• Australian Dollar Currency Spotlight: Is There Still a Chance For Weakness?
    Last week I wrote about the Australian dollar becoming weak after the interest rate rise announced by the Reserve Bank of Australia (RBA). The currency did not behave as I expected it to. The setup that we were waiting for did not eventuate and the currency rallied. The sellers were not ready to take this[…]
  • High Volume Waves: Trade Market Tops with Confidence
    Some journalists and reporters assume that when the market hits new highs on high volume, it is a continuation of the up-move, but this is a dangerous assumption. High volume alone isn’t a reliable indicator of a market rally. Sudden high volume during an up-day may indicate a potential end to the rally if the[…]
  • Currency Spotlight: AUDUSD Weak after Fed Rate Rise
    The currency in the spotlight is AUDUSD. Last week the Federal Reserve raised interest rates and the Australian Dollar rallied against the US Dollar on the news. The chart above shows a widespread up bar on the interest rate news. The bar closed in the middle of the range. The volume was ultra-high and it[…]
  • Supply Testing Maximizing Profits in the Financial Markets
    In volume spread analysis, testing supply is by far the most important of the low-volume buy signals. The high probable moves when testing supply appears are usually after there’s climatic volume. What is a test and why do we place such importance on this action? When professional money is accumulating an instrument they can mark[…]
  • No Demand Understanding Bearish Market Trends
    How does a trader identify no demand in bearish market trends? A lack of demand is the most common indication and you will regularly see this on stock charts. A no-demand bar will be a low-volume up bar with a narrow spread. There are three places where a ‘No Demand’ bar can show up: A[…]
  • AUDUSD Passes Monthly Trigger Point
    The currency in the spotlight this week is the Australian Dollar (AUDUSD). Let’s first take a big-picture view of the currency and look at the monthly chart. The first thing I check for is areas of ultra-high volume. We see that on the 1st of February 2020. We have a widespread down bar with the[…]
  • Market Makers’ Role In The Markets
    Market Markers generally match up and process buy and sell orders from traders worldwide. It’s the market makers that create the market and in order for them to accomplish this they must have large blocks of stocks to trade with. Market makers will look to other market makers for assistance if they don’t have sufficient[…]
  • The Smart Money & Crowd Behavior in the Markets
    What is meant by the term resistance in the context of market mechanics? When an investors starts to sell as soon as a rally starts. This is floating supply and has to be removed, if not this is bad news for higher prices. In order to have higher prices, the floating supply must be removed.[…]
  • What is Bullish and Bearish Volume?
    What is bullish and bearish volume? That is simple, bullish volume is increasing volume on up-moves and decreasing volume on down-moves. Bearish volume is increasing volume on down-moves and decreasing volume on up-moves. This is a start but it’s not enough for investors to be successful in trading. You need to know more than this,[…]
  • That Was The Week That Was – Indices Analysis 3/2/2023
    The S&P 500 and the Nasdaq continued their rally last week, with the S&P steaming ahead after recently breaking through its downward trend channel. In previous weeks, the S&P 500 has a couple of signs of strength on its way to breaking through the channel. I did mention that the S&P was coming up to[…]