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Hi,
May I ask a question or two on the attached DJ30 chart?
Yesterday, on the 22nd, I saw what I thought was a failed test (volume was highest in the last 6 months or so), so I thought supply was still present. At the same time the hammer was bullish....... The bar is a long shadow down bar which closed off the high. ?So there was buying in that bar proved by today's bar?
It's great reading my own paragraph above. I am not making any sense and I can't make up my mind if it's a "weak" or "strong" bar, as Sebastian would call a bar. I'm wondering if I even know what a test is... One would think I should, what with PP's and others' scores of examples...
Today's candle (the 23rd) was an up bar, closed just off the high with huge volume. But how would you see it if the 22nd were the last bar on the chart?
Thank you,
Bert |
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Hey Bert,
Take a look at DIA or SPY, The market really opened on the low and not near the highs on 1/22
Anyway that should not change things much since
VSA does not look at the open.
You have a high volume down bar closing on the Highs. That is strength. Look to enter long on the low vol test of the area the 1/22 bar.
Didn't happen on the 23rd, which was a high vol up bar closing on the highs. We have to wait for the 24th bar to paint to determine if this is strength or weakness. I am personally looking for a no demand like bar within the zone of 125 to 127.5 on the DIA. But who knows what the market will bring.