Well then lets talk about the candles on BSC, I would definitely call that a correction and the stock is definitely in a down trend. But if you look at the last few candles they are squeezing in between the 8 and 21 EMA the last two days have produced dojis... both days have less volume than the previous. Could you possibly use
VSA to figure out who is buying/selling?
Just from looking at the chart, I would say it almost seems as if buying has been exhausted and they could be continuation dojis - but as we all know anything new from the Fed and this stock will rocket higher.
Now lets look at the dow. We have a nice bullish candle that broke through the 21 EMA and opened right on top of the 8EMA, normally thats a very bullish sign. In fact if we look back to around August 6th-13th nearly the same thing, we opened on top of the 8 EMA and closed well above the 21 EMA only slam on the ground the next day. What I find interesting about that day is it was right at a pivot point where there was previous resistance between the end of May and middle of July. Right now we are doing the same thing, we found resistance again Friday on that bullish candle (with very low volume).
The weekly chart is much the same, we are pushing right against resistance. In fact we closed nearly at the high of the previous week and again much lower volume and a clear down trend on the weekly chart. But as we all know, if you look at the "long term" trend that hasn't yet been broken.
I think we will see a fight between the bulls and the bears, if we move higher the next stop will be 13,700 so if we close higher tomorrow then it might be a good idea to go long. I think this last week was a lot of the same thing - people finding cheap plays and picking them up for a quick gain. Obviously though they feel confident going into the weekend holding a long position because of Fridays candle. But who was behind the low volume and how does that go into the validation of the candle?
Sorry if my post was all over the place, if something didn't make sense just ask me and I will try my best to clear it up.