In the last two candles we can see that the volume traded is higher than the average volume. But the spread of the candle is narrow. And we can find that these candles are at the top of the bullish trend.
What is actually happening is that the market has reached a price at which further effort does not result in higher prices, as each wave of new buyers is met with longs selling out at this level and taking their profits, 'off the table'. So there is no sustained move higher in price.
But the prices can rise as the longs continue to liquidate and take their profits.
So I guess there might be a reversal or a short pullback !
Degengambleh
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@Ratna_Prakash, Thats a good observation Praskash. If that turns out to be the case, then this is a deadcat bounce in play and a consolidation of 1 to 2 years is in the cards. But that remains to be proved. One thing I am convinced of is that we have found the bottom. Acceleration of price remains the question. Major reversals happen at huge volumes, but I am assuming you are aware of it. Good Luck!
Ratna_Prakash
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@bountyhunter13, Yeah true. But it will not be strange even if we find then bottom again considering the macro economic factors in to account
In the last two candles we can see that the volume traded is higher than the average volume. But the spread of the candle is narrow. And we can find that these candles are at the top of the bullish trend.
What is actually happening is that the market has reached a price at which further effort does not result in higher prices, as each wave of new buyers is met with longs selling out at this level and taking their profits, 'off the table'. So there is no sustained move higher in price.
But the prices can rise as the longs continue to liquidate and take their profits.
So I guess there might be a reversal or a short pullback !