And now we see a volume based statement of the opinion of the parties buying and selling:
There were two clear high volume DOWN tests of whether the gap was going to be filled and of whether the price was going to crumble all the way to the full 100% retrace level.
The tell tale sign was that volume test number one had higher volume than volume test number two.
PLUS
the second down test did not go as low.
So, we got a volume test with a new low, followed by another volume test of the lows, but this one failed on two aspects: less volume in the candle & a higher low.
And what followed??? I'll tell you: a significant up move one even higher volume than either of the two pull backs.
So, the capitalist market principals tell the tale:
the volume going up is stronger than the volume going down. So, it is more likely than not that the bottom has been put in.
Could be wrong, since I'm as much an ordinary human as is everyone else, but those are some of the things to look for.
Hope this helps.
IW
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