Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Jillion

Accumulation

Recommended Posts

Hi Guys :missy:

 

Currently studying volume analysis and wondered please would an experienced trader be able to confirm please my understanding of the accumulation phase:

 

'If we see accumulation during a long term range, we should see shrinking volume near support levels and an expanding volume near resistance.'

 

Am I right in the thinking that 'Smart money' is buying into the downmoves off of resistance and this represents the expanding volume near the range top, and also would it be correct to say that the low volume at the support levels is absorption. ie. the buyers are absorbing the selling and hence the low volume?

 

Thanks in advance for any help, it can be a bit confusing at first starting out with volume analysis!:confused:

Share this post


Link to post
Share on other sites

I assume you already found your answer as this post is over 2 years old. But I will answer it here as it might help others. It would be great if others would shed some light as well.

 

From Wyckoff days, accumulation and distribution are each divided into phases. This link best explains it.

http://www.hankpruden.com/MTWyckoffSchematics.pdf

Hank Pruden, btw is someone you should look up and study if you're interested in VSA.

 

What you're referring to should be the period of trading range where prices enter a rigorous shakeout period, or congestion period. As the name implies, there's no real trend in this phase just massive shakeouts and illusions of trend reversal or continuation.

 

With that in mind, you're right in saying that volume will go up near resistance (top) as smart money is dumping and retail investors are entering in the hope of a new bull trend. I'm not sure if volume necessarily shrink at support levels. I will only say that low volume and low spread will be the dawn of a new trend coming.

 

Hope this helps.

Share this post


Link to post
Share on other sites

Thanks alot luigizerozero.I have been going through VSA for the last 3 months and i find it really informative.Knowing where the smart money are taking prices is very crucial and that is what really differentiates professional traders from novice traders.I would want to get your contacts,preferrably your skype name.I really believe in sharing ideas since thats the only way we can grow.Thanks.Look forward to hearing from you

Regards

Bonz

Share this post


Link to post
Share on other sites

Thanks for the explanation luigizerozero and I will get Hank Prudens book, it looks very good.:)

 

 

I assume you already found your answer as this post is over 2 years old. But I will answer it here as it might help others. It would be great if others would shed some light as well.

 

From Wyckoff days, accumulation and distribution are each divided into phases. This link best explains it.

http://www.hankpruden.com/MTWyckoffSchematics.pdf

Hank Pruden, btw is someone you should look up and study if you're interested in VSA.

 

What you're referring to should be the period of trading range where prices enter a rigorous shakeout period, or congestion period. As the name implies, there's no real trend in this phase just massive shakeouts and illusions of trend reversal or continuation.

 

With that in mind, you're right in saying that volume will go up near resistance (top) as smart money is dumping and retail investors are entering in the hope of a new bull trend. I'm not sure if volume necessarily shrink at support levels. I will only say that low volume and low spread will be the dawn of a new trend coming.

 

Hope this helps.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Book profitable forex pips with minimal risk and investment. Major currency pair signals include EUR USD Signals, USD CAD Signals, EUR CAD Signals, EUR GBP Signals, GBP JPY Signals, GBP USD Signals, USD CHF Signals etc... Best Features of our Forex Signals: 1-2 Forex Signals on daily basis Monthly accuracy of more than 80% Multichannel signals delivery - whatsapp, email, telegram, etc.. Customized service Visit now - https://www.mmfsolutions.sg/services/forex-pack  
    • Date : 22nd May 2019. MACRO EVENTS & NEWS OF 22nd May 2019.FX News Today Comments from Fed’s Bullard that a rate cut could become an “attractive option” if inflation continues to disappoint added support to bond markets ahead of the release of the Fed minutes from the May meeting. Ahead of today’s Fed minutes, this helped to lift sentiment and underpin stock market sentiment, which struggled for direction amid conflicting trade headlines. Reports that the US administration is considering blacklisting up to 5 Chinese surveillance firms, including Hikvision added fresh concerns about a deepening of trade frictions and put pressure on tech stocks. The GER30 futures are heading south in tandem with US futures after a mixed session in Asia, where mainland China bourses underperformed. The FTSE 100 future is getting some support from a weaker pound, which is shedding the gains seen in the wake of May’s latest Brexit deal yesterday At the same time, China’s ambassador to the US said Beijing is ready to resume talks and ASX and Nifty 50 slightly higher. The WTI future meanwhile fell back to USD 62.58 per barrel. Charts of the Day Technician’s Corner EURUSD spiked up briefly to 1.1188, just above its 20-day MA, though has now eased back under 1.1150. The Euro remains in sell the rally mode, given the Dollar’s yields advantage, and relatively better performing economy. EURUSD has posted 6-straight sessions of lower daily lows, a bearish signal, and has sights set on the May 3 bottom of 1.1135, then 2019 lows of 1.1110 seen in late April. XAUUSD: Renewed dollar strength, along with the return of risk-taking conditions has dented gold’s safe-haven appeal. The US easing of restrictions on Huawei has helped equity sentiment, to the detriment of gold prices. Next support comes at $1,270 in the near term, then $1,267.30, , the May 2 low, then $1,258.38, the 200-day MA. Main Macro Events Today Consumer Price Index (GBP, GMT 08:30) – Prices are expected to rise in April, with overall inflation expected to stand at 2.1%y/y, compared to 1.9% y/y last month. Retail Sales and Core (CAD, GMT 12:30) –Canadian sales are expected to have eased by 0.4% m/m in March, compared to 0.8% m/m in February. FOMC Meeting Minutes (USD, GMT 18:00) FOMC minutes, detailing the view of each of the Fed Governors and FOMC Members, shed light on their perspectives regarding the future of the US economy. FOMC left policy on hold earlier this month, and it cited solid growth, low headline and core inflation, though Powell said in his presser that the weakness was likely “transitory”. Support and Resistance levels Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • The Nifty FMCG index slipped 1% on Wednesday amid heavy selling pressure seen in UBL, United Spirit, HUL, Jubilant Foodworks, and GlaxoSmithKline Consumer Healthcare.
    • With earnings a week from Thursday, I like $KHC. Has a 5% dividend yield, Buffet owns a big chunk. Investors expect horrible news (expectations low). Stock trading at multi-year lows. Chart in extreme oversold area. It has all the makings of a bounce. -Gareth Soloway
    • Top 5 Differences between forex and stocks The table below summarizes a few key differences between the forex market and the stock market: Forex Market                                                                                            Stock Market Large volume- Around $5 Trillion per day                                 Less volume – Roughly $200 billion per day Highly Liquid Less liquid 24 Hour Markets 8 Hour Markets Minimal or no commissions Commissions Narrow Focus Wide Focus
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.