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......... What I am suggesting is that it is valuable to free your eyes from the "tyranny of the timeframe" and look at the "ebb and flow" of the market. Good call, you guys. |
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Nice.
Here is an great example of seeing strength in a market thru the "ebb and flow".
While this is a hindsight example, one can ask him or her self, "what would I do on the last bar of the chart?"
Take a look at what we have here. The first thing to note is that we have two Effort to Fall bars with no results. In fact, price never trades lower than the low of either effort bar. This is negative action. Negative action is basically the opposite of what we would expect to see happen. In other words, after a sign of weakness, we expect lower prices. Negatively, we see higher prices.
In this case negative action means strength.
We also see a Test and multiple No Supply bars. As the market unfolds, the ebb and flow shows a market that wants to go up. AT NO TIME IS THERE A REASON TO BE A SELLER.
To the question: While there does appear to be a little volume/price divergence,
VSA is telling us the market is strong and the path of least resistance at this point, remains up. Therefore, we may not be buyers here, but we are certainly not sellers...........