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Old 03-12-2007, 04:20 PM
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Re: [VSA] Volume Spread Analysis

Hi T.

Let's take a look at that large candle with the ultra high volume. If this volume represented selling:

1. The close should be on the low.

2. The next bar should NOT be closing equal or up. I think this candle is up based on the color of the volume bars.

As you correctly stated, this large bar does look like climatic action/stopping volume. From a VSA perspective, we see the next bar up (or equal) and this confirms the buying on the previous bar.

What I always like to see, is Professional Money showing itself at certain "known" levels. Here we see the Smart Money entering as price moves towards the VAH.

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