a VSA chart a Day

[Anonymous]

Very nice and welcome aboard.

[flatwallet]

I am not good at this by any stretch but here is a trade I should have pulled off but I was way to unsure.



Based on 15 min charts:
First 4 bars contain unusual volume with wide spreads. The 4th bars closes in the lower half of the bar.

The 5th, 6th, & 7th bars all have lower volume associated with them. Here I was unsure if 7th bar would be considered a no demand bar. However since the price retraced on lower volume, I was scared to pull the trigger.

The 8th bars looked promising as the volume was almost equal or greater than the previous 2 bars. For me this was confirmation that the bottom was set. I would like to have bought at the open of the 9th bar.

13, 14 & 15th bars were small pullbacks on lower trending volume. This would have been a nice dummy style entry. The only concern might have been the Opening range resistance.

Where would you guys have entered and why?

Thanks,
LP
Flatwallet

[flatwallet]

I'm not sure how to attach image but here's

[Soultrader]

Heres a chart for YM for 3/27/07. Exact same action as 3/26 with a volume spike and a lower low on less supply. The first, second, and third test are all at the S1 pivot (green line). Volume is alot lower on the second test and even lower on the third. LESS SUPPLY.

Took a long at the second and third test at 467 & 469. Im my opinion a safe high probability trade with minimal risk.

[flatwallet]

ST,

So would you buy off the S1 levels immediately or wait for the next bar to be green. How would you know that it's safe to buy or that the down move is over?

Flatwallet

[Soultrader]

	Quote:	flatwallet
	ST, So would you buy off the S1 levels immediately or wait for the next bar to be green. How would you know that it's safe to buy or that the down move is over? Flatwallet

After identifying that there is lower volume on the test and is right at the S1 pivot, I will enter strictly off tape. I want to see tape prints disappearing off the lows and will try to enter when price comes back 5 ticks or so from the lows. Its pretty impossible to explain in words... I wil try to record this next time.

One thing.. I posted a 15minute chart. I trade off the 5min which also showed lower volume on the test.

[flatwallet]

ST,

I look forward to viewing that session. Please if you can, include the tape readings as well. I am completely ignorant to reading tape but I head it can help a lot.

Thanks

[Vercingetorix]

Follow up on BIDU. The markup process has begun. BIDU releases earnings after the close. This should be interesting, let's see if VSA can predict what the stock will do after 'news' is released (I've usually found that the direction a stock will be taken is determined before the earnings ever hit the wire).



edit: It's 134 after hours. How sweet is that.

[flatwallet]

Would April 9th have been construed as a No Supply day

[Vercingetorix]

Yes, that was a no supply day. If you look at the volume you can see that the weeks before today the liquidity in the stock really dried up, allowing for the stock to rise 30+ points in 3 days (counting today's after hours action). It will be interesting to watch the action tomorrow to see what the professionals will do. I think that they will gap the stock up above 134 to put it in new 52-week high area which would put all all shorts in the red, from there they'll either distribute or hold on to the stock and let it run.