chronicles of PA day trader

primitivetrader

Well-Known Member
#21
3 concepts which are very useful both in vsa/price action.

1) anticliamx
2) deceleration
3) congestion

identifying above three gives better understanding of chart.

two set ups which are high probability set ups:-
1) spring
2) upthrust
 

primitivetrader

Well-Known Member
#22
 

primitivetrader

Well-Known Member
#23
Upthrust:-

this bar is marked up but falls off rapidly to close on or near its low normally with an average to wide price spread.
the upthrust is a money making manoeuvre by the market makers to catch stops of those who are short and trap the unwary into buying. prices are marked up at the open often on good news. high volume shows selling by the professionals while low volume shows their lack of interest in the upside. the bar resembles a telegraph pole.
be very careful about background. true upthrusts appear when there is weakness in the background. this would be characterize by high volume up bar close in the middle and no demand up bars. if there is strength in the background be very cautious. it is likely to be tested or may be a false upthrust. upthrust appears after no demand in the recent background.
following a true upthrust expect low price. future SOW like no demand adds to the weakness. be wary of a test with sow in the background as it may well fail.
be cautious if following the upthurst there is a down bar with a narrow spread with volume less than the previous two bars. this shows lack of selling pressure. if there are down bars on high volume closing off the low with the next bar up this shows potential strength. this would need to be tested.

VSA sequential trade set ups using upthrusts (sequence could be any):

1) no demand - upthrust - no demand
2) end of a rising market - upthrust - no demand
3) potential climatic action - failed test - upthrust after weakness
4) reversal after effort to rise - upthrust - no demand
5) top reversal - upthrust - no demand
6) supply over coming demand - upthrust - no demand
 
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