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It could have been that in the closing moments of this bar the buyers drove the price from the low of 41 to the closing price of 53 (figure 9). Anyone watching the live market would have concluded at this time that the buyers had taken control of the market. 34 Figure 9 Or it could have been that in the last few moments of this bar the sellers had just forced the price from 65 down to 53 (figure 10) and they were clearly in control. Figure 10 We cannot tell which of these two situations occurred, or, in fact, whether another, different scenario was played out during this bar. All we have to work with is the information that the bar presents. 35 So what can we infer from this bar (figure 8)? Imagine you are scoring a boxing match and this bar represents a round in the match. Who won this round? Well I say the sellers won this particular round. There was clearly a bit of a tussle and at times the buyer was on top; but judging the round as a whole I would have to give it to the seller. The seller took the price from the open of 72 to close at 53, a drop of 19 points. Lets look at a few more bars . Figure 11 Who is in control at the close of these bars? Remember I am not telling you how you must read a bar; I am prompting you to consider what relevant information you can get from a bar. There is no definitive answer, just your opinion. Action: Would it be possible to trade off this information? Try trading this with Market Master, after each bar decide who is in control and buy or sell the opening of the next bar accordingly. Try different markets in different time frames. What else can we read from an individual bar? What about shifts in control, can we see if there has been a shift from one side to the other? Look at this bar: 36 Figure 12 |
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