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Will be interesting to see how mister ed's chart pans out. To me both the very high volume bars are demand, the second one should be coloured green. How else could the price bar close so high from the days lows and so high above the previous days close. It could not do this if supply was overcoming demand on that day. Given the response I see this as one for the too hard basket (or wait and see). Tasuki, I follow professionals bumping up the price to fake a breakout during periods of low volume. If it takes a lot of volume to push the price away from the direction they wish to trade, they would be trading against them selves.

This also highlights a problem with the colouring of the volume bars, for VSA. The stopping volume you refer to is very much a demand volume and as such should not be coloured red. I find it less confusing to use grey for both bars.

Hi PP, I'm looking to learn and just came across this forum a few days ago. Would hate to see this thread die just when I've found it, so I'll ofer an answer to your last question. Just as "smart money" usually looks to sell into up days (bars) and buy into down days, prices rise looking for supply and fall looking for demand. So a no demand bar towards the top of a range and a no supply bar towards the bottom would be more significant than the other way round. ie your no supply bar in question is towards the top of the range. At this stage of my learning curve, I have difficulty identifying your first no supply bar as such. To me it could just as easily be people not being prepared to pay the opening price level so volume and price fall away ie no demand. The spike and tail are just about equal and fairly small.