weakness

Let us look at another indication of weakness. If the stock has been moving up on a high volume and then we encounter a down bar closing down towards low on high volume is a sign of weakness. Volume need not be very high. Ideally the volume should be higher than the previous two bars.

If you look at the enclosed chart the stock was moving up on higher volume. Then we have the down bar closing down near the low. The volume is higher than the previous two bars. Looks like the SM have been distributing. The next bar looks more like a test for supply. The volume is low and the stock closing up. The low volume indicates supply is lower. Then again a downbar on higher volume. The weakness is more pronounced now. What followed is obvious…