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Re: [VSA] Volume Spread Analysis
Soultrader,
See how TradeGuider interpreted yesterday's actions. The first green rectangle is "Strength coming in" signal. The bar has very wide spread, ultra high volume, it closed in the middle part of the bar and made new low. Basicaly, I think, the most nervious sellers started fixing their profits.
The next red triangle was identified as "No Demand" signal. The bar has narrow spread and low volume. It signals the end of retracement. You may disregard that signal in ranging market as not really important.
The next green rectangle is called "Climactic action". You see it has ultra wide spread and ultra high volime. In fact it's the widest and highest by volume bar of the day. When you see a bar like this you should think if it's a selling or stoping volume. You may anticipate it knowing about strong support at 12190, or wating for the confirmation which happened on the next bar. In Drummond Geometry a bar like that is called an exhaust.
The second red triangle is a "No Demand" bar again.
Next signal is missed here but you already should see that if you combine two bars in 10 min bar it will be the same signal as the first one.
And the last red rectangle is Upthrust. The volume is not so high, spread is wide, high is hihger than previous several bars and the close is in low part of the bar. They describe it as stop hunting desined by market makers to mislead traders.
Hope that helps.
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