jcavalieri

thank you for comparing my explanation to that of a published author though...i take that as a compliment

sounds like i got it from a book??...sorry ive been studying wycoff from DB and all other resources i have but certainly did not copy it from a book. just recalled it from memory. so if you think you can interpret market action better than wycoff id sure like to hear it agekay?

im sure DB will explain it in more detail than myself but whats happening when you see volume surges as price rallies is the large players are dumping some of the supply they had accumulated earlier in the process. they do it as price is rallying because they know this is causing the herd to become greedy and they will be buying in fear of missing out. The herds buying creates the liquidity the institutions needs to dump off the large amounts of supply they had accumulated without immediately stopping the up trend..although when the institutions are selling and you see this volume surge in an up trend you can be sure the trend will be ending shortly. As for the volume surge during the down trend what is happening is exactly the opposite. the market is completely bearish and the public is panic selling thinking the stock is going to zero. The institutions, however, realize the end of this down trend is near and absorb all the supply the public just threw on to the market at discounted prices. The down trend may not immediately end after the surge but soon price will form a range and the process of accumulation begins and starts the process all over again.

GJ can you please explain why VSA can work with forex tick volume. i have seen it performed by VSA experts on spot forex with tick volume. i do use volume alot but only for futures so your reply makes no difference to me either way

down river trader i am a student of supply and demand and VSA and it appears to me that on that last down bar that closed in the middle you have professional buying( although there is no volume im sure you would see a spike there if it was on the chart) i am sure of this because you would expect follow through from a nice down bar but instead you get sideways moving showing that there was definitely buying in the previous down bar. so going short here im sure is going to cost you. instead i would wait for price to get marked up and wait for some weakness because it is of my opinion that the next move is sideways then up