Hello! 👋 In the second part of bar analysis, we study vertical volumes and price reactions from levels. These tools help to more accurately assess the strength of the trend and market behavior.
1.Vertical volume 📊 Volume shows how actively participants support the movement: Increasing volume → trend strengthens Decreasing volume → weak interest, trend loses strength If the previous bar is larger than the next, but volumes are increasing → signal of trend slowing: price is advancing harder
2.Price reaction from level ⚡ Horizontal — an important level of support or resistance. The speed of movement and distance covered show the market's reaction: Fast movement → strong impulse, line holds the price Slow movement → weak reaction, a breakout is possible Such analysis helps to assess not only the direction but also the quality of the trend. Conclusion: In the second part, we studied how volumes reflect the strength of the trend, and the speed of movement and distance show the price reaction to levels. Combine both methods — and trading will become more precise!
In this article, I will explain how to properly read bars and candles and what to pay attention to in bar analysis.
Size (spread) Type of bar closing
1. Size (spread)
The spread is the difference between the opening and closing price of the candle. The longer the candle, the more activity in that part of the market. How does its size relate to the nearest two similarly directed bars of the previous wave?
Why this is important: It allows you to understand the strength of the movement. Assessment is based on the body of the candle, not on the shadows. By comparing the bar with the previous similarly directed ones, you can determine whether the trend is weakening, strengthening, or moving with the same strength.
2. Type of bar closing
What is bar closing Closing is the price at which trading completed for the selected period. Green candle → closing above opening Red candle → closing below opening
The closer the bar's closing is to the maximum (for purchases) or to the minimum (for sales), the stronger the pressure from the respective side. A green candle closing near the maximum indicates that buyers are controlling the market. A red candle closing close to the minimum indicates that sellers hold the initiative.