Traders Laboratory - View Single Post - [VSA] Volume Spread Analysis Part II
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Old 03-22-2008, 09:06 AM
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Re: to short or not to short

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Db - and I know this has been asked before - but perhaps you could spend some little more time on it to shed some clarity in the matter. The only thing you replied is that 'price reigned'. Forgive me, but that didn't exactly make me much wiser. You said you'd short at resistance if you observed buying drying up. But, apart from declining volume, how do know that buying is in fact drying up? Look again at the chart I posted from the ES. This is at it's core what we are talking about. The volume is declining and a lot of the bars fail to close above the green line on low volume. Isn't this buying drying up? So would you have taken a short here, or not? If not, I'd appreciate it if you could inform me why not.
You're showing me a picture of apples, then asking me to explain the character of oranges. You are also asking me, again, to explain something non-VSA on a VSA thread.

I suggest that you go back to post 138 on this thread and collect all the similar posts here and on the RT thread and study them. If you still don't understand what "drying up" at support or resistance means, then I will be happy to try again. But please do not ask me this particular question again on this particular thread.

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