Well from what I understand about
VSA (and I am in the learning stage.. at the begining) it appears to me the market here is weak according to
VSA. We have distribution in the background. A couple of upthrusts. A narrowing of the range. It is like the market is stuck in distribution with not much distribution taking place at the moment. However, it is possible that the distribution at this level has already taken place and it is now consolidating before moving up again. The next bar or two might tell the story. If I were trading this I would not go neither long nor short at this point in the game but I would wait for more info. To use another of Toms concept; If a market is showing signs of weakness but instead goes up then that is a sign of strenght. To sum up, I would wait and see if the present weakness is confirmed. If the market should go down and doesn't go down then I would take a long position but only after confirming this fact. If it does break south over the next 1 to 3 bars then I would short.
Sounds like double talk here but this one is hard to call. I simply could not take a position based on the info I have in this chart. I would need more confirmation at this point. The narrow range won't keep going on. It must open up sooner or later and most probably, sooner. It remains to be seen if that will be down or up. If down then that would confirm it for me depending also on the close and volume of that down bar. If up then I would be looking to go long depending again on the close and vol of the up bar.