This action usually signals the beginning of a new balance. CTI4 Each plays a role, each shows his sentiment by how he trades, i.e. his volume and it's location in the day's trading range. This permits the development of a number of reference points which you, the trader will utilize for your trading decisions. Trading Reference Points from the Liquidity Data Bank 1. Value and how it is changing.
Value is the 'fair' price that the most traders are comfortable with.
Buying and selling pressure and which is dominating. Who is buying, who is selling. Volume confirmation or non-confirmation of price action. Increasing volume confirms a price move. Commercial traders participation and changes.