Wide, High-Volume Bar(s)
Nearly twenty years ago, David Weis said in his training video:
‘Wide, high-volume bars, tend to be tested’
Now, twenty years later, we see that exact thing happening with Airbnb.
On August 7th, this year, ABNB launched 17.43%, with twice normal volume after an earnings release; links here and here.
So, we have a ‘wide, high-volume bar’.
What’s most likely to happen next?
Airbnb ABNB, Daily
What’s most likely, is the wide bar gets tested.
If we know that wide bars tend to get tested, then trades can be planned accordingly (not advice, not a recommendation).
After the launch phase and during the reversal, ABNB was traded profitably to the downside: ABNB-26-06, and ABNB-26-07.
With that said, what happens next, or what’s likely to happen?
We’ll cover that, in tomorrow’s update.
Stay Tuned
Charts by StockCharts, TC2000
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point®, trade mark: No. 6,505,279
What if rates go lower? Will ABNB go higher?
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Thank you for your comment.
It’s possible the bond market may have (recently) reversed to the upside with rates going lower.
Whether or not that translates to ABNB going higher is presented within the price action itself. That is the basis of Wyckoff analysis. Look specifically at the price action and volume. Ignore everything else
A longer-term view is scheduled for tomorrow.
The analysis might give some clarity on what ABNB is actually doing.
Thanks again.
Regards,
Paul
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I appreciate the fast reply.
I’m new to this site. Just found it.
I don’t know anything about ‘Wyckoff’. Never heard of him.
I’m curious but don’t want to go down a rabbit hole like ‘Elliott Wave’.
Got burned by that too many times.
Bard Sense
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Welcome to the site.
I understand your ‘burned’ comment quite well as I had immersed myself in Elliott Wave years ago.
In my opinion, it appeals to the engineering or scientific mindset as being able to ‘figure out’ the market.
The problem with that as my former mentor had told me, it applies a ‘cookie cutter’ approach (his words) to a living breathing dynamic entity; the market.
From a personal standpoint it was rough stuff to abandon that method except for the fact the market does move in waves and then re-focus.
I you’re willing and if I could suggest, the first place to start and find out more is getting a copy of Studies In Tape Reading.
Amazon has them available here: Wyckoff ‘Studies’
Thanks again,
Paul
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