[VSA] Volume Spread Analysis

[jjthetrader]

Upthrusts are tricky because they don't tend to travel alone.

[bertg]

	Quote:	jjthetrader
	I posted the chart to make it easier for others to comment on it. I see selling on both bars you inquired about. The 29th appears to be a no demand after that high volume up bar. If it where buying then the price would have continued up.

jj,

if the 28th was the last bar on the chart, would you still have seen selling in it? If yes, is it because high volume (hidden selling)?

Thanks,
Bert

[jjthetrader]

	Quote:	bertg
	jj, if the 28th was the last bar on the chart, would you still have seen selling in it? If yes, is it because high volume (hidden selling)? Thanks, Bert

Hey, I was actually refering to the original posters questions about October 28, not Nov.28 which is the last bar on that chart. So on October 28th there appeared to be hidden selling and this would explain the drop off after that.

The last bar on that chart doesn't appear to be selling. The bar before that could even be a test which would be bullish.

[zdo]

Anyone done an analysis of the Dow this week in terms of VSA - especially 11/28?
The strength = weakness ?
Thanks, zdo

[tawe trader]

I have attached todays FTSE Future 5 min chart. The uptrend today has been strong due to US futures being up due to the possible rate rise. I have been patiently waiting for a place for a quick short.

Reasons for taking a short trade.

1. Upthrust bar at R2 resistance level (green arrow) at 12.35 pm UK time.
2. Under this bar there is the highest volume (green arrow) since the opening bar at 8am - selling ?
3. The volume in the bars leading up to this point has been rising - possible selling into the current high of the day and R2 level.

I did enter a small stake short trade once the low of the upthrust bar was broken and I had a target of just above the R1 level.
I decided not to be too greedy due to the strength of the uptrend.

After 25 mins I exited around the yellow dotted line for a 20-odd pt gain.

Any thoughts anyone.

[RAVIN]

	Quote:	tawe trader
	I have attached todays FTSE Future 5 min chart. The uptrend today has been strong due to US futures being up due to the possible rate rise. I have been patiently waiting for a place for a quick short. Reasons for taking a short trade. 1. Upthrust bar at R2 resistance level (green arrow) at 12.35 pm UK time. 2. Under this bar there is the highest volume (green arrow) since the opening bar at 8am - selling ? 3. The volume in the bars leading up to this point has been rising - possible selling into the current high of the day and R2 level. I did enter a small stake short trade once the low of the upthrust bar was broken and I had a target of just above the R1 level. I decided not to be too greedy due to the strength of the uptrend. After 25 mins I exited around the yellow dotted line for a 20-odd pt gain. Any thoughts anyone.

Way to Go, you had the patience to wait for the setup, read it well and sound trade execution, wish there were more posts like yours ,

[jjthetrader]

	Quote:	tawe trader
	I did enter a small stake short trade once the low of the upthrust bar was broken and I had a target of just above the R1 level. I decided not to be too greedy due to the strength of the uptrend.

That was an excellent trade. There are usually a boat load of sell orders around the pivots which could have accounted for the upthrust but once you saw the close below it you were told it was more than that.

Thanks for sharing the trade. It helps us all.

[jjthetrader]

I was inspired by Tawe and thought I'd like myself a nice upthrust trade as well.
This is a 5 min of the ES that just happened this morning. High Volume, Narrow Spread Up bars start out our day with a top reversal mixed in there. Then we get a beautiful upthrust. I set my order entry based on the stop I can afford above the high of the upthrust and bam! I'm in and out just like that. At $50 per point per contract that's enough for me

[RAVIN]

	Quote:	jjthetrader
	I was inspired by Tawe and thought I'd like myself a nice upthrust trade as well. This is a 5 min of the ES that just happened this morning. High Volume, Narrow Spread Up bars start out our day with a top reversal mixed in there. Then we get a beautiful upthrust. I set my order entry based on the stop I can afford above the high of the upthrust and bam! I'm in and out just like that. At $50 per point per contract that's enough for me

You guys are getting at this, nice to see posts getting into strategy and tactics, think have enough of text book hindsight analysis.
Great trade execution in the context of immediate previous price action, one can just aim to master a couple of these setups, learn to identify them in realtime, and increase size, you do not need to understand every bar in terms of VSA, will drive you nuts

Notice you haven't got much response on your post 889, yes it is also an upthrust, a swift markdown in prices followed by an upward drift and a No demand , place to short. However if prices refuse to go down or bars that follow are on low vol, watch out, that is a sign of strength and a potent one at that.

[jjthetrader]

Thanks Ravin,

Here's a continuation of my chart to show the potential of a setup like that, even though I only captured a miniscule amount.

It made an 11 point down move, so far, from my entry point.