A: This is the start of the accumulation, this bar marks where the professionals shows their true intentions. This is a down bar wide spread closing at the lows with ultra high volume, this bar by his own shows demand, because a ultra high volume seen in a down bar always contain a lot of supply, so, in order to confirm that we need a next bar up. I mark the high and low of this bar because it will represent resistency (the high) and support (the low) to future prices.
B: There we got our up bar, this bar confirms the demand seen in the previous bar. Also look at the spike to the down side and how the low is lower than the previous bar encouraging more selling by the public. This bar got a high volume, but not too much.
C: Up bar with narrow spread and volume less than the previous two bars, this bar shows a clear no demand bar, wee need confirmation of this bar by a down bar in the future.
D: Up bar with average spread and volume low (but not less than the previous two), this bar confirms that there is still demand in the market because the increase of volume.
E: Down bar with average-wide spread closing almost level with average volume. this bar for me shows demand, because the close almost to level, if it was near the low of the bar it indicates supply present.
F: Down bar with average spread closing at the low of the bar with average volume, this is how a weak bar looks, this bar shows some supply present at the market in the same zone where we seen a test in the background. We will need test in the future to expect higher prices.
G: A classic supply coming in bar. Up bar with wide spread closing off the high, with ultra high volume. This bar confirms the supply seen in the past bar because we now know that some group of professionals are selling in this zone, if the volume seen in this bar where demand why the bar closes off the high? this is clear. We need a next bar down to confirm this weakness. And you can expect future testing.
H: Down bar average spread closing at the low with average volume that confirms the weakness seen in the previous bar.
I: No demand bar, this bar with the supply seen in the background add to the weakness. You need a next bar up to confirm this weakness.
J: Down bar with wide spread closing at the middle with average volume, this bar confirms the weakness in the past bar but also shows some demand when the market approach the low of the bar A,B and G, so be aware, you will need no demand or other SOW to breakout this support zone.
K: Countermanding bar, this bar shows the strenght seen in the bottom of the past bar, so now we have supply that not let the market go up and demand that not let the market breakout the support line of A, expect a flat market in the future.
L: Upthrust bar, down bar with wide spread closing at or near the lows with high volume, this bar shake-out the buyers, because you got a false breakout of the high of E and G bars, so, buyers rush to buy and the professionals sells fast enough to bring the price down. This bar need a next bar down.
M: Absorption volume, up bar with wide spread clossing off the highs with ultra high volume, why this bar is not a weak bar with all that volume present? because it closes higher than the close of the previous 12 bars, it breakout the resistency on those bars. You need a next bar up to confirm the demand anyway.
Will continue...