[jjthetrader]

After a nice upbar like that I think it was a good idea taking your position off the table. Nice. That was a decent move for a couple days.

[jjthetrader]

//http://www.tradethetruth.com/pics/mtmv3.pdf

If that helps anybody.

[Blu-Ray]

Not sure if this is the right place to ask this, but I wanted to ask for your thoughts regarding some action that has been happening for the last month.

On the chart attached, since 3rd October, there has been more sellers than buyers, however today has seen a test of the recent high, but it finished as a down candle with more buyers than sellers and much lower volume.

I'm unsure what to make of this, my intitial thoughts are that it's a bull trap and we're headed for a move south, but I'm very keen to hear your views on it please.



Cheers

Blu-Ray

[MC]

Originally Posted by Blu-Ray »

Not sure if this is the right place to ask this, but I wanted to ask for your thoughts regarding some action that has been happening for the last month.

On the chart attached, since 3rd October, there has been more sellers than buyers, however today has seen a test of the recent high, but it finished as a down candle with more buyers than sellers and much lower volume.

I'm unsure what to make of this, my intitial thoughts are that it's a bull trap and we're headed for a move south, but I'm very keen to hear your views on it please.


Cheers

Blu-Ray

My 2 cents is a tick at bid isn't always a seller and vice versa on hits at ask.
So the ticks at bid causing the red bars on tick delta could very well be buyers.

You probably knew that already though. I am curious to hear a more seasoned VSA'ers side of this chart though. That sure was a low volume test of a monthly high.

[ranj]

Blu-Ray,
The last bar is an up bar on low volume with a narrow spread. Typically that would be a no demand bar. VSA normally does not use the open, but I think the open does help.

In this situation the bar gapped up and then sold off during the day. So you have low vol (little effort to do down), no result (narrow spread and close near the prior close).
Second there are no signs of distribution on the chart. High Vol Up Closing off the highs, or High vol, WS up bare with the next bar down.
Third the high volume bar from 9/18 (very important) was tested twice (9/25 and 10/22) and stood up with no problem.
(Look at charts that are weak and look at the price action around 9/18 to the 9/19)
Lastly today was a low volume day all around, (or at least for all the charts that I looked at), so hard to take away too much from this one bar.

Just my two cents
Rajiv

[bigboy]

Great Thread. You're onto it.
bigboy

[mister ed]

Reply to Blu-Ray's post 595 re the month of more volume at bid than ask.

My first thoughts when I looked at the period in question is to check the integrity of the data. There is 18 consecutive days of red over green, before beginning any analysis that would set off alarm bells in my head.

If the data is correct then on with the analysis...

[jjthetrader]

To compound your no demand bar you've got volume dropping off for the last 4 bars on a rally.
FOMC announcement on Wed may be keeping a lot of traders from taking positions at the moment. It's hard to say. But in most North American index's yesterday was a no demand up bar. The following bars will tell us wether this is temporary or the start of Wave C.