[jjthetrader]

This is the one by SoulTrader.

[mister ed]

Good stuff JJ thanks a lot - big difference in download size will make it easier for those on less reliable/slower connections.

JJ - the file you prepared must have been crushed under all that snow right?

[jjthetrader]

Originally Posted by mister ed »

JJ - the file you prepared must have been crushed under all that snow right?

You got it! All while I was working on my laptop in my igloo

[Sledge]

Ok Pop-Quiz for the Pro's and Learning time for the noobs or anyone in between.

Can anyone Define marked bars 1 through 7. All the info needed (Volume) is below. The Admins can grade the papers when all have finished!

1.
2.
3.
4.
5.
6.
7.

[mister ed]

Hi Sledge - OK - here are my interpretations. Please note this is all with the benefit of hindsight ... very hard to get it wrong using this...
Don't show this answer to BrownsFan OK? Some of these bars are so obvious in candlestick terms ... LOL

1. Well it tried to go up didn't it, 'close' is very weak, on high volume too - failed badly. This is not a bullish bar. Very bearish almost a 'gravestone doji'.

2. Higher volume, tried to go down and closed back on highs - not a bearish bar at all.

Bars 1 and 2 represent a very volatile movement - over the course of these two bars there is a big range and huge volume and tests of breakouts on both sides, both of which have been rejected and net over these two bars there is no change!

Bar 3 - another huge volume attempt to go up, weak close. Not a bullish bar again.

The market has established that there is big supply above, and on the other hand there is still demand on the downside - the range in the bars preceding 1 and 2 still holds.

Looks like soon after bar 3 it enters the Asian timezone given the dramatic fall in volumes.

Bar 4 expands its range and volume,. but it is still stuck in the range with no test of either side.

The bar after 4 is a clear impulsive move - basically a Marubozu candle out of the range - huge jump in volume, close on the low. Clear sign of strong selling entering and a move below the recent demand area.

Bar 5 looks to be a climax bar after the wave of selling that came in from 4 down.
The next bar and bar 6 show declining volume but volume is still good. On the face of it bar 6 appears
bearish - and if it appeared after an upswing it would be,but it must be viewed in context of the recent action,
which is a big down move. It looks like there is continued selling but it is not manageing to go any lower is it?
Lots of effort, not much of a result.

Bar 7 is a weak close, huge volume, after an upswing - bearish again.

[erierambler]

Originally Posted by Sledge »

Ok Pop-Quiz for the Pro's and Learning time for the noobs or anyone in between.

Can anyone Define marked bars 1 through 7. All the info needed (Volume) is below. The Admins can grade the papers when all have finished!

1.up bar closing down, can't see background to tell if it is an upthrust
2.hammer indicating potential support
3.failure to make a higher high, rejection on high volume
4.test
5.stopping volume
6.same as 5
7.upthrust

Attachment 5239

erie , just filled in the blanks, hope this works..............

[Sledge]

Ed-
Ahh yes, wonderful start to the exam, I'd like to hear more as well from other classmates as well. I'd like to hear how Each trader would read these bars. Granted you do have the benefit of "after the fact" but if you take each bar as if it were the bar of the hour (this is a 1 hour chart) and it was happening real-time (without the benefit of the right side of the chart to give you cliff notes)

Extra Credit Question:
Maybe we make it more interesting- look at the last 4 Bars and tell me what you see- I see weakness on the up move and the market may open at start of week climbing, but I anticipate a decline....

[mister ed]

The last few bars of the week in FX are often characterised by a squaring of positions into the weekend so it appears the market was weak and shortish - on the basis of the info in this chart you would still be bearish but I think you may well have to wait until European open to see further selling. US exchanges closed on Monday too.