Volume Spread Analysis

[nick721156]

Nick,

If You want to get true picture....use the Nifty Spot or NF instead of Minifty

SavantGarde

Dear friend,

From next week, I shall try to use NF as I don't get volume in Nifty Spot.

Regards,

Raju

 

[nick721156]

please correct me.

 

[ashutosh.krsrivastava]

Hi friends,
I am posting one chart, pls help me analyse it..
According to me the three bars numbered as 1, 2, 3 are:

1. Effort to Fall bar: It is normally found in the beginning of a Markdown phase.
2. Strength bar (upbar with higher volume closing near the high) Here the volume is very much above average, this makes the indicaton more stronger.
3. The previous bar saw strength coming back, this upbar confirms strength.

However I am unable to understand that even after strength is showing, why did the market go down.. Please help me analysing the chart.

regards..

 

[Anilkumary]

Thanks good analysis

 

[ashutosh.krsrivastava]

Thanks good analysis

Which one... In my chart, (Federal Bank) strength is showing but still the stock is moving down.... How come??
regards

 

[karthikmarar]

If the Bar(3) had shown god volume. Low volume of Bar(3) shows that there is no follow up strength.........

 

[ashutosh.krsrivastava]

If the Bar(3) had shown god volume. Low volume of Bar(3) shows that there is no follow up strength.........

Hey Kartik,
I m using your afl for vpa, in that for Bar(3) bycond is true.. i.e.
bycond = upbar AND Ref(bycond1,-1);
(Green up triangle)
now here nothing is mentioned abt volume, should volume condition be also added so that the indicator is shown only if volumes are higher than Avg Volume.
like
bycond = upbar AND Ref(bycond1, -1) AND V>Vrg(or some other volume level);
If yes then what should be the volume level as per your understanding.
??
regards

 

[VJAY]

Dear Karthik,
Can you eloberate a bit volume side indications.effort index,avergae result...means what can we use from these indications to our trades....I asked this Q long back ..that time you replayed as you are still in experiment phase on that....Hope this time will get answer for it...
We missing you ...in TJ now days.....

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[karthikmarar]

Hey Kartik,
I m using your afl for vpa, in that for Bar(3) bycond is true.. i.e.
bycond = upbar AND Ref(bycond1,-1);
(Green up triangle)
now here nothing is mentioned abt volume, should volume condition be also added so that the indicator is shown only if volumes are higher than Avg Volume.
like
bycond = upbar AND Ref(bycond1, -1) AND V>Vrg(or some other volume level);
If yes then what should be the volume level as per your understanding.
??
regards

Hi Astutosh

You are right, we need to add some thing about volume as well in the "bycond" definition. Actullay it is high time I did a upgrade of the vpa afl to incorpoarte the knowledge gained by experience using the vpa. Somehow all this including my trading, website ...everything has been put on the back burner due to other commitments. I hope to get back to all tis wonderful things in a couple of months time. I will definite work on the vpa afl. refinement is long overdue... patience till then..

 

[karthikmarar]

Hi Vijay,

Wow... the effort index.... never tought anybody would take it seriously, really .

Anyway my situation would have beeen clear to you from my previous post. I too miss the postings and the friends gained through different forums... Hopefully will be back in full throtle soon..