|
Quote: |
 |
|
|
Best to drop the idea of being right or wrong? It gets linked up with forecasting and ego which has absolutely no place in realtime trading.
Keep it simple, get away from all this talk about professional and smart money as if they were a single entity. These folks operate on all different time frames with their own agenda just like you have natinal , regional, city, area wholesalers and various levels of retailers on our streets.. Trying to figure out what each of these groups is up to will drive one round the bend. |
|
|
|
|
I couldnt agree more. Except that anticipating correctly does matter to the pocket book! But for our purpose here right or wrong doesn't matter at all. We are learning. The term smart money gets tossed around alot. Like you say it is impossible to know who they all are. They only leave signs they been there.
|
Quote: |
|
|
|
1. When the market is rising and there is sudden invrease in vol. it indicates resistance to higher prices. There is nothing like selling vol or buying vol. in a single bar. Vol is number of contracts exchanges, ie. buyers = sellers. Better to think in terms of demand/supply or buying and selling pressure. If sellers are falling over each other to hit the bids rather than sit on their offers, this suggests selling pressure and resistance and vice versa(buyers are meeting the offers rather than lowering their bids providing support). Now whether or not this selling pressure is enough to keep driving the prices down will depend upon potential buyers, which effectively is an unknown , until they play their hands. |
|
|
|
|
Ravin I think you hit the nail on the head. Buying and selling pressures are what we need to be thinking about. However, I thought that is what
VSA did or helps us do???? It helps us to spot the signs of buying selling/pressure. Am I wrong there? we don't have the benefit of seeing all the orders come in. Nor do we know where all the stops are at. A specialist on a stock "sees" much more than we are priviledged to see. He may see a large buy order sitting on the books. However, that order is getting executed in small sizes to keep the price down. He has the benefit of seeing where the buying pressure is and can position himself accordingly to trade himself. On the other hand we are trying to discover where the buying/selling pressures are.
VSA is one tool in our toolbox to help us accomplish that task.
|
Quote: |
|
|
|
2. Tom williams keeps emphasizing this, that there is nothing written in concrete when you read VSA principles in live market, a sign of weakness or strength can be immediately negated and one has to remain totally flexible. |
|
|
|
|
I suppose that is why he says if a market appears to be strong but doesn't act strong then it is really weak.
Thanks for the analysis of the chart. I will have to think through what you are saying.