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Old 03-26-2008, 04:40 PM
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Re: [VSA] Volume Spread Analysis Part II

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Eiger-
So you don't use "pivot points" you just look at the weekly high/low and previous day high/low to gauge trades?

Ok, so if yesterday low was 1.999 and you see your trade right now heading towards 1.999 with increased volume you are anticipating a break through. If you see average volume, you are more on point to wait and see if this is your exit (a la bounce?)

Hoping to clarify what you use, as it seems to be simple- yet effective.
Thanks,
Sledge
Hey Sledge, FX is a different beast. You'll get a feel for how much volume it will take to penetrate any resistance in your market. It's just like breakout volume. You get an idea if a breaout is legitimate by it's volume.
Don't forget about spread of the bars to. Increading volume heading toward resistance is going to signal a possible reversal if the spread is narrow. "End of a Rising Market".

I use normal floor trader pivots calculated on the previous days US session only. With FX there's that controversey over when to start calculating them. But you could do weekly and monthly fine.

Zeon, it was a close support point between the previous days low and the floor trader S1 for today. That's why Eirger and I appeared to have similar numbers.

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