Trading NIFTY with Volume Spread Analysis

bunny

Well-Known Member
#1
Hello,

I am bunny. I had been inactive for the last 18 months or so. However, today I wish to resume my chart analysis. I am not a fan of TA or FA, simply. Back in 2010, this method called Volume Spread Analysis(VSA) had caught my attention. I had tried trading charts with it back then. However, it was a dismal failure.

Today I am resuming my paused journey with the same methodology. But it will be different in the following respect:
1. Only NIFTY cash will be analysed
2. Focus shall be on quick analysis with OHLC bacr chart and volume
3. No use of complicated programmed algorithms or expensive software. All charts to be compiled from freely available websites.

Please note that my results of my previous attempt to trade with VSA was not encouraging, and on the same lines, even this one may not!
 

TraderRavi

low risk profile
#6
bunny forum rules are changed now, you can not edit ur post after 24 hours , so reserved posts sud be written before time expires......
 

bunny

Well-Known Member
#8
Closing of 18 APR 2013:
  1. High-volume wide-spread up bars in the last few days are suggestive of determination to move upwards.
  2. The next supply zone which could throw some resistance is around 5950 where many traders are possibliy locked up and may be keen to sell
  3. One possibility is that the market marches to 5950 and stops there. There it could become rangebound. Later it may retreat downwards or rise upwards. Therefore follow up of next few days will be needed.
  4. Other possibility is that once we reach 5900 - 5920, we will swiftly move up above 5950 - 5960 either by a intraday movement or opening gap-up.
So I think we will move upwards, atleast 5950.
 

bunny

Well-Known Member
#9
Effort to go up is seen in previous up bars.
Narrow spread low volume down bar is suggestive of no selling pressure.
This test of selling pressure comes just below a level which has proven to be a supply zone or selling pressure zone three times in the recent past.
Likely
Very likely that we will either gap-up and jump the zone or simply have an intraday movement.


 

bunny

Well-Known Member
#10
At of today's closing, I am getting the impression that this uptrend is getting difficult to sustain because volumes are not catching up. Therefore, I am expecting some red bars on the daily charts. Cannot say how long it could last.

Closing of S&P CNX NIFTY 50 as on 0.6 May 2013 is 5971.05.
Looks like 5750 to me now.
 
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