habi

- Pivot low means the low with the two red lines, nothing calculated. - It's just impossible to place the numbers exactly above/below the candles in eSiganl. So, bar 5 is the bar with the long upper shadow which tested the first time the previous low. The next bar and the two bars (x in your 1 minute chart) can be test bars and prices went higher. On the other side, bar 5 and 6 give signs of weaknes with higher volume in a resistance area and if you look on a higher timeframe, we are in a downtrend since March 5. - The support at 128.5 was broken two times to the downside and two times to the upsidde before it was holding again. I have some doubt, if this is a really good one. - Volume bar color. If the volume is higher than the previous volume bar, then it's green, otherwise red.

Why do you use a bar chart on which you see just the high/low/close and make decisions based on candlesticks? If I'm correct, you classify candle 1 as a shooting star, but it wasn't. The next two bars have a lower shadow, followed soon by a doji. Your first trade was on the green up bar, which closed near the high. Before you don't see the next bar, it looks not really weak exept the low volume on this bar. Weakness came in in the next bar (3) with the highest volume since the open. And weakness again came in, when price entered in the range of the long upper shadow on bar 3. Second trade: Bar 4 (upper shadow seems not correct) is the first really sign of strenght with the highest volume since the open. All bars before closed near the low, I don't see much strenght here. I see often, that prices goes below the first sign of strenght an vis versa. Look at bar 5. After the high volume bar 4, prices startet to rise just little below. On bar 5 we see already a sign of weakness because it closed in the middlewith a long upper shadow and with high volume. Bar 6 is an upthrust imho. Maybe it's worth to have a look on bar 7 on the left. It closed below the previous pivot low on higher volume. The upthrust was within the range of this bar.

Yes DB, I'm very interested in what I had to be sensitive last September. I take the SPY as an example. From mid July to mid August we have seen very high volume, for me a sign, that strenght came in. Then the rally startet, which you see as the exhaustion move. I tried to find myself the weakness. Bar 1 looks like a test, followed by a rally on decreasing volume. Then a large up bar (2) with the highest volume in this last rally. Then after a small correction the final rally on decreasing volume ending with bar 3 on the top. Was this all enough to identify it as the ending rally? What more made you that sensitive? What's your explanation for the very huge volume in July/August? Thanks for answer and don't look to much to the grammar

Some WRB's and how they worked as support/resistance in the ES 3 min chart. but it was not always easy to find a setup within the WRB zone. Today, strenght came in on down bars before closing the up gap. The higher volume spike in the middle lead to some more points down in an uptrend. The last two very high bars where probably created by closing day trade positions. We have to be careful, because we have some weakness in the 15 min chart.

VSA teaches, that some selling could be in wide spread bars with ultra high volume. As you say, it's important, where the WRB occur in the trend. So it would be interesting, what we have on the left sied of the first WRB. In addition, we should make a different between a WRB, which includes just the range between open and close and a wide spread bar, which is measured from low to high. A bar closing on its high as a single bar is not bearish, even if some hidden selling could be within them. But it means, that the sellers was not able, to push down prices. In your chart, the first WRB is a bullish candle as long as we don't have a close below it. In my opinion, the most important bars are those, with high volume. Then we have to find out, what this high volume means. In your example, we have a WRB on very high volume, closing on its high and higher than the three previous bars. Three bars after your long sign, we see a shooting star with high volume an a long upper shadow. This is a sign of weakness. Even if a second WRB is forming, we have weaknes above the shooting star. After the no demand bar, I see already a WRB down and a possible short against it. The next WRB down has ultra high volume, but closed not on the low which means, that some strenght came in. Since we are on the support from the first WRB, why not a long trade against the no supply bar?

Yes it is. Let's have a look at a 5 min char and focus on the high volume bars. At point 1, we had a up bar with ultra high volume followed by a shooting star with even higher volume, a clear sign of weakness. I often observed, that prices goes above the first sign of weakness, but then gives you a good short entry. Contrary at point 2. We had a long down bar on ultra high volume, closing on its low, followed by an up bar with about the same volume and a long lower shadow. A trade below this bar with the additional gap support was a good long opportunity.

Let's look forward. PP made a great work in this forum. It's a pity that he deleted all the charts and nobody knows the reasaon, it seems to be a big probelm. But I think, we should respect, that he don't like to see his charts in this forum. I hope, that the forum responsibles find a way, that he comes back to this forum.

Tasuki Yes, I had the same idea, that we see now a downmove on lower volume, but I'm not shur, if the low is already in. A look at a 60 minute chart give me different signals: On thursday, we had first to up candles, the second with the highest volume for the last two days, but with long upper shadows, a sign of weakness. After a doji, we see two up bars, closing near the high. The first one with low volume, the second one with some more volume, but followed with a down cnadle with very high volume, forming a WRB. In the next bar we see some strenght came in and on friday another test bar. Since I see signs of weekness and strengt it's hard to say in which direction the next move will go. Maybe it's better to wait for further signs above or below this consolidation.

Thanks Sebastian for the video. eSignal has a one day delay for daly volume bars. See here #1299 http://www.traderslaboratory.com/forums/28201-post1299.html

JJ Be aware, that eSignal is reporting daly volume with one day delay. Check the eSignal knowledgebase: http://kb.esignalcentral.com/display/2/index.asp?c=12&cpc=40O2r6eeyG0Jfuy2sd5gAr4LG2c3&cid=1&cat=&catURL=&r=0.7527277 (surch for 'futures volume' and select exact prase) Advanced Chart Window When looking at any electronic futures symbol on an intraday time frame the volume study will show you the actual contract volume being traded. If you are looking at any non-electronic futures contract in an intraday interval it will show you tick volume (tick volume is the number of times the price has changed in a given interval). If you are watching any futures symbol on a daily interval the volume shown will be yesterdays closing volume. You can check the correct volume on the CME website in the daly bulletin. Select the corresponding day and then the PG47 file for the S&P E-mini: http://www.cme.com/trading/dta/hist/dbindex.html Volume reported: 14.1. 1'456'055 15.1. 2'438'433 I had a discussion recently in the eSignal forum about this issue: http://forum.esignalcentral.com/showthread.php?s=&threadid=25427&perpage=15&pagenumber=1 This changes a lot in your analysis. Instead of a down bar on low volume, it was a no demand bar in my opinion. I attached a chart with eSignal volume and a corrected volume (volume-1) with a EFS-Formula

Nice chart of the week about tests: http://www.tradeguider.com/cotw/cotw.aspx

Tasuki If you compare the INDU-Chart with a YM or DIA-Chart, you see the volume spike just on the INDU-Chart. In my opinion, a YM or Diamond Chart gives you better volume informations than the Index Chart.

Chart of the week, I hope PP, you mean this one http://www.tradeguider.com/cotw.asp In Todd's blog ist just an introduction till now and some comments http://supplydemandtradingmentor.blogspot.com/2007/09/introduction.html

Yes, I agree. If the rest of the world is watching the charts with start time 0930am, then I would do the same. But if the professional traders looks to other charts, I prefer to have the same view. So the main question is, who uses which charts?

Hi NihabaAshi, Thanks for your detailed answer. Till now, I used the same start time as (it seems to me) most traders here with the regular trading sesson. With the eSignal adv. Chart-Tool I have the possibility to create different time templates. So, with my annotated chart I would show you that it is possible with eSignal, to create a chart with a start time 8:20am. I already used different time frames, but no one, that started at 8:20am. If you say, that the professionals use this start time, the I have to make some changes in my charts. I already asked several people, how they look on a 60 min chart. Start time 0930am, 1030am .. or 0930am, 0010am, 0011am? Now, I have a new version like 0820am, 0920am and so on. Most sad, that an hourly chart ends at the full hour. It seems, that you have another opinion? I'm a little confused now, because as you allready mentioned, a change in the time template makes also changes for the candlestick formations.:rolleyes:

NihabaAshi, I have some problems to understand your last annotation about the YM start time. On the CBOT site I see the trading hours for the YM last from 6:15 pm to 4:00 pm. I cannot find anything, who changes at 8:20 am. So, please give me some hints, why the start time should be at 8:20 am With eSiganl, I have the possibility to create another time frame with your recommended start time. (Look annotated chart) Thanks for your explications

Hello I have done a look on the Diamond's weekly chart. Since beginn of Mai we have a significant ascent in volume, comparable with the volume seen on July/Oct. 02. It looks to me, that we have seen a lot of selling from the smart money and a major top could be under way. On the other side, the last two candles have ultra high volume. The first candle formed a WRB, the second one with even higher volume has a small body with a long upper shadow, closing at the same level as the candle bevor. Because it closed not lower, there must be some buying last week and we can hope for a reaction soon. I hope for some comments, thanks.

Hi PP Why you don't mention the candle after the squat as an effort to rise? The close was outside of the WRB's s/r zone with higher volume then the previous four bars. In addition, the boddy of this candle acted then itself as s/r zone, followed by another effort to rise bar after the second "no result from an effort to fall". In an overall view, after the first effort to fall candle, I see more effort to rise then effort to fall.

Tasuki, In my opinion, the first one is not an upthrust, just the second one. Un upthrust should close near the low or at best in the middle. The first marked bar closed on the high, surpassed the previous highs with volume higher then the previous three bars. At this time it looks to me like an effort to rise. Since the next bar was down and closing on the low, followed by an no demand bar, it was an effort with no result. Some weakness came allready in at the 8:15 bar, narrow spread with ultra high volume. Hope, there are comming more comments from the specialists

PP, thanks for your answer. Yes, I agree, that the gap down with the first candle represented some strenght and not weakness. I compared the volume with the ultra high volume on Mai 24 and thought, that it needs more strenght for a biger turn. I observed several times, that higher volume led to longer moves. When I made a review of Thursday's action I came to the conclusion, that we have seen to different phases on that day. The first was for closing the gap and retest the high of the 29th. After the "FOMC minutes" we saw a candle wit a narrow body and closed in the middle with ultra high volume, much higher than the first candle of the day. It looks to me, that more professional money came in at this time. The strong move was based on this volume an not or less with the first candles of the day. Let's have a look on a 5 min chart for Friday. We gaped up with a high volume bar wich closed near the midpoint, some weakness came in. After 30 minutes we saw a wide spread candle on ultra high volume with a long upper and lower shadow. In my mind, the lower shadow represented strength, the upper shadow weakness. At this time, how do you decide, if there ist more strengt or weakness in the market? We got the answer with the two wide downbars, the second one with ultra high volume, following by a bar with a long lower shadow and closing higher than the previous bar. A sign of strenght and appeared as a test of the wide spread bar before. After closing the gap, the next up move was not very confidential, because the volume diminished. Some strenght came in again with a hammer candle on high volume followed by the red downbar on high volume, wich formed the low of the day. After another wide white candle we had a lack of demand, wich led to the last downmove of the day on low volume, except for the red bar that tested the previous low. It seems to me, that we have not enough strengt at this time to go higher, I would expect more volume on the intraday lows. I'm sorry for the not always correct english

Hope, that this thread keep alive. I'm relatively new in VSA, I will try to make some interpretations. In the YM 60 minute chart I saw on 24.5. a candle with a very large upper shadow, ultra high volume and closing near the low. It was my intention to find a setup for a short within this shadow. It failed yesterday on the lower range of this S/R zone with a high volume candle in the 15 min chart. The gap down today gave another weak signal, but the last two hours changed the picture. The first one went into the S/R zone with ultra high volume, the second touched the high of the shadow. Weakness or strenght? I analysed the action in a 15 min chart and saw, that most of the volume was in the first three bars. Thats the reason why I believe, that there was mor buying then selling of the smart money. Other opinions?

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