OK, Tim needs a little material, so how about a quick tape read example.
Starting from left to right:
The highest volume bar on the left is the stop run of those who thought a gap into globex highs and resistance should be faded. LOL I think they missed the KC multi-time-frame long signal, I might explain that another day. OK back to a bread and butter tape read.
Next the first point circled 1)
The wick and high volume tells me we hit resistance. The next few down bars on declining bars tells me going short here isn't a good idea. No conviction on the decline.
Point 2) again shows resistance on the up side and solid rejection.
At Point 3) we get a pick up in volume on the climb, with a third strong rejection. Notice how the volume spikes are are losing steam. At this point we have a triple top.
As price action falls below the upper KC line, I set a short sell on the ES at the a point a tick below the previous 3 highs, and get filled. I used a stop just above the 3 previous highs that got rejected.
Given how long price has diddled in a 2 point range I set my target at 1194, which was 4 pts below my fill at 1198. The tape read theory here is the run ups were on increasing volume which told me people were setting up for a move higher. Those same people would need to sell by the end of the day, so I was anticipating a bit of a tail falling downward near the close as they gave up hope. By the way I tweeted this trade real time using a conductor analogy, and suggest people exit the train at door 94. LOL
Anyway, that's how I read price and volume. Remember, every dollar you make is a dollar out of the pockets of our criminal elite, so trade well.
