tech/a

Of course of course!!!!!:crap: That WAS a dyslexia moment.:doh: Thanks back to my bingo game!

Possibly having a blond Seniors moment! But seeing a test in the cash I cant see how this can be seen as a positive move for the futures (unless of course for the short side). Why on earth would you go long on a confirmed test showing lack of supply?

Ed The bar in question is 50 million The average form the latest high to this bar is 900,000.

Mister ed. Yes your right on the money with regard to R/R. Leave a trade to long and R/R becomes a definate issue with regard to timeframes. All will become clearer with this example as we go along. I'm actually attempting to answer or more so clarify a few statements made here by others. As for Elliott yes for me this is the case,better timing means smaller risk,and better R/R over shorter periods which mean more trades which mean better profit.(In my timeframe/s). But this exercise is based purely around VSA. So to the next chart. Is this following bar then showing lack of supply or lack of demand and why? Is this a test or is the range and volume on the previous bar a sure sign of a new era of fresh buying. Selling exhausted. Following this comment on a test

Thanks for that clarification. Pity there aren't more people joining in the discussion with opinion. You wouldn't be a Market Profile trader would you? From your avatar.

TG Initially you said. Now you need to see a test of this bar, I'm intersted in why? So if price just continued up then you'd not be on the trade? Price has now moved a great deal from the initial "Setup" or Test bar. Isnt the risk if trading long on this setup becoming too great? I maybe wrong but Id have thought your buy (given the above in quotes) would have been the break with a stop below the second bar. TG What "sort" of trader are you? How do you incorporate VSA into your trading?

OK. The very next bar----WOW! This bar then would confirm the statement made here? So this would be seen as BUYING VOLUME and the test then is confirmed? Just to get my head around your thinking/interpretation. We have a confirmed test and can expect higher prices?

PP Excellent points re Effort/Result and will become important going forward. How does everyone view the Extreme Volume bar back before this 3 bar cluster. Do you think it has significance and if so how so? So to re cap we would buy on a good breakout above the past 3 bars,with volume---any exceptions to that? Even though the buyers couldnt close the bar over 50% of its range?

Tin Sorry a bit off topic. How do I post charts clearly here? I use photo bucket but when width is important to "See it all" Detail is lost due to re sizing. Would I be correct in thinking a direct link would serve best? On the chart---fair comments---I have more but will let the question run a little longer to hopefully gain more comment.There is a point to it all.

From the discussion so far I'm interested in how those involved here would read this chart in particular the last 3 bars Realative to the information on the chart. (1) Is this a test? (2) Why? (3) What do you expect to occur in the future? (4) What would negate your expectation?

By the look of it its around tea time over there. Its Friday morning 10.20 at the hub of efficiency---my desk. Bert I think the charts I posted shows a great example of this. The FIRST up bar shown on very high volume and wide range correlates with bullet point one. The next few bars complete the distribution phase in this timeframe and is typified by the low volume no demand bars. Distribution occurs at the tops of moves and accumulation at the bottoms. The same applies at this end but should be read as the opposite. EG .High volume shows that buying has swamped any selling and tends to appear at the beginning of an accumulation phase. .Low volume shows that there is no selling present and tends to appear at the end of an accumulation phase. Twists the normal mindset doesnt it!

Darren. I'm sure you'll agree that its extremes which create opportunity. While the crowd is madly buying on what "appears" to be massive strength (Wide range enormous volume) we are preparing for opportunity. VSA throws conventional Strength and Weakness theory on its head. The market will be the ultimate judge of our analysis. Our application and management of that analysis will be the ultimate judge of our profitability.

!. Background Weakness, up bars on Low vol - No demand (After a very high volume wide range bar) Up bars on low volume---No demand 2. Background Strength, Down bars on Low Vol - testing for supply (Altered to--Background strength---up bars on low volume AFTER a very high volume wide range down bar,no supply) Subtle but in context.

I'll try to clarify.Some charts to help out below. Any alert given by Tradeguider/VSA analysis is simply an alert.Read in isolation without consideration to the background is folly. It takes a great deal of effort to terminate a trend in either direction. Less to begin a trend.The first chart shows a basic test as determined by tradeguider with the accompanying commentary,You'll notice that the stock rises on below or around average volume,the second chart shows more of the past volume. The last bar has broken out on the lowest volume of the last 3 bars.If this were to represent then "No Demand" we would expect weakness. To chart 2. Here price continues to rise on average volume,until we get to the last bar in the chart where we have a massive volume spike and a wide range.The high volume is indicating Supply and sellers are happy to take all that buyers want. This is the FIRST sign of weakness. This price action must be viewed in context.Moves rarely start and finish with "V" tops and bottoms and we must be alert to these changes. To chart 3 NOW we look for whats occurring in the next bars. Price rises but on low volume indicating lack of DEMAND (After a high volume up bar). Supply continues on the next 2 bars as new highs cannot be held. Once buyers have been exhausted we see price fall off with little to no demand. A test occurs 6 bars from the end of the chart but the next 2 bars confirm no demand. Hope this is helpful.

Will do.I'll post some trade guider charts with Basic test commentary (from Tradeguider). This may help. If the basic test is at the top of a move followed by a low volume up bar then this is a sign of weakness. If the basic test is at the bottom of a move and the next bar is a low volume UP bar this is a sign of strength. Yes and the second component in reading VSA is also available in the range. Clearly the highs could not be held,supportive of your Low volume up bar--indicating an exhaustion of this move in this time frame. The next 2 bars further support the argument for weakness Wide range high volume down day---predictably followed by a weak up move and again now a wide range high volume---almost perfect double bottom. The next bars is a very low volume up bar indicating lack of supply. To early to cal a return to positive trading BUT a low risk entry with a stop below the low if the previous bar makes this a good setup in my view.---worth watching.