How to know the background is strong or weak?

 

Professionals clearing thier inventories into the rising price at market top

Be Wary of Extremely High Volume at Upper Channel and May Mean Start of Distribution Activities

How do we know that the current trend has topped and may begin to topple?

This is not difficult to tell if you understand how the professionals will act in the Market.
This kind of massive distribution or transferring of inventories to the unwary investors and
traders usually happen in a bullish day where the news will be good, the particular stock
maybe rumoured to have potential good news and this get the average investors and traders
excite and causes them to take part in the chasing flee.

There is no free lunch, if you are getting advantage out of nowhere then it is time to think about
who is the other side that is selling to you. If the stock is so bullish, won't the other side wants to
hold longer to make more profits?

By understand the price and volume relationship and without complicated technical indicators,
it is possible to learn to see how the stock will response to the actual demand and supply of
everyday trading. Afterall the market is driven by the two strongest emotions of human beings,
GREED and FEAR. By understanding the collective activities of this unwary group of traders or
investors, you can know how the professionals will trade against this group which called the HERD.

This game is mean, there are sharks or wolves waiting for the untrained, greedy and fearful traders
and investors to fall into their traps. Always protect your trade setup with cut loss even if we
are super bullish on a setup, as I said many times, we are dealing with probability and no certainty.

Trade with cautious or consult your personal financial advisor before deciding to take trade.

Cheers

Sample1: How Buy Order is Triggered with VPSA?