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