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the "other side" has taken control, fighting off further price movement despite the high volume. |
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2. Above-average volume with strong price movement in the direction of a trend indicates likelihood that the trend will continue. One side is in control and is moving aggressively. The bigger the price and volume, the farther the price will run. |
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3. Above-average volume with strong price movement following a breakout signals that further price movement in that direction is likely. One side is in control and is moving aggressively. The bigger the price and volume, the farther the price will run. |
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4. Below-average volume with limited price movement during periods of consolidation many times signals that the next move will be a continuation move. |
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That's a good start on overall understanding of charts. You probably have learned more than you realize. Now you can take your Japanese candlesticks to the next chapter where you will learn how to identify and how to trade proven, high-probability chart patterns. These patterns can become the basis for consistent profits! |
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