Absorption
the process through which the long liquidation, profit taking, and new short selling are overcome.
It can show up on any chart,regardless of the time
frame.
the process through which the long liquidation, profit taking, and new short selling are overcome.
It can show up on any chart,regardless of the time
frame.
These clues point to a successful absorption of overhead selling:
โRising supports.
โVolume increases around the top of the absorption area.
โLack of downward follow-through after a threatening price bar.
โRising supports.
โVolume increases around the top of the absorption area.
โLack of downward follow-through after a threatening price bar.
โAt the right-hand side of an absorption area, prices tend to
press against the resistance line without giving ground.
โIn some instances, the absorption phase is resolved by a spring.
โMinor up-thrusts during absorption fail to produce a breakdown.
press against the resistance line without giving ground.
โIn some instances, the absorption phase is resolved by a spring.
โMinor up-thrusts during absorption fail to produce a breakdown.
Source :
David H. Weis
"TRADES ABOUT
TO HAPPEN "
David H. Weis
"TRADES ABOUT
TO HAPPEN "
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