[VSA] Volume Spread Analysis

[TinGull]

Hmmm....having 2nd thoughts on this trade today going into the weekend. A break of yesterdays highs would certainly get me out of the trade, but it looks like there's no supply right now. There does seem to be weakness in the background tho, so that gets me wondering other things. Gotta love it. What do you all think about this chart?

[jjthetrader]

It's always nice to see the bar complete itself before you can make a good call. Do you have access to intra-day data for this chart. Even delayed data will let you see what's been going on.
Speaking of weakness & strength in the background, do we just look to the last Ultra-High Volume down or up bar to find the current background?
It can change so quick.
For example Tin, where's your weakness that you're speaking about?

[TinGull]

I see the weakness as inability to follow through on that very first WRB on ultra high volume that started this last range. When price couldn't follow thru and just ranged and then fell thru the bottom of that range, that to me is weakness. Now price has come back to test the bottom of that range and is doing so on low volume.

As for intraday access, I do have that. I try not to sit and watch all the time, tho...sometimes I get a little trigger happy and don't let things follow thru.

I try and get a little bigger picture than the last UHV bar. For this example, its the range and then break down of that range and testing it on lower volume.

[jjthetrader]

Thanks for your explanation. I see what you're saying.
Good luck with your trade. I can't add much for ya. As usual I have more questions than answers.

[TinGull]

It's all good Love the Q's cause it makes me think. I was talking with another one of the guys on the board earlier and he pointed out, too, that there is TONS of volume sitting right overhead. It's gonna take some intense buying to push things through that.

[ranj]

It looks like today is going a no demand bar. I would sell on the break of today's low on monday. Also yesterdays bar did not have volume lower than it's prior two bars. Lastly today is going to be an inside day, one of my favorite set ups.

[jjthetrader]

Here's a 5 min chart for you Tin. There's not much activity today. Lots of selling going on the last few days though.

[jjthetrader]

Tin, one more thing when looking at your stock. It's in a nice uptrend and at the bottom of it's "playing Field"

[TinGull]

Nice...thanks guys. Thanks for that chart JJ...I appreciate it.

ranj, I'm already short this in 2 ways, basically hedged in volatility. Currently sitting on a small loss, but am pretty confident after seeing the close today and the complete lack of volume today.

[TinGull]

Yea...I see what you're saying on that jj...but the "playing field" is showing a much longer term uptrend than the length of time I intend to hold. I'm much more interested in gap break from the trading range.