Great Opportunity

I wasn't going to trade today.  I was out all day in the sunshine selling wool-filled British duvets with a friend at a big agricultural show!  But when I got home I put my laptop on and saw a lovely test in the 20 minute chart.   I was very cautious about going long (buying) because the market has recently been extremely weak and there was nothing in the daily chart to say that it would be any different today.

However, the chart below shows a lovely principle that is very powerful.  First of all we see that during the day (when I was at the show) the market fell.  But at Point A we see some very high volume - stopping volume - possible buying.  This is followed by Point B where we have a down-bar but on low volume (volume less than the previous two bars), showing no supply - no interest in lower prices.  At Point C the market goes up in response to the low volume - so we know this is confirmation of the buying at Point A.  At Point C we see further confirmation - a test in a rising market - the market has gone down, only to close on the high, it is a down-bar and the volume is low (less than the previous two bars) - a beautiful test, and you can see how the market responded.  I took 25 points profit.