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A practical method of how to detect a major player in the cluster chart and identify his intentions. Cluster chart examples.


Candle 10:55. The low ATR value tells us that the candle is ‘narrow’ but volumes are very high. Compare this candle with the previous one, which broke the support level S. High volume on the previous candle could be interpreted as the sellers’ effort at the level breakout. And there was a relevant progress, while there was no progress at all on candle 10:55, as if the price hit an invisible obstacle and all efforts, seen due to the high volume, didn’t ‘convert’ into any significant result.

This is the Wyckoff logic, which points to the fact that a major buyer acts in the market and holds the price from its further decrease by the force of his limit buy orders. And the price moved back up after the thrust of sells was exhausted.

Candle 11:40. A similar example but the opposite one. We can see a narrow candle (judging by ATR) but with a high volume. Compare it with the previous one. There is also a big volume on candle 11:35 but the achieved growth progress is comparable with the volume size, which cannot be said about candle 11:40.

Judging by this 2 candle combination, we can form an opinion that a major seller emerged in the market at the breakout of resistance R, who met the up impulse and posted his big sell limit orders against the flow of market sells. The big supply overcame the demand. As a result, the price was USD 750 lower in 1 hour.

Could it be that the above computations are just guesses or coincidences? What if they work only temporarily and only in some markets?

Let’s look deeper into the patterns.

Modern analysis instruments of the ATAS platform will help you to understand what takes place ‘behind the curtains’ of the bars / candles, which have 2 specific features:

  • an increased volume (the sign of the major player activity);
  • a slow down of the progress in the trend movement compared to previous bars / candles.
Fidenge Pecold

My profession is a journalist, but my hobby for 8 years has been studying Forex investing and trading. During this time, I managed to gain extensive experience in investing and trading cryptocurrencies and double my capital in the Forex market. To be the author of this magazine, the site owners invited me to participate in one of the 2020 trading webinars, and I will try to reveal the most relevant crypto market news for you.

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