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Old 04-25-2008, 07:21 AM
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Re: [VSA] Volume Spread Analysis Part II

UPDATE from My Prior Post (#1117) on:
GBP/USD Long
Long 4/23/08

Went long in the last "Hot Zone" (Blue bar on left of chart)on 4/23/08
Wednesday night market needed to further test for supply as well as throughout the NY session. It appeared as if upon entry that testing was done- apparently it was not

No worries because in Thursday London and NY session you saw even stronger signs of testing than in the "Hot Zone." To make allowance for the "dip" and test of supply, My S/L was moved down to accomidate for the "dip" and further testing. This is why I advocate that you "take what the market gives you." My target was much higher and right now it is in a resting state and may be achieved ultimately, but by taking what the market gives instead of demanding it from the market, I woke up to a wonderfully executed trade.

Result:
Long @ 1.9790 on 4/23/08
Target (T/P) Moved from 1.9927 to 1.9860
Results: Friday AM London Session- Target Achieved

Notice on this 4 hr chart that the 4 hr bar that on the secondary test is a HUGE volume bar, if you watched it form in real time (or drilled down) you would have seen that it was of very low volume (relatively) as it touched bottom and worked its way up to open before shooting off the launchpad.

Chart with Results:
4_25_08_update.jpg

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