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Old 01-24-2008, 04:17 AM
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Re: [VSA] Volume Spread Analysis

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Hi,
But how would you see it if the 22nd were the last bar on the chart?

Thank you,
Bert
My thoughts on the 22nd as the last bar (please keep laughter down to a small guffaw)...

And, of course, this is all with the benefit of hindsight.

There has been a sustained move down since just before the 14th, on huge volume, with the highest volume of all on the 22nd (ignoring the 23rd here). Highest volume after such a big move down suggests capitulation to me.

There is a long shadow/tail, the price closed towards its highs (well, at least in the upper quarter). Big effort to fall, result - close is strong - not bearish. There must have been good buying on this bar.

My rudimentary knowledge of Wyckoff analysis has got to tell me this is NOT a bearish bar and I would be looking for buy opportunities on the following bars. My inner-candlestick guy is screaming at me that it's a fantastic looking hammer too - and taking all that background into account is making it even stronger (try as I might to smother him with Wyckoff I cannot shut the inner-candlestick guy up).

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