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Old 02-08-2008, 02:42 PM
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Re: Candlesticks and Volume

Here's an interesting one from today:




Now the high volume is actually on the red hammer type thing but that trade would require a fairly wide stop. The very next candle - a spinning top that is also a harami type setup provided an incredible risk/reward. In essence, the need to 'borrow' the volume from the previous candle was needed here. I THINK that is a VSA thing where the red candle has the major volume and the 2nd one shows no interest to continue the down move, so can get long here.
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