[Soultrader]

Hello guys,

I have a litte trouble understanding volume demand bars after a selloff. I have attached a chart from yesterdays action. The rectangle box shows couple sell volume spikes.

My questions is this: How do you watch for demand bars after that spike? In the first rectangle the volume spike is created by a doji. The next price bar closes above the high of the doji... this occurs on lower volume. How do you intrepret this? To me it seems like supply is cut off but price continues to drop.

The same thing occurs in the second rectangle box. Volume spike is created on a down bar but the next bar closes above the low of the previous bar.

Any advice would be appreciated. Thanks