|
Quote: |
|
 |
|
|
I dont think its possible to tell if the long shadow after a move is either buyers drying up or sellers coming in. I think that is what the guys over in the VSA thread are trying to do, but they post everything in hindsight and some see entirely different things on the same bar. Many have shown time after time in the CC that simple analysis is all that is needed. |
|
|
|
|
Not everyone who contributes to the
VSA thread "posts everything in hindsight". See MyBlog, below.
As to whether a long wick signifies a dryup in buying or a rush of selling, that depends on whether the wick is above or below and whether all of this takes place at support or resistance or neither. If there is a long wick, then there has obviously been a shift in balance. If one wants to know who's in control, all he has to do is look at what happened to price as a result of all this effort.
What SunTrader describes, assuming I understand his post, is what Wyckoff proposes, that the rally off what appears to be a bottom may be smart buying, stupid buying, and/or short covering. If the latter two, the upmove won't be sustained due to the fact that shorts are buying only to cover and the stupid will throw their shares back onto the market as soon as things begin to go wrong (weak hands). He therefore counsels waiting for the test of that bottom in order to find out whether or not (a) sellers are really done and (b) there are any real buyers out there.