The top image is a 4 hour candlestick price chart of Silver/USD cfd. (Each candle represents a 4 hour time period.) If the bar is red, it means price closed lower than when the period began, if it is Blue/Green it means price closed higher than when the period began. The bottom spike bars represent total volume traded on the instrument. Red means there were more units sold than bought for that period. All markets are basically an auction. In an auction when there is a lot of activity - volume - there is movement of price. "Storage Wars" - If there is interest in the storage unit, there is a lot of bidding and the price increases. Eventually there is no more interest in taking the price higher and and the bidding stops as the consensus that the unit has bidded up to it's acceptable value. The markets are no different. If price begins to make a move, and it is a real move - there will be a lot of volume - look at the red candle and volume spike on November 9th - they agree. Then price pulled back and tried to move higher, but there was no interest in continuing this reversal back up as seen by the low volume spikes. On the 16th, another big red volume spike meaning the down trend is likely not over. Sure enough it continued. Now look at the recent bars and charts. The volume traded is the highest IN EIGHT YEARS. The volume to the down side is less than the volume to the upside. So, price is probably gonna stall, and trade sideways for a while. Watch the volume and when it picks back up. Pay attention. People decry that "the markets are manipulated". They are, always have been. You and me buying our tiny lots and shares cannot move the markets. The big money decides when they want to move the markets, and when they move in, you see a lot of volume. We can't behave like them, but we can trade with them. For more info read Richard Wyckoff, Tom Williams, and Anna Couling.
The top image is a 4 hour candlestick price chart of Silver/USD cfd. (Each candle represents a 4 hour time period.) If the bar is red, it means price closed lower than when the period began, if it is Blue/Green it means price closed higher than when the period began. The bottom spike bars represent total volume traded on the instrument. Red means there were more units sold than bought for that period. All markets are basically an auction. In an auction when there is a lot of activity - volume - there is movement of price. "Storage Wars" - If there is interest in the storage unit, there is a lot of bidding and the price increases. Eventually there is no more interest in taking the price higher and and the bidding stops as the consensus that the unit has bidded up to it's acceptable value. The markets are no different. If price begins to make a move, and it is a real move - there will be a lot of volume - look at the red candle and volume spike on November 9th - they agree. Then price pulled back and tried to move higher, but there was no interest in continuing this reversal back up as seen by the low volume spikes. On the 16th, another big red volume spike meaning the down trend is likely not over. Sure enough it continued. Now look at the recent bars and charts. The volume traded is the highest IN EIGHT YEARS. The volume to the down side is less than the volume to the upside. So, price is probably gonna stall, and trade sideways for a while. Watch the volume and when it picks back up. Pay attention. People decry that "the markets are manipulated". They are, always have been. You and me buying our tiny lots and shares cannot move the markets. The big money decides when they want to move the markets, and when they move in, you see a lot of volume. We can't behave like them, but we can trade with them. For more info read Richard Wyckoff, Tom Williams, and Anna Couling.