Volume Spread Analysis

Discussion in 'Advanced Trading Strategies' started by karthikmarar, Jul 26, 2008.

  1. badarivt

    badarivt Active Member

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    From 500+ levels in June to August, TataSteel has tumbled to 200 on 25 Aug, 2015. The descent shows a classic successive lower top lower bottom formation till the end of March, 2015. Also, the volume has been consistently increasing on each dip. After reaching a low of 311 on 27 March, 2015, the prices broke out of 350 level with a considerable volume. But the uptrend did not sustain and went below 350 to touch 200 on 24 and 25 Aug, 2015. The volume since 12 Aug has often been twice the 20 day average volume (14 million vs average of 7 million). It appears that accumulation has once again started. Observing the monthly charts, August candle is a squat candle where the prices did not close near the bottom and volume is very heavy. This gives an indication that the selling trend could pause. Need to observe trends in other sectors / stocks. Positive comments appreciated

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    Last edited: Sep 21, 2015
  2. badarivt

    badarivt Active Member

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    Algorithmic trading has ensured that 'traditional' VSA signals are few and far in-between. Yet, no programming can erase the imprints of huge volume. Interpreting price in the region of unusually high volume is one of the easiest and most consistent method of trading for small players
     
    Shantala likes this.
  3. gabibbo

    gabibbo New Member

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    Hi guys,

    a few years ago I tried to apprend the VSA theory (almost the most basic concepts) but then I gave up. Most recently I've been trading using cycle analysis (as mr Hurst teached... my reference books are his "The Profit Magic of Stock Transaction Timing" and mr.Migliorino "Cicli di borsa" the latter is by an italian retired engineer, I doubt a translated edition exists yet if you understand Italian I recommend its reading) and now I'm wondering if VSA analysis could be matched to cycle analysis successfully.

    Please advice.

    gabibbo
     
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