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<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>By using two years data and identify all higher top, higher bottom, lower top and lower bottom.with good volume and then identify the sequence.</p>
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Higher Bottom- Higher Top sequence with high volume is Bullish. Buy–> When Demand is greater than supply.
Lower Top -Lower Bottom sequence with high volume is Bearish. Sell–> When supply is greater than Demand.
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The line chart of the stock will give us many tops and bottoms with volume.
Every top /bottom is marked as high/low with respect to the previous one.
- higher bottom -higher top sequence with high volume tells the bullish trend
- lower top-lower bottom sequence with high volume tells the bearish trend.
We can determine based on top and bottom with significant volume
High top -High bottom – Market trending upwards (Bullish)
Lower top – lower volume – Market trending downwards (Bearish)
Based on DOW theory we can able to find Demand and supply ratio
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