- Supported nice above 20 / 40MA - Lots of Sign of Strength near support etc No Supply and Spring - Recently prices drop but with low volume - Red Pentagon started to appear in the chart
Red Pentagon mean the trend is weakening. Continue to monitor for the right signal to ensure the charts are forming pullback setup:
1. Downbar low volume 2. Sign of strength near support - Spring Signal - No Supply Signal - Cluster of Closes
Avoid the trades if no clear confirmation on Sign of Strength as prices may continue to pullback.
What is Spring and No Supply? 1. Spring is a false breakdown and Smart Money tend to remove weakhand holders 2. No Supply is the situation of a deficit of buyers in the market
Can pair the signal with green pentagon to ensure Pullback Complete setup
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Disclaimer This information only serves as reference information and does not constitute a buy or sell call. Conduct your own research and assessment before deciding to buy or sell any stock