Landi Renzo (LR.MI)
Last update 19/01/2015
1 - Buyers entered here
2 - Test of demand (low volume low spread bar)
3 - The closure of this candle would confirm the lack of demand, but volume is too low. Indeed, the next candle closes higher on higher volume. This is a sign of strength and that selling is exhausted
4 - After a range bound period with low volumes, the stock breaks out on high volume and high spread candle closing on its highs. This candle is a good sign of strength, but it could hide some selling. A test in the body of this candle will be a good long signal
5 - Price rose and found some resistance, a test of supply is needed. This candle is indeed a test: down candle (the closure is lower than the previous bar) on very low volume. Confirmation of this test would provide a good entry signal
1 - Buyers entered here
2 - Test of demand (low volume low spread bar)
3 - The closure of this candle would confirm the lack of demand, but volume is too low. Indeed, the next candle closes higher on higher volume. This is a sign of strength and that selling is exhausted
4 - After a range bound period with low volumes, the stock breaks out on high volume and high spread candle closing on its highs. This candle is a good sign of strength, but it could hide some selling. A test in the body of this candle will be a good long signal
5 - Price rose and found some resistance, a test of supply is needed. This candle is indeed a test: down candle (the closure is lower than the previous bar) on very low volume. Confirmation of this test would provide a good entry signal