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Old 03-25-2008, 05:47 AM
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Re: [VSA] Volume Spread Analysis Part II

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Also, Tom Williams says that increased volume and wide spread as you approach a support line, signals that it will be broken, which eventually happens here.
Eiger, thanks for the interesting analysis!

One paragraph got me thinking though. When price approaches support on increasing volume and wide spread down bars, why doesn't this mean that demand is coming in? After all, professional money stands for high volume right? I'm seen selling climaxes occur on support a lot, and in most of these cases they happened after a couple of WRB formed.

And, I've also found the opposite to be true. When volume is relatively low and price bars are small, the chances seem higher for price to break support.

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