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Re: Tronicta post# 48302

Friday, 02/19/2016 5:39:31 PM

Friday, February 19, 2016 5:39:31 PM

Post# of 63744
Low volume dropping the price is bullish. It's blatant manipulation but it is exactly how markets function. It's called a test of supply. When the volume slows down instead continuing to ramp up. You can watch it happen in all sorts of time frames. If we drop on on low volume (with no selling) and then rebound higher that would be a successful "test of supply / sellers)
It takes market makers very little "effort" or "money" or "volume" to drop the share price. Once the share price is dropped and little to no stops are triggered then the uptrend can resume.
What we want to continue seeing is high volume up bars followed by low volume down bars. However, increasing volume / buying = continued demand. This has to continue as the share price rises or else you will get into an area of decreased demand (continued buying at higher prices) and the uptrend will stop altogether or just temporarily take a breather.
Anyone else here with a greater understanding than myself please jump in...

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