Traders Laboratory - View Single Post - [VSA] Volume Spread Analysis
View Single Post
  #982 (permalink)  
Old 12-07-2007, 12:40 PM
Tasuki's Avatar
Tasuki Tasuki is offline
Tasuki has no status.

Trader Specs
 
Join Date: Mar 2007
Location: San Diego north
Posts: 224
Thanks: 35
Thanked 48 Times in 17 Posts
Re: [VSA] Volume Spread Analysis

jj,
I've managed, I think, to reproduce your chart from permalink #973. It's a five minute chart, right?
Many pages ago on this thread, I recommended an enhancement to VSA in which volume would be broken down into volume up vs volume down. The "experts" on the thread didn't like my idea, but here's an example where it is valuable (in fact, invaluable). See attached chart. On your putative upthrust, the total volume is too high, but just as importantly, the upvolume nearly matches the downvolume (upvolume is seen as a green line inside the wider red line which is downvolume). This clearly shows that there was significant buying on this bar, hence it was not an upthrust. The total volume itself would have been a clue, but the picture is clearer if you separate the up from the down.
Attached Images
File Type: png VSA on TL permalink 982.png (39.0 KB, 56 views)

Reply With Quote