Nice.
The markets are moved by imbalances of Supply and Demand.
Here's a look at the Euro.
First, Markets do not like Wide spread, high volume or ultra high volume bars that close up. Why? Because of the possibility of Professional Selling into the bar. As
VSA teaches, strength comes in on down bars and weakness comes in on up bars.
I have placed pink lines at some areas of Resistance. These are areas of supply. Some traders have gone long at these levels. Their only hope going forward is to get out at break even. Hence, if price moves back into these areas, we would expect to see them sell (SUPPLY).
Professional Money knows this. So what do they do if they know prices are going to rise? They have to absorb the supply (buy). Now if they are buying high, they certainly expect prices to go higher.
Note the first bar with a green arrow. This is a wide spread bar but the volume is not that high. This is a "healthy" up bar. That is, this is the kind of up bar the market likes. The lack of ultra high or high volume lessens the chance of hidden selling within the bar.
Now check out the very next bar. If you think this is weakness you are wrong. This is absorption volume (volume is ultra high). Note that this bar trades through the resistance tops and the
POC (yellow line). THIS IS PUSHING THRU SUPPLY. PROFESSIONAL MONEY WANTS TO KEEP THE LONGS FROM SELLING (SUPPLY). SO THEY RAPIDLY MARK PRICES UP. IN THIS BAR, THE MOVE IS TO LOCK TRADERS IN, NOT KEEP TRADERS OUT.
The late shorts now have to buy back their positions, placing more order flow on the dominant side (up side) and further hurting themselves.
The next bar is key. Note that it closes up on less volume. Had this bar been down, then we would have to think there was actually Selling in that bar by the Smart Money.