Copyright, Legal Notice and Disclaimer: Copyright 2011 By Gavin Holmes. All rights reserved This publication is protected under the US Copyright Act of 1976 and all other applicable international, federal, state and local laws, and all rights are reserved, including resale rights No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under section 107 or 108 of the US Copyright Act of 1976, without either the prior written permission of the publisher. All charts herein are provided with the permission of TradeGuider Systems International (www.tradeguider.com) Limit of Liability and Disclaimer of Warranty: The publisher has used its best efforts in preparing this book, and the information provided herein is provided for educational purposes only. The publisher makes no representation or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaims any implied warranties of merchantability or fitness for any particular purpose and shall in no event be liable for any loss of profit or any other commercial damage, including but not limited to special, incidental, consequential, or other damages. Trading Stocks, Commodities, Futures, Options on Futures, and retail off-‐exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. ISBN: 978-‐0-‐9836268-‐1-‐7 COPYRIGHT TRADEGUIDER SYSTEMS, 2011 2 TradeGuider VSA Trade Set-‐Up Sequences Introduction to VSA -‐ From the book “Trading in the Shadow of the Smart Money” By Gavin Holmes WWW.TRADINGINTHESHADOW.COM COPYRIGHT TRADEGUIDER SYSTEMS, 2011 3 and enables users to see when professional COPYRIGHT TRADEGUIDER SYSTEMS. TradeGuider is unique due to it being driven by an artificial intelligence engine. in any time frame. This method is particularly good at highlighting imbalances of supply and demand. TradeGuider is based on a methodology called Volume Spread Analysis. TradeGuider was previously known as Wyckoff VSA (Volume Spread Analysis) and has been in existence for over 20 years. if you know what you are looking for. Volume Spread Analysis (VSA) is a proprietary market analysis method that was conceived by Tom Williams (Chairman of TradeGuider Systems). and spread of the price bar (often known as the range of a price bar). This software is capable of analyzing any liquid market. and extracting the information it needs to indicate imbalances of supply and demand on a chart. 2011 BACKGROUND ABOUT VOLUME SPREAD ANALYSIS AND TRADEGUIDER SYSTEMS INTERNATIONAL 4 . We will be showing examples of how professional activity is clearly visible in all markets and in all timeframes. VSA is utilized in the TradeGuider software to analyze a market by observing the interrelationship between volume. The software works in either Real-‐Time (RT) or End-‐of-‐Day (EOD) modes. This is a brief explanation about TradeGuider and the underlying methodology of Volume Spread Analysis. In doing so. TradeGuider is able to graphically show the essential force that moves every market. price. This empowers clients to make more intelligent.money is entering. TradeGuider is a revolutionary concept that can be used on its own or in conjunction with other trading software platforms. which confirm trade set-‐ups as they appear in any time frame and in any market. 2011 5 . then the base methodology of that system cannot have been sound in the first place. making it an ideal choice for decision support and adding value to data vendor platforms. and no optimization. The sophisticated Expert System is augmented by a novel set of proprietary tools. the range (or spread) of the bar. We believe if a system requires optimization to make it work. Tom spent many years studying the concepts of Richard Wyckoff who was a trader during the 1920 and 30’s. this is not a new concept. and Tom Williams who invented VSA was himself a syndicate trader who could see that the markets were manipulated and that the key to unlocking the truth lay in the relationship between the volume. or not participating in the market they are trading. which means that it is capable of analyzing supply and demand in any liquid market. and wrote several books on the Market. The extensive Expert System has an innate understanding of market dynamics combined with volume. since the process of optimization is used to cover up a whole range of flaws in an original analysis method(s). our concepts are robust and can be applied to any timeframe. The software combines ease of use with the best supply and demand analysis in the business. The indicators are displayed automatically on the chart. and the closing price. exiting. There is no configuration. timely. no setting of parameters. and informed decisions. As we said earlier. with consistent results. Instead. eventually setting up COPYRIGHT TRADEGUIDER SYSTEMS. the "Stock Market Institute" in Phoenix, Arizona. At its core, Wyckoff's work is based on the analysis of trading ranges, and determining when stocks are in basing, markdown, distribution, or markup phases. Incorporated into these phases are the ongoing shifts between ‘weak hands’ (public ownership) and ‘composite operator ‘, now commonly known as Smart Money. Tom left Beverly Hills in the early 1980’s and went back to England. Once there, he began to investigate the possibilities of computerizing the system he had learnt as a syndicate trader. This began the evolution of Volume Spread Analysis. Together with an experienced computer programmer, Tom carefully studied many thousands of charts to recognize the obvious patterns that were left when professional or smart money was active. This methodology, although simple in concept, took many years to write and is now taught as a methodology combined with the software called TradeGuider. Volume Spread Analysis seeks to establish the cause of price movements. The ‘cause’ is quite simply the imbalance between Supply and Demand or strength and weakness in any liquid market, which is created by the activity of professional operators, or Smart Money. If you use the TradeGuider software you will see that it does an excellent job of detecting these key imbalances for you, taking the hard work out of reading the markets and enabling you to fully concentrate on your trading. The significance and importance of volume appears little understood by most non-‐professional traders. Perhaps this is because there is very little information and limited teachings available on this vital part of technical analysis. To use a COPYRIGHT TRADEGUIDER SYSTEMS, 2011 6 chart without volume is similar to buying an automobile without a gasoline tank. For the correct analysis of volume, one needs to realize that the recorded volume information contains only half of the meaning required to arrive at a correct analysis. The other half of the meaning is found in the price range or spread. Volume always indicates the amount of activity going on; the corresponding price spread shows the price movement on that volume. Many traders believe you cannot analyze volume in the FOREX markets because it is unavailable, but we will show you how TradeGuiders proprietary system can do something that most traders thought were impossible (I will discuss more about this later). Some technical indicators attempt to combine volume and price movements together. Rest assured that this approach has limitations, because at times the market will go up on high volume, but can do exactly the same thing on low volume. Prices can suddenly go sideways, or even fall off, on exactly the same volume! So, there are obviously other factors at work. Price and volume are intimately linked, and the interrelationship is a complex one, which is the reason TradeGuider was developed in the first place. The system is capable of analyzing the markets in real-‐time (or at the end of the day) while displaying any one of 400 indicators on the screen to show imbalances of supply and demand. (For more information please visit www.tradeguider.com). COPYRIGHT TRADEGUIDER SYSTEMS, 2011 7 WHAT IS A VOLUME SPREAD ANALYSIS SEQUENTIAL TRADE SET UP Volume Spread Analysis, or VSA as I shall now refer to it, was developed to analyze imbalances of supply and demand in any market and in any timeframe, however, what many traders and investors seem to miss is that the VSA methodology does not just analyze one price bar at the right edge of the chart but actually analyzes price bars in sequences. Since Tom Williams developed the system over twenty years ago, many very clever individuals have attempted to program in their own version of VSA. I have downloaded several so-‐ called VSA programs that have made claims to being the same as Toms original work, and you can bet that they are so inaccurate and incorrectly programmed that they show the true VSA method in a poor light. Tom Williams’ genius approach to programming VSA the right way was he knew when to put in restrictions so that you do not get signals appearing on every bar. It is a bit like developing a computer program to plan the perfect garden party. The program would need to ask questions of the person inputting the information to give the correct output, such as: 1. 2. 3. How many people attending the party? Is the weather forecast good or bad? Are there vegetarians that require a special menu? Etc. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 8 The wonderful thing about the TradeGuider system is that Tom. as explained in my book “Trading in the Shadow of the Smart Money”. Metatrader4. it takes some time for Smart Money to complete the process. If rules are followed. 2011 9 . Note that the scanner picks up a cluster of red indicators. and so we get signals in the TradeGuider software and add in studies for TradeStation. When accumulation or distribution occurs. then you begin to trade in harmony with the big players that are moving the market and not against them. has answered all the questions for us. there are sequences of signals that give a much higher probability of a market turn or a trend change. Every traders and investors dream is to know when a market top or bottom is being formed. which is extremely significant. eSignal. a week BEFORE the 27% collapse in the commodity silver. COPYRIGHT TRADEGUIDER SYSTEMS. through his extensive experience as a former syndicate trader using the Wyckoff method. Although VSA produces a signal on an individual bar. which is why the sequences I am going to share with you appear within 25 bars of the market turn. and other packages we are working on. Let me give you an example of a sequence that recently appeared in the Silver market that was picked up by the scanner in the end of day version of TradeGuider on the 25th of April. and in this short book you have the sequences that mark the top and bottom of the market. (Please Zoom In) This is the TradeGuider chart of silver showing the scanner that picked up several Signs of Weakness (SOW) during late April 2011. So what was the sequential VSA set up? Lets look… COPYRIGHT TRADEGUIDER SYSTEMS. This was showing “Smart Money” distribution at the end of April – The result was a 27% fall in silver prices in early May 2011. 2011 10 . The sequence at A. 2011 11 .(Please Zoom In) This chart is courtesy of TradeGuider Systems – TradeGuider EOD chart of daily silver contract. B. The VSA indicator numbers are as follows (in this little book you will find an explanation for each indicator that can be found in the TradeGuider software and VSA add in studies): • • • Point A – SOW 1 – The Buying Climax (Start of distribution) Point B – SOW 104 – Supply Coming In (also has the appearance of an Upthrust) Point C – SOW 199 – No Demand (No Demand at market top) COPYRIGHT TRADEGUIDER SYSTEMS. and C marks a market top. No Demand needs confirmation from the next bar. COPYRIGHT TRADEGUIDER SYSTEMS. It is confirmed at point D. which should close or move lower). VSA sequence is SOW 1 followed by SOW 104 and SOW 199. which closes lower than point C. place a sell order a few ticks below the No Demand bar. 2011 12 . (Note – when you see a No Demand bar DO NOT short at market. Well. 2011 13 . I made a promise to Tom in 2002 that I would not be selfish with the information he taught me and would always share willingly the knowledge I have gained. why not just keep it to myself and trade the sequences. we are going to do exactly that. Chart courtesy of Infinity AT charts – silver SI N1 intraday chart showing signs of weakness sequence 2. COPYRIGHT TRADEGUIDER SYSTEMS. but as I explained in my book.(Please Zoom In) You may ask why I would be revealing this powerful information publicly. open a fund and auto trade the system and I have a team in place to do that. the data feed and the training for one month. 2011 14 . if you have put in the necessary effort on your part. the VSA signals as detailed in this book. I am giving you a chance to try it for the futures or FOREX market absolutely free for one month. At the end of the month. COPYRIGHT TRADEGUIDER SYSTEMS.By doing so I have had the good fortune to make new friends. you will be a “Smart Money” trader. So you can prove to yourself that this system can help you. including the charting software. meet some of the most interesting people in the world and be blessed with the ability to help others which is the most rewarding thing any human being can do. With the kindness of Russ Carlson and Andy Delap. 2011 15 .com or r.TRADINGINTHESHADOW.com. my brokers at Infinity Futures in Chicago. I look forward to teaching you how to trade in harmony with the “Smart Money”
[email protected] instead of the regular price of $79. His email is josh@fxinternals. Please contact my broker Josh Davidson.com or you can call him directly at 310-‐606-‐2055. If you are a FOREX trader we also can provide the same system in MetaTrader 4 with the consideration of FX Internals in Beverly Hills. you can get an incredible 75% savings on the Infinity Futures/Trade Guider VSA signal and data package.95 for the first 30 days.COM Once you are set up with the charts please email Darren Holmes at darrenh@tradeguider. You can also simply visit WWW. or you can call them directly in Chicago at 312-‐373-‐6268 or 312-‐373-‐6253. Pay only $24. In the subject line write “TradeGuider VSA Offer”.com or call him directly at 312-‐373-‐6296. You can email them at a. Darren will set you up with the VSA signals and training materials with my best wishes. COPYRIGHT TRADEGUIDER SYSTEMS.delap@infinityfutures. SHORT TRADE SET UPS: SOW -‐ SIGNS OF WEAKNESS Sequence 1 – (example shown in silver) SOW 1 The Buying Climax (Start of distribution) SOW 104 Supply Coming In (also has the appearance of an Upthrust) SOW 199 No Demand (No Demand at market top) Sequence 2 – (example silver intraday Infinity AT chart) SOW 26 Supply Coming In SOW 7 Supply Coming In SOW 146 No Demand Sequence 3 SOW 90 Possible Hidden Selling SOW 26 Supply Coming In SOW 198 No Demand Sequence 4 SOW 134 No Demand SOW 10 Upthrust SOW 134 No Demand Sequence 5 SOW 5 End of a Rising Market SOW 2 Upthrust SOW 6 No Demand THE TWENTY VSA SEQUENCES FOR LONG AND SHORT TRADE SET UPS COPYRIGHT TRADEGUIDER SYSTEMS. 2011 16 . Sequence 6 SOW 89 Potential Climactic Action SOW 86 Failed Test SOW 96 Upthrust After Weakness Sequence 7 SOW 97 Reversal After Effort To Rise SOW 10 Upthrust SOW 106 No Demand Sequence 8 SOW 108 Top Reversal SOW 10 Upthrust SOW 193 No Demand Sequence 9 SOW 159 Supply Overcoming Demand SOW 101 Upthrust SOW 127 No demand Sequence 10 SOW 21 End of a Rising Market SOW 28 No Demand SOW 34 No demand COPYRIGHT TRADEGUIDER SYSTEMS. 2011 17 . 2011 18 . LONG TRADE SET UPS: SOS -‐ SIGNS OF STRENGTH Sequence 1 SOS 147 Demand Overcoming Supply SOS 134 No Supply / Test SOS 198 No Supply Sequence 2 SOS 137 Potential Climactic Action SOS 135 Stopping Volume SOS 96 Test Sequence 3 SOS 78 Bottom Reversal SOS 116 Test SOS 86 No Supply / Test Sequence 4 SOS 74 Potential Climactic Action / Shakeout SOS 146 Test SOS 199 No Supply Sequence 5 SOS 57 Two Bar Reversal SOS 134 Test / No Supply SOS 198 No Supply Sequence 6 SOS 45 Shakeout SOS 49 Test of Supply After Shakeout SOS 199 No Supply COPYRIGHT TRADEGUIDER SYSTEMS. Sequence 7 SOS 36 Bag Holding SOS 29 Test of a Breakout SOS 30 Test in a Rising Market Sequence 8 SOS 122 Potential Professional Buying SOS 11 Basic Test SOS 81 No Supply / Test Sequence 9 SOS 83 Potential Selling Climax SOS 134 No Supply / Test SOS 147 Demand Overcoming Supply Sequence 10 SOS 99 Reversal Over Two Bars SOS 198 No Supply SOS 199 No Supply COPYRIGHT TRADEGUIDER SYSTEMS. 2011 19 . 2011 20 . GLOSSARY SIGNS OF WEAKNESS PART 1: COPYRIGHT TRADEGUIDER SYSTEMS. This bar should be into new fresh high ground. COPYRIGHT TRADEGUIDER SYSTEMS.SOW 1: POTENTIAL BUYING CLIMAX NOTE: None. Eventually the herd panic for fear of missing out on higher prices and buy on the good news. The professional groups will then sell into this frenzy of buying. Background: There should be an up move behind you. Bar Description: A high to ultra high volume up bar closing in the middle shows supply overcoming demand and indicates professional selling. Look to the next few bars for confirmation. Future: The next bar should be down to confirm this indicator. If they sold on down bars prices would fall too rapidly against them. If you see low volume down bars or high volume down bars closing in the middle the market is not yet ready to fall. In order to sell the professionals have to unload into a rising market by selling to the herd. High volume up bars on a wide spread closing up and through the old highs represent absorption volume and strength. Remember the professionals may have further sell orders to execute. This will require them to support the market in the short term. no demand up bars and further up bars on high volume closing in the middle to confirm the weakness. 2011 21 . You would expect to see upthrusts. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. True upthrusts appear when you have WEAKNESS in the background. Background: Be very careful here. If there is strength in the background be very cautious. Further SOW e. The bar resembles a telegraph pole. no demand adds to the weakness. This would need to be tested.SOW 2: UPTHRUST NOTE: None. Future: Following a true upthrust expect lower prices.g. This shows lack of selling pressure. 2011 22 . It is likely to be tested or may be a false upthrust. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would be characterized by high volume up bars closing in the middle and no demand up bars. Prices are marked up at the open often on good news. Be wary of a test with SOW in the background as it may well fail. But remember this weakness will not suddenly disappear. When not appearing in genuinely new high ground this can represent absorption volume. This type of action is bearish. 2011 23 . Do you have an old top to the left? If so this could be absorption volume. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. This becomes a sign of strength. Even traders that are already long will add to their positions. There should be no old trading ranges at or near this level (see below). For the price spread to be narrow they must have been willing to supply the market without marking prices up. COPYRIGHT TRADEGUIDER SYSTEMS. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. The news will be 'good'. Future: Prices should now decline. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices.SOW 5: END OF RISING MARKET NOTE: None. This shows lack of selling pressure. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would need to be tested. They can all be sucked into a bull market at the top. We know that there has been buying by the high volume. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. If the market makers were bullish they would have marked prices up on this buying. After a period of rising prices you are vulnerable to one or more professional groups taking profits. It can be a down bar if the high is higher than the previous bar. This would need to be tested. If the price spread is greater than narrow this can still show weakness. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Future: The next bar should be down to confirm this indicator. Background: Pay particular attention to the background.SOW 6: NO DEMAND NOTE: None. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). or volume lower than the last two bars. This shows lack of selling pressure. Further SOW such as upthrusts will confirm the weakness. If there is weakness in the background this SOW becomes more important. If there are other SOW in the background expect lower prices. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Bar Description: An up bar on a narrow spread closing in the middle with low volume. This shows the professional money is not interested in higher prices at this time. 2011 24 . The professionals have noticed this weakness and are not interested any longer in the up move. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance. COPYRIGHT TRADEGUIDER SYSTEMS. as there is little immediate supply. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. However make sure that it is not a false breakout. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). which is a sign of strength. If this is the start of a distribution phase expect whipsawing whilst a cause is built to the downside. Remember the market is an unfolding story bar by bar. Subsequent no demand up bars or upthrusts confirm the weakness With weakness in the background this indicator carries more weight. Bar Description: This is an up bar closing off the high showing an increase in volume suggesting supply has entered the market. which is up. Look for other SOW to confirm this indicator such as upthrusts and no demand. Future: If the next bar is down this confirms the weakness. You need to adjust your analysis accordingly. COPYRIGHT TRADEGUIDER SYSTEMS. which is a SOW. If volume is ultra high this could be climactic action. Also high volume up bars on narrow spreads show further selling. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. 2011 25 . These would need to be tested.SOW 7: SUPPLY COMING IN NOTE: None. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. If the market is still strong it should follow the path of least resistance. Also watch for down bars closing off the lows with high volume that show potential strength. or is there an old top to the left? This could be absorption volume. Background: Look carefully to the background. A successful test would then be bullish. Sometimes this can be a breakout through an old top. or for shakeouts. Future: Following a true upthrust expect lower prices. if the market has already fallen for some time this could be the start of a shakeout especially if the news is bad.g. If there is strength in the background be very cautious. It is likely to be tested or may be a false upthrust. Be wary of a test with SOW in the background as it may well fail. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. COPYRIGHT TRADEGUIDER SYSTEMS. The bar resembles a telegraph pole. This shows lack of selling pressure. no demand adds to the weakness. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars.SOW 8: UPTHRUST NOTE: None. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Further SOW e. However. 2011 26 . Also if the bar closes down this is normally a sign of strength but the high being higher than the previous bar's high makes it a weak bar (hence the term hidden upthrust). Prices are marked up at the open often on good news. normally with an average to wide price spread. Background: Be very careful here. Bar Description: The bar is marked up but falls off rapidly to close on or near its low. This would be characterized by high volume up bars closing in the middle and no demand up bars. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. This would need to be tested. True upthrusts appear when you have WEAKNESS in the background. This indicator appears after no demand in the recent background. This would be characterized by high volume up bars closing in the middle and no demand up bars. COPYRIGHT TRADEGUIDER SYSTEMS. Future: Following a true upthrust expect lower prices. Further SOW e. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. 2011 27 . True upthrusts appear when you have WEAKNESS in the background.SOW 9: UPTHRUST NOTE: None. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. If there is strength in the background be very cautious. Background: Be very careful here. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. no demand adds to the weakness. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows lack of selling pressure. This would need to be tested. Prices are marked up at the open often on good news. Be wary of a test with SOW in the background as it may well fail. The bar resembles a telegraph pole. It is likely to be tested or may be a false upthrust. High volume shows selling by the professionals while low volume shows their lack of interest in the upside.g. Also if the bar closes down this is normally a sign of strength but the high being higher than the previous bar's high makes it a weak bar (hence the term hidden upthrust).g. This would be characterised by high volume up bars closing in the middle and no demand up bars. Future: Following a true upthrust expect lower prices. COPYRIGHT TRADEGUIDER SYSTEMS. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. This indicator appears after no demand in the recent background.SOW 10: UPTHRUST NOTE: This indicator needs the next bar for confirmation even in live bar mode. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. The bar resembles a telegraph pole. Background: Be very careful here. True upthrusts appear when you have WEAKNESS in the background. It is likely to be tested or may be a false upthrust. 2011 28 . Be wary of a test with SOW in the background as it may well fail. no demand adds to the weakness. This shows lack of selling pressure. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. If there is strength in the background be very cautious. Prices are marked up at the open often on good news. This would need to be tested. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Further SOW e. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread.SOW 11: UPTHRUST NOTE: None. This would need to be tested. Future: Following a true upthrust expect lower prices. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Prices are marked up at the open often on good news. This would be characterized by high volume up bars closing in the middle and no demand up bars. If there is strength in the background be very cautious. no demand adds to the weakness. Be wary of a test with SOW in the background as it may well fail. Further SOW e. Background: Be very careful here. The bar resembles a telegraph pole. COPYRIGHT TRADEGUIDER SYSTEMS. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. This shows lack of selling pressure. It is likely to be tested or may be a false upthrust.g. True upthrusts appear when you have WEAKNESS in the background. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. 2011 29 . When not appearing in genuinely new high ground this can represent absorption volume. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. This shows lack of selling pressure. But remember this weakness will not suddenly disappear. After a period of rising prices you are vulnerable to one or more professional groups taking profits. The news will be 'good'. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. This would need to be tested. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. Do you have an old top to the left? If so this could be absorption volume. COPYRIGHT TRADEGUIDER SYSTEMS. They can all be sucked into a bull market at the top. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. 2011 30 . Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Future: Prices should now decline. This becomes a sign of strength. This type of action is bearish. If the market makers were bullish they would have marked prices up on this buying. There should be no old trading ranges at or near this level (see below). Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. Even traders that are already long will add to their positions. For the price spread to be narrow they must have been willing to supply the market without marking prices up.SOW 14: END OF RISING MARKET NOTE: None. We know that there has been buying by the high volume. Future: Following a true upthrust expect lower prices. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Further SOW e. Background: Be very careful here. True upthrusts appear when you have WEAKNESS in the background. no demand adds to the weakness. 2011 31 . COPYRIGHT TRADEGUIDER SYSTEMS. It is likely to be tested or may be a false upthrust. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Be wary of a test with SOW in the background as it may well fail. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying.SOW 15: UPTHRUST NOTE: None. This would need to be tested. Prices are marked up at the open often on good news. This shows lack of selling pressure. If there is strength in the background be very cautious.g. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. The bar resembles a telegraph pole. This would be characterised by high volume up bars closing in the middle and no demand up bars. They can all be sucked into a bull market at the top. When not appearing in genuinely new high ground this can represent absorption volume. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. But remember this weakness will not suddenly disappear. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. This shows lack of selling pressure. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. Even traders that are already long will add to their positions. This type of action is bearish. We know that there has been buying by the high volume. After a period of rising prices you are vulnerable to one or more professional groups taking profits. Future: Prices should now decline. If the market makers were bullish they would have marked prices up on this buying. The news will be 'good'. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. Do you have an old top to the left? If so this could be absorption volume. COPYRIGHT TRADEGUIDER SYSTEMS. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would need to be tested. There should be no old trading ranges at or near this level (see below). This becomes a sign of strength. 2011 32 . Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars.SOW 21: END OF RISING MARKET NOTE: None. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. For the price spread to be narrow they must have been willing to supply the market without marking prices up. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. This would need to be tested. Do you have an old top to the left? If so this could be absorption volume. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. The news will be 'good'. Even traders that are already long will add to their positions. Future: Prices should now decline.SOW 22: END OF RISING MARKET NOTE: None. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. For the price spread to be narrow they must have been willing to supply the market without marking prices up. This shows lack of selling pressure. They can all be sucked into a bull market at the top. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. There should be no old trading ranges at or near this level (see below). 2011 33 . Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. After a period of rising prices you are vulnerable to one or more professional groups taking profits. When not appearing in genuinely new high ground this can represent absorption volume. If the market makers were bullish they would have marked prices up on this buying. COPYRIGHT TRADEGUIDER SYSTEMS. We know that there has been buying by the high volume. This type of action is bearish. This becomes a sign of strength. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. But remember this weakness will not suddenly disappear. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. After a period of rising prices you are vulnerable to one or more professional groups taking profits. They can all be sucked into a bull market at the top. 2011 34 . Do you have an old top to the left? If so this could be absorption volume. This type of action is bearish. This becomes a sign of strength. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. This shows lack of selling pressure. For the price spread to be narrow they must have been willing to supply the market without marking prices up. Even traders that are already long will add to their positions. We know that there has been buying by the high volume. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. This would need to be tested. Future: Prices should now decline. If the market makers were bullish they would have marked prices up on this buying. But remember this weakness will not suddenly disappear. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. The news will be 'good'.SOW 23: END OF RISING MARKET NOTE: None. When not appearing in genuinely new high ground this can represent absorption volume. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. There should be no old trading ranges at or near this level (see below). Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. We know that there has been buying by the high volume. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. After a period of rising prices you are vulnerable to one or more professional groups taking profits. This becomes a sign of strength. This shows lack of selling pressure. For the price spread to be narrow they must have been willing to supply the market without marking prices up. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. Do you have an old top to the left? If so this could be absorption volume. When not appearing in genuinely new high ground this can represent absorption volume. COPYRIGHT TRADEGUIDER SYSTEMS. Future: Prices should now decline. There should be no old trading ranges at or near this level (see below). Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. But remember this weakness will not suddenly disappear. Even traders that are already long will add to their positions. They can all be sucked into a bull market at the top. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. 2011 35 . This would need to be tested. If the market makers were bullish they would have marked prices up on this buying. The news will be 'good'.SOW 24: END OF RISING MARKET NOTE: None. This type of action is bearish. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. or for shakeouts. Remember the market is an unfolding story bar by bar. which is up. COPYRIGHT TRADEGUIDER SYSTEMS. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. If volume is ultra high this adds to the weakness. You need to adjust your analysis accordingly. Also watch for down bars closing off the lows with high volume that show potential strength. which is a SOW. If the market is still strong it should follow the path of least resistance. Also high volume up bars on narrow spreads show further selling. No demand up bars and upthrusts will add to the negative picture. Sometimes this can be a breakout through an old top. These would need to be tested. With weakness in the background this indicator carries more weight. Bar Description: The bar should be an up bar on high volume and closing off the highs. which is a sign of strength. However make sure that it is not a false breakout. 2011 36 . Background: Look carefully to the background. This shows supply has entered the market. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. Subsequent no demand up bars or upthrusts confirm the weakness. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. A successful test would then be bullish. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high).SOW 25: SELLING PRESSURE NOTE: None. Bar Description: This is an up bar showing an increase in volume suggesting supply has entered the market. Sometimes this can be a breakout through an old top. No demand up bars and upthrusts will add to the negative picture. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. COPYRIGHT TRADEGUIDER SYSTEMS. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). However make sure that it is not a false breakout. You need to adjust your analysis accordingly. Subsequent no demand up bars or upthrusts confirm the weakness. or for shakeouts. which is up. which is a SOW. If volume is ultra high this could be climactic action. 2011 37 . These would need to be tested. Remember the market is an unfolding story bar by bar. Background: Look carefully to the background. If the market is still strong it should follow the path of least resistance. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Also watch for down bars closing off the lows with high volume that show potential strength. With weakness in the background this indicator carries more weight. which is a sign of strength. A successful test would then be bullish.SOW 26: SUPPLY COMING IN NOTE: None. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. Also high volume up bars on narrow spreads show further selling. or for shakeouts. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. Background: Look carefully to the background. If volume is ultra high this could be climactic action. A successful test would then be bullish.SOW 27: SUPPLY COMING IN NOTE: None. 2011 38 . No demand up bars and upthrusts will add to the negative picture. With weakness in the background this indicator carries more weight. Remember the market is an unfolding story bar by bar. Also high volume up bars on narrow spreads show further selling. Bar Description: This is an up bar showing an increase in volume suggesting supply has entered the market. However make sure that it is not a false breakout. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. These would need to be tested. which is a sign of strength. Subsequent no demand up bars or upthrusts confirm the weakness. You need to adjust your analysis accordingly. Sometimes this can be a breakout through an old top. COPYRIGHT TRADEGUIDER SYSTEMS. which is a SOW. Also watch for down bars closing off the lows with high volume that show potential strength. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. If the market is still strong it should follow the path of least resistance that is up. 2011 39 . With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. This shows lack of selling pressure. Background: Pay particular attention to the background. With strength in the background. This would need to be tested.SOW 28: NO DEMAND NOTE: None. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. or volume lower than the last two bars. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Future: The next bar should be down to confirm this indicator. If there is weakness in the background this SOW becomes more important. If the price spread is greater than narrow this can still show weakness. COPYRIGHT TRADEGUIDER SYSTEMS. The professionals have noticed this weakness and are not interested any longer in the up move. This shows the professional money is not interested in higher prices at this time. Bar Description: An up bar on a narrow spread closing in the middle with low volume. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. It can be a down bar if the high is higher than the previous bar. If there are other SOW in the background expect lower prices. Further SOW such as upthrusts will confirm the weakness. expect testing or an up bar on increased volume to push through this SOW (effort). High volume shows selling by the professionals while low volume shows their lack of interest in the upside.g. Prices are marked up at the open often on good news. Further SOW e. 2011 40 . It is likely to be tested or may be a false upthrust. no demand adds to the weakness. This would be characterized by high volume up bars closing in the middle and no demand up bars. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. This would need to be tested. True upthrusts appear when you have WEAKNESS in the background. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Future: Following a true upthrust expect lower prices. Be wary of a test with SOW in the background as it may well fail. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. The bar resembles a telegraph pole. This shows lack of selling pressure. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars.SOW 29: UPTHRUST NOTE: None. Background: Be very careful here. Also if the bar closes down this is normally a sign of strength but the high being higher than the previous bar's high makes it a weak bar (hence the term hidden upthrust). If there is strength in the background be very cautious. COPYRIGHT TRADEGUIDER SYSTEMS. We know that there has been buying by the high volume. This type of action is bearish. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. The news will be 'good'. If the market makers were bullish they would have marked prices up on this buying. Future: Prices should now decline. Do you have an old top to the left? If so this could be absorption volume. This would need to be tested. But remember this weakness will not suddenly disappear. They can all be sucked into a bull market at the top.SOW 30: END OF RISING MARKET NOTE: None. When not appearing in genuinely new high ground this can represent absorption volume. Also it should be into new fresh high ground. For the price spread to be narrow they must have been willing to supply the market without marking prices up. There should be no old trading ranges at or near this level (see below). Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs. Even traders that are already long will add to their positions. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. COPYRIGHT TRADEGUIDER SYSTEMS. This becomes a sign of strength. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. This shows lack of selling pressure. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. After a period of rising prices you are vulnerable to one or more professional groups taking profits. 2011 41 . It can be a down bar if the high is higher than the previous bar.SOW 32: NO DEMAND NOTE: None. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. 2011 42 . Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would need to be tested. This shows lack of selling pressure. COPYRIGHT TRADEGUIDER SYSTEMS. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This shows the professional money is not interested in higher prices at this time. Background: Pay particular attention to the background. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Further SOW such as upthrusts will confirm the weakness. If there is weakness in the background this SOW becomes more important. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If there are other SOW in the background expect lower prices. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. The professionals have noticed this weakness and are not interested any longer in the up move. Future: The next bar should be down to confirm this indicator. If the price spread is greater than narrow this can still show weakness. make sure that it is not a false breakout which is a SOW. COPYRIGHT TRADEGUIDER SYSTEMS. Subsequent no demand up bars or upthrusts confirm the weakness. Also watch for down bars closing off the lows with high volume which show potential strength. However. Also high volume up bars on narrow spreads show further selling. 2011 43 . If the market is still strong it should follow the path of least resistance. These would need to be tested. Sometimes this can be a breakout through an old top which is a sign of strength. A successful test would then be bullish.SOW 33: SUPPLY COMING IN NOTE: None. You need to adjust your analysis accordingly. Future: If the next bar is down closing near its lows this confirms the weakness. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. which is up. Bar Description: This is an up bar showing an increase in volume suggesting supply has entered the market. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). If volume is ultra high this could be climactic action. No demand up bars and upthrusts will add to the negative picture. Remember the market is an unfolding story bar by bar. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Background: Look carefully to the background. With weakness in the background this indicator carries more weight. or for shakeouts. Is there an old top to the left as this could be absorption volume. This shows the professional money is not interested in higher prices at this time. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Further SOW such as upthrusts will confirm the weakness. If the price spread is greater than narrow this can still show weakness. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If there are other SOW in the background expect lower prices. It can be a down bar if the high is higher than the previous bar. If there is weakness in the background this SOW becomes more important. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). This would need to be tested. Background: Pay particular attention to the background.SOW 34: NO DEMAND NOTE: None. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. This shows lack of selling pressure. 2011 44 . The professionals have noticed this weakness and are not interested any longer in the up move. Future: The next bar should be down to confirm this indicator. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. COPYRIGHT TRADEGUIDER SYSTEMS. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. The professionals have noticed this weakness and are not interested any longer in the up move. Further SOW such as upthrusts will confirm the weakness. This shows lack of selling pressure. This shows the professional money is not interested in higher prices at this time. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. It can be a down bar if the high is higher than the previous bar. If there is weakness in the background this SOW becomes more important.SOW 36: NO DEMAND NOTE: None. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. This would need to be tested. Background: Pay particular attention to the background. Future: The next bar should be down to confirm this indicator. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. COPYRIGHT TRADEGUIDER SYSTEMS. If there are other SOW in the background expect lower prices. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). If the price spread is greater than narrow this can still show weakness. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. 2011 45 . This shows the professional money is not interested in higher prices at this time. 2011 46 . With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). If there is weakness in the background this SOW becomes more important. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars.SOW 37: NO DEMAND NOTE: None. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. COPYRIGHT TRADEGUIDER SYSTEMS. Further SOW such as upthrusts will confirm the weakness. It can be a down bar if the high is higher than the previous bar. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. If there are other SOW in the background expect lower prices. This would need to be tested. If the price spread is greater than narrow this can still show weakness. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Background: Pay particular attention to the background. Future: The next bar should be down to confirm this indicator. This shows lack of selling pressure. The professionals have noticed this weakness and are not interested any longer in the up move. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. SOW 38: NO DEMAND NOTE: None. This would need to be tested. This shows lack of selling pressure. If the price spread is greater than narrow this can still show weakness. The professionals have noticed this weakness and are not interested any longer in the up move. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If there are other SOW in the background expect lower prices. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. COPYRIGHT TRADEGUIDER SYSTEMS. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. It can be a down bar if the high is higher than the previous bar. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. This shows the professional money is not interested in higher prices at this time. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Further SOW such as upthrusts will confirm the weakness. Background: Pay particular attention to the background. 2011 47 . If there is weakness in the background this SOW becomes more important. Future: The next bar should be down to confirm this indicator. This would be characterized by high volume up bars closing in the middle and no demand up bars. True upthrusts appear when you have WEAKNESS in the background. This would need to be tested. However if the market has already fallen for some time this could be the start of a shakeout especially if the news is bad. If there is strength in the background be very cautious. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars.SOW 40: HIDDEN UPTHRUST NOTE: None. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Future: Following a true upthrust expect lower prices. Further SOW e. Bar Description: The bar is marked up but falls off rapidly to close on or near its low with an average to wide price spread. 2011 48 . The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. COPYRIGHT TRADEGUIDER SYSTEMS. It is likely to be tested or may be a false upthrust.g. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Background: Be very careful here. no demand adds to the weakness. Closing as a down bar is normally a sign of strength but the high being higher than the previous bar's high makes it a weak bar (hence the term hidden upthrust). Prices are marked up at the open often on good news. This shows lack of selling pressure. Be wary of a test with SOW in the background as it may well fail. High volume shows selling and low volume indicates lack of interest at the higher levels by the professionals. The bar resembles a telegraph pole. Future: The next bar should be down to confirm this indicator. 2011 49 .SOW 48: SUPPLY COMING IN NOTE: None. If the market is still strong it should follow the path of least resistance which is up. Often these bars appear as an upthrust. The bar is marked up but falls off rapidly to close on or near its low with an average to wide price spread. However if the next bar is up on a narrow spread with high volume this is also weakness. COPYRIGHT TRADEGUIDER SYSTEMS. Background: Are you currently in an up-‐trend or a down-‐trend? Have you seen other signs of weakness prior to this indicator? Be very careful here. You need to adjust your analysis accordingly. Bar Description: This is an up bar closing off its high showing an increase in volume suggesting supply has entered the market. Also watch for down bars closing off the lows with high volume which show potential strength. If there is strength in the background be very cautious. This would be characterized by high volume up bars closing in the middle and no demand up bars. With weakness in the background this indicator carries more weight. The upthrust is a money making maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. No demand up bars and upthrusts will add to the negative picture. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. High volume shows selling and low volume indicates lack of interest at the higher levels by the professionals. These would need to be tested. True upthrusts appear when you have WEAKNESS in the background. The bar resembles a telegraph pole. Prices are marked up at the open often on good news and the professionals use this to sell. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Remember the market is an unfolding story bar by bar. It is likely to be tested or may be a false upthrust. A successful test would then be bullish. or for shakeouts. Subsequent no demand up bars or upthrusts confirm the weakness. Subsequent no demand up bars or upthrusts confirm the weakness. Future: If the next bar is down this confirms the weakness. If this is the start of a distribution phase expect whipsawing whilst a cause is built to the downside.SOW 49: SUPPLY COMING IN NOTE: None. or for shakeouts. If the market is still strong it should follow the path of least resistance which is up. You need to adjust your analysis accordingly. A successful test would then be bullish. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. 2011 50 . Sometimes this can be a breakout through an old top which is a sign of strength. Look for other SOW to confirm this indicator such as upthrusts and no demand. If volume is ultra high this could be climactic action. Remember the market is an unfolding story bar by bar. However make sure that it is not a false breakout which is a SOW. COPYRIGHT TRADEGUIDER SYSTEMS. With weakness in the background this indicator carries more weight. Also high volume up bars on narrow spreads show further selling. These would need to be tested. Background: Look carefully to the background. Bar Description: This is an up bar closing off the high showing an increase in volume suggesting supply has entered the market. Is there an old top to the left as this could be absorption volume. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Also watch for down bars closing off the lows with high volume that show potential strength. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. It can be a down bar if the high is higher than the previous bar. This shows lack of selling pressure. Future: The next bar should be down to confirm this indicator. This would need to be tested. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows the professional money is not interested in higher prices at this time. If there is weakness in the background this SOW becomes more important. Background: Pay particular attention to the background. If the price spread is greater than narrow this can still show weakness. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 51 . With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). If there are other SOW in the background expect lower prices. Further SOW such as upthrusts will confirm the weakness.SOW 50: NO DEMAND NOTE: None. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. The professionals have noticed this weakness and are not interested any longer in the up move. Be wary of a test with SOW in the background as it may well fail. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. no demand adds to the weakness. True upthrusts appear when you have WEAKNESS in the background. This would be characterized by high volume up bars closing in the middle and no demand up bars. Background: Be very careful here. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. Prices are marked up at the open often on good news. Further SOW e.SOW 51: UPTHRUST NOTE: None. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. This would need to be tested. If there is strength in the background be very cautious. This shows lack of selling pressure. It is likely to be tested or may be a false upthrust Future: Following a true upthrust expect lower prices. The bar resembles a telegraph pole. 2011 52 . COPYRIGHT TRADEGUIDER SYSTEMS. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength.g. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. Remember the market is an unfolding story bar by bar. or for shakeouts. Is there an old top to the left as this could be absorption volume. Future: If the next bar is down closing near its lows this confirms the weakness. Subsequent no demand up bars or upthrusts confirm the weakness. It shows supply entering the market. A successful test would then be bullish. No demand up bars and upthrusts will add to the negative picture. If volume is ultra-‐high this adds to the weakness. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). If the market is still strong it should follow the path of least resistance which is up. Also high volume up bars on narrow spreads show further selling. Also watch for down bars closing off the lows with high volume which show potential strength. Background: Look carefully to the background.SOW 52: SELLING PRESSURE NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. You need to adjust your analysis accordingly. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. With weakness in the background this indicator carries more weight. Sometimes this can be a breakout through an old top which is a sign of strength. 2011 53 . However make sure that it is not a false breakout which is a SOW. These would need to be tested. Bar Description: The bar should be an up bar on high volume and closing off the highs. This shows the professional money is not interested in higher prices at this time. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. Background: Pay particular attention to the background. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Further SOW such as upthrusts will confirm the weakness. If there are other SOW in the background expect lower prices. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. It can be a down bar if the high is higher than the previous bar. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply.SOW 53: NO DEMAND NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. Future: The next bar should be down to confirm this indicator. If the price spread is greater than narrow this can still show weakness. This shows lack of selling pressure. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. The professionals have noticed this weakness and are not interested any longer in the up move. If there is weakness in the background this SOW becomes more important. 2011 54 . This would need to be tested. These would need to be tested. Future: If the bar represents a genuine breakout the supply present will need to be tested. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). However make sure that it is not a false breakout which is a SOW.SOW 54: SUPPLY SWAMPING DEMAND NOTE: None. If the next bar is down closing near its lows this confirms the weakness. Sometimes this can be a breakout through an old top which is a sign of strength. Subsequent no demand up bars or upthrusts confirm the weakness. You need to adjust your analysis accordingly. Also high volume up bars on narrow spreads show further selling. COPYRIGHT TRADEGUIDER SYSTEMS. or for shakeouts. With weakness in the background this indicator carries more weight. Strong markets do not behave in this way. Is there an old top to the left as this could be absorption volume. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. 2011 55 . A successful test would then be bullish. Remember the market is an unfolding story bar by bar. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. A false breakout would be a sign of weakness. Background: Look carefully to the background. Also watch for down bars closing off the lows with high volume which show potential strength. If volume is ultra high this could be climactic action. No demand up bars and upthrusts will add to the negative picture. Bar Description: This is a high volume up bar closing off its highs. If the market is still strong it should follow the path of least resistance which is up. COPYRIGHT TRADEGUIDER SYSTEMS. If there is weakness in the background this SOW becomes more important. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This would need to be tested. If the price spread is greater than narrow this can still show weakness. Further SOW such as upthrusts will confirm the weakness. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength.SOW 55: NO DEMAND NOTE: None. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Background: Pay particular attention to the background. This shows the professional money is not interested in higher prices at this time. It can be a down bar if the high is higher than the previous bar. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Future: The next bar should be down to confirm this indicator. This shows lack of selling pressure. 2011 56 . If there are other SOW in the background expect lower prices. The professionals have noticed this weakness and are not interested any longer in the up move. This shows the professional money is not interested in higher prices at this time. If there are other SOW in the background expect lower prices. COPYRIGHT TRADEGUIDER SYSTEMS. This would need to be tested. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. 2011 57 . This shows lack of selling pressure. If there is weakness in the background this SOW becomes more important. Background: Pay particular attention to the background. It can be a down bar if the high is higher than the previous bar.SOW 57: NO DEMAND NOTE: None. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Future: The next bar should be down to confirm this indicator. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. The professionals have noticed this weakness and are not interested any longer in the up move. If the price spread is greater than narrow this can still show weakness. Further SOW such as upthrusts will confirm the weakness. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. After a period of rising prices this could be the start of distribution by one or more professional groups. This would only lead to a strong rally if a cause has been built with buying in the background. This is designed to lock traders who are long into poor positions. However be cautious if volume on the down bar was very high to ultra high with the next bar up. Bar Description: The first bar is up and closing off the highs. Low volume down bars shows lack of selling. Background: Pay particular attention to the background.SOW 58: TRAP UPMOVE NOTE: This indicator is based upon the action of two bars. Future: This set up shows weakness. If there are other SOW in the near background this adds to the weakness. COPYRIGHT TRADEGUIDER SYSTEMS. This would confirm there was buying in the down bar although still a lot of supply. 2011 58 . However if the market has already fallen for some time this could be the start of a shakeout especially if the news is bad. The next bar is a wide spread down bar closing near the lows with its high higher than the first bar. no demand and upthrusts would confirm the weakness. High volume up bars closing off their highs. 2011 59 . No demand up bars and upthrusts will add to the negative picture. Also watch for down bars closing off the lows with high volume which show potential strength. Remember the market is an unfolding story bar by bar. or for shakeouts. Also high volume up bars on narrow spreads show further selling. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups.SOW 59: SUPPLY COMING IN NOTE: None. With weakness in the background this indicator carries more weight. You need to adjust your analysis accordingly. Subsequent no demand up bars or upthrusts confirm the weakness. Bar Description: A high volume up bar usually closing off the highs with the previous bar up on high volume indicates supply is overcoming demand. If the market is still strong it should follow the path of least resistance which is up. (Continued on the next page) (SOW 59: SUPPLY COMING IN continued) Background: Look carefully to the background. These would need to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. A successful test would then be bullish. If volume is ultra high this could be climactic action. However make sure that it is not a false breakout which is a SOW. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. Sometimes this can be a breakout through an old top which is a sign of strength. However be cautious if volume on the down bar was very high to ultra high with the next bar up. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Also high volume up bars on narrow spreads show further selling. Background: Look carefully to the background. These would need to be tested. A successful test would then be bullish. Is there an old top to the left as this could be absorption volume. Future: This set up shows weakness. Add more strength if the volume is higher on the up bar and it is into new fresh high ground. Also watch for down bars closing off the lows with high volume which show potential strength. 2011 60 . Remember the market is an unfolding story bar by bar. If the next bar is down closing near its lows this confirms the weakness. COPYRIGHT TRADEGUIDER SYSTEMS.SOW 63: SUPPLY COMING IN NOTE: This indicator is based upon the action of 2 bars. or for shakeouts. If the market is still strong it should follow the path of least resistance which is up. You need to adjust your analysis accordingly. With weakness in the background this indicator carries more weight. No demand up bars and upthrusts will add to the negative picture. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Subsequent no demand up bars or upthrusts confirm the weakness. This can appear similar to a top reversal. If the high of the down bar is higher than the previous high this also adds to the weakness. This would confirm there was buying in the down bar although still a lot of supply. This is effort with no result. Bar Description: A down bar following an up bar with high plus volume shows weakness. These show an effort to push prices higher. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Also watch for down bars closing off the lows with high volume which show potential strength. or for shakeouts. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Remember the market is an unfolding story bar by bar. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 61 . Subsequent no demand up bars or upthrusts confirm the weakness. Background: There should be up bars with increased volume in the immediate background. Future: If the next bar is down closing near its lows this confirms the weakness. A successful test would then be bullish. If the market is still strong it should follow the path of least resistance which is up. Also high volume up bars on narrow spreads show further selling. Failure to follow through on the current bar indicates weakness. You need to adjust your analysis accordingly.SOW 67: NO RESULT FROM EFFORT NOTE: None. These would need to be tested. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Also watch for down bars closing off the lows with high volume which show potential strength. Bar Description: A down bar following an up bar with high plus volume shows weakness. COPYRIGHT TRADEGUIDER SYSTEMS. You need to adjust your analysis accordingly. Subsequent no demand up bars or upthrusts confirm the weakness. Future: If the next bar is down closing near its lows this confirms the weakness. Failure to follow through on the current bar indicates weakness.SOW 68: NO RESULT FROM EFFORT NOTE: None. These show an effort to push prices higher. or for shakeouts. Remember the market is an unfolding story bar by bar. These would need to be tested. 2011 62 . If the market is still strong it should follow the path of least resistance which is up. This is effort with no result. Also high volume up bars on narrow spreads show further selling. A successful test would then be bullish. Background: There should be up bars with increased volume in the immediate background. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). This would need to be tested. Any up move back into the area of supply on low volume with narrow spreads or with upthrusts is a further SOW. They can all be sucked into a bull market at the top. Even traders that are already long will add to their positions. This becomes a sign of strength. Future: Prices should now decline. But remember this weakness will not suddenly disappear. After a period of rising prices you are vulnerable to one or more professional groups taking profits. Also as markets rise a point will be reached when those traders who have missed out on the up move will rush in to buy before losing out on this fantastic bull run. The news will be 'good'. Do you have an old top to the left? If so this could be absorption volume. For the price spread to be narrow they must have been willing to supply the market without marking prices up. When not appearing in genuinely new high ground this can represent absorption volume. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. 2011 63 . We know that there has been buying by the high volume. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. COPYRIGHT TRADEGUIDER SYSTEMS. This shows lack of selling pressure.SOW 71: END OF RISING MARKET NOTE: None. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. There should be no old trading ranges at or near this level (see below). Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If the market makers were bullish they would have marked prices up on this buying. This type of action is bearish. Bar Description: The bar should be a narrow spread up bar with high volume and closing off the highs and be into fresh new high ground. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Future: The next bar should be down to confirm this indicator. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If there is weakness in the background this SOW becomes more important. If the price spread is greater than narrow this can still show weakness. COPYRIGHT TRADEGUIDER SYSTEMS. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This shows lack of selling pressure. 2011 64 .SOW 76: NO DEMAND NOTE: None. This would need to be tested. Further SOW such as upthrusts will confirm the weakness. This shows the professional money is not interested in higher prices at this time. If there are other SOW in the background expect lower prices. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). The professionals have noticed this weakness and are not interested any longer in the up move. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. Background: Pay particular attention to the background. It can be a down bar if the high is higher than the previous bar. SOW 78: WEAKNESS BASED ON PRICE ACTION NOTE: None. Bar Description: This bar is a wide spread down bar closing on its low. Volume is not taken into account when producing the indicator. Prices are marked up at the opening to attract a following and catch stops. Background: Look carefully to the background. Do you have strength or weakness behind you? This signal works best when there is weakness in the background. However if the market had already fallen for some time this could be the start of a shakeout especially if the news is bad. Future: This set up shows weakness. However be cautious if volume on the down bar was very high to ultra high with the next bar up. This would confirm there was buying in the down bar although still a lot of supply. If the next bar is down this confirms the weakness. Also high volume up bars on narrow spreads show further selling. Subsequent no demand up bars or upthrusts confirm the weakness. With weakness in the background this indicator carries more weight. No demand up bars and upthrusts will add to the negative picture. These all suggest a distribution phase which may whipsaw until complete. Remember the news will be good to confuse you. If there is strength in the near background expect this supply to be tested so look for low volume down bars closing in the middle or high. If the market is still strong it should follow the path of least resistance which is up. Also watch out for down bars closing off the lows with high volume which show potential strength. These would need to be tested. Remember the market is an unfolding story bar by bar. You need to adjust your analysis accordingly. If the market moves up through this area of supply it may come back down to test it again later. A successful test would then be bullish. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 65 SOW 84: WEAKNESS HAS APPEARED NOTE: None. Bar Description: An up bar closing off its highs is a potential SOW. If volume is lower than the two previous bars this is no demand but higher volume shows selling. Background: Pay more attention to this indicator when you have other signs of weakness in the near background. If there are SOS in the background be cautious as the market may just move sideways for a few bars. Future: Look to the following bars for confirmation. Low volume up bars back into the area of weakness show no demand. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. This shows lack of selling pressure. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would need to be tested. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 66 SOW 86: FAILED TEST NOTE: None. Bar Description: A wide spread down bar closing on or near its low, with the low and close lower than the previous few bars, indicates weakness. Background: There should be a test in the immediate background (last few bars). The test has failed which in itself is a sign of weakness. This indicator works best with other weakness in the background. Study the background carefully and look at the trend. Are there signs of strength behind you? Future: Any down move may be short lived unless you have further weakness in the background. Subsequent no demand up bars or upthrusts confirm the weakness. If there is strength in the near background this weakness may be tested so look for low volume down bars closing in the middle or high, or for shakeouts. If the market is still strong it should follow the path of least resistance which is up. Also watch for down bars closing off the lows with high volume which show potential strength. These would need to be tested. Remember the market is an unfolding story bar by bar. You need to adjust your analysis accordingly. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). A successful test would then be bullish. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 67 If the market is still strong it should follow the path of least resistance which is up. But remember this weakness will not suddenly disappear. For the current bar to close off its highs still with high volume suggests supply coming into the market. Strong markets do not behave in this way. or for shakeouts. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. The market may need to distribute further before a down move can begin so be patient. However make sure that it is not a false breakout which is a SOW. Remember the market is an unfolding story bar by bar. Subsequent no demand up bars or upthrusts confirm the weakness. Background: The previous bar was an up bar with high volume. You need to adjust your analysis accordingly. Also high volume up bars on narrow spreads show further selling. The professionals do this by supporting the market until they have sold their remaining holdings. COPYRIGHT TRADEGUIDER SYSTEMS. If the market pushes up through this area of supply it may come back down to test it again later. Sometimes this can be a breakout through an old top which is a sign of strength. 2011 68 . This is especially true if you are into new fresh high ground.SOW 89: POTENTIAL CLIMACTIC ACTION NOTE: None. Look carefully to the background. A successful test would then be bullish. Bar Description: The previous bar was an up bar showing an increase in volume (ultra high volume adds to the weakness). Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. These would need to be tested.SOW 90: POSSIBLE HIDDEN SELLING NOTE: None. Bar Description: This is a level or up bar showing an increase in volume (supply) or low volume (no demand). No demand up bars and upthrusts will add to the negative picture. Also watch for down bars closing off the lows with high volume which show potential strength. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). With weakness in the background this indicator carries more weight. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. or for shakeouts. Remember the market is an unfolding story bar by bar. Also high volume up bars on narrow spreads show further selling. Subsequent no demand up bars or upthrusts confirm the weakness. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. If the market is still strong it should follow the path of least resistance which is up. You need to adjust your analysis accordingly. Background: Look carefully to the background. 2011 69 . A successful test would then be bullish. COPYRIGHT TRADEGUIDER SYSTEMS. However be cautious if volume on the down bar was very high to ultra high with the next bar up. These would need to be tested. If the high of the down bar is higher than the previous high this adds to the weakness. Add more strength if the volume is higher on the up bar and it is into fresh new high ground. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 70 . If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). You need to adjust your analysis accordingly. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Remember the market is an unfolding story bar by bar. Also high volume up bars on narrow spreads show further selling. If the next bar is down closing near its lows this confirms the weakness. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Is there an old top to the left as this could be absorption volume? Future: This set up shows weakness. A successful test would then be bullish. This can appear similar to a top reversal. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. Background: Look carefully to the background. Also watch for down bars closing off the lows with high volume which show potential strength. With weakness in the background this indicator carries more weight.SOW 92: SUPPLY COMING IN NOTE: This indicator is based upon the action of 2 bars. This would confirm there was buying in the down bar although still a lot of supply. or for shakeouts. If the market is still strong it should follow the path of least resistance which is up. Subsequent no demand up bars or upthrusts confirm the weakness. No demand up bars and upthrusts will add to the negative picture. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. Also watch for down bars closing off the lows with high volume which show potential strength. However be cautious if volume on the down bar was very high to ultra high with the next bar up. If the high of the first bar is into fresh new high ground and volume is high or greater this can be climactic action.SOW 94: TWO BAR REVERSAL NOTE: This indicator is based upon the action of two bars Bar Description: The first bar is an up bar closing near its high followed by a down bar closing near its low giving the appearance of a top reversal. 2011 71 . Look to the following bars for confirmation. Background: There should be a period of rising prices before this indicator appears. If the high of the down bar is higher than the previous high this also adds to the weakness. COPYRIGHT TRADEGUIDER SYSTEMS. These show potential strength. Future: This set up shows weakness. Be wary if this indicator is immediately followed by down bars on reduced volume especially closing in the middle with a narrow spread. Low volume up bars back into the area of the top reversal show no demand and weakness. These would need to be tested. A successful test would then be bullish. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. This would confirm there was buying in the down bar although still a lot of supply. Add more weight if volume is higher on the up bar. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). 2011 72 . This shows lack of selling pressure. Further SOW e. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Background: Be very careful here. If there is strength in the background be very cautious.g. It is likely to be tested or may be a false upthrust. Prices are marked up at the open often on good news. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. This would need to be tested. True upthrusts appear when you have WEAKNESS in the background. The previous bar was a high volume up bar which in itself showed supply. The bar resembles a telegraph pole. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would be characterised by high volume up bars closing in the middle and no demand up bars. Be wary of a test with SOW in the background as it may well fail. Future: Following a true upthrust expect lower prices. COPYRIGHT TRADEGUIDER SYSTEMS. The upthrust is a money making maneuver by the market makers to catch stops of those who are short and trap the unwary into buying.SOW 96: UPTHRUST AFTER WEAKNESS NOTE: None. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. no demand adds to the weakness. If the market is still strong it should follow the path of least resistance which is up. A successful test would then be bullish. This would confirm there was buying in the down bar although still a lot of supply. Also watch for down bars closing off the lows with high volume which show potential strength. If there is strength in the near background this weakness may be tested so look for low volume down bars closing in the middle or high. Strong markets do not behave in this way. These would need to be tested. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). 2011 73 . Sometimes this can appear as a top reversal. If the high of the down bar is higher than the previous high this also adds to the weakness. However be cautious if volume on the down bar was very high to ultra high with the next bar up. Background: Have you seen any previous SOW in the background? There has been an effort to rise from the increased volume but for the next bar to be down shows supply has appeared. Subsequent no demand up bars or upthrusts confirm the weakness. COPYRIGHT TRADEGUIDER SYSTEMS. or for shakeouts. Future: This set up shows weakness. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. With weakness in the background this indicator carries more weight. Add more weight if the volume is higher on the up bar and is into fresh new high ground.SOW 97: REVERSAL AFTER EFFORT TO RISE NOTE: This indicator is based upon the action of two bars Bar Description: The first bar is an up bar closing on its high followed by a down bar retracing most of the previous bar's gain. Also high volume up bars on narrow spreads show further selling. If the next bar is down closing near its lows this confirms the weakness. If volume is ultra high on the up bar this could be climactic action.SOW 100: SUPPLY COMING IN NOTE: None. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Future: If the next bar is down closing near its lows this confirms the weakness. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). A successful test would then be bullish. Also watch for down bars closing off the lows with high volume which show potential strength. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. No demand up bars and upthrusts will add to the negative picture. With weakness in the background this indicator carries more weight. Remember the market is an unfolding story bar by bar. However make sure that it is not a false breakout which is a SOW. These would need to be tested. Sometimes this can be a breakout through an old top which is a sign of strength. Also high volume up bars on narrow spreads show further selling. Subsequent no demand up bars or upthrusts confirm the weakness. Background: Look carefully to the background. Strong markets do not behave in this way. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply overcoming demand. Is there an old top to the left as this could be absorption volume. 2011 74 . COPYRIGHT TRADEGUIDER SYSTEMS. or for shakeouts. You need to adjust your analysis accordingly. If the market is still strong it should follow the path of least resistance which is up. Background: Be very careful here. Prices are marked up at the open often on good news. Further SOW e. The bar resembles a telegraph pole. It is likely to be tested or may be a false upthrust. no demand adds to the weakness. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. This would need to be tested. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. True upthrusts appear when you have WEAKNESS in the background. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. 2011 75 . If there is strength in the background be very cautious. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. COPYRIGHT TRADEGUIDER SYSTEMS. Be wary of a test with SOW in the background as it may well fail. Future: Following a true upthrust expect lower prices. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. This would be characterized by high volume up bars closing in the middle and no demand up bars.g.SOW 101: UPTHRUST NOTE: None. This shows lack of selling pressure. Future: The next bar should be down to confirm this indicator. If there are other SOW in the background expect lower prices. This shows the professional money is not interested in higher prices at this time. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). This would need to be tested. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. The professionals have noticed this weakness and are not interested any longer in the up move. If there is weakness in the background this SOW becomes more important. Background: Pay particular attention to the background. This shows lack of selling pressure. 2011 76 . Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. It can be a down bar if the high is higher than the previous bar. COPYRIGHT TRADEGUIDER SYSTEMS. Further SOW such as upthrusts will confirm the weakness. If the price spread is greater than narrow this can still show weakness. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars.SOW 102: NO DEMAND NOTE: None. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. 2011 77 . Background: Be very careful here.SOW 103: UPTHRUST NOTE: None.g. Future: Following a true upthrust expect lower prices. Be wary of a test with SOW in the background as it may well fail. The bar resembles a telegraph pole. If there is strength in the background be very cautious. Prices are marked up at the open often on good news. The upthrust is a moneymaking maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. True upthrusts appear when you have WEAKNESS in the background. This would need to be tested. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would be characterized by high volume up bars closing in the middle and no demand up bars. Further SOW e. It is likely to be tested or may be a false upthrust. COPYRIGHT TRADEGUIDER SYSTEMS. no demand adds to the weakness.. This indicator usually follows a high volume up bar in the immediate background which when combined with the upthrust shows supply. This shows lack of selling pressure. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. You need to adjust your analysis accordingly.SOW 104: SUPPLY COMING IN NOTE: This indicator is based upon the action of two bars. These would need to be tested. or for shakeouts. With weakness in the background this indicator carries more weight. If the next bar is down closing near its lows this confirms the weakness. Add more strength if the volume is higher on the up bar and it is into fresh new high ground. Also watch for down bars closing off the lows with high volume which show potential strength. This can appear similar to a top reversal. Remember the market is an unfolding story bar by bar. Future: This set up shows weakness. A successful test would then be bullish. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). 2011 78 . If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Subsequent no demand up bars or upthrusts confirm the weakness. Also high volume up bars on narrow spreads show further selling. Background: Look carefully to the background. If the market is still strong it should follow the path of least resistance which is up. COPYRIGHT TRADEGUIDER SYSTEMS. If the high of the down bar is higher than the previous high this adds to the weakness. No demand up bars and upthrusts will add to the negative picture. This would confirm there was buying in the down bar although still a lot of supply. Is there an old top to the left as this could be absorption volume. However be cautious if volume on the down bar was very high to ultra high with the next bar up. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move.With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). COPYRIGHT TRADEGUIDER SYSTEMS. This would need to be tested. This shows lack of selling pressure. If the price spread is greater than narrow this can still show weakness. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. If there is weakness in the background this SOW becomes more important. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. This shows the professional money is not interested in higher prices at this time. Further SOW such as upthrusts will confirm the weakness. It can be a down bar if the high is higher than the previous bar. 2011 79 . If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. If there are other SOW in the background expect lower prices. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. Future: The next bar should be down to confirm this indicator. Background: Pay particular attention to the background.SOW 106: NO DEMAND NOTE: None. The professionals have noticed this weakness and are not interested any longer in the up move. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows lack of selling pressure. The professionals have noticed this weakness and are not interested any longer in the up move.SOW 107: NO DEMAND NOTE: None. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move.With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). COPYRIGHT TRADEGUIDER SYSTEMS. If the price spread is greater than narrow this can still show weakness. If there are other SOW in the background expect lower prices. If there is weakness in the background this SOW becomes more important. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Future: The next bar should be down to confirm this indicator. Background: Pay particular attention to the background. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. 2011 80 . If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. It can be a down bar if the high is higher than the previous bar. Further SOW such as upthrusts will confirm the weakness. This would need to be tested. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows the professional money is not interested in higher prices at this time. Add more weight if volume is higher on the up bar. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Future: This set up shows weakness. If the high of the first bar is into fresh new high ground and volume is high or greater this can be climactic action. Also watch for down bars closing off the lows with high volume which show potential strength. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. These show potential strength. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. Background: There should be a period of rising prices before this indicator appears. A successful test would then be bullish. If the high of the down bar is higher than the previous high this also adds to the weakness. 2011 81 . These would need to be tested. Low volume up bars back into the area of the top reversal show no demand and weakness. This would confirm there was buying in the down bar although still a lot of supply. COPYRIGHT TRADEGUIDER SYSTEMS. Look to the following bars for confirmation. Be wary if this indicator is immediately followed by down bars on reduced volume especially closing in the middle with a narrow spread.SOW 108: TOP REVERSAL NOTE: This indicator is based upon the action of two bars Bar Description: The first bar is an up bar closing near its high followed by a down bar closing near its low giving the appearance of a top reversal. However be cautious if volume on the down bar was very high to ultra high with the next bar up. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. This would need to be tested. The professionals have noticed this weakness and are not interested any longer in the up move. If there are other SOW in the background expect lower prices. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. COPYRIGHT TRADEGUIDER SYSTEMS. This shows the professional money is not interested in higher prices at this time. Background: Pay particular attention to the background. Further SOW such as upthrusts will confirm the weakness. 2011 82 . This shows lack of selling pressure. If there is weakness in the background this SOW becomes more important. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). It can be a down bar if the high is higher than the previous bar. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand.SOW 115: NO DEMAND NOTE: None. If the price spread is greater than narrow this can still show weakness. Future: The next bar should be down to confirm this indicator. 2011 83 . no demand adds to the weakness. If there is strength in the background be very cautious. This would be characterized by high volume up bars closing in the middle and no demand up bars. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Prices are marked up at the open often on good news. It is likely to be tested or may be a false upthrust. Background: Be very careful here. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Be wary of a test with SOW in the background as it may well fail. COPYRIGHT TRADEGUIDER SYSTEMS. True upthrusts appear when you have WEAKNESS in the background. The upthrust is a money making maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. Bar Description: The bar is marked up but falls off rapidly to close on or near its low with an average to wide price spread. High volume shows selling and low volume indicates lack of interest at the higher levels by the professionals. This shows lack of selling pressure.SOW 119: UPTHRUST NOTE: None. Also if it closes as a down bar this is normally a sign of strength but the high being higher than the previous bar's high makes it a weak bar (hence the term hidden upthrust). However if the market has already fallen for some time this could be the start of a shakeout especially if the news is bad. The bar resembles a telegraph pole.g. Further SOW e. Future: Following a true upthrust expect lower prices. Be cautious if following the upthrust you see a down bar with a narrow spread with volume lower than the two previous bars. This would need to be tested. 2011 84 . Background: Look carefully to the background. This can appear as a top reversal. Be cautious if following the weakness you see a down bar with a narrow spread with volume lower than the two previous bars. Ultra high volume on the down bar with the next bar up shows some buying although still a lot of supply present. Low volume up bars back into the area of the supply show no demand and weakness. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength.SOW 121: WEAKNESS HAS APPEARED NOTE: None. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. This would need to be tested. Be cautious if volume on the down bar is ultra high as this could contain buying albeit with a lot of supply present. Bar Description: With the previous high volume up bar usually closing off the highs with this bar down indicates supply is overcoming demand. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. This shows lack of selling pressure. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. COPYRIGHT TRADEGUIDER SYSTEMS. If the high of the down bar is higher than the previous high this also adds to the weakness. Is there an old top to the left as this could be absorption volume. Future: Look to the following bars for confirmation. Add more weight if the volume is higher on the up bar and is into fresh new high ground. or for shakeouts. If there is strength in the near background or a breakout this supply may be tested so look for low volume down bars closing in the middle or high. Future: If the next bar is down closing near its lows this confirms the weakness. Bar Description: This is a high volume up bar (often gapped up) The high volume shows professional activity in the market. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. If the market is still strong it should follow the path of least resistance which is up.SOW 122: SUPPLY COMING IN NOTE: None. Also watch for down bars closing off the lows with high volume which show potential strength. COPYRIGHT TRADEGUIDER SYSTEMS. If volume is ultra high this could be climactic action. Also high volume up bars on narrow spreads show further selling. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). A successful test would then be bullish. Remember the market is an unfolding story bar by bar. Background: The previous bar was up on high volume. Sometimes this can be a breakout through an old top which is a sign of strength. With weakness in the background this indicator carries more weight. No demand up bars and upthrusts will add to the negative picture. However make sure that it is not a false breakout which is a SOW. 2011 85 . These would need to be tested.. Is there an old top to the left as this could be absorption volume. You need to adjust your analysis accordingly. Look carefully to the background. Subsequent no demand up bars or upthrusts confirm the weakness. With weakness in the background this indicator carries more weight. COPYRIGHT TRADEGUIDER SYSTEMS. Also watch for down bars closing off the lows with high volume which show potential strength. If the next bar is down closing near its lows this confirms the weakness. A successful test would then be bullish. These would need to be tested. Also high volume up bars on narrow spreads show further selling. No demand up bars and upthrusts will add to the negative picture. If the market is still strong it should follow the path of least resistance which is up. However be cautious if volume on the down bar was very high to ultra high with the next bar up. Background: Look carefully to the background. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). This can appear similar to a top reversal. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. This would confirm there was buying in the down bar although still a lot of supply. Remember the market is an unfolding story bar by bar. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Subsequent no demand up bars or upthrusts confirm the weakness. You need to adjust your analysis accordingly. If the high of the down bar is higher than the previous high this adds to the weakness. 2011 86 .SOW 123: SUPPLY COMING IN NOTE: This indicator is based upon the action of two bars. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. Is there an old top to the left as this could be absorption volume. Add more strength if the volume is higher on the up bar and it is into fresh new high ground. or for shakeouts. Future: This set up shows weakness. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). These show potential strength. If the high of the down bar is higher than the previous high this also adds to the weakness. Background: There should be a period of rising prices before this indicator appears.SOW 126: TWO BAR REVERSAL NOTE: This indicator is based upon the action of two bars Bar Description: The first bar is an up bar closing near its high followed by a down bar closing near its low giving the appearance of a top reversal. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. However be cautious if volume on the down bar was very high to ultra high with the next bar up. A successful test would then be bullish. This would confirm there was buying in the down bar although still a lot of supply. If the high of the first bar is into fresh new high ground and volume is high or greater this can be climactic action. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 87 . These would need to be tested. Also watch for down bars closing off the lows with high volume which show potential strength. Low volume up bars back into the area of the top reversal show no demand and weakness. Be wary if this indicator is immediately followed by down bars on reduced volume especially closing in the middle with a narrow spread. Future: This set up shows weakness. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. Look to the following bars for confirmation. Add more weight if volume is higher on the up bar. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This would need to be tested. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. 2011 88 . Further SOW such as upthrusts will confirm the weakness.SOW 127: NO DEMAND NOTE: None. Future: The next bar should be down to confirm this indicator. If there are other SOW in the background expect lower prices. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. This shows the professional money is not interested in higher prices at this time. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). If the price spread is greater than narrow this can still show weakness. This shows lack of selling pressure. The professionals have noticed this weakness and are not interested any longer in the up move. COPYRIGHT TRADEGUIDER SYSTEMS. Background: Pay particular attention to the background. It can be a down bar if the high is higher than the previous bar. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If there is weakness in the background this SOW becomes more important. Also high volume up bars on narrow spreads show further selling. Is there an old top to the left as this could be absorption volume. Add more strength if the volume is higher on the up bar and it is into fresh new high ground. COPYRIGHT TRADEGUIDER SYSTEMS. If the high of the down bar is higher than the previous high this adds to the weakness. This can appear similar to a top reversal. These would need to be tested. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). No demand up bars and upthrusts will add to the negative picture. Future: This set up shows weakness. However be cautious if volume on the down bar was very high to ultra high with the next bar up. This would confirm there was buying in the down bar although still a lot of supply. 2011 89 . Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. If the next bar is down closing near its lows this confirms the weakness. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. Background: Look carefully to the background. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Remember the market is an unfolding story bar by bar. With weakness in the background this indicator carries more weight. or for shakeouts. If the market is still strong it should follow the path of least resistance which is up. Also watch for down bars closing off the lows with high volume which show potential strength. You need to adjust your analysis accordingly. Subsequent no demand up bars or upthrusts confirm the weakness. A successful test would then be bullish.SOW 128: SUPPLY COMING IN NOTE: This indicator is based upon the action of two bars. You need to adjust your analysis accordingly. The upthrust is a money making maneuver by the market makers to catch stops of those who are short and trap the unwary into buying. A successful test would then be bullish. 2011 90 . If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. Bar Description: The bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread. After a period of rising prices this could be the start of distribution by one or more professional groups. If the market is still strong it should follow the path of least resistance which is up. Background: The previous bar was up with high volume. Look carefully to the background. Subsequent no demand up bars or upthrusts confirm the weakness. Also watch for down bars closing off the lows with high volume which show potential strength. or for shakeouts. Also high volume up bars on narrow spreads show further selling. With weakness in the background this indicator carries more weight. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Remember the market is an unfolding story bar by bar. High volume shows selling by the professionals while low volume shows their lack of interest in the upside. Prices are marked up at the open often on good news. No demand up bars and upthrusts will add to the negative picture.SOW 129: UPTHRUST AFTER SUPPLY NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. The bar resembles a telegraph pole. Is there an old top to the left as this could be absorption volume? Future: If the next bar is down closing near its lows this confirms the weakness. These would need to be tested. Remember the market is an unfolding story bar by bar. If there is strength in the near background this supply may be tested so look for low volume down bars closing in the middle or high. which show potential strength. 2011 91 . Subsequent no demand up bars or upthrusts confirm the weakness. If the market moves up through this area of supply it may come back down to test it again later (low volume down bars closing in the middle or high). Also high volume up bars on narrow spreads show further selling. With weakness in the background this indicator carries more weight. No demand up bars and upthrusts will add to the negative picture. Do you have strength or weakness behind you? After a period of rising prices this could be the start of distribution by one or more professional groups. Background: Look carefully to the background. However be cautious if volume on the down bar was very high to ultra high with the next bar up.SOW 130: SUPPLY COMING IN NOTE: This indicator is based upon the action of two bars. You need to adjust your analysis accordingly. COPYRIGHT TRADEGUIDER SYSTEMS. Future: This set up shows weakness. If the high of the down bar is higher than the previous high this adds to the weakness. Bar Description: A high volume up bar usually closing off the highs with the next bar down indicates supply is overcoming demand. This can appear similar to a top reversal. A successful test would then be bullish. Also watch for down bars closing off the lows with high volume. If the market is still strong it should follow the path of least resistance which is up. Is there an old top to the left as this could be absorption volume. If the next bar is down closing near its lows this confirms the weakness. These would need to be tested. Add more strength if the volume is higher on the up bar and it is into fresh new high ground. This would confirm there was buying in the down bar although still a lot of supply. or for shakeouts. Future: The next bar should be down to confirm this indicator. If there is weakness in the background this SOW becomes more important. COPYRIGHT TRADEGUIDER SYSTEMS. This shows lack of selling pressure.SOW: 134 NO DEMAND NOTE: None. This shows the professional money is not interested in higher prices at this time. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. Background: Pay particular attention to the background. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Further SOW such as upthrusts will confirm the weakness. If the price spread is greater than narrow this can still show weakness. It can be a down bar if the high is higher than the previous bar. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If there are other SOW in the background expect lower prices. 2011 92 . This would need to be tested. The professionals have noticed this weakness and are not interested any longer in the up move. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. Ideally there should be other signs of weakness in the background. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. This shows lack of selling pressure. Bar Description: The bar should be a narrow spread up bar and closing off the highs and be into fresh new high ground. There should be no old trading ranges at or near this level (see below). When not appearing in genuinely new high ground this can represent absorption volume. If volume is low it shows lack of interest in the upside whereas higher volume shows some selling. Background: This is ONLY VALID if you have ALREADY SEEN A SUBSTANTIAL UP MOVE having taken place. Here the professionals are willing to absorb the supply of locked in traders who had bought at higher prices. Do you have an old top to the left? If so this could be absorption volume. COPYRIGHT TRADEGUIDER SYSTEMS. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This becomes a sign of strength.SOW 142: WEAKNESS HAS APPEARED NOTE: None. This would need to be tested. Future: This indicator shows weakness but is the volume high enough to stop the up move?. 2011 93 . Any up move back into this area on low volume with narrow spreads or with upthrusts is a further SOW. If there are other SOW in the background expect lower prices. It can be a down bar if the high is higher than the previous bar. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. 2011 94 . This would need to be tested. Background: Pay particular attention to the background. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. Further SOW such as upthrusts will confirm the weakness. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows lack of selling pressure. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort).SOW 143: NO DEMAND NOTE: None. The professionals have noticed this weakness and are not interested any longer in the up move. This shows the professional money is not interested in higher prices at this time. Future: The next bar should be down to confirm this indicator. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. COPYRIGHT TRADEGUIDER SYSTEMS. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If the price spread is greater than narrow this can still show weakness. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. If there is weakness in the background this SOW becomes more important. If the price spread is greater than narrow this can still show weakness. This shows lack of selling pressure. This shows the professional money is not interested in higher prices at this time. Further SOW such as upthrusts will confirm the weakness. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. 2011 95 . If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. This would need to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. It can be a down bar if the high is higher than the previous bar. If there is weakness in the background this SOW becomes more important. The professionals have noticed this weakness and are not interested any longer in the up move. Background: Pay particular attention to the background. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If there are other SOW in the background expect lower prices. Future: The next bar should be down to confirm this indicator. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply.SOW 145: NO DEMAND NOTE: None. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. This would need to be tested.SOW 146: NO DEMAND NOTE: None. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. COPYRIGHT TRADEGUIDER SYSTEMS. The professionals have noticed this weakness and are not interested any longer in the up move. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. 2011 96 . If there are other SOW in the background expect lower prices. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If there is weakness in the background this SOW becomes more important Future: The next bar should be down to confirm this indicator. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If the price spread is greater than narrow this can still show weakness. This shows lack of selling pressure. This shows the professional money is not interested in higher prices at this time. Background: Pay particular attention to the background. It can be a down bar if the high is higher than the previous bar. Further SOW such as upthrusts will confirm the weakness. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). COPYRIGHT TRADEGUIDER SYSTEMS. Upthrusts and further high volume up bars closing in the middle are also signs of weakness. If volume is lower than the two previous bars this is no demand but higher volume shows selling. Be cautious if you now see a down bar with a narrow spread with volume lower than the two previous bars. Background: Pay more attention to this indicator when you have other signs of weakness in the near background.If there are SOS in the background be cautious as the market may just move sideways for a few bars. 2011 97 . Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This would need to be tested. This shows lack of selling pressure. Bar Description: An up bar closing off its highs is a potential SOW.SOW 148: WEAKNESS HAS APPEARED NOTE: None. Remember you need to look at the whole picture rather like slotting together the pieces of a jig-‐saw. Future: Look to the following bars for confirmation. Low volume up bars back into the area of weakness show no demand. With strength in the background there may well be too much support for a fall to take place. COPYRIGHT TRADEGUIDER SYSTEMS. However make sure it is not a false breakout which is a SOW.With weakness in the background give this indicator more weight. Sometimes this can be a breakout through an old top to the left which is a sign of strength. 2011 98 . The bar has noticed some selling entering the market. There may still need to be further selling on up bars and no demand before the market can fall.SOW 159: SUPPLY OVERCOMING DEMAND NOTE: None. Is there an old top to the left as this could be absorption volume. Always remember to look at the whole picture and not the last few bars. Background: Look for other signs of weakness in the immediate background to support this indicator. Remember weakness. On its own it may not be sufficient to lead to a fall especially if you are in an up trend. Bar Description: This indicator is trying to pick up subtle changes in the balance of supply and demand. when it appears will be on an up bar. Future: The next bar should be down to confirm ths indicator. If you see low volume down bars especially on a narrow spread or high volume down bars closing in the middle or high this confirms the strength. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort).SOW 192: NO DEMAND NOTE: None. Future: The next bar should be down to confirm this indicator. Further SOW such as upthrusts will confirm the weakness. This shows lack of selling pressure. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. This would need to be tested. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. It can be a down bar if the high is higher than the previous bar. COPYRIGHT TRADEGUIDER SYSTEMS. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. This shows the professional money is not interested in higher prices at this time. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. 2011 99 . If the price spread is greater than narrow this can still show weakness. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. If there are other SOW in the background expect lower prices. Background: Pay particular attention to the background. If there is weakness in the background this SOW becomes more important. The professionals have noticed this weakness and are not interested any longer in the up move. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Further SOW such as upthrusts will confirm the weakness. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. The professionals have noticed this weakness and are not interested any longer in the up move. It can be a down bar if the high is higher than the previous bar. This shows the professional money is not interested in higher prices at this time. If the price spread is greater than narrow this can still show weakness.SOW 193: NO DEMAND NOTE: None. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. 2011 100 . With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. COPYRIGHT TRADEGUIDER SYSTEMS. If there are other SOW in the background expect lower prices. Background: Pay particular attention to the background. This would need to be tested. This shows lack of selling pressure. Future: The next bar should be down to confirm this indicator.If there is weakness in the background this SOW becomes more important. 2011 101 . This shows lack of selling pressure. If you are at or near an old top to the left it is highly unlikely that a market will go up through this old top on no demand. Be cautious if following no demand you see a down bar with a narrow spread with volume lower than the two previous bars. Bar Description: An up bar on a narrow spread closing in the middle with low volume or volume lower than the last two bars. If there are other SOW in the background expect lower prices. If the price spread is greater than narrow this can still show weakness.SOW 194: NO DEMAND NOTE: None. Also if you see down bars on high volume closing off the lows with the next bar up this shows potential strength. Further SOW such as upthrusts will confirm the weakness. If there is weakness in the background this SOW becomes more important. With strength in the background this indicator may only cause the market to rest for a few bars as the professionals stand aside before resuming the up move. If there has been a major shakeout in the near background or heavy buying the next bar can be a low volume up bar meaning prices are marked up with minimum resistance as there is little immediate supply. This would need to be tested. This shows the professional money is not interested in higher prices at this time. With strength in the background expect testing or an up bar on increased volume to push through this SOW (effort). Background: Pay particular attention to the background. It can be a down bar if the high is higher than the previous bar. Future: The next bar should be down to confirm this indicator. The professionals have noticed this weakness and are not interested any longer in the up move. COPYRIGHT TRADEGUIDER SYSTEMS. Background: Study the background carefully and look at the trend. COPYRIGHT TRADEGUIDER SYSTEMS. Look at the full picture rather than just the individual bar. Future: The next bar should be down to confirm this indicator.SOW 198: NO DEMAND NOTE: None. In an uptrend it may lead to a pause or a small decline back down to support at best. or following minor SOS in a downtrend. 2011 102 . Here you would expect lower prices. With strength in the background the indicator alone carries less significance. This indicator works best when there is weakness in the background. Bar Description: An up bar with volume lower than the two previous bars shows lack of interest as the market rises. In a downtrend this indicator carries more weight. 2011 103 . With strength in the background the indicator alone carries less significance. This indicator works best when there is weakness in the background. Background: Study the background carefully and look at the trend.SOW 199: NO DEMAND NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. In an uptrend it may lead to a pause or a small decline back down to support at best. Future: The next bar should be down to confirm this indicator. Here you would expect lower prices. In a downtrend this indicator carries more weight. Bar Description: An up bar with volume lower than the two previous bars shows lack of interest as the market rises. or following minor SOS in a downtrend. Look at the full picture rather than just the individual bar. GLOSSARY PART 2: SIGNS OF STRENGTH COPYRIGHT TRADEGUIDER SYSTEMS. 2011 104 . Background: Study the background carefully and look at the trend. Look at the full picture rather than just the individual bar. This indicator works best when there is strength in the background. With weakness in the background the indicator alone carries less significance. COPYRIGHT TRADEGUIDER SYSTEMS. In an uptrend this indicator carries more weight. Here you would expect higher prices. Bar Description: A down bar with volume lower than the two previous bars shows lack of selling pressure as the market falls. or following minor SOW in an uptrend.SOS 199: NO SUPPLY NOTE: None. 2011 105 . In a downtrend it may lead to a pause or a small rally back up to resistance at best. Future: The next bar should be up to confirm this indicator. In an uptrend this indicator carries more weight. COPYRIGHT TRADEGUIDER SYSTEMS. Background: Study the background carefully and look at the trend. or following minor SOW in an uptrend. In a downtrend it may lead to a pause or a small rally back up to resistance at best. Bar Description: A down bar with volume lower than the two previous bars shows lack of selling pressure as the market falls. Here you would expect higher prices. Look at the full picture rather than just the individual bar. Future: The next bar should be up to confirm this indicator. 2011 106 . This indicator works best when there is strength in the background.SOS 198: NO SUPPLY NOTE: None. With weakness in the background the indicator alone carries less significance. If you see low volume up bars especially on a narrow spread or high volume up bars closing in the middle or low this confirms the weakness. when it appears will be on a down bar. On its own it may not be sufficient to lead to a rally especially if you are in a down trend. Future: The next bar should be up to confirm this indicator.SOS 147: DEMAND OVERCOMING SUPPLY NOTE: None. Bar Description: This indicator is trying to pick up subtle changes in the balance of supply and demand. Always remember to look at the whole picture and not the last few bars. 2011 107 . COPYRIGHT TRADEGUIDER SYSTEMS. Remember strength. The bar has noticed some buying entering the market. There may still need to be shakeouts and testing to remove any further supply. With strength in the background give this indicator more weight. Background: Look for other signs of strength in the immediate background to support this indicator. With weakness in the background there may well be too much supply for a rally to take place. COPYRIGHT TRADEGUIDER SYSTEMS. Background: The background is extremely important. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Be cautious if the test is followed by low volume up bars. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. 2011 108 . Failure to do so is a sign that the market is not yet ready to go up. Remember you need to look at the overall picture not just the individual bars.SOS 146: TEST NOTE: None. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Tests work best when there is strength in the background or following minor SOW in an uptrend. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Supply appearing after an up move is often tested. Future: Following a test expect higher prices. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Background: The background is extremely important. Be cautious if the test is followed by low volume up bars. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Tests work best when there is strength in the background or following minor SOW in an uptrend. upthrusts or high volume up bars closing in the middle especially on a narrow spread. 2011 109 .SOS 144: TEST NOTE: None. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS. Supply appearing after an up move is often tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Failure to do so is a sign that the market is not yet ready to go up. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Future: Following a test expect higher prices. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Supply appearing after an up move is often tested. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Failure to do so is a sign that the market is not yet ready to go up. Tests work best when there is strength in the background or following minor SOW in an uptrend. Remember you need to look at the overall picture not just the individual bars. Background: The background is extremely important. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness.SOS 143: TEST NOTE: None.With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. 2011 110 . COPYRIGHT TRADEGUIDER SYSTEMS. Be cautious if the test is followed by low volume up bars. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Future: Following a test expect higher prices. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. COPYRIGHT TRADEGUIDER SYSTEMS. The low volume suggests the supply has disappeared. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume.SOS 137: POTENTIAL CLIMACTIC ACTION NOTE: None. 2011 111 . The professionals do this by selling small amounts of their holdings to push prices back down to the lows. This they do with shakeouts and testing. This has to be done on down bars so as not to move prices against them. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. However. A market will not rally far until the professionals have checked to see if this supply has disappeared. Only buying by the professionals can stop a down move. overall they are buying more than they are selling. An ideal test is back into the area of the stopping volume. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. If volume is low this becomes a test like bar and shows supply has disappeared. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. upthrusts especially on high volume and no demand. The market may need to accumulate further before an up move can begin so be patient. If volume on the shakeout is high expect testing at a later date. Remember this indicator picks up demand coming in but there is still supply present. Future: The next bar should be up to confirm this indicator. Study the background carefully. Covering shorts will add to the volume. Covering of shorts will add to the volume. Background: There should be a clear downtrend in place in the background. Shakeouts are usually on a wide spread down closing near the highs. This sends a message to weak holders to show their hand. Remember this indicator picks up demand coming in but there is still supply present.SOS 135: POTENTIAL STOPPING VOLUME NOTE: None. A market will not rally far until the professionals have checked to see if this supply has disappeared. COPYRIGHT TRADEGUIDER SYSTEMS. The market may need to accumulate further before an up move can begin so be patient. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. The bar should be into fresh new low ground. Future: The next bar should be up to confirm the indicator. overall they are buying more than they are selling. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. If volume is low this becomes a test like bar and shows supply has disappeared. An ideal test is back into the area of the stopping volume. This sends a message to weak holders to show their hand. The bar should close well off the lows to show demand has absorbed the supply. Background: There should be a down move behind you. The low volume suggests the supply has disappeared. If volume on the shakeout is high expect testing at a later date. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. 2011 112 . However. upthrusts especially on high volume and no demand. Shakeouts are usually on a wide spread down closing near the highs. Study the background carefully. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. This they do with shakeouts and testing. Failure to do so is a sign that the market is not yet ready to go up. Future: Following no supply expect higher prices provided there is strength in the background. Remember you need to look at the overall picture not just the individual bars. Bar Description: This is a test like bar with a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell.SOS 134: NO SUPPLY/TEST NOTE: None. If you are in an uptrend and the no supply follows some minor signs of weakness you would anticipate the up move to continue.. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Be cautious if the no supply bar is followed by low volume down bars. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). No supply works best when there is strength in the background or following minor SOW in an uptrend. If there is strength in the background and the no supply bar is back down into the area of buying this is a strong indication of strength showing supply has disappeared. COPYRIGHT TRADEGUIDER SYSTEMS. Supply appearing after an up move is often tested. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Background: The background is extremely important. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If the supply is sufficient to stop the up move expect any subsequent no supply bar to fail which in itself is a sign of weakness. 2011 113 . Remember you need to look at the overall picture not just the individual bars. Background: The background is extremely important. If volume is high.SOS 133: STRENGTH COMING IN NOTE: None. Look for shakeouts and testing once the professionals have finished their buying. The professionals are prepared to absorb the supply. When the price spread is very wide and volume is very high this can be stopping volume or climactic action which may mark the low of the market. If so. Failure to do so is a sign that the market is not yet ready to go up. you would expect higher prices. Future: The next bar should be up to confirm this indicator. Do you have strength. If volume was low on this bar this may be a test of supply in the background. COPYRIGHT TRADEGUIDER SYSTEMS. Be cautious if you now see weak bars. Bar Description: This indicator is a more general SOS which can appear in a number of forms A down bar closing in the middle or high must be considered a strong SOS especially if you are into new low ground. Volume should be high to ultra high. As they panic the professionals will absorb these at cheap prices. add more strength if the news is very bad.If volume was high on this bar it may be the start of accumulation so be patient as the market may not yet be ready to go up. 2011 114 . minor SOW or has supply hit the market? If there is weakness in the background those who bought at a higher price (weak holders) reach a point where they will dump their holdings at a loss just to recover whatever money they can. If the volume is low this is also strength because there is little or no selling pressure. SOS 132: TWO BAR REVERSAL NOTE: This indicator is based upon the action of two bars. Bar Description: The first bar is a down bar closing near its low followed by an up bar closing near its high giving the appearance of a bottom reversal. If volume on the up leg of the bottom reversal is low this can be a type of 'test' in itself. If the low of the up bar is lower than the previous low this also adds to the strength. 2011 115 . Only then can the market turn bullish. This suggests a lot of supply and you would expect that supply to be tested. There comes a point when the herd will panic and sell usually on bad news. Add more weight if volume is higher on the down bar. or high volume up bars closing in the middle especially on a narrow spread. COPYRIGHT TRADEGUIDER SYSTEMS. Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. If the professionals now decide the price levels are attractive they will step in and absorb that selling creating the high volume. which all indicate weakness. No market can rally far with supply present. Be very cautious if you now see low volume up bars. Background: There should be a period of falling prices before this indicator occurs.. Future: Remember although buying has appeared there is still a lot of supply. Be very careful if the second bar is up but closes off its highs on high volume. If the low of the first bar is into fresh new low ground and volume is high or greater this can be climactic action. overall they are buying more than they are selling. This they do with shakeouts and testing. This sends a message to weak holders to show their hand. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. However. COPYRIGHT TRADEGUIDER SYSTEMS. A market will not rally far until the professionals have checked to see if this supply has disappeared. The bar should be into fresh new low ground. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. The low volume suggests the supply has disappeared. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. An ideal test is back into the area of the stopping volume. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price.SOS 131: POTENTIAL STOPPING VOLUME NOTE: None. If volume on the shakeout is high expect testing at a later date. upthrusts especially on high volume and no demand. Shakeouts are usually on a wide spread down closing near the highs. Remember this indicator picks up demand coming in but there is still supply present. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Background: There should be a down move behind you. If volume is low this becomes a test like bar and shows supply has disappeared. The bar should close well off the lows to show demand has absorbed the supply. Future: The next bar should be up to confirm the indicator. 2011 116 . The market may need to accumulate further before an up move can begin so be patient. Study the background carefully. upthrusts especially on high volume and no demand. Future: The next bar should be up to confirm this indicator. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. The low volume suggests the supply has disappeared. A market will not rally far until the professionals have checked to see if this supply has disappeared. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. This has to be done on down bars so as not to move prices against them. Shakeouts are usually on a wide spread down closing near the highs. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. If volume on the shakeout is high expect testing at a later date. Covering of shorts will add to the volume. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. If volume is low this becomes a test like bar and shows supply has disappeared. Remember this indicator picks up demand coming in but there is still supply present. COPYRIGHT TRADEGUIDER SYSTEMS. This they do with shakeouts and testing.SOS 129: POTENTIAL CLIMACTIC ACTION NOTE: None. Covering shorts will add to the volume. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. However. This sends a message to weak holders to show their hand. overall they are buying more than they are selling. An ideal test is back into the area of the stopping volume. 2011 117 . The market may need to accumulate further before an up move can begin so be patient. Background: There should be a clear downtrend in place in the background. Only buying by the professionals can stop a down move. Weak holders will eventually panic and sell out regardless of price offering the professionals the opportunity to acquire holdings at a good price. Study the background carefully. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. Remember this indicator picks up demand coming in but there is still supply present. However. Future: The next bar should be up to confirm the indicator. The market may need to accumulate further before an up move can begin so be patient. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. If volume is low this becomes a test like bar and shows supply has disappeared. This they do with shakeouts and testing. The low volume suggests the supply has disappeared. upthrusts especially on high volume and no demand. overall they are buying more than they are selling.SOS 127: POTENTIAL STOPPING VOLUME NOTE: None. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. If volume on the shakeout is high expect testing at a later date. 2011 118 . The bar should be into fresh new low ground. COPYRIGHT TRADEGUIDER SYSTEMS. This sends a message to weak holders to show their hand. An ideal test is back into the area of the stopping volume. The bar should close well off the lows to show demand has absorbed the supply. Shakeouts are usually on a wide spread down closing near the highs. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Background: There should be a down move behind you. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. Study the background carefully. A market will not rally far until the professionals have checked to see if this supply has disappeared. upthrusts especially on high volume and no demand. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. However. Only buying by the professionals can stop a down move.SOS 124: POTENTIAL CLIMACTIC ACTION NOTE: None. overall they are buying more than they are selling. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. Weak holders will eventually panic and sell out regardless of the price offering the professionals the chance to acquire holdings at a good price. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. If volume is low this becomes a test like bar and shows supply has disappeared. Covering shorts will add to the volume. The market may need to accumulate further before an up move can begin so be patient. 2011 119 . The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. Remember this indicator picks up demand coming in but there is still supply present. This has to be done on down bars so as not to move prices against them. Shakeouts are usually on a wide spread down closing near the highs. The low volume suggests the supply has disappeared. Future: The next bar should be up to confirm this indicator. Study the background carefully. If volume on the shakeout is high expect testing at a later date. Covering of shorts will add to the volume. COPYRIGHT TRADEGUIDER SYSTEMS. An ideal test is back into the area of the stopping volume. This they do with shakeouts and testing. Background: There should be a clear downtrend in place in the background. This sends a message to weak holders to show their hand. A market will not rally far until the professionals have checked to see if this supply has disappeared. The market may need to accumulate further before an up move can begin so be patient. Shakeouts are usually on a wide spread down closing near the highs. overall they are buying more than they are selling. Remember this indicator picks up demand coming in but there is still supply present. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. If volume on the shakeout is high expect testing at a later date. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. If volume is low this becomes a test like bar and shows supply has disappeared. The bar should close well off the lows to show demand has absorbed the supply. A market will not rally far until the professionals have checked to see if this supply has disappeared. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. 2011 120 . Study the background carefully. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume.SOS 123: POTENTIAL STOPPING VOLUME NOTE: None. COPYRIGHT TRADEGUIDER SYSTEMS. This sends a message to weak holders to show their hand. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Background: There should be a down move behind you. The bar should be into fresh new low ground. An ideal test is back into the area of the stopping volume. upthrusts especially on high volume and no demand. The low volume suggests the supply has disappeared. This they do with shakeouts and testing. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. Future: The next bar should be up to confirm the indicator. However. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Bar Description: A down bar with ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the following bar is up. This has to be done on down bars so as not to move prices against them. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. overall they are buying more than they are selling. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. The market may need to accumulate further before an up move can begin so be patient. If volume is low this becomes a test like bar and shows supply has disappeared. This sends a message to weak holders to show their hand. Covering shorts will add to the volume. This they do with shakeouts and testing. Shakeouts are usually on a wide spread down closing near the highs. However. Only buying by the professionals can stop a down move. Future: The next bar should be up to confirm this indicator. Covering of shorts will add to the volume. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. An ideal test is back into the area of the stopping volume. upthrusts especially on high volume and no demand. COPYRIGHT TRADEGUIDER SYSTEMS. The low volume suggests the supply has disappeared. Remember this indicator picks up demand coming in but there is still supply present. If volume on the shakeout is high expect testing at a later date. 2011 121 . One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. Study the background carefully. A market will not rally far until the professionals have checked to see if this supply has disappeared.SOS 122: POTENTIAL PROFESSIONAL BUYING NOTE: None. Background: There should be a clear downtrend in place in the background. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. This indicator occurs over two bars. COPYRIGHT TRADEGUIDER SYSTEMS. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Be very careful if the second bar is up but closes off its highs on high volume. Any low volume testing back into the area of the shakeout would be a strong SOS. 2011 122 . A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. It shows supply has disappeared and you would then expect higher prices. Be cautious if the shakeout is followed by low volume up bars. If the spread is narrow it will have less impact. If the close of the second bar is higher than the first bar's high this adds to the strength. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move.SOS 119: SHAKEOUT NOTE: This indicator occurs over 2 bars. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. Sometimes this can give the appearance of a bottom reversal. If volume is ultra high this can be climactic action and the start of accumulation. It can often give the appearance of a bottom reversal. If volume is low then supply has dried up. the second bar is up which confirms that strength. Background: The background is extremely important. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Remember you need to look at the overall picture not just the individual bars. You should see strength in the background with stopping volume or a selling climax. or high volume up bars closing in the middle especially on a narrow spread. The first has shown strength which has caused interest with the professional traders. This suggests a lot of supply and you would expect that supply to be tested. Background: The background is extremely important. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Future: Following a test expect higher prices. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Failure to do so is a sign that the market is not yet ready to go up.SOS 116: TEST NOTE: None. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Tests work best when there is strength in the background or following minor SOW in an uptrend. 2011 123 . COPYRIGHT TRADEGUIDER SYSTEMS. Be cautious if the test is followed by low volume up bars. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Supply appearing after an up move is often tested. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Remember you need to look at the overall picture not just the individual bars. If the spread is narrow it will have less impact. the second bar is up which confirms that strength. 2011 124 . COPYRIGHT TRADEGUIDER SYSTEMS. Any low volume testing back into the area of the shakeout would be a strong SOS. Be cautious if the shakeout is followed by low volume up bars. Be very careful if the second bar is up but closes off its highs on high volume. If the close of the second bar is higher than the first bar's high this adds to the strength. Exercise caution if the bar has gapped down as this can indicate hidden weakness. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. Remember you need to look at the overall picture not just the individual bars. or high volume up bars closing in the middle especially on a narrow spread. Sometimes this can give the appearance of a bottom reversal. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. This suggests a lot of supply and you would expect that supply to be tested. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move.SOS 113: SHAKEOUT NOTE: This indicator occurs over 2 bars. This indicator occurs over two bars. Background: The background is extremely important. You should see strength in the background with stopping volume or a selling climax. It shows supply has disappeared and you would then expect higher prices. It can often give the appearance of a bottom reversal. If volume is ultra high this can be climactic action and the start of accumulation. If volume is low then supply has dried up. The first has shown strength which has caused interest with the professional traders. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Background: The background is extremely important. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Be cautious if the test is followed by low volume up bars. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Failure to do so is a sign that the market is not yet ready to go up. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Future: Following a test expect higher prices. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell.SOS 112: TEST NOTE: None. upthrusts or high volume up bars closing in the middle especially on a narrow spread. COPYRIGHT TRADEGUIDER SYSTEMS. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Tests work best when there is strength in the background or following minor SOW in an uptrend. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Remember you need to look at the overall picture not just the individual bars. 2011 125 . Supply appearing after an up move is often tested. SOS 107: TEST NOTE: None. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Sometimes this indicator appears as a shakeout, which is a mark down but on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply. If the spread is narrow it will have less impact. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Background: The background is extremely important. Tests work best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Future: Following a test expect higher prices. Failure to do so is a sign that the market is not yet ready to go up. A high volume test/shakeout may need to be re-‐ tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Be cautious if the test or shakeout is followed by low volume up bars, upthrusts or high volume up bars closing in the middle especially on a narrow spread. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 126 SOS 106 SHAKEOUT NOTE: This indicator occurs over 2 bars. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. If the spread is narrow it will have less impact. Exercise caution if the bar has gapped down as this can indicate hidden weakness. If volume is ultra high this can be climactic action and the start of accumulation. This indicator occurs over two bars. The first has shown strength which has caused interest with the professional traders, the second bar is up which confirms that strength. Be very careful if the second bar is up but closes off its highs on high volume. This suggests a lot of supply and you would expect that supply to be tested. If the close of the second bar is higher than the first bar's high this adds to the strength. It can often give the appearance of a bottom reversal. Background: The background is extremely important. You should see strength in the background with stopping volume or a selling climax. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. It shows supply has disappeared and you would then expect higher prices. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Any low volume testing back into the area of the shakeout would be a strong SOS. Be cautious if the shakeout is followed by low volume up bars, or high volume up bars closing in the middle especially on a narrow spread. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 127 SOS 102: POTENTIAL CLIMACTIC ACTION NOTE: None. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. Covering of shorts will add to the volume. Background: There should be a clear downtrend in place in the background. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Only buying by the professionals can stop a down move. Covering shorts will add to the volume. This has to be done on down bars so as not to move prices against them. Study the background carefully. Future: The next bar should be up to confirm this indicator. The market may need to accumulate further before an up move can begin so be patient. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. However, overall they are buying more than they are selling. Remember this indicator picks up demand coming in but there is still supply present. A market will not rally far until the professionals have checked to see if this supply has disappeared. This they do with shakeouts and testing. Shakeouts are usually on a wide spread down closing near the highs. If volume is low this becomes a test like bar and shows supply has disappeared. If volume on the shakeout is high expect testing at a later date. An ideal test is back into the area of the stopping volume. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. This sends a message to weak holders to show their hand. The low volume suggests the supply has disappeared. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down, upthrusts especially on high volume and no demand. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 128 A market will not rally far until the professionals have checked to see if this supply has disappeared. upthrusts especially on high volume and no demand. This suggests a lot of supply and you would expect that supply to be tested. COPYRIGHT TRADEGUIDER SYSTEMS. If volume is low this becomes a test like bar and shows supply has disappeared. Panic selling from traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. If volume on the shakeout is high expect testing at a later date. Background: There should be a down move behind you. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. 2011 129 . Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Future: The next bar should be up to confirm the indicator but proceed with caution if volume is less than the two previous bars. The first bar should be into fresh new low ground. Study the background carefully. If the second bar is up but closes off its highs on high volume. This sends a message to weak holders to show their hand. The market may need to accumulate further before an up move can begin so be patient. This indicator picks up demand coming in but there is still supply present.SOS 101: STOPPING VOLUME NOTE: This indicator is based upon the action of 2 bars. This they do with shakeouts and testing. overall they are buying more than they are selling. This type of stopping volume appears over two bars. Shakeouts are usually on a wide spread down closing near the highs. The bar should close well off the lows to show demand has absorbed the supply. However. The first being a down bar on high volume closing on the lows with the second bar up. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. An ideal test is back into the area of the stopping volume. The low volume suggests the supply has disappeared. The professionals have to buy on down bars and will also cover shorts which adds to the volume. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. COPYRIGHT TRADEGUIDER SYSTEMS. Remember this indicator picks up demand coming in but there is still supply present. The first being a down bar with the second bar up on a wide spread and ideally closing above the high of the first bar. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Study the background carefully.Be very careful if the second bar is up but closes off its highs on high volume. However. The low volume suggests the supply has disappeared. Shakeouts are usually on a wide spread down closing near the highs. Background: There should be a down move behind you. If volume on the down bar is ultra high this can be climactic action. 2011 130 . Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. If volume is low this becomes a test like bar and shows supply has disappeared. This suggests a lot of supply and you would expect that supply to be tested. This is designed to lock traders out of the market by a rapid up move. upthrusts especially on high volume and no demand. This sends a message to weak holders to show their hand.SOS 99 REVERSAL OVER 2 BARS NOTE: This indicator is based upon the action of 2 bars. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Those short on the down bar now have to cover their positions at a loss. This they do with shakeouts and testing. This type of stopping volume appears over two bars. Buyers hesitate feeling they have missed the up move and are vulnerable to being sucked in at higher prices. Future: The market may need to accumulate further before an up move can begin so be patient. overall they are buying more than they are selling. Bar Description: The first bar should be down into fresh new low ground. A market will not rally far until the professionals have checked to see if this supply has disappeared. If volume on the shakeout is high expect testing at a later date. An ideal test is back into the area of the stopping volume. Remember the professionals have to buy on down bars. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. If the low of the up bar is lower than the previous low this also adds to the strength. Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. Future: Remember although buying has appeared there is still a lot of supply. which all indicate weakness.SOS 97: BOTTOM REVERSAL NOTE: This indicator is based upon the action of two bars. or high volume up bars closing in the middle especially on a narrow spread. Add more weight if volume is higher on the down bar. No market can rally far with supply present. Background: There should be a period of falling prices before this indicator occurs. Only then can the market turn bullish. There comes a point when the herd will panic and sell usually on bad news. If the low of the first bar is into fresh new low ground and volume is high or greater this can be climactic action. Be very careful if the second bar is up but closes off its highs on high volume. If the professionals now decide the price levels are attractive they will step in and absorb that selling creating the high volume. Bar Description: The first bar is a down bar closing near its low followed by an up bar closing near its high giving the appearance of a bottom reversal. Be very cautious if you now see low volume up bars. COPYRIGHT TRADEGUIDER SYSTEMS. This suggests a lot of supply and you would expect that supply to be tested. 2011 131 . If volume on the up leg of the bottom reversal is low this can be a type of 'test' in itself. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Tests work best when there is strength in the background or following minor SOW in an uptrend. Remember you need to look at the overall picture not just the individual bars. Failure to do so is a sign that the market is not yet ready to go up. The background is important because the market cannot rally without a cause. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Be cautious if the test or shakeout is followed by low volume up bars. This indicator is showing support has entered the market and it has been marked down with little supply present. Background: There should be support in the background or the market has been marked down with little selling pressure. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. There needs to be buying by the professional groups. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. COPYRIGHT TRADEGUIDER SYSTEMS. upthrusts or high volume up bars closing in the middle especially on a narrow spread. 2011 132 . Supply appearing after an up move is often tested. Future: Following a test expect higher prices. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness.SOS 96: TEST NOTE: None. Be very careful if the second bar is up but closes off its highs on high volume. No market can rally far with supply present. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 133 . Also add strength if the low of the first bar is down into fresh new low ground. Future: Remember that although buying has appeared there may still be a lot of supply. If the volume on the up leg of the reversal is low this can be a type of 'test' in itself. Be very cautious if you now see low volume up bars. Only then can the market turn bullish. Background: This indicator should take place after a market fall and mostly happens on market lows. or high volume up bars closing in the middle especially on a narrow spread. It works better when volume is higher on the down bar.SOS 94: 2 BAR REVERSAL NOTE: This indicator is based upon the action of two bars. Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. This can give the appearance of a bottom reversal or a test over two bars. Bar Description: The first bar is marked down sharply with the second bar up and closing near its high. This suggests a lot of supply and you would expect that supply to be tested. Your skill as a trader/investor has to decide if volume on the down bar is sufficient to give cause to an up move. It is designed to shake you out of the market and catch stops. which all indicate weakness. The market may need to accumulate further before an up move can begin so be patient. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. COPYRIGHT TRADEGUIDER SYSTEMS. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. This they do with shakeouts and testing. This sends a message to weak holders to show their hand. overall they are buying more than they are selling. upthrusts especially on high volume and no demand. Remember the professionals have to buy on down bars. Remember this indicator picks up demand coming in but there is still supply present. An ideal test is back into the area of the stopping volume. The low volume suggests the supply has disappeared. However. Background: There should be a clear down move in the background. If volume is low this becomes a test like bar and shows supply has disappeared. A market will not rally far until the professionals have checked to see if this supply has disappeared. This has to be done on down bars so as not to move prices against them. 2011 134 . Shakeouts are usually on a wide spread down closing near the highs. Study the background carefully. As the weak holders panic only buying by the professionals can absorb their selling and stop a down move. Covering of shorts will add to the volume. If volume on the shakeout is high expect testing at a later date. If they find prices attractive they will absorb panic selling from those traders on the wrong side of the market. Future: The next bar should be up to confirm this indicator.SOS 91: POTENTIAL STOPPING VOLUME/CLIMACTIC ACTION NOTE: None. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. If the spread is narrow it will have less impact. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. COPYRIGHT TRADEGUIDER SYSTEMS. If volume is low then supply has dried up. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Be cautious if the test or shakeout is followed by low volume up bars. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Failure to do so is a sign that the market is not yet ready to go up. High volume suggests demand overcame the supply. A high volume test/shakeout may need to be re-‐ tested. Tests work best when there is strength in the background or following minor SOW in an uptrend. Background: The background is extremely important. which is a mark down but on a wide spread closing up near the high to shake out weak holders. Supply appearing after an up move is often tested.SOS 89: TEST/SHAKEOUT NOTE: None. 2011 135 . Future: Following a test expect higher prices. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Remember you need to look at the overall picture not just the individual bars. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Sometimes this indicator appears as a shakeout. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS.SOS 87: SHAKEOUT NOTE: None. If volume is low then supply has dried up. Exercise caution if the bar has gapped down as this can indicate hidden weakness. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Background: The background is extremely important. If the spread is narrow it will have less impact. 2011 136 . Be cautious if the shakeout is followed by low volume up bars. This particular signal is more general and does not need to close near the high of the bar. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Any low volume testing back into the area of the shakeout would be a strong SOS. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. or high volume up bars closing in the middle especially on a narrow spread. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. You should see strength in the background with stopping volume or a selling climax. If volume is ultra high this can be climactic action and the start of accumulation. It shows supply has disappeared and you would then expect higher prices. Future: Following no supply expect higher prices provided there is strength in the background. Remember you need to look at the overall picture not just the individual bars.. Be cautious if the no supply bar is followed by low volume down bars. 2011 137 . Supply appearing after an up move is often tested. COPYRIGHT TRADEGUIDER SYSTEMS. Failure to do so is a sign that the market is not yet ready to go up. If the supply is sufficient to stop the up move expect any subsequent no supply bar to fail which in itself is a sign of weakness. If there is strength in the background and the no supply bar is back down into the area of buying this is a strong indication of strength showing supply has disappeared. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). upthrusts or high volume up bars closing in the middle especially on a narrow spread. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there.SOS 86 NO SUPPLY/TEST NOTE: None. Background: The background is extremely important. If you are in an uptrend and the no supply follows some minor signs of weakness you would anticipate the up move to continue. Bar Description: This is a test like bar with a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. No supply works best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Background: The background is extremely important. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. If the bar appeared as a selling climax expect future shakeouts and testing. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Future: Following a test expect higher prices. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Supply appearing after an up move is often tested. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Tests work best when there is strength in the background or following minor SOW in an uptrend. Failure to do so is a sign that the market is not yet ready to go up. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. upthrusts or high volume up bars closing in the middle especially on a narrow spread. or even a selling climax which would mark the start of accumulation. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 138 . Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar.SOS 85: TEST AFTER SHAKEOUT NOTE: None. Be cautious if the test is followed by low volume up bars. If the news was bad and volume was high this can appear as a shakeout. The market may need to accumulate further before an up move can begin so be patient. upthrusts especially on high volume and no demand. An ideal test is back into the area of the stopping volume. This has to be done on down bars so as not to move prices against them. This they do with shakeouts and testing. Remember this indicator picks up demand coming in but there is still supply present. If volume on the shakeout is high expect testing at a later date. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. A market will not rally far until the professionals have checked to see if this supply has disappeared.SOS 84: POTENTIAL CLIMACTIC ACTION NOTE: None. 2011 139 . If volume is low this becomes a test like bar and shows supply has disappeared. Shakeouts are usually on a wide spread down closing near the highs. COPYRIGHT TRADEGUIDER SYSTEMS. This sends a message to weak holders to show their hand. However. The low volume suggests the supply has disappeared. Only buying by the professionals can stop a down move. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Background: There should be a clear downtrend in place in the background. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. Covering shorts will add to the volume. Future: The next bar should be up to confirm this indicator. Study the background carefully. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. Covering of shorts will add to the volume. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. overall they are buying more than they are selling. Shakeouts are usually on a wide spread down closing near the highs. Background: There should be a clear downtrend in place in the background. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. An ideal test is back into the area of the stopping volume. Study the background carefully. This sends a message to weak holders to show their hand. overall they are buying more than they are selling. A market will not rally far until the professionals have checked to see if this supply has disappeared. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. Only buying by the professionals can stop a down move. However. 2011 140 . The low volume suggests the supply has disappeared. Covering shorts will add to the volume. This has to be done on down bars so as not to move prices against them. If volume is low this becomes a test like bar and shows supply has disappeared. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. This they do with shakeouts and testing. upthrusts especially on high volume and no demand. Future: The next bar should be up to confirm this indicator. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into new fresh low ground and the next bar is up. The market may need to accumulate further before an up move can begin so be patient. If volume on the shakeout is high expect testing at a later date.SOS 83: POTENTIAL SELLING CLIMAX NOTE: None. Covering of shorts will add to the volume. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Remember this indicator picks up demand coming in but there is still supply present. It can often give the appearance of a bottom reversal. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. The first has shown strength which has caused interest with the professional traders. or high volume up bars closing in the middle especially on a narrow spread. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. If the close of the second bar is higher than the first bar's high this adds to the strength. Be cautious if the shakeout is followed by low volume up bars.. Be very careful if the second bar is up but closes off its highs on high volume. If volume is ultra high this can be climactic action and the start of accumulation. Remember you need to look at the overall picture not just the individual bars. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Background: The background is extremely important. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. You should see strength in the background with stopping volume or a selling climax. Any low volume testing back into the area of the shakeout would be a strong SOS.SOS 82: SHAKEOUT NOTE: This indicator occurs over 2 bars. If volume is low then supply has dried up. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. Exercise caution if the bar has gapped down as this can indicate hidden weakness. 2011 141 . If the spread is narrow it will have less impact. COPYRIGHT TRADEGUIDER SYSTEMS. the second bar is up which confirms that strength. This indicator occurs over two bars. It shows supply has disappeared and you would then expect higher prices. This suggests a lot of supply and you would expect that supply to be tested. SOS 81: NO SUPPLY/TEST NOTE: None. Failure to do so is a sign that the market is not yet ready to go up. Bar Description: This bar has fallen off on low volume and a narrow spread showing a lack of selling pressure at that point. Background: The background is extremely important. Remember you need to look at the overall picture not just the individual bars. Sometimes it may close up on the middle or high which represents a test. Supply appearing after an up move is often tested. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If you are in an uptrend and the no supply follows some minor signs of weakness you would anticipate the up move to continue. If the supply is sufficient to stop the up move expect any subsequent no supply bar to fail which in itself is a sign of weakness. Future: Following no supply expect higher prices provided there is strength in the background. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. COPYRIGHT TRADEGUIDER SYSTEMS. No supply works best when there is strength in the background or following minor SOW in an uptrend. 2011 142 . If there is strength in the background and the no supply bar is back down into the area of buying this is a strong indication of strength showing supply has disappeared. Be cautious if the no supply bar is followed by low volume up bars. Only then can the market turn bullish. Future: Remember although buying has appeared there is still a lot of supply. Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. There comes a point when the herd will panic and sell usually on bad news. Bar Description: The first bar is a down bar closing near its low followed by an up bar closing near its high giving the appearance of a bottom reversal. Background: There should be a period of falling prices before this indicator occurs. If the professionals now decide the price levels are attractive they will step in and absorb that selling creating the high volume. If the low of the up bar is lower than the previous low this also adds to the strength. COPYRIGHT TRADEGUIDER SYSTEMS.SOS 79: BOTTOM REVERSAL NOTE: This indicator is based upon the action of two bars. No market can rally far with supply present. Add more weight if volume is higher on the down bar. This suggests a lot of supply and you would expect that supply to be tested. Be very careful if the second bar is up but closes off its highs on high volume. If the low of the first bar is into fresh new low ground and volume is high or greater this can be climactic action. or high volume up bars closing in the middle especially on a narrow spread. which all indicate weakness. Be very cautious if you now see low volume up bars. If volume on the up leg of the bottom reversal is low this can be a type of 'test' in itself. 2011 143 . If the professionals now decide the price levels are attractive they will step in and absorb that selling creating the high volume. Future: Remember although buying has appeared there is still a lot of supply. If volume on the up leg of the bottom reversal is low this can be a type of 'test' in itself.SOS 78: BOTTOM REVERSAL NOTE: This indicator is based upon the action of two bars. which all indicate weakness. Background: There should be a period of falling prices before this indicator occurs. Be very cautious if you now see low volume up bars. Bar Description: The first bar is a down bar closing near its low followed by an up bar closing near its high giving the appearance of a bottom reversal. COPYRIGHT TRADEGUIDER SYSTEMS. This suggests a lot of supply and you would expect that supply to be tested. No market can rally far with supply present. Only then can the market turn bullish. There comes a point when the herd will panic and sell usually on bad news. 2011 144 . Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. or high volume up bars closing in the middle especially on a narrow spread. Add more weight if volume is higher on the down bar. If the low of the first bar is into fresh new low ground and volume is high or greater this can be climactic action. If the low of the up bar is lower than the previous low this also adds to the strength. Be very careful if the second bar is up but closes off its highs on high volume. COPYRIGHT TRADEGUIDER SYSTEMS. Background: The background is extremely important. If volume is low then supply has dried up. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. A high volume test/shakeout may need to be re-‐ tested. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Be cautious if the test or shakeout is followed by low volume up bars. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Future: Following a test expect higher prices. Tests work best when there is strength in the background or following minor SOW in an uptrend. Supply appearing after an up move is often tested. which is a mark down but on a wide spread closing up near the high to shake out weak holders. 2011 145 . upthrusts or high volume up bars closing in the middle especially on a narrow spread.SOS 77: SIMPLE TEST NOTE: None. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If the spread is narrow it will have less impact. High volume suggests demand overcame the supply. Remember you need to look at the overall picture not just the individual bars. Sometimes this indicator appears as a shakeout. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Failure to do so is a sign that the market is not yet ready to go up. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Study the background carefully.SOS: 76 POTENTIAL STOPPING VOLUME NOTE: None. upthrusts especially on high volume and no demand. Future: The next bar should be up to confirm the indicator. The low volume suggests the supply has disappeared. The bar should close well off the lows to show demand has absorbed the supply. This they do with shakeouts and testing. If volume on the shakeout is high expect testing at a later date. Remember this indicator picks up demand coming in but there is still supply present. overall they are buying more than they are selling. If volume is low this becomes a test like bar and shows supply has disappeared. However. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Shakeouts are usually on a wide spread down closing near the highs. A market will not rally far until the professionals have checked to see if this supply has disappeared. Background: There should be a down move behind you. This sends a message to weak holders to show their hand. An ideal test is back into the area of the stopping volume. The bar should be into fresh new low ground. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. The market may need to accumulate further before an up move can begin so be patient. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 146 . Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. It shows supply has disappeared and you would then expect higher prices. If the spread is narrow it will have less impact. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. or high volume up bars closing in the middle especially on a narrow spread. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Be cautious if the shakeout is followed by low volume up bars. You should see strength in the background with stopping volume or a selling climax.A shakeout on low volume is really a violent test and has the same effect. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Are there some minor SOW in an uptrend or has supply hit the market? Future: The next bar should be up to confirm this indicator. Any low volume testing back into the area of the shakeout would be a strong SOS.SOS 74: POTENTIAL CLIMACTIC ACTION/SHAKEOUT NOTE: None. Background: The background is extremely important. If volume is ultra high this can be climactic action and the start of accumulation in which case a narrow spread adds to the strength if it is into new fresh low ground. Remember you need to look at the overall picture not just the individual bars. 2011 147 . COPYRIGHT TRADEGUIDER SYSTEMS. Background: The background is extremely important. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. If volume is ultra high this can be climactic action and the start of accumulation. If volume is low then supply has dried up. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. The first has shown strength which has caused interest with the professional traders. Remember you need to look at the overall picture not just the individual bars. the second bar is up which confirms that strength. Exercise caution if the bar has gapped down as this can indicate hidden weakness. 2011 148 . If the spread is narrow it will have less impact. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. COPYRIGHT TRADEGUIDER SYSTEMS. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. This suggests a lot of supply and you would expect that supply to be tested.SOS 70: SHAKEOUT NOTE: This indicator occurs over 2 bars. It can often give the appearance of a bottom reversal. Be very careful if the second bar is up but closes off its highs on high volume. You should see strength in the background with stopping volume or a selling climax. or high volume up bars closing in the middle especially on a narrow spread. If the close of the second bar is higher than the first bar's high this adds to the strength. This indicator occurs over two bars. It shows supply has disappeared and you would then expect higher prices. Any low volume testing back into the area of the shakeout would be a strong SOS. Be cautious if the shakeout is followed by low volume up bars. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Sometimes this can give the appearance of a bottom reversal. It shows supply has disappeared and you would then expect higher prices. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. If the spread is narrow it will have less impact. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Remember you need to look at the overall picture not just the individual bars. Be cautious if the shakeout is followed by low volume up bars. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If volume is ultra high this can be climactic action and the start of accumulation. or high volume up bars closing in the middle especially on a narrow spread. 2011 149 .SOS 63: SHAKEOUT NOTE: None. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. COPYRIGHT TRADEGUIDER SYSTEMS. Any low volume testing back into the area of the shakeout would be a strong SOS. Background: The background is extremely important. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. If volume is low then supply has dried up. You should see strength in the background with stopping volume or a selling climax. If volume on the up leg of the bottom reversal is low this can be a type of 'test' in itself. Only then can the market turn bullish. Be very careful if the second bar is up but closes off its highs on high volume. which all indicate weakness. If the low of the first bar is into fresh new low ground and volume is high or greater this can be climactic action. COPYRIGHT TRADEGUIDER SYSTEMS. This suggests a lot of supply and you would expect that supply to be tested. Be very cautious if you now see low volume up bars.. If the professionals now decide the price levels are attractive they will step in and absorb that selling creating the high volume. or high volume up bars closing in the middle especially on a narrow spread. 2011 150 . Future: Remember although buying has appeared there is still a lot of supply. No market can rally far with supply present. If the low of the up bar is lower than the previous low this also adds to the strength. Bar Description: The first bar is a down bar closing near its low followed by an up bar closing near its high giving the appearance of a bottom reversal. Add more weight if volume is higher on the down bar. Expect shakeouts to remove the remaining weak holders followed by testing to ensure supply has disappeared. Background: There should be a period of falling prices before this indicator occurs. There comes a point when the herd will panic and sell usually on bad news.SOS 57 TWO BAR REVERSAL NOTE: This indicator is based upon the action of two bars. You should see strength in the background with stopping volume or a selling climax. Any low volume testing back into the area of the shakeout would be a strong SOS. COPYRIGHT TRADEGUIDER SYSTEMS. Background: The background is extremely important. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. This particular signal is more general and does not need to close near the high of the bar. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Be cautious if the shakeout is followed by low volume up bars. If the spread is narrow it will have less impact. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. Remember you need to look at the overall picture not just the individual bars. or high volume up bars closing in the middle especially on a narrow spread. 2011 151 .SOS 56: SHAKEOUT NOTE: None. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. It shows supply has disappeared and you would then expect higher prices. If volume is ultra high this can be climactic action and the start of accumulation. If volume is low then supply has dried up. Exercise caution if the bar has gapped down as this can indicate hidden weakness. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. It shows supply has disappeared and you would then expect higher prices. Remember you need to look at the overall picture not just the individual bars. If volume is low then supply has dried up. Be cautious if the shakeout is followed by low volume up bars. This particular signal is more general and does not need to close near the high of the bar. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Exercise caution if the bar has gapped down as this can indicate hidden weakness. or high volume up bars closing in the middle especially on a narrow spread. You should see strength in the background with stopping volume or a selling climax. COPYRIGHT TRADEGUIDER SYSTEMS. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Background: The background is extremely important.If volume is ultra high this can be climactic action and the start of accumulation.SOS 54: SHAKEOUT NOTE: None. If the spread is narrow it will have less impact. Any low volume testing back into the area of the shakeout would be a strong SOS. 2011 152 . Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. A shakeout on low volume is really a violent test and has the same effect. If volume is ultra high this can be climactic action and the start of accumulation in which case a narrow spread adds to the strength if it is into new fresh low ground.. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 153 . Any low volume testing back into the area of the shakeout would be a strong SOS. Be cautious if the shakeout is followed by low volume up bars. Are there some minor SOW in an uptrend or has supply hit the market? Future: The next bar should be up to confirm this indicator. Exercise caution if the bar has gapped down as this can indicate hidden weakness. You should see strength in the background with stopping volume or a selling climax. If the spread is narrow it will have less impact. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. or high volume up bars closing in the middle especially on a narrow spread. Remember you need to look at the overall picture not just the individual bars.SOS 53: POTENTIAL CLIMACTIC ACTION/SHAKEOUT NOTE: None. Background: The background is extremely important. It shows supply has disappeared and you would then expect higher prices. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Exercise caution if the bar has gapped down as this can indicate hidden weakness. This indicator occurs over two bars. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. It shows supply has disappeared and you would then expect higher prices. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Be cautious if the shakeout is followed by low volume up bars. The first has shown strength which has caused interest with the professional traders. You should see strength in the background with stopping volume or a selling climax. the second bar is up which confirms that strength. Be very careful if the second bar is up but closes off its highs on high volume. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. COPYRIGHT TRADEGUIDER SYSTEMS. If the spread is narrow it will have less impact.SOS 52: CLIMACTIC ACTION/SHAKEOUT NOTE: This indicator occurs over two bars. 2011 154 . Remember you need to look at the overall picture not just the individual bars. If volume is ultra high this can be climactic action and the start of accumulation in which case a narrow spread adds to the strength if it is into new fresh low ground. or high volume up bars closing in the middle especially on a narrow spread. This suggests a lot of supply and you would expect that supply to be tested. Any low volume testing back into the area of the shakeout would be a strong SOS. Background: The background is extremely important. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. or high volume up bars closing in the middle especially on a narrow spread. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If volume is ultra high this can be climactic action and the start of accumulation. This particular signal is more general and does not need to close near the high of the bar. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. If volume is low then supply has dried up. If the spread is narrow it will have less impact. You should see strength in the background with stopping volume or a selling climax. 2011 155 . Any low volume testing back into the area of the shakeout would be a strong SOS. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Background: The background is extremely important. Exercise caution if the bar has gapped down as this can indicate hidden weakness. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS. It shows supply has disappeared and you would then expect higher prices. Be cautious if the shakeout is followed by low volume up bars. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect.SOS 51: SHAKEOUT NOTE: None. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Be cautious if the test or shakeout is followed by low volume up bars. High volume suggests demand overcame the supply. If volume is low then supply has dried up. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If the spread is narrow it will have less impact. upthrusts or high volume up bars closing in the middle especially on a narrow spread.SOS 49: TEST OF SUPPLY AFTER SHAKEOUT NOTE: None. Future: Following a test expect higher prices. 2011 156 . Sometimes this indicator appears as a shakeout. which is a mark down but on a wide spread closing up near the high to shake out weak holders. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Failure to do so is a sign that the market is not yet ready to go up. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Remember you need to look at the overall picture not just the individual bars. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Background: The background is extremely important. Supply appearing after an up move is often tested. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Tests work best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. COPYRIGHT TRADEGUIDER SYSTEMS. Any low volume testing back into the area of the shakeout would be a strong SOS. COPYRIGHT TRADEGUIDER SYSTEMS. Background: The background is extremely important. 2011 157 .SOS 45: SHAKEOUT NOTE: None. If the spread is narrow it will have less impact. If volume is low then supply has dried up. It shows supply has disappeared and you would then expect higher prices. If volume is ultra high this can be climactic action and the start of accumulation. Remember you need to look at the overall picture not just the individual bars. or high volume up bars closing in the middle especially on a narrow spread. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. Be cautious if the shakeout is followed by low volume up bars. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. You should see strength in the background with stopping volume or a selling climax. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Exercise caution if the bar has gapped down as this can indicate hidden weakness. If the spread is narrow it will have less impact. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Remember you need to look at the overall picture not just the individual bars. Background: The background is extremely important. This indicator occurs over two bars. It shows supply has disappeared and you would then expect higher prices. The first has shown strength which has caused interest with the professional traders. the second bar is up which confirms that strength.SOS 44: SHAKEOUT NOTE: This indicator occurs over two bars. You should see strength in the background with stopping volume or a selling climax. It can often give the appearance of a bottom reversal. Any low volume testing back into the area of the shakeout would be a strong SOS. If the close of the second bar is higher than the first bar's high this adds to the strength. or high volume up bars closing in the middle especially on a narrow spread. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. This suggests a lot of supply and you would expect that supply to be tested. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Be cautious if the shakeout is followed by low volume up bars. If volume is low then supply has dried up. 2011 158 . Be very careful if the second bar is up but closes off its highs on high volume. COPYRIGHT TRADEGUIDER SYSTEMS. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. If volume is ultra high this can be climactic action and the start of accumulation. Exercise caution if the bar has gapped down as this can indicate hidden weakness. It shows supply has disappeared and you would then expect higher prices. If volume is low then supply has dried up. 2011 159 . This particular signal is more general and does not need to close near the high of the bar. COPYRIGHT TRADEGUIDER SYSTEMS. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. Exercise caution if the bar has gapped down as this can indicate hidden weakness. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future.SOS 43: SHAKEOUT NOTE: None. Remember you need to look at the overall picture not just the individual bars. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. Bar Description: A shakeout is a mark down on a wide spread normally closing up near the high to shake out weak holders. You should see strength in the background with stopping volume or a selling climax. or high volume up bars closing in the middle especially on a narrow spread. Be cautious if the shakeout is followed by low volume up bars. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. Background: The background is extremely important. If volume is ultra high this can be climactic action and the start of accumulation. Any low volume testing back into the area of the shakeout would be a strong SOS. If the spread is narrow it will have less impact. hence the term). Remember to stop a fall in the market demand has to overcome the supply that is causing that fall. COPYRIGHT TRADEGUIDER SYSTEMS.SOS 36: BAG HOLDING NOTE: None. By its very nature this has to appear on down bars. This is a rare indicator but one of the strongest to appear. A point is reached when the herd panic and unload their holdings at rock bottom prices. The narrow spread tells you that the professionals absorb all the supply coming onto the market (effectively holding out a 'bag' to collect the panic selling. It should be into fresh new low ground. Background: There should be a clear down trend in the background. Bar Description: A narrow spread down bar with ultra high volume. Any shakeout or successful testing back into the area of the bag holding is a very strong SOS.. Future: Prices are now expected to rally strongly. 2011 160 . If they had not done this the spread would have been wide. Any low volume testing back into the area of the shakeout would be a strong SOS. Be cautious if the shakeout is followed by low volume up bars. You should see strength in the background with stopping volume or a selling climax. Remember you need to look at the overall picture not just the individual bars.SOS 34: SHAKEOUT NOTE: None. Exercise caution if the bar has gapped down as this can indicate hidden weakness. If the spread is narrow it will have less impact. or high volume up bars closing in the middle especially on a narrow spread. It shows supply has disappeared and you would expect higher prices. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 161 . A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Background: The background is extremely important. Are there some minor SOW in an uptrend or has supply hit the market? Future: A shakeout on low volume is really a violent test and has the same effect. If volume is low then supply has dried up. If volume is ultra high this can be climactic action and the start of accumulation. Bar Description: A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move. overall they are buying more than they are selling. The professionals do this by selling small amounts of their holdings to push prices back down to the lows. However. Study the background carefully. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. If volume on the shakeout is high expect testing at a later date. This sends a message to weak holders to show their hand. Shakeouts are usually on a wide spread down closing near the highs. An ideal test is back into the area of the stopping volume. If volume is low this becomes a test like bar and shows supply has disappeared. One or more professional groups will have decided that the underlying market is now good value and will step in and buy absorbing the supply. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. 2011 162 . COPYRIGHT TRADEGUIDER SYSTEMS. Future: The next bar should be up to confirm this indicator. Covering of shorts will add to the volume.SOS 33: POTENTIAL CLIMACTIC ACTION NOTE: None. This they do with shakeouts and testing. Bar Description: A down bar with high to ultra high volume must contain buying from the professionals especially if it is into fresh new low ground and the next bar is up. Covering shorts will add to the volume. A market will not rally far until the professionals have checked to see if this supply has disappeared. The low volume suggests the supply has disappeared. This has to be done on down bars so as not to move prices against them. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. The market may need to accumulate further before an up move can begin so be patient. Only buying by the professionals can stop a down move. Remember this indicator picks up demand coming in but there is still supply present. upthrusts especially on high volume and no demand. Background: There should be a clear downtrend in place in the background. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. High volume suggests demand overcame the supply. Supply appearing after an up move is often tested. Future: Following a test expect higher prices. COPYRIGHT TRADEGUIDER SYSTEMS. If the spread is narrow it will have less impact.SOS 32: TEST NOTE: None. 2011 163 . Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Failure to do so is a sign that the market is not yet ready to go up. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. If volume is low then supply has dried up. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. A high volume test/shakeout may need to be re-‐ tested. Be cautious if the test or shakeout is followed by low volume up bars. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Remember you need to look at the overall picture not just the individual bars. Tests work best when there is strength in the background or following minor SOW in an uptrend. Sometimes this indicator appears as a shakeout. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Background: The background is extremely important. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. which is a mark down but on a wide spread closing up near the high to shake out weak holders. Remember you need to look at the overall picture not just the individual bars. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If the spread is narrow it will have less impact. This indicator is usually testing high volume in the recent background. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Supply appearing after an up move is often tested. Sometimes this indicator appears as a shakeout. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Add extra weight if it is a down bar. Tests work best when there is strength in the background or following minor SOW in an uptrend. 2011 164 . Background: The background is extremely important. which is a mark down but on a wide spread closing up near the high to shake out weak holders. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Failure to do so is a sign that the market is not yet ready to go up. COPYRIGHT TRADEGUIDER SYSTEMS. Future: Following a test expect higher prices. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Be cautious if the test or shakeout is followed by low volume up bars. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. High volume suggests demand overcame the supply. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. If volume is low then supply has dried up. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared.SOS 30: TEST IN A RISING MARKET NOTE: None. The previous bar should be a breakout from a recent trading range. It is a test in a rising market. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue.SOS 29: TEST OF BREAKOUT NOTE: None. The test may well fail if the breakout proves to be false. 2011 165 . This indicator follows a breakout from a trading range. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Supply appearing after an up move is often tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Future: Following a test expect higher prices. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Tests work best when there is strength in the background or following minor SOW in an uptrend.. It may also show the breakout to be false. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Failure to do so is a sign that the market is not yet ready to go up. Remember you need to look at the overall picture not just the individual bars. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Add extra weight if it is a down bar. Be cautious if the test or shakeout is followed by low volume up bars. COPYRIGHT TRADEGUIDER SYSTEMS. Background: The background is extremely important. SOS 28: TEST NOTE: None. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Sometimes this indicator appears as a shakeout, which is a mark down but on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply. If the spread is narrow it will have less impact. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Background: The background is extremely important. Tests work best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Future: Following a test expect higher prices. Failure to do so is a sign that the market is not yet ready to go up. A high volume test/shakeout may need to be re-‐ tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Be cautious if the test or shakeout is followed by low volume up bars, upthrusts or high volume up bars closing in the middle especially on a narrow spread. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 166 SOS 23: TEST NOTE: None. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Sometimes this indicator appears as a shakeout, which is a mark down but on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply. If the spread is narrow it will have less impact. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Background: The background is extremely important. Tests work best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Future: Following a test expect higher prices. Failure to do so is a sign that the market is not yet ready to go up. A high volume test/shakeout may need to be re-‐ tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Be cautious if the test or shakeout is followed by low volume up bars, upthrusts or high volume up bars closing in the middle especially on a narrow spread. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 167 SOS 22: BASIC TEST NOTE: None. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Sometimes this indicator appears as a shakeout, which is a mark down but on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply. If the spread is narrow it will have less impact. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Background: The background is extremely important. Tests work best when there is strength in the background or following minor SOW in an uptrend. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Future: Following a test expect higher prices. Failure to do so is a sign that the market is not yet ready to go up. A high volume test/shakeout may need to be re-‐ tested. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Be cautious if the test or shakeout is followed by low volume up bars, upthrusts or high volume up bars closing in the middle especially on a narrow spread. Remember you need to look at the overall picture not just the individual bars. COPYRIGHT TRADEGUIDER SYSTEMS, 2011 168 Sometimes this indicator appears as a shakeout. Future: Following a test expect higher prices. Supply appearing after an up move is often tested. If volume is low then supply has dried up. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. High volume suggests demand overcame the supply. Be cautious if the test or shakeout is followed by low volume up bars.SOS 21 SIMPLE TEST NOTE: None. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. If the spread is narrow it will have less impact. A high volume test/shakeout may need to be re-‐ tested. Background: The background is extremely important. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. which is a mark down but on a wide spread closing up near the high to shake out weak holders. COPYRIGHT TRADEGUIDER SYSTEMS. upthrusts or high volume up bars closing in the middle especially on a narrow spread. 2011 169 . This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Remember you need to look at the overall picture not just the individual bars. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Tests work best when there is strength in the background or following minor SOW in an uptrend. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Failure to do so is a sign that the market is not yet ready to go up. This particular indicator occurs after a recent upthrust. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Supply appearing after an up move is often tested.SOS 19: TEST AFTER UPTHRUST NOTE: None. Future: Following a test expect higher prices. Remember you need to look at the overall picture not just the individual bars. Background: The background is extremely important. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Tests work best when there is strength in the background or following minor SOW in an uptrend. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). 2011 170 . Be cautious if the test is followed by low volume up bars. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. COPYRIGHT TRADEGUIDER SYSTEMS. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Failure to do so is a sign that the market is not yet ready to go up. Future: Following a test expect higher prices. Background: The background is extremely important. Failure to do so is a sign that the market is not yet ready to go up. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. 2011 171 . If the bar appeared as a selling climax expect future shakeouts and testing. Supply appearing after an up move is often tested. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Tests work best when there is strength in the background or following minor SOW in an uptrend.SOS 16: TEST AFTER SHAKEOUT NOTE: None. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. COPYRIGHT TRADEGUIDER SYSTEMS. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. or even a selling climax which would mark the start of accumulation. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Be cautious if the test is followed by low volume up bars. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If the news was bad and volume was high this can appear as a shakeout. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Failure to do so is a sign that the market is not yet ready to go up. Remember you need to look at the overall picture not just the individual bars. Supply appearing after an up move is often tested. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar.SOS 13: TEST NOTE: None. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Future: Following a test expect higher prices. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Tests work best when there is strength in the background or following minor SOW in an uptrend. Background: The background is extremely important. Be cautious if the test is followed by low volume up bars. 2011 172 . If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 173 . Remember you need to look at the overall picture not just the individual bars. Failure to do so is a sign that the market is not yet ready to go up. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). COPYRIGHT TRADEGUIDER SYSTEMS. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Background: This indicator appears following a recent sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue.With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Future: Following a test expect higher prices. Supply appearing after an up move is often tested. Is this SOW minor? Remember tests work best when there is strength in the background or following minor SOW in an uptrend. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell.SOS 12: TEST NOTE: None. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. Be cautious if the test is followed by low volume up bars. A high volume test/shakeout may need to be re-‐ tested. Remember you need to look at the overall picture not just the individual bars. Background: The background is extremely important. Future: Following a test expect higher prices. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. upthrusts or high volume up bars closing in the middle especially on a narrow spread. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Sometimes this indicator appears as a shakeout. If the spread is narrow it will have less impact. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. which is a mark down but on a wide spread closing up near the high to shake out weak holders. High volume suggests demand overcame the supply. If volume is low then supply has dried up. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there.SOS 11: BASIC TEST NOTE: None. Be cautious if the test or shakeout is followed by low volume up bars. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. 2011 174 . If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Supply appearing after an up move is often tested. COPYRIGHT TRADEGUIDER SYSTEMS. Tests work best when there is strength in the background or following minor SOW in an uptrend. Failure to do so is a sign that the market is not yet ready to go up. COPYRIGHT TRADEGUIDER SYSTEMS. 2011 175 . Remember you need to look at the overall picture not just the individual bars. Failure to do so is a sign that the market is not yet ready to go up. upthrusts or high volume up bars closing in the middle especially on a narrow spread. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. Supply appearing after an up move is often tested. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Be cautious if the test is followed by low volume up bars. Future: Following a test expect higher prices. Background: The background is extremely important. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there.SOS 9: TEST NOTE: None. Tests work best when there is strength in the background or following minor SOW in an uptrend. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Tests work best when there is strength in the background or following minor SOW in an uptrend. Remember you need to look at the overall picture not just the individual bars. Supply appearing after an up move is often tested. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Failure to do so is a sign that the market is not yet ready to go up. COPYRIGHT TRADEGUIDER SYSTEMS. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. Background: The background is extremely important.SOS 8: TEST NOTE: None. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Be cautious if the test is followed by low volume up bars. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. 2011 176 . If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Future: Following a test expect higher prices. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. Supply appearing after an up move is often tested. Tests work best when there is strength in the background or following minor SOW in an uptrend.SOS 7: TEST NOTE: None. Be cautious if the test is followed by low volume up bars. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. upthrusts or high volume up bars closing in the middle especially on a narrow spread. COPYRIGHT TRADEGUIDER SYSTEMS. Background: The background is extremely important. Future: Following a test expect higher prices. Remember you need to look at the overall picture not just the individual bars. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. 2011 177 . Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. Failure to do so is a sign that the market is not yet ready to go up. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. If volume was too high for a reliable test you need to decide whether the market makers are prepared to absorb that supply and take prices higher. If you are in an uptrend and the test follows some minor signs of weakness you would anticipate the up move to continue. 2011 178 . Remember you need to look at the overall picture not just the individual bars. Bar Description: A test is a mark down during the bar (often on bad news) to challenge any weak holders to panic and sell. If they do not sell the price rebounds up towards the middle or high and volume is low (can be high in the futures market). Future: Following a test expect higher prices.SOS 6: TEST NOTE: None. This lack of selling gives the professionals confidence that they do not have to absorb large amounts of supply. Be cautious if the test is followed by low volume up bars. If there is strength in the background and the test bar is back down into the area of buying a successful test is a strong indication of strength showing supply has disappeared. Tests work best when there is strength in the background or following minor SOW in an uptrend. Tests on low volume in the cash market will cause the professionals to enter the futures market resulting in higher volumes there. If the supply is sufficient to stop the up move expect any subsequent test to fail which in itself is a sign of weakness. Give extra weight to a second test in a bullish phase if the second test has lower volume than the first. upthrusts or high volume up bars closing in the middle especially on a narrow spread. Failure to do so is a sign that the market is not yet ready to go up. Background: The background is extremely important. Supply appearing after an up move is often tested. Add extra weight if the low of the bar is into fresh new low ground and also if it is a down bar. With weakness in the background this indicator carries less importance and at best may only cause the market to rest for a few bars as the professionals stand aside before resuming the down move. COPYRIGHT TRADEGUIDER SYSTEMS. This sends a message to weak holders to show their hand. 2011 179 . If volume is low this becomes a test like bar and shows supply has disappeared. An ideal test is back into the area of the stopping volume. Future: The next bar should be up to confirm the indicator. The market may need to accumulate further before an up move can begin so be patient. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. Shakeouts are usually on a wide spread down closing near the highs. The bar should close well off the lows to show demand has absorbed the supply. A market will not rally far until the professionals have checked to see if this supply has disappeared. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. The bar should be into fresh new low ground. Background: There should be a down move behind you. This they do with shakeouts and testing. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. However. upthrusts especially on high volume and no demand. COPYRIGHT TRADEGUIDER SYSTEMS. The low volume suggests the supply has disappeared. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. If volume on the shakeout is high expect testing at a later date. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. Remember this indicator picks up demand coming in but there is still supply present.SOS 4: POTENTIAL STOPPING VOLUME NOTE: None. overall they are buying more than they are selling. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. Study the background carefully. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. If volume on the shakeout is high expect testing at a later date. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. The low volume suggests the supply has disappeared. Background: There should be a down move behind you. 2011 180 . overall they are buying more than they are selling. COPYRIGHT TRADEGUIDER SYSTEMS. If volume is low this becomes a test like bar and shows supply has disappeared.SOS 3: POTENTIAL STOPPING VOLUME NOTE: None. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. The bar should close well off the lows to show demand has absorbed the supply. The bar should be into fresh new low ground. Remember this indicator picks up demand coming in but there is still supply present. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. An ideal test is back into the area of the stopping volume. However. The market may need to accumulate further before an up move can begin so be patient. This sends a message to weak holders to show their hand. Future: The next bar should be up to confirm the indicator. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. Study the background carefully. This they do with shakeouts and testing. Shakeouts are usually on a wide spread down closing near the highs. upthrusts especially on high volume and no demand. A market will not rally far until the professionals have checked to see if this supply has disappeared. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. Background: There should be a down move behind you. Shakeouts are usually on a wide spread down closing near the highs. If volume is low this becomes a test like bar and shows supply has disappeared.SOS 1: POTENTIAL STOPPING VOLUME NOTE: None. The bar should close well off the lows to show demand has absorbed the supply. Weak holders will eventually panic and sell out regardless of the price offering the professionals the opportunity to acquire holdings at a good price. Remember this indicator picks up demand coming in but there is still supply present. upthrusts especially on high volume and no demand. overall they are buying more than they are selling. Remember if the market is still weak you would expect high volume up bars closing off the highs with the next bar down. Bar Description: This should be a down bar on volume greater than the last few bars which can be gapped down often on bad news. Future: The next bar should be up to confirm the indicator. An ideal test is back into the area of the stopping volume. The low volume suggests the supply has disappeared. However. Remember the professionals have to buy on down bars and will also cover shorts which adds to the volume. This sends a message to weak holders to show their hand. 2011 181 . Study the background carefully. A market will not rally far until the professionals have checked to see if this supply has disappeared. The professionals do this by selling small amounts of their holdings to push prices back down to the lows on bad news days. The test should be a mark down with a narrow to average spread closing in the middle or high on low volume. This they do with shakeouts and testing. Panic selling from those traders on the wrong side of the market is absorbed by the market makers who now find prices attractive. If volume on the shakeout is high expect testing at a later date. The bar should be into fresh new low ground. COPYRIGHT TRADEGUIDER SYSTEMS. The market may need to accumulate further before an up move can begin so be patient. 2011 182 . COPYRIGHT TRADEGUIDER SYSTEMS.