Here’s a look at a chart posted on Fri 8th June
I’ve highlighted a small area in this chart below, but the original chart can be found here : http://www.vtrender.com/content/composite-and-orderflow
And here is the updated chart as of the close of trading on Fri day 28th June.
Now mark these words from the post made on 8th June, a full 14 sessions back.- http://www.vtrender.com/content/composite-and-orderflow
The green composite picture on the right is the cumulative volumes in the Nifty as it has traded in the 5600- 4500 zone.
4860 below had the largest volumes and the next big one is at 5205 which should be the next resistance for this move,
I feel that the market can stay in this 200 point band for the rest of the month as it requires trading volumes.
4970 on the lower side and 5212 on the higher side should be the range the market should consolidate in.
There’s no better study which can give you an insight in price behavior than the study of volumes.
Markets do not trend all the time and areas of consolidation in low volume pockets are a traders worst nighmare.Such zones can be easily found out through a study of volumes as a trending move ends in a balancing one and such areas meet the requirement of the SteidlMayer distribution theory as the market tries to move towards efficiency.
The move from 4770 to 5194 represents the first imbalance followed by a balancing act which the market ha been doing over this month.
Using the principles of the SteidlMayer distribution the balance zone roughly between 4990 and 5190 when broken out of will give us another trending move or a period of imbalance as we like to call it.