[giraia_br]

hi,

in post 10, the bar I doesnt have volume less than the 2 previous bar. Only the bar before.

the 2 bars is a modification of VSA only?

thanks in advance.

[Eiger]

Originally Posted by giraia_br »

hi,

in post 10, the bar I doesnt have volume less than the 2 previous bar. Only the bar before...

Good question. Technically, you are correct. Nevertheless, this is an up bar on very narrow spread, close off the highs on relatively low volume after a sign of weakness at H. The rule of thumb for both No Demands and Tests is volume less than the previous two bars. With experience, you will see that when indications are very close as in I, they can be read in the same way.

Hope this is helpful,

Eiger

[Eiger]

For a very long time, I found trend days difficult to trade. Mainly, I think it was a mindset that just gets grooved when many days in the S&Ps are best traded as countertrend / reversion to the mean-type days.

Watching the swings as they develop and identifying them as making higher highs (HH) & higher lows (HL) or lower highs (LH) & lower lows (LL) can be a big help. Once a trend starts, you can look for certain classic VSA indications for confirmation and entry triggers. Thursday provided a good example to the downside.

A little after 11:30 EST there was a good downtrend in place with a LH and LLs. Once a downtrend gets going, the background is weakness (always, always know the background first). You can then start to look for confirmation and triggers. One of my favorite triggers in a downtrend is the Hidden UpThrust (HUT).

In a regular UT on the trading time frame, there has to be an old top (resistance) in the background against which the UT rallies above, then closes below. A HUT will not have the old top in the background on the trading time frame, but will on a smaller time frame. Thus, it is a bit more difficult to see on the trading time fame, but with careful observation, it is easily detected.

There are a nice series of HUTs on the attached chart. Each of these occurred in a weak rally into prior support-now-resistance. Each marked the end of that rally. You will see this classic setup occur over and over in downtrending charts.

Hope this is helpful,

Eiger

[mike21]

Hi Eiger,

I know there are low volume upthrust, but normally when I think of an upthrust I think of high volume.
I notice all of the Hidden Upthrust on your chart are on relatively low volume. Is this the norm when looking for HUT's?

~Mike

[mcfotos]

Originally Posted by Eiger »

...the background is weakness (always, always know the background first). You can then start to look for confirmation and triggers. One of my favorite triggers in a downtrend is the Hidden UpThrust (HUT).

Hi Eiger,

just saw your post and llike to ask you a question regarding the anaylsis of the background.
Are there any guidelines/ tipps of how to analyse the background? what are you looking first, what second and so on...? Is it that you just look if there are LH/LL (downtrend = weakness) or HL/HH (uptrend= strength)?
Once you wrote that one have to consider in which phase the stock etc. is (accumulation/markup/distribution/markdown) and you wrote that is difficult to see where we are and you think more of different stages of volatility. Can you explain this a little more (how do you measure volatility?)

As analysing/evaluationg the background is so important, your tipps are very welcome!

Thanks and regards
mcfotos

[anirudhsworld]

hi cn neone hlp me understandin y market moved up on the indicated bar n volume in my chart thanx

2nd image wer i was expecting fall ac. to VSA
http://lh6.ggpht.com/_rKP4tikojaU/Sb...sa%20dobt2.PNG

[anirudhsworld]

my 2nd chart wr i was expecting fall as per VSA

[Eiger]

Originally Posted by mike21 »

Hi Eiger,

I know there are low volume upthrust, but normally when I think of an upthrust I think of high volume.
I notice all of the Hidden Upthrust on your chart are on relatively low volume. Is this the norm when looking for HUT's?

~Mike

You are right, Mike, UTs can be high volume or low volume. The HUTs that I identified here are in a downtrend. In general, a downtrend often moves on lighter volume compared to an up trend. Fewer traders participate in a downtrend. HUTs aso occur at the end of a weak rally. By definition, a weak rally indicates a rally on low volume. So HUTs will usually have lighter volume. Good observation.

Eiger