Effort to Move-up bar
Effort to move up bar is a firm long up closing bar with its volume in agreement with the size of bar. The bar has small or no tail signifying lesser selling pressure. An effort to move down bar is generally associated with sudden buying activity by professional buyer, the buyers having deep pocket and internal information of the underlying asset. The effort to move-up bar is formed after buyers have accumulated enough equity at cheap prices.Valid effort to move-up bar
A valid effort to move-up bar can be found after some accumulation i.e. sideways movement. A effort to move-up bar after a sudden dip i.e. long red candle followed by a long green candle cannot be considered as a valid effort to move-up bar. Such type of a bar could also be result of failed test. A valid effort to move-up bar can also be confirmed if it has a no supply bar or accumulation bar i.e. small size large volume before it.What after a valid effort to move-up bar?
A effort to move-up bar needs to be confirmed before any trade can be taken. A effort to move-up bar is a calculated move by professionals after they have set in the stage for mark-up of prices. Even after taking all due considerations even professionals can never be sure whether their move is successful or not. They use some good news or positive market sentiments to make such moves.
How can a professional confirm the move ? The only way to confirm the move is by taking a demand test. If the effort to move bar is followed by a supply test, you can always take long trade on confirmation of no selling pressure.
Examples of effort to move-up bar
Below is the daily chart for Indusind Bank from NSE, an Indian Exchange for the month Oct 2020. Here we can observe accumulation spread over a month and effort to move-up bar towards end of month.
Resources
Learn more on volume price analysis and other technical fundamentals through the Book "A Complete Course to Volume Price Analysis- Read the market Bar by Bar" by Achal. Pinescript codes for identification of bars also available in book to assist you during your learning.
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| 200+ pages book | 130 pages book |
