Volume Spread Analysis

U

uasish

Guest
#51
Rajaram

I am posting the Bar charts since in VSA the open is not really taken into account. Candle stick charts would not give a correct picture and the tendency would be think in terms of the hanging men and pregnant ladies :)

I do understand the candle stick guys would like to compare the VSA with their methods. So whenever possible I would post both the charts.

regards
Came to know to day only there is also a Female Candel stick formation:confused:

:D:D
 
U

uasish

Guest
#53
Asish

The HARAMI pattern is sometimes called the "Pregnant Lady", the large candle representing the mother and the following small bodied candle representing the child. The word 'Harami' means 'pregnant' in japanese though the word does not sound good in Hindi :)

regards
Absolutely right,gone out of my head,yes you are dot on it. :D
 

karthikmarar

Well-Known Member
#56
STOPPING Volume


Apologies for the pause in the posting..got busy many things as usual ..

Now we will move further. The next VSA indication we will discuss is called the Stopping volume, also called absorption volume.

Normally in a down trend you will see a down bar with high volume bar closing on the upper side. This is called a Stopping volume. This indicates that the SM is absorbing all the stocks. The SM has decided to start the game all over again and have decided to stop the down tide and start accumulating. As a result the stock will soon see side ways movement or go into a long accumulation phase. In effect the stopping volume or absorption volume indicates that the long bearish move is likely to end soon.

An Ideal Stopping Volume bar will be down bar with high volume and closing near the top. However most of times you would see the close on the upper half of the bar.

Stopping volume occurs after long down trend. Stopping volumes are basically alert to the impending reversal.

 

karthikmarar

Well-Known Member
#57
Next we will look another indication of strength called a Reverse Upthrust. Users of TG will not find this in their software. However I do find it a useful indication.

Just like the Upthrust bar we will find in a bearish move a High volume wide range up bar with the low chartering into new lows and the closing will be near the high. This is a good sign of strength returning and you find the trend reversing almost immediately.

The reverse Upthrust is rare and is found rarely at bottoms. Finding the bottom is more difficult than finding the Tops. Most of the time the bottoms will see stopping volumes, some sideways moves and multiple tests before we see a reversal of the trend. It is also common to see consolidation bases at the bottoms.

 

karthikmarar

Well-Known Member
#58
Any high volume wide range upbar in a down trend would indicate strength. However these kinds of bar can be seen any where in a down trend. It could appear before the temporary bounces / retracements during the downtrend. The difficult lies in the recognizing the strength returning after the bottoms.

 

karthikmarar

Well-Known Member
#59
.... The difficult lies in the recognizing the strength returning after the bottoms.
I am quoting a nice explanations by tech/a on the above question.

tech/a said:
The very next bar will give a clue as to whether this was buying or selling volume.
If the next bar is down then the previous bar (Even if it was up) was a selling bar---and vice versa.

For stock to rise all selling must either be absorbed or sellers must alter their view and hold for higher prices.

Once understood the charts become easier to read from a VSA view point.

tech (john).
We hope to hear more from John who is very knowledgeable on VSA.
 

karthikmarar

Well-Known Member
#60
NO SUPPLY BAR

Next Indication we are going to look at is called No Supply. As the name signifies this bar indicates absence of supply and indicates strength.

The No Supply bar is a narrow range low volume down bar closing in the lower half. The No Supply bars are found in the early Bottom reversals and indicate strength. It is also common to find these bars in an up trend which are indications of continuation of the trend. They would also be found on consolidation bases.

A No Supply indication has to be read in context with background. At bottom reversal areas they indicate there is no supply available. Then the SM gets ready for mark up. Hence they indicate strength especially if they appear before/after test bars.

During up moves a No supply could indicate non participation from SM. IMHO this is one of the difficult indication to interpret.

 

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