Reject of price â price moving up Situation one: A bar moves up to a price level and closes at or just below the price level. The next bar closes down at its low. At least for now, the market has rejected the price level. Situation two: A bar opens below a price level, moves up to the price level and comes back down to close at the same place it opened. (There is only one bar which opens and closes at the low of the bar after touching the price level.) Has the market rejected price in situation two as clearly as in situation one? Another way to ask the question is when a bar opens and closes at the same price is that only indicating indecision?
1) Generally speaking I would say no, although the hesitation would have me watching for a possible reversal. 2) Generally speaking, yes. Of course the context and momentum or steepness of the price move would need to be taken into account. IOW I try not to put too much emphasis on a single price bar, particularly intraday. Since the opens and closes are imo arbitrary anyway.
1) i would hafta say not necessarily 2) i would watch the next bar to see if it passes or holds the previous level.
Using such simplistic observations to come to a conclusion may be dangerous, IMO. There are several other parameters involved.