Trading CNX 100 stocks with Volume Spread Analysis

bunny

Well-Known Member
#21
Hindoilexp

HINDOILEXP - Strength in background, and moreover weakness ruled out. LTP on NSE website is 70.40. Could rise effortlessly to 75 and then 83. Fair possibility of 92 exists, but chart must be reviewed at a later date to confirm that strength still exists on the chart on that date.
 

bunny

Well-Known Member
#22
Denabank - detailed VSA analysis

This chart has marked bars. I could manage only this much within this few minutes.



[1] — 28-02-2013: Suspected stopping volume. Downtrend in background. Whether this is really stopping volume or professional selling will be told only after next few bars

[2] — 01-03-2013: Next bar after suspected stopping volume is an up bar closing on the highs. There is good volume associated to it. The volume is therefore bullish. (sign of strength?)

[3] — 04-03-2013: Downbar but reduced volume compred to last two bars. Reducing selling pressure (strength?)

[4] — 05-03-2013: Wide spread up bar closing on the highs with increase in volume. Volume is therefore bullish.

[5] — 06-03-2013: Up bar, narrow spread, high volume. Sign of weakness?

[6] — 08-03-2013: High volume, narrow spread up bars. Sign of weakness

[7] — 11-03-2013: High volume, narrow spread, upbar. Closes around the middle. Sign of weakness.

[8] — 12-03-2013: Upthrust. High volume. Wider spread. Weakness

[9] — 13-03-2013: Wide spread, but lower volume downbar. Falling pressure. Indirect indication of strength and reducing weakness

[10] — 14-03-2013: High volume wide spread upbar closing on highs. Sign of strength

[11] — 15-03-2013: If the above high volume must have represented mostly professional buying, why should this bar have been a down bar? Sign of weakness?

[12] — 19-03-2013: Upthrust. Sign of weakness

[13] — 20-03-2013: The volume is still compatively high, the spread is also wide. Seems like professional selling. Sign of weakness

[14] — 21-03-2013: Upthrust. Sign of weakness

[15] — 22-03-2013: Comparatively lower volume. Up bar closing on highs. Volume is bearish. Prices have been marked up.

[16] — 25-03-2013: Volume is average. Low volume up thurst?

[17] — 26-03-2013: Narrow downbar closing in the middle. Volume is lowest compared to last few days. Looks like a low volume test. No sellers detected. Indirect indication of strength.

[18] — 28-03-2013: If the previous downbar is assumed to be successful low volume test, why is the price not going up immediately on the next bar with wide spread, high volume up bar closing on the high?

[19] — 01-04-2013: Low volume wide spread up bar, closing on high? Is the price about to break out? Or is this just marked up price with bearish volume? I cant really say

[20] — 02-04-2013: Narrow spread upo bar with increased volume closing on the top. Definitely smart money has been selling into this up bar which has caused the spread to remain narrow.

[21] — 03-04-2013: Hgh volume upthrust. Sign of weakness.

[22] — 08-04-2013: For the last three bars, the volumes are reducing as the price is falling. So there is reduction in selling pressure. This is an indirect indication of strength.

[23] — 09-04-2013: High volume wide range down bar. Is that professional selling. Wait...the price has penetrated a recept support(professional buying) level. So the high volume could be a type of stopping volume and it could be a sign of strength. But we cannot be sure at this time. We have to wait and watch over the next few bars.

[24] — 10-04-2013: Up bar, closing on highs, high volume. If the previous down bar volume was selling, how could this bar be formed. So I am inclined to think that the previous bar was a type of stopping volume and it is a sign of strength.

[25] — 11-04-2013: Prices fall but volume is less. The bar is not narrow, though.

[26] — 12-04-2013: Bullish volume. This mostly confirms that we have seen stopping volume in the background. It is a sign of strength.

[27] — 15-04-2013: Very wide spread up bar, with high volume, closing in middle. Weakness?

[28] — 16-04-2013: Wide spread upbar, closing on highs, with increase in volume. So, that is bullish volume and a sign of strength.

[29] — 22-04-2013: Narrow spread up bar. Sign of weakness.

[30] — 23-04-2013: Could not really understand what this bar means

[31] — 25-04-2013: Upthrust

[32] — 26-04-2013: Price falls sharply, but the volume is not much. Still unclear whether the previous upthrust is indeed a sign of weakness or not

[33] — 02-05-2013: Wide spread up bar, closing on highs, but the volume is low. Bearish volume.

[34] — 13-05-2013: Gapped down, high volume. Lower end of spread penetrated an recent support(professional buying) zone. Bar also closes in the middle showing that professional money may have attempted to buy as the price was falling. So is that some kind of stopping volume? We cant say right now, have to wait and watch to tell that.

[35] — 14-05-2013: Next day after suspected stopping volume is up. So the volume seen on previous day is indeed stopping volume and a sign of stength.

[36] — 15-05-2013: High volume up bar closing on high. Bullish volume. We also have a stopping volume in background.

[37] — 16-05-2013: Upthrust. But didnt we just see a definite sign of strength?

[38] — 17-05-2013: 17-05-2013: Price does not fall after high volume uptrust. So upthrust has not indicated any weakness. Infact, it seems like strength as its a down bar, narrow, low volume and closing in middle.

[39] — 20-05-2013: Upthrust again after signs of strength? And this upthrust penetrates well beyond the upper price level of the trading range that has formed over the past few weeks. Are they going for the stops of those who have shorted the stock? Confusing to me

[40] — 21-05-2013: Price falls sharply after upthrust. Volume is not that high. Again a confusing bar.

[41] — 22-05-2013: Wide spread, high volume, down bar closing on lows. Professional selling? The price has penetrated an recent support(professional buying) zone. So is thi stopping volume and represents absorption of supply by the professional money who has become bullish? Cant be told right away, have to wait and watch the next bar.
 
Last edited:

bunny

Well-Known Member
#23
Tatasteel



[1] 26-03-2013: High volume, narrower spread, closing on lows, down day

[2] 28-03-2013: Next day is up, closing on the days. There must have been professional buying on previous bar which has supported the price

[3] 01-04-2013: Narrow spread up bar. Sign of weakness?

[4] 02-04-2013: Up bar with higher volume and wider spread, closing on top. Bullish volume. Sign of strength

[5] 03-04-2013: High volume upthrust. Sign of weakness. Combined with previous bar, this acts as an upthrust over two bars.

[6] 04-04-2013: Price falls down sharply after upthurst. Volume has increased, and spread is also wider. Selling pressure is seen. But the price is also in a recent support zone. So me must wait and watch over next before we can tell if this bar is support or selling bar

[7] 05-04-2013: Prices do not fall. Therefore the volume contained in previous bar could be a type of stopping volume. A sign of strength.

[8] 10-04-2013: 10-04-2013: Seems like a test. But the volume is high, indicating that there is supply in the market. The low of this bar has penetrated below the low of the 28-3-2013 bar.

[9] 11-04-2013: down bar, high volume, wider spread. Is that professional selling? Is the support broken? We have to wait and watch

[10] 12-04-2013: Looks like a test. The volume is lower compared to previous bar, but still high in comparision to recent bars. This indicates that supply must still be there in the market and the smart money is bullish which can be seen as they are buying the supply and causing the bar to close in the middle

[11] 15-04-2013: Low volume, narrow spread down bar - is a sign of strength in itself. Also means no selling pressure, which is an indirect sign of strength.

[12] 16-04-2013: Next bar is up, spread is wider(not wide spread exactly), with increasing volume and closing on top. That is, the volume is bullish. Sign of strength.

[13] 17-04-2013: Upthurst? weakness? have to wait and watch over next few bars

[14] 18-04-2013: Prices do not fall after a suspected upthrust. So there is no weakness on the previous bar.

[15] 25-04-2013: Very narrow spread, volume has also fallen, closing in the middle. Weakness seen

[16] 26-04-2013: Price falls sharply after weakness is seen on preceding up bar. But volume is low.

[17] 29-04-2013: Low volume, narrow spread downbar. A sign of strength. Also confirms that there is no follow-through selling, which is also an indirect sign of strength.

[18] 30-04-2013: Prices hold well the next day. So weakness is ruled out. The bar looks like a test bar, the volume has increased, indicating that there is still supply floating in the market.

[19] 02-05-2013: Price trades in the same range of the previous bar. But the volume is low. On the previous bar, we had suspected that supply is still present around this price level. However, the low volume confirms that not much selling is happening at that price level. So the price is ready to move.

[20] 03-05-2013: Price moves up, forming a high volume, wide spread up bar closing on the high. The volume is bullish. If we consider this bar as smart moneys response to previous decipheration of absence of supply, it definitely means that they are bullish, buying the stock, marking up the price.

[21] 06-05-2013: 06-05-2013: An upbar, closing on the high. The spread is narrower and the volume is higher compared to previous bar. Is supply hitting the market? Sign of weakness?

[22] 07-05-2013: Up bar, high volume, very narrow spread. Definite sign of weakness.

[23] 08-05-2013: Price falls shaprly after we have seen weakness on previous bars. The volume is comparatively high, if not ultra high or higher. Sign of weakness.

[24] 09-05-2013: Price is trading mostly in the same range as of the previous bar. The price has not fallen, and the volume is low. Shows that there is no follow-through selling, or there is reducing selling pressure - an indirect sign of strength.

[25] 10-05-2013: Price trying to move up, but smart money not joining in and causing no demand.

[26] 11-05-2013: This was actually a very small trading session, not even a couple of hours. So this bar/volume is ignored.

[27] 13-05-2013: A sharp fall in price after we have seen some weakness in the background. There is a good volume attached to it. So is that professional selling - a sign of weakness? The price has also penetrated into an established support or professional buying zone. So it could also be stopping volume. But cant really tell, we have to wait and watch.

[28] 14-05-2013: 14-05-2013: This is a shakeout. There was a bad news on this day about this stock. We have seen supply hitting the upmoves on 06 May 2013. A shakeout could help remove this residual supply by forcing the weak holders to sell their stock right now!!!

[29] 16-05-2013: Up bar, still narrow spread and volume has also increased. The bar closes in the middle. Weakness? Does that mean that there is still selling in the market?

[30] 17-05-2013: Resembles a low volume successful test bar. But I am not sure if it actually such a bar. Anyways, it has traded in the same range as the previous bar and the volume is low. So perhaps, price is ready to move from this range.

[31] 20-05-2013: The price moves up but supply/selling comes in. Seems difficult to me to interpret this. We have a shake-out that was supposed to remove supply from the market. So where is this supply coming from? Are there any bears selling into upmoves?

[32] 21-05-2013: Price falls sharply, closing on the lows, but volume is low. That is, there is no determined selling pressure.

[33] 22-05-2013: Having a difficult time explaining this bar. Just dont get it, sorry.

Overall opinion - Bullish, but expecting shakeout, stop fishing. Not exepcting this to go below 292.50, save for stop fishing which may be at 290.
 

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