Both Tom & Wyckoff talk about effort & result of effort.
It took me ages to realize what they mean. I rely more on that rather than test bars. All my trades are done with triggers ie. sell stop or buy stop.
Now on with this chart:
A: should point to the down bar after the shake out bar. It is more appropriate. I personally call that Pent up demand in a preliminary shake out.
B: I ignore test bars, in the main. (my personal bias).
C: tells me more of what is going on. Massive buying into a down bar, next bar closes up with "ease" ie. it needs very little relative effort to rise... This in the main is bullish imho.
I would stay long as "effort to rise" is in play, since the demand bar (A) is confirmed demand already.
Have fun.. Mr Market is a very exact & precise animal once you get to know his ways.
VSA & Wyckoff will show you that.
It took me ages to realize what they mean. I rely more on that rather than test bars. All my trades are done with triggers ie. sell stop or buy stop.
Now on with this chart:
A: should point to the down bar after the shake out bar. It is more appropriate. I personally call that Pent up demand in a preliminary shake out.
B: I ignore test bars, in the main. (my personal bias).
C: tells me more of what is going on. Massive buying into a down bar, next bar closes up with "ease" ie. it needs very little relative effort to rise... This in the main is bullish imho.
I would stay long as "effort to rise" is in play, since the demand bar (A) is confirmed demand already.
Have fun.. Mr Market is a very exact & precise animal once you get to know his ways.
VSA & Wyckoff will show you that.