Hidden buying and selling?
Posted by Cire2222 on Jun 18, 2008
Hidden buying and selling?
In the forum we have had some talk of hidden buying and selling and some questions were asked. MC started a thread to help answer the question here http://www.tradersbase.com/forum/technical-analysis/663-define-hidden-selling.html You may not like to trade off volume alone but I think it could be a big help to any trade set-up. Today I just so happen to see something that fits into this topic. Below is a chart that points out some possible hidden buying that tipped me off to look for a long set-up on an intra-day basis.
What I saw was a large spike in volume (biggest of day) with a short body candle after a big swing down. To me this means that buying volume has stepped up to soak up the sellers. Had the market been moving up strong going into that I would of seen it as sellers dumping into the buyers. This gives me the okay to take a long signal, today it worked out for a good day trade.
