Volume Spread Analysis

[Visualize]

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..

Always consider volume as bigger picture while doing VSA.


@Karthik sir,

Comeback soon.

TYVM

 

[dream_merchant]

Hi Karthik,

I have realised that there is a method(VSA) to the madness (market) which seems to be reliable many a times for making decisions (B/S).

Have read through your extensive postings on VSA - thanks very much.

Hope to see your return (regularly) to this forum back soon...

GK


P.S. Have also read Tom Williams book after reading your posts

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..

 

[ramesh innani]

One should publish past track !

 

[moneydeep]

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..

My first post here. Since I love VSA a lot. It really demystifies the market. IF you think about it the market moves the way it does because of volume.

I've been studying vsa in forex and what i would recommend is that you always look at the bigger picture and not just 1-2 bars.

my analysis

1 sellers average volume wide spread down bar. you are right effort to fall
2 sellers are met with buyers. bar closed on the highs with ultra volume.
3 up bar closing middle high but with lower volume than previous two bars. Market is trying to rise but it cannot on low volume. closing towards middle indicates sellers are still present. This is where we are cautious and wait for confirmation.
Bar 4 tests bar 3 but fails to close significantly higher and volume is even lower. This tells us that there is no professional interest in the up side.
Bar 5 fails to go up and closes down Now we know market has failed to go higher and we wait for a low risk high probability trade which comes later on with the orange bar.
First orange bar. Up bar closing in the middle low volume and we put our sell order a little below this and wait for the market to take us in.

I hope I was clear there.
With volume you always have to look at the larger picture and not just a couple bars.

 

[joym30]

what is selling climax

 

[chaitanyagoa]

Karthik Sir,

I have been working om the VSA AFL 1.2. I guess that is the latest one u have written. Sir, Can i have the explanation copy of that script... I have been having difficulty understand the entire script.....

Do u have any newer version of the script....

I will be thankful if u could mail me the script and explanation...

my gmailID is [email protected]

 

[ivanyeo70]

Hi,

This is my first post. Hope I can learn from you guys from the comments on my contributions.

Thanks in advance.

Before Bar 1, there are many signs of weakness that did not go away because there is no strength appearing after weakness.

The few bars before Bar 1 were falling on increasing volume and close is widen. Supply is strong at the moment.

Bar 2 has an abnormal volume up bar. If this is a strong bar, it should be closing above the half way point of Bar 1 and close on the high. Instead, it close off the high and not even close to the half way point of Bar 1. There is buying in the volume, but the supply is equally great. Thus, it cannot move very much higher given the climatic volume.

Bar 3 - Buyers are exhausted after the climatic Bar 2. Volume dried quickly and close is off the high. Sign of no demand.

The next bar confirms no demand.

The rest, I have annotated in the chart.

If there is any mistake in my analysis, please give me your honest comments. I am still in the process of learning VSA.

Thanks so much.

 

[chaitanyagoa]

Hi,

This is my first post. Hope I can learn from you guys from the comments on my contributions.

Thanks in advance.

Before Bar 1, there are many signs of weakness that did not go away because there is no strength appearing after weakness.

The few bars before Bar 1 were falling on increasing volume and close is widen. Supply is strong at the moment.

Bar 2 has an abnormal volume up bar. If this is a strong bar, it should be closing above the half way point of Bar 1 and close on the high. Instead, it close off the high and not even close to the half way point of Bar 1. There is buying in the volume, but the supply is equally great. Thus, it cannot move very much higher given the climatic volume.

Bar 3 - Buyers are exhausted after the climatic Bar 2. Volume dried quickly and close is off the high. Sign of no demand.

The next bar confirms no demand.

The rest, I have annotated in the chart.

If there is any mistake in my analysis, please give me your honest comments. I am still in the process of learning VSA.

Thanks so much.

hey it is very difficult to analyze the chart ..... make the chart better by cutting off the non essential part to the left of the chart....

 

[prst]

hi friends,

does anybody has the pdf version of this useful thread?

 

[alcontado]

dan anyone help me, is it analysis correct