In this video we step back a little and consider the chart from a big picture perspective, so moving away from the single candle and single volume bar and considering groups of candles and volume. And in this example we have a nice trend lower which is confirmed and supported with rising volume which reinforces the bearish sentiment.

Remember markets require effort to rise as well as fall and this is an excellent example of this basic concept which is important to grasp. Notice also in the rallies into the secondary trend how the volume falls, and confirms the dominance of the bearish sentiment for the time being.

Finally we explain a more nuanced aspect which is where price revisits a previous area which has seen high selling pressure, and in this case you can see how the selling volumes reduce dramatically giving us a strong signal this trend is possible reaching a pause point or even coming to an end.

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