How to join bearish trend using ND signal

The stock market plunged dramatically amid Coronavirus news. How to use the bearish character to gain your account?
This post dedicated to ND (No Demand) setup. It becomes very powerful during the down-trend, and here is an example from the AAPL stock chart.

1] High 12/Feb at 327
2] Low 28/Feb at 257. Note the spike of volume and closing on highs. Most likely, it was intraday Panic, then Demand entered to absorb an oversold stock. That is why the price closed on highs.
3] After strong action on 28/Feb, AAPL continued bullish impulse on the next day. But look, price entered 50-61.80% zone of Fibo. This is an important level, where bears can resume their attack.
What does the chart tell us?
4] The levels of maximum volume fluctuate in a narrow range around 295.
5] But the daily volume goes down.

What does it mean?
Most likely, decreasing volume caused by a lack of buyers who agree to spend 300$ per Apple share.

One more deduction. Note this gap [6] with increased volume on 24/Feb. It was a big bad surprise for people who invested in AAPL during Jan-Feb trading range between 310-325 approximately. They found themselves in a trap. If the price will continue to develop its 28Feb-02/Mar bullish impulse then many people will escape from Trap. Usually, the cruel market unwill to do it.

7] As the price moved down, volume increased. This is selling pressure. It confirms the No_demand over 295 level. Bears resumed their dominance to fight with 260 support.

ND can appear in many variations, but the main principle of ND could be described as “exhausting volume amid attempt of price to advance”. ND becomes more important: a) with major weakness in the background and/or b) around levels of resistance.


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