DislikedThis post exemplifies why I am confused.
(3) We have established avolume peak at (2). Our new price level is 1.3310
OK. Makes sense.
Our new price level is 1.3310.
Yep. So far, so good.
So market interest seems to befar less at this new price level.
[font=Times New Roman][size=3]Huh? Price goes up (bar...Ignored
I think i can help spud to answer this if you don't mind. Not sure if i got the right answer, but that's what i can understand from Spud's explanation.
The reason why you see bar 3 as a place where traders are not interested with selling could simply be an observation of the candle alone only. What Spud might be trying to say is when bar 2 rose to a volume peak, it doesn't necessary means buying is only option. It could possibly means that traders are trading aggresively in this period of bar, hence the peak of volume. And there is a price level between the bar which caught the trader's interest, either selling or buying. That's why Spud waited for the next bar close (bar 3), and concluded that there's weakness in the price level, as bar 3 is not moving up, but going down with lower volume. The market could be shifting their interest in some other price level.
This is what i see and understand.