Volume Spread Analysis is an attempt to predict the market direction. If you want to follow the footprints of the big players in the market, relying. Home Tags Kartik Marar. Tag: Kartik Marar. Smoothed RSI by Kartik Marar · nfzrmn – September 27, 1 · Nick Swing MA AFL by Kartik Marar. Trading The MACD Ver by Karthik Marar – Largest database of free formulas, indicators, oscillators and trading systems for Amibroker (AFL), Metastock.
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Lower the closer the stronger the indication of weakness. When most traders are bullish or bearish the volume is high. An important thing to note here is that the Resistance areas do not represent large supply waiting to be dumped. If the volume is high and if the stock fails to recover it would mean marat there still supply present. Looking forward to feed backs. Upbar – A bar would be called an up bar if the close of the bar is above the close of the previous bar.
This is a good sign of strength returning and you find the trend reversing almost immediately. It is also common to see consolidation bases at the bottoms. The idea is to jack up the prices so the SM can fill their pockets.
There seems to general lack of interest on all sides. A quick backtest on the Nifty The Indian stock Index is provided below. Falling volume and decreased spread would mean that stock would be stalled at these areas. Till then a swing high remains a swing high.
Soon more and more dumb money starts rushing into the market not wanting to be left out of the big katrhik.
In reality, it could be more complex and many a time difficult to decipher. Also some signals like Zero line cross, Zero line bounce and zero line loop were added. We will also see sideways movement during the up move which would be congestion areas. It is better to consider the resistance areas are zones where selling pressure increase and support areas represent zones where buying pressure increases.
However the signals were generated were too many creating a confusing picture. In order to make this ideal, the Upthrust bar normally appears after a wide range upbar with high volume. Fourth, the stock should be trading in a range for some weeks if not months. The SM basically moves the market in four phases as follows 1. This is because the SM would rather wait for the supply to vanish before repeating the effort.
Then, there begins the process of marking up the price. The next bar shows that supply has decreased which encouraged the SM to push further. I never imagined that so many people used the exploration. Once the smart mraar has a cornered a huge chunk of the stocks, they are ready for the next move. It is also common to find these bars in an up trend which are indications of continuation of the trend.
Close, near or on the Low?
For the version 1. He was the one who introduced me to VSA. Please help us to share our service with your friends. This way if the stock breaksout, he would have the idle entry point.
An ideal Upthrust will move into new territory. Looks like the SM have been distributing.
He also has the option to quit at the stock fails to cross the resistance at the range top, For a short term trader who is adapt in trading the long and short, this kind of base provides good opportunities to go long at the support line and go short at the top of the range.
One of the major changes is the way the trend evaluation is done. The SM may be absorbing the stocks to start the game again. By the end of it the SM would be taking delivery of his brand new E class Benz while the average investor is scouting for a buyer for his run down maruti.
On the contrary, higher volumes and wide spread at this stage indicate a probability of a trend line break. If the Bar is wide closing down the weakness is more pronounced. Just enclosing an example.
These apply specially for positional traders. For that matter, the stock needs not exhibit the characteristics mentioned above. Unfortunately the retail traders are the last to get in. We need to pay lot of attention to these congestion areas for this could be final distribution areas before the mark down begins. Now many more companies offer their own concoction of VSA. We will look at trend lines with respect to VSA.