TEST
- An extremely important sign that completes the whole correction system on the volume less than what was prevailing on the impulse movement is TEST. His role is also to consume the remaining supply or demand that are still on the market. The price deepens the corrective movement, moving into new regions, which recommends continuation to traders, but in fact professionals start to complete the correction. The volume of the correction is the appearance of the largest volume or the smallest volume on this move.
- The main investors buy the given assets, take it from the market, which results in the withdrawal of a large candle and its closing high or low on a small candle. It presents whether demand exceeds supply or vice versa and the market is ready for an impulse move. Re-withdrawing the price on a small volume means that the supply or demand in this behavior has been limited. The market, mainly professionals, seeing a passed test, receives information about readiness for impulse traffic.
- A potential negation is the withdrawal of the price to the vicinity of the local hole or the top on a large volume, this means that the other party also participated in it, caution indicated, the test may not be passed.
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Foreign Currency Day, Swing & Position Trader
5 年Great analysis Bogdan!?