Now that’s what I call a reversal!!
Now That’s What I Call a Reversal!!
Reversals can be dramatic in trading. This one stood out clearly. Price shifted sharply after exhaustion. Volume price analysis (VPA) spotted the turn early. It's a textbook example of market change. A terrific session on the US markets as the plunge in equities during the morning, was reversed in the afternoon with an equally strong recovery, with the three sister indices all closing on the day with an extreme wick to the lower body and a close near the high of the session. A fantastic trading day and one with many VPA lessons, not least the importance of understanding the relational aspects of market behaviour of bonds and currencies all of which sent clear signals of this change in sentiment.
https://youtu.be/sp76-cYO6lU
Key VPA Signals in the Reversal
Volume price analysis revealed classic signs. High volume at the extreme showed distribution. Stopping volume appeared as buyers stepped in. Divergence between price and volume confirmed weakness in the old...