[Soultrader]

Quick trade from March 12, 2007 using a key price level with volume analysis.

CLICK HERE TO VIEW VIDEO


Charts created by Tradestation

[notouch]

Good trade. That trade repeated itself after the open. There was a test for supply under the pre-market low. A little bit of supply was found but then buyers came in which you could see with the positive delta and the large orders on the tape and then price took off to the POC.

[Soultrader]

Yep... I noticed that so I made a part 2 to it when it happened.

CLICK HERE FOR PART 2

Charts created by Tradestation

[walterw]

Would this be VSA clearly explained concepts ? so far its been dificult to understand the VSA... cheers Walter.

[Z_trade]

Originally Posted by walterw »

Would this be VSA clearly explained concepts ? so far its been dificult to understand the VSA... cheers Walter.

some of the general rules for VSA :

up bars with excessive volume = weakness

down bars with excessive volume = strength

up bar with low volume means mark-down can begin (time to short)

down bar with low volume means mark-up can begin (go long)

down bars, narrow spread (diff between H & L), low vol = bullish

up bars, low vol, near resistance = bearish

wide spread, high vol, near trend line = expect trend line break

small spread, small vol, near trend line = expect trend line
bounce