I see that we've recently completed a short-term AB=CD pattern. It was actually structured extremely well, with price reacting to the Golden Ratios beautifully.
What intrigued me, however, was how the Volume played a factor, at least retrospectively.
I didn't point this out on my chart but here's how:
From the bottom of A up towards to B, high volumes produced more higher prices, demand.
The gap at the beginning of B saw high volume, which stagnated prices before an artificial markup in prices, leading to the retracement towards the .618 shaded area.
High Volumes at C initiated the rally with volume bars along the way propelling price.
As we reached the Golden Ratio, 1.618, not only was volume not heavy (meaning this down move is only temporary), but the higher volume bars in that zone produced a stagnation of prices and an eventual drop.
Finally, like I noted in my first TradingView post, the volume spike we saw on Thursday not only completed a Gartley 222, it also had a former TL and 200 MA supporting it. RSI/MACD Divergence as well.
What intrigued me, however, was how the Volume played a factor, at least retrospectively.
I didn't point this out on my chart but here's how:
From the bottom of A up towards to B, high volumes produced more higher prices, demand.
The gap at the beginning of B saw high volume, which stagnated prices before an artificial markup in prices, leading to the retracement towards the .618 shaded area.
High Volumes at C initiated the rally with volume bars along the way propelling price.
As we reached the Golden Ratio, 1.618, not only was volume not heavy (meaning this down move is only temporary), but the higher volume bars in that zone produced a stagnation of prices and an eventual drop.
Finally, like I noted in my first TradingView post, the volume spike we saw on Thursday not only completed a Gartley 222, it also had a former TL and 200 MA supporting it. RSI/MACD Divergence as well.
