MAX HEALTHCARE - Preparing for a MOVE - Bar by Bar AnalysisBar by Bar Analysis - Learning VSA
Bar A - Here there is a definite attempt to move towards the price rejection zone after a small consolidation. We have a widespread up bar closing at the top. This closing was near the boundary of the rejection zone.
Bar B - we can see it was a clear attempt to “Jump across the supply”. But it met with supply and it was pushed back into the price rejection zone. The volume remained high which means there has been good amount of supply here.
Bar C - Again there is an attempt to move up on above average volume but lower than the two previous days.
Bar D - You can see that there was no effort to push up the price rather it was more of an attempt to absorb whatever supply that could be there. But the supply also did not step in here. Again, the prices pushed back into the price rejection zone.
In the next bar you can see that it is almost like a doji with a long wick indicating supply still there but the volume is still below average. It was not real attempt to push the prices up here rather it was the supply being absorbed.
Bar E - In the Bar you can see we had a widespread up bar closing up on the top but the volume remained quite low here. The supply did not step in and the buyers were able to push up the price without much resistance.
Bar F – The bar opened above the previous high and moved up. But supply overwhelmed and we had clear up thrust bar trapping many Breakout traders.
Bar G – The next two bar are down bars on very low volume. The supply was very low. Clearly the smart money is absorbing the selling from the trapped BO traders.
The current down move with low volume and Upthrust Trap move would indicate that the Smart Money could soon make a strong attempt to move up the price. The relative Strength has been positive. Money flow has been positive as well. Then we will see the real BO and the price move much higher. A good close 910 will be significant now. A stock to watch
