Basically, that type of bar means : Open=High=Low=Close. The spread, or range, of the bar is zero.
These usually appear with little volume. This makes sense as volume is activity and there is a relationship between volume (activity) and range.
As far as being no demands or no supply, it gets a little hazy.
If the volume is less than the previous two bars on such a narrow spread and closing up, then you have the base definition of No Demand. This is the definition that is in the MTM book. Unfortunately people were simply trying to short on any No Demand. Tom then had to "change" the definition to stress the idea of background weakness (or strength in the case of no supply). Hence, many now would say they are just low volume up bars showing little professional activity in the market. Considering that 80-90% of the volume "figure" is professional money.
Tom and Todd used to talk about "a polar bear" in Hawaii, when a no demand showed up in the wrong place. Like when there is not weakness in the background. They used that term because the bar met the base definition (book) of no demand. What people seemed not to grasp was that all up bars on a narrow range with volume less than the previous two bars are no demand, but not all no demand bars are tradable.
As you are just starting out, you should put the bars into context. If there are no signs of weakness behind you, then look at the bars as simply low volume up bars showing little professional activity. If there are signs of weakness (like high volume up bars closing off the high with the next bar down) then look at the bars as no demand. Which still means there is little professional interest in upside prices, but now you have the background context for a tradable bar.
Sorry for the lengthy answer but this is a pet peeve of mine. In order to appease critics and traders that did not understand the idea of context and for software purposes the definition was "changed".
07-30-2009, 04:29 PM
Linear Mode
