra
spike in buying volume.
On the other hand, if the price fails to push through the
resistance, the prevailing current will reverse
the price very quickly and price will be pushed back toward a
previous level of resistance along with a spike in selling volume.
When the price action flattens out for 4- 9 time periods that
means the Tug Boat is working very hard to break through..
This a time for patience.
.....There are a number of terms for this .activity.
Consolidation, coiling (tighten like a spring), distribution.
All these terms convey the building up of energy.
A good example of this is the moment before opening of the
nozzle of a garden hose under pressure.... Once you open the nozzle there is
a blast of water volume under a lot of pressure...it's also
to notice the direction the nozzle is pointed.
Many times it is difficult to tell which direction the price will go.
I will anticipate the price will go with the prevailing trend but
also watch closely for other evidence of of my predilection.
I am always ready to quickly move out of my position should
the market say otherwise.
If there Questions ....leave them in the comments section ... NeboXian
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