AusGroup - When 2 becomes one

Good evening all,

This post is just educational and I hope to be able to do more back testing with regards to this kind of setup. Do inform me if you see more setup like these.. =p

I will call this setup advance stopping volume.

As this is the only example that I came across so far. I hope to back test more of these patterns in the future. I will following closely on Ausgroup and I witness the low volume bar.

As mentioned below, it seems to me like a no supply bar to me, but, because of the low volume accumulation/down move on the previous bars, I was not convinced by the no supply bar.

Nonetheless, keep watch, keep trading.


@11Nov 6pm

Happy Deepvali and happy holiday to all readers,

An update on Ausgroup, Since i last blogged on Ausgroup, we witness a test bar/no supply bar again @ 8Nov2012. The test bar clearly tested positively that there is very little supply on the bar on 6th Nov. On 9 Nov, next bar showed decent strength as it closes higher than the test/no supply bar and volume was relatively higher as well.

Today, Ausgroup showed strength as it went up even higher, with good volume, testing its previous support.



With Ausgroup volume still looking relatively low, it hardly looks like any climatic actions has taken place yet which means that SM is still in the game.



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