DislikedHey friend
It would be more accurate to say .."and due to the high activity on several bars at this area .. we should watch for further confirmation of sellers"
The reason I say this is that you can see high volume and it may mean:
A) Supply is swamping demand, or vice versa
B) Supply is being absorbed by demand
Edit:
I decided to edit this post to include charts of what I mean
The first chart here, EU H1, shows absorption volume that is tested and proves itself to become H4 demand
The testing is more clear on M30 chart,...Ignored
Hi Frankkn
yea true , high volume on an upbar or any other bar .. alone could mean alot of stuff ... but its the background and location and how price came to where it is wich unfolds a story ..
what i was reffering to is ..
look at the small spread bar and where it sits on the fisrt picture.. its on a former supply area wich lead to a down move , now as we come back to that supply area .. with signs of strenght in the background or at least a change in behaviour ie upmove .. we know that market is getting stronger ,
i marked some high volume downbars ie supply ..
now that we are again at that level of supply and this on high volume on a small spread bar wich closes high end .. i can draw the conclusion that the supply left at this level is getting heavily absorbed .. due to the background we have and that we are holding gains .. or at least dont see a reaction wich tells us that supply is still in control at that level..
on the second picture u can see again an area of former supply .. ie the high volume down bar .. and the small spread up bar on high volume at the same level... is again someone absorbing the supply wich sits there ..
a beautifull example of aggrresive absorbing at resistance ( wich was a trade i took btw)
so the location where we see the action and how we came there is important too to the story .. and thats how i came to the conclusion that the high volume on resistance/supply .. is absorbing rather then supply swamping demand ..
hope u know what i mean ..
cheers