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Old 02-12-2007, 05:14 AM
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Re: Tape reading substitute for forex

Follow up post.

Focus on the grey area. The bar with the two pronged arrow is the bar where we did see some Professional demand enter the market. I said the bar looked like a possible shake out. It was not. Two bars later, we get a narrow ranged bar that close higher than the previous bar, closes in the middle of its range, and has volume less than the previous two bars. This is a classic VSA No Demand bar. The Smart Money was not interested in higher prices at this time. The move down continued.

We just had a narrow range bar that closed in the upper portion of its range on ultra High volume. This is a squat or volume churn bar. Moreover, it appears to be Stopping Volume. Again we see divergence between bearish order flow and price. We are close to the green line (S1).


Last edited by Anonymous; 02-07-2008 at 07:41 AM.
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