Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.
Sincere
-
Content Count
3 -
Joined
-
Last visited
-
High Volume and Small Spread Retracement During a Trend
Sincere replied to Sincere's topic in Volume Spread Analysis
Will try to find one . Based on my impression, I guess these show of strength are mostly breakout from range trading area and therefore the next bar immediately retests the consolidation area with slightly higher volume. Not sure if that is tradable or not? Sometimes it requires a lot of patience to wait for no demand/supply -
In reading the chart with VSA in mind, i find that after a show of strength/weakness, small volume with small spread retracement does not occur that often in the subsequent trend. Instead, high volume and short spread retracement is sometimes even more common before the market proceed with the direction of the original trend. By High volume, I mean it is higher than normal, not ultrahigh and not being the least volume in the past 3 bars. What is the correct interpretation in VSA?
-
[VSA] Volume Spread Analysis Part II
Sincere replied to Soultrader's topic in Volume Spread Analysis
I guess it is a shake out to remove the public from participating the down trend. Difficult to trade