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Old 04-18-2008, 08:31 AM
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Re: [VSA] Volume Spread Analysis Part II
Quote:
LLL
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Hi Everyone,

I have a beginner's question. Do you consider the following cases as a hidden potential buying bar? When Tom said strength comes from down bars, is it has to be in a down trend?

1. If a stock is in a trading range, one day it has a huge gap down with a very high volume.
2. if a stock is in an up trend, it also has a huge gap down with a very high volume.

Thanks
LLL
IN an uptrend the professionals still need to reload and will dip down a bit to buy lower for the next push up. So your downbars can appear anywhere really. Unfortunatly VSA is less rigid than the teachings themselves. Learning how it applies to the market and trading is a whole different story. It's the underlying principles that you're looking out for (supply & demand) not a particular set of 'rules' being met. The question you could ask yourself about these bars is 1. What's in the background and 2. is buying confirmed in them by the following bar.

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