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Explanation: As price starts correcting see how the
indicator below the price is falling sharply signifying strong and
sustained selling pressure.
At (a) the indicator hits the bottom.
As the bulls tried to take the price up, the indicator begins to
inch up, showing buying pressure. However, due to strong selling by
bears, the price fails to move up and actually goes down further,
creating several new bottoms marked (b) and (c).
But even as price declines to new lows, the indicator is not making
new low but in actuality, it continues to improve and eventually
crosses "0" level, signifying positiveness in price movement and a
reversal in price trend from down to up.
Price continues to improve and so does the indicator, showing
continuing buying strength. The price reversal has happened and
eventually price peaks with a big jump, as selling is absorbed.
The indicator had made a bottom at 13:27 and the Buy signal came at
14:01, some 34 mnts. later.
With such tools in your hands, Intraday trading becomes much
simpler.
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