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Old 12-07-2007, 04:01 PM
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Re: [VSA] Volume Spread Analysis

JJ, I would most probably have taken the trade in realtime as well. You did well to get out for a breakeven trade.

I was wondering though ........... if we follow the futures charts and thus the futures 'smart money' players via VSA then do the 'smart money' sometimes get it wrong, which would lead us to be wrong ?

Say in this case (your trade) the 5min futures 'smart money' were selling (and/or going short) but the larger timeframe cash mkt still had plans to keep trending up, this would have resulted in the 5 min boys being on the wrong side of the mkt.
Or am I completely on the wrong track here ?

I now know after PP's explanation that it looks like you mis-read the chart and there were sign's of strength not weakness.

What I didn't like about the chart was the upthrust bar had the same size volume as the previous up-bar. I was thinking that maybe there was a sudden change in the mkt and there was some hidden buying in the upthrust.

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