What you need to know for extremely high price and volume bar?

 

Extremely High Volume Upbar at Peak Level can Kill if you goLong without knowing

Another Example of High Volume Upbar may mean End of Up Market

When everybody is chasing higher price, who is selling then?

Years of trading have taught me not to chase stock which is heavily transacted with or without wide
price range. If the volume is extremely high says 2 - 5 times above the average volume. I would not
trade on that day, but I would choose to stay aside and watch the stock unfolds in the next few sessions.
If the stock continues to be bullish, i would expect price continues to go higher with substantial
volume but if price starts to fall below the pivot level, I would walk away and wait for the Blue
Diamond to trigger long trade.

Even though, we cannot forsee the possible run-up in the stock price in the near term.
A way to take advantage is to trade along with my propietarty indicator, "Go Long1" is able to
trigger long trade near the baseline where the price starts to move higher
from there. Usually the previous price bar is used as cutloss reference, and most of the time,
cutloss is seldom triggered even it could be just 2-5 cents away from the buy price.
The reason is simple, most of the indicators are coded taking future price into consideration
which means tomorrow conditions must be met so that the indicator will trigger today.

Most of the time when I trade, I never scan for home-run stock as we are not GOD to know.
Faithfully follow my Personal Diamond Trading System, I encounter many non eye-catching
stocks later turn into monster trades...So just work hard to make a good trade each time and
let the market decide where the stock price will be later and care less. The most important
thing I do after enter a trade is to watch the cutloss level like a hawk each day.
As long as the cutloss is not triggered, I am a winner to survive another day.

Cheers!

Why High Volume High Price Range May Make You Lose MONEY?

Hi Traders

Again and again, I have witnessed how professionals trapped the herd into buying while the professionals
are doing the opposite instead.

Refer on my last post on this issue.
http://volume-price-spread-for-metastock.blogspot.com/2010/10/sample-9-excessive-volume-upbar-may-not.html

Look at the above chart on Genting HK >>>

BEWARE of High Volume and High Price Range - this could be a trap that the

professionals setup for you to buy in while they are happily unloading their inventories to

you.

Check at those vertical dotted lines marked with "W", those were huge volume and
price day. If the professionals were so bullish to make the price range so wide and
huge volume, why were there be selling after the next day? Shouldnt the price continue to
go higher with good volume?

Have you been trapped in this kind of scenerio before when you watch a particular
stock starts to move wildly up and you decide to take a trade instead as the reward is
too good to resist and you feel like a champion after having a part in the game.

What happen the next day when the price starts to fall lower each day and you now
feel lousy.

You thought to yourself, every news that you can find are  saying good things about
this stock and you are sure that the stock price should continue to climbing and not
falling. You starts to notice that after the heavy transaction day, daily transacted volume
has been getting lower and lower and eventually below average level. How can it be?

You are trapped once again to believe that a new uptrend is on the way but turn out
to be a joke.

This is one of the classic traps that setup by the professionals to trap average traders
like you and me into believing that the stock is bullish while the professionals are thinking
bearish and want to unload as fast. This game is tough and cruel, it's not simple afterall....

By interpreting bar by bar, I am fortunate to decode what the hell is going on behind
the scene and trade along side with the professionals.

Expert Indicators such as "Trap Upmove", "Lack of Demand", "Supply coming in",

"Weakness coming in", "Top Reversal", "Professionals are distributing" are able to
warn me before hand and take appropiate action immdiately