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interpret bars in demand-supply perspective


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interpret bars in demand-supply perspective

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  #1 (permalink)
Malaysia
 
 
Posts: 19 since Oct 2010
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been wondering how you guys interpret the following bars from demand-supply perspective. hence we can have a clear view whether we traders have the same opinion over this matter. would be glad if you guys can share. =)

1. narrow spread, close>open, high volume
2. narrow spread, close<open, high volume
3. wide spread, close>open, high volume
4. wide spread, close<open, high volume
5. narrow spread, close>open, low volume
6. narrow spread, close<open, low volume
7. wide spread, close>open, low volume
8. wide spread, close<open, low volume

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  #3 (permalink)
Market Wizard
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lokgotkent View Post
been wondering how you guys interpret the following bars from demand-supply perspective. hence we can have a clear view whether we traders have the same opinion over this matter. would be glad if you guys can share. =)

1. narrow spread, close>open, high volume
2. narrow spread, close<open, high volume
3. wide spread, close>open, high volume
4. wide spread, close<open, high volume
5. narrow spread, close>open, low volume
6. narrow spread, close<open, low volume
7. wide spread, close>open, low volume
8. wide spread, close<open, low volume

1. churn bar -> look for breakout or reversal
2. churn bar -> look for breakout or reversal
3. breakout or climax bar -> continuation or reversal
4. breakout or climax bar -> continuation or reversal
5. low volume bar -> trading range
6. low volume bar -> trading range
7. low volume bar -> fake bar or midtrend
8. low volume bar -> fake bar or midtrend

You can use one of the many Better Volume indicators to display these bars.

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also, find attached a usefull guideline, I use it with discretion since it not always applies.

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Market Wizard
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What doe sthe word churn mean in regard to trading ? I found this :

A vessel or device in which cream or milk is agitated to separate the oily globules from the caseous and serous parts, used to make butter.

That's interesting but i can't really make a connection.

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  #6 (permalink)
Milan (I)
 
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trendisyourfriend View Post
What doe sthe word churn mean in regard to trading ? I found this :

A vessel or device in which cream or milk is agitated to separate the oily globules from the caseous and serous parts, used to make butter.

That's interesting but i can't really make a connection.



Churning is a slang term that is defined as excessive trading on a client account by a broker. The purpose of the activity is not to benefit the investor, but to generate additional commissions for the broker. Also referred to as twisting, the practice of churning is considered to be highly unethical and is illegal in many markets.

Related to Volume churn is an excess of Volume activity. Attached the picture of a churn to mount the butter, to increase the volume of fat in the milk, this is where the analogy comes from.

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Market Wizard
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trendisyourfriend View Post
What doe sthe word churn mean in regard to trading ? I found this :

A vessel or device in which cream or milk is agitated to separate the oily globules from the caseous and serous parts, used to make butter.

That's interesting but i can't really make a connection.

Link to wictionary:

Selected from churn - Wiktionary

(transitive, figuratively) To produce excessive and sometimes undesirable or unproductive activity or motion.

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