[Volume Analysis at Key Price Levels]

[Soultrader 12]

Quick trade from March 12, 2007 using a key price level with volume analysis.

 

CLICK HERE TO VIEW VIDEO

 

 

Charts created by Tradestation

[notouch 10]

Good trade. That trade repeated itself after the open. There was a test for supply under the pre-market low. A little bit of supply was found but then buyers came in which you could see with the positive delta and the large orders on the tape and then price took off to the POC.

[Soultrader 12]

Yep... I noticed that so I made a part 2 to it when it happened.

 

CLICK HERE FOR PART 2

 

Charts created by Tradestation

[walterw 10]

Would this be VSA clearly explained concepts ? so far its been dificult to understand the VSA... cheers Walter.

[Z_trade 10]

Would this be VSA clearly explained concepts ? so far its been dificult to understand the VSA... cheers Walter.

 

some of the general rules for VSA :

 

up bars with excessive volume = weakness

 

down bars with excessive volume = strength

 

up bar with low volume means mark-down can begin (time to short)

 

down bar with low volume means mark-up can begin (go long)

 

down bars, narrow spread (diff between H & L), low vol = bullish

 

up bars, low vol, near resistance = bearish

 

wide spread, high vol, near trend line = expect trend line break

 

small spread, small vol, near trend line = expect trend line

bounce