HPE, Trade review , something I missed originally.
I have realized that I need to pay more attention to volume and effect and specifically , anomalies ...
I took HPE as a trade as it broke out of a base and then nothing really happened , the move was not really what you would expect looking at the volume candles and I figured I had found the jackpot . What I realized though is that those are not accumulation candles ! they are a sign that the up-trend was actually becoming exhausted! and we have market makers and or insiders selling into the breakout .
So yes , there was buyers at that time but the big beautiful green candles are actually an illusion , because in reality , if we had that kind of real buying volume come in, the price would show it ( effort vs result , Wyckoff methodology ) .
So , anyways , just wanted to share .I think as the tiny little mites in the trading world one of the best tools we have to see what the smart money is up to is Volume , which coincides with price and when we have an anomaly of these two we must assess what is probably happening . When we have an effort vs result that creates an anomaly we need to investigate like Holmes and Watson lol . I missed to do so on HPE but the trade has helped to improve my knowledge on the importance of volume price action anomalies . Who knows what will happen going forward HPE could continue its climb or it could start to decline but we do have a much better idea what happened on that failed breakout based on the volume and price action .
Perhaps check out Wyckoff's works and I really like Anna Coulling's publications on the subject too ( which are strongly founded on Wyckoff's methodology btw) .
This is all just my personal take , I am not a professional , but I am a dedicated trader who is always trying to review past trades and improve ~
I took HPE as a trade as it broke out of a base and then nothing really happened , the move was not really what you would expect looking at the volume candles and I figured I had found the jackpot . What I realized though is that those are not accumulation candles ! they are a sign that the up-trend was actually becoming exhausted! and we have market makers and or insiders selling into the breakout .
So yes , there was buyers at that time but the big beautiful green candles are actually an illusion , because in reality , if we had that kind of real buying volume come in, the price would show it ( effort vs result , Wyckoff methodology ) .
So , anyways , just wanted to share .I think as the tiny little mites in the trading world one of the best tools we have to see what the smart money is up to is Volume , which coincides with price and when we have an anomaly of these two we must assess what is probably happening . When we have an effort vs result that creates an anomaly we need to investigate like Holmes and Watson lol . I missed to do so on HPE but the trade has helped to improve my knowledge on the importance of volume price action anomalies . Who knows what will happen going forward HPE could continue its climb or it could start to decline but we do have a much better idea what happened on that failed breakout based on the volume and price action .
Perhaps check out Wyckoff's works and I really like Anna Coulling's publications on the subject too ( which are strongly founded on Wyckoff's methodology btw) .
This is all just my personal take , I am not a professional , but I am a dedicated trader who is always trying to review past trades and improve ~
Comment:
another good recent example is IBKR, tried to move up from a lower base recently, June 3rd, on high volume, but once again price action did not follow through and then there was a subsequent breakdown in price ...
艾力克~
