skalping
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$TST š Scenario #1: False Peak and Absorption
- The candle is strongly red, but the volume increases towards its end.
- In the tape of trades, there are **aggressive purchases on the dip**.
- The price quickly returns above the middle of the candle or closes above the shadow level.
š What this means:
Panic was used to buy a large volume. We expect a **rebound or consolidation at the top**, as the sellers have 'evaporated'.
š Scenario #2: "Real Dump"
- The candle is large, **the volume is evenly high throughout its length**.
- The order book is emptying, large orders are disappearing, the price is falling with acceleration.
- The tape shows aggressive selling without absorption.
š *What this means:*
Capitulation, sellers are active, it's not the end of the decline yet.
#TradingTales #skalping
Conclusion: if the price breaks the lower shadow, then that is support. I buy at the bottom.
In the second case, I watch for the end of the collapse.
- The candle is strongly red, but the volume increases towards its end.
- In the tape of trades, there are **aggressive purchases on the dip**.
- The price quickly returns above the middle of the candle or closes above the shadow level.
š What this means:
Panic was used to buy a large volume. We expect a **rebound or consolidation at the top**, as the sellers have 'evaporated'.
š Scenario #2: "Real Dump"
- The candle is large, **the volume is evenly high throughout its length**.
- The order book is emptying, large orders are disappearing, the price is falling with acceleration.
- The tape shows aggressive selling without absorption.
š *What this means:*
Capitulation, sellers are active, it's not the end of the decline yet.
#TradingTales #skalping
Conclusion: if the price breaks the lower shadow, then that is support. I buy at the bottom.
In the second case, I watch for the end of the collapse.
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