before following the shooting star candle.

The price spread is much the same,

but the
volume is substantially lower.
This is a TRAP up move, and one that was prepared the night before. It is a
classic
move that happens all the time, particularly at the open of a session, and you
will see
this time and time again in the futures markets and the cash markets. The
insiders,
whether they are the operators or the market makers, love to trap traders into
weak
positions, and this is the c thd the ceasiest time to do it, when traders are
waiting for
the market to open, eager with anticipation, and jump in making emotional
trading
decisions, frightened to miss out on a nice move higher or lower. Then the
selling
starts, and down it goes! Easy really, and given the chance we would do the
same! It
goes without saying that volume is the ONLY way to see these tricks in
action –
watch out for them and you will see them ALL the time, in every market, and
in
every time frame.
Finally, and just to prove the point, on the third day on our chart the market
opens
gapped up, but look at the volume – it's high, and well above the volume of
the
previous day, so this is a genuine move, and the big operators are buying into
the
bullish trend higher.
Moving to yet another platform, a different market and a different type of
chart. So
far, all the charts we have considered in our volume analysis have been based
on
time, but many traders, myself included like to trade tick charts for some
markets. If
you have never used such charts to trade, then I would urge you to consider
these as
part of your trading education, for one simple reason.
When we trade on a time based chart, for example a 15 minute chart, every
bar or
candle on the chart is created in 15 minutes. By contrast when we trade on an
80 tick
chart, each candle will be created according to the time it takes to complete.
In other
words, the time taken to build each candle will depend on the energy and
activity in
the market. It is, yet another way to consider volume or market activity. A
tick on a
futures chart essentially records an order, but that order could be for one
contract or
a hundred contracts. However, the point with a tick chart is this. If the market
is very
active and there is a great deal of buying and selling, let's say after a news
announcement, then each 80 tick candle will form very quickly, perhaps in
just a few
seconds, as there are hundreds of orders flowing through the market in a very
short
space of time, each of which is recorded as a tick.
Therefore if we were watching a tick chart following the release of the NFP
data,
then the candles would form as though being fired from a machine gun – they
would
literally print on the chart at high speed, but each tick candle would take a
different