1. When there are many rising candles and few falling candles, and the volume significantly increases when rising and decreases when falling.
2. The bottom area shows a narrow horizontal box.
3. After the bull move higher, the price is quickly depressed by a small number of chips and continue to build a position at lower prices.
1. After a long period of decline, the volume decreases to near the historical bottom average volume. The amplitude is getting smaller and smaller, and the volume is gradually increasing, even in huge quantities.
2. Suddenly fall below the lower edge of the box, but at the same time appear greater volume, the price is again back inside the box. Volume increases when breaking out of the box.
This article describes several absorption patterns that occur before a sharp rise. For example, $WAVES, $ZIL and $BNX all had signs of absorption before they rose. After reading, you can try to find similar chart patterns.
This article does not constitute investment advice and the above content, first published on Nowhere DAO.
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