Point (a) & Point (b) Ultrahigh volume (a) indicate bullish, However the next candle (b) market was not moving upward , but moving downward .
If the high volume seen at point (a) had been buying, how can the market drift downwards? To be more accurate, there was buying at point (a), but for the market to have gone down, the buying must have been 'absorbed' by professional traders. They will only do this if they have become bearish.
At point (c), we observe an down-bar, but look at the volume: It is low.
The professionals who are Distributing stock have withdrawn from the market, as they do not want lower prices – it is too early for them, as the floating supply has not been removed.
Point (d) & (e) retest
Note the low volume at these points, which is an indication that the tests were successful and that demand has been removed. The market cannot up down on low volume.
