Welcome to the Traders Laboratory Forums.
Volume Spread Analysis Dedicated for VSA method and trading.

Reply
Old 03-09-2009, 06:16 AM   #1

Join Date: Nov 2008
Location: hong kong
Posts: 3
Ignore this user

Thanks: 7
Thanked 0 Times in 0 Posts

High Volume and Small Spread Retracement During a Trend

In reading the chart with VSA in mind, i find that after a show of strength/weakness, small volume with small spread retracement does not occur that often in the subsequent trend. Instead, high volume and short spread retracement is sometimes even more common before the market proceed with the direction of the original trend. By High volume, I mean it is higher than normal, not ultrahigh and not being the least volume in the past 3 bars.

What is the correct interpretation in VSA?
Sincere is offline  
Reply With Quote
Old 03-09-2009, 06:24 AM   #2

Soultrader's Avatar

Status: Super Moderator
Join Date: Aug 2006
Location: Tokyo
Posts: 3,623
Ignore this user

Thanks: 545
Thanked 1,371 Times in 492 Posts
Blog Entries: 4

Re: High Volume and Small Spread Retracement During a Trend

Hello Sincere, could you provide a chart for this instance? It would probably get more people involved. Thanks.
__________________

Soultrader is offline  
Reply With Quote
Old 03-10-2009, 07:52 AM   #3

Join Date: Nov 2008
Location: hong kong
Posts: 3
Ignore this user

Thanks: 7
Thanked 0 Times in 0 Posts

Re: High Volume and Small Spread Retracement During a Trend

Will try to find one . Based on my impression, I guess these show of strength are mostly breakout from range trading area and therefore the next bar immediately retests the consolidation area with slightly higher volume. Not sure if that is tradable or not? Sometimes it requires a lot of patience to wait for no demand/supply
Sincere is offline  
Reply With Quote

Reply

Thread Tools
Display Modes Help Others By Rating This Thread
Help Others By Rating This Thread:


Similar Threads
Thread Thread Starter Forum Replies Last Post
[VSA] Volume Spread Analysis Part I TinGull Volume Spread Analysis 1559 06-22-2009 12:13 AM
Volume Spread Analysis thread - summary mister ed Announcements 24 05-31-2009 12:53 AM
[VSA] Volume Spread Analysis Part II Soultrader Volume Spread Analysis 2244 05-06-2009 02:22 PM
Spread High/Low in TS relizer Coding Forum 4 12-26-2008 03:56 PM
Volume Spread Analysis with TradeGuider Soultrader Scheduled Chat 15 03-31-2007 05:51 AM

All times are GMT -4. The time now is 12:57 AM.
Copyright ©2000 - 2012, Jelsoft Enterprises Ltd.
CS to VB integration by DeskLancer
©2006-2011 Traders Laboratory, All Rights Reserved.