[NAVEEVIa]

Another help is to draw a line parallel to the bottom of your price-and-volume graph so that only the busiest days show above your line. Note what happens on the busier days.Is the price up or down? What about the slower days? Again, price up or down? If the price rises on heavier volume days (though not enough to break out of the base) and falls on lighter volume days, the stock is most likely being accumulated. Or vice-versa if it's
being distributed

I read this in Whats a Chart file

[DbPhoenix]

When you said "why do we look for high volume on upsides or when at upper limit of base & low volume for downside in Accumulation", I thought you meant "downside 'and when at lower limit'", which is not necessarily the case.

In any case, if price is rising, this suggests that demand is greater than supply. If volume is also rising, this suggests that increasing demand is being met by increasing supply. If price then chokes at the upper limit of the range, this suggests that the increase in supply was intended to bring price back down, or at least prevent it from exiting the range. If both price and volume subsequently fall, this suggests that the tactic was successful.

I don't know what you're trying to show me with your chart, but focus less on bars and more on what traders appear to be doing and why. That will be reflected in the price movement if you're correct.

[NAVEEVIa]

OK here the chart with a few annotations, as u said a number of times i have stopped focussing on individual bar
Trend: Down as we have LRH & LRL with no no successful attempts for making a HRL, subsequently we have trendlessness .Now my question is since trend has changed from down to lateral & we are holding our shorts . How do we make sure that base is not accumulative.

Naveen

[DbPhoenix]

Whatever is is a product of what has been. What is "suzlon"? What had been happening in this prior to the left edge? Did it drop from 850? Rise from 20?

[NAVEEVIa]

]
here is a 3 day , 5min chart of SUZLON( a wind energy company)

Please comment on the trendlines also , are they correctly drawn, how to draw trendline after breakdown below 224 level

[DbPhoenix]

Assuming that this is the instrument you're interested in, you'll notice that you're in the same range you've been in for three years.

Zooming in, you'll note that there appeared to be preliminary support in the area marked "1". There then appears to have been a selling climax at 2, which is logical considering where it took place, then a test at 3. The downtrend was broken at 4, but this break immediately failed (5). So you are now drifting.

Since this has been declining for nine months and has lost more than half its value, it is unlikely that whatever accumulation may have taken place over a day's time will have any appreciable, immediate effect on the stock price. However, price appears to have been supported in late August at or about 206, selling dried up thereafter, and perhaps price may now be being supported again. Unless you are for some reason in a hurry, I suggest you watch and wait.

[rsi]

Originally Posted by DbPhoenix »

You make a number of statements but ask only one question, and the answer-- without considering trendlines -- is that there is a selling climax, a technical rally, a test, and a rally above the last swing high. Reverse for a downtrend. I can't apply this to your charts because it's next to impossible for me to see the volume on them, plus they're too scrunched. However, there does appear to be a selling climax on your third chart in March '07.

All right. Let me try to put it in this general way, without any charts.

Incase of V shaped rally or ^ shaped downfall (as the case maybe), I think it will be impossible to see climax and distribution (accumulation), breaking of ice (JOC) etc. Or may be I may witness climax (buying or selling as the case may be) but not the other phases. What I am intending to ask is, in the absence of some of the sequences in developing of trend or changing of trend as described by Wyckoff, what would be the guidelines to be followed to detect such end of trend or change of trend? What should be/could be the safeguards one can take in such situation so as to avoid giving back all profits earned? Are there any other methods described by Wyckoff? (other than many non Wyckoff methods such as breaking of trendline, 1-2-3- formation, moving stoplosses etc.)

I sincerely hope I have made my point clear this time.
Thanks and Regards

[DbPhoenix]

"Breaking of ice" is not a Wyckoff term. You'll have to take that subject up on the VSA thread. As for the rest, if you're not going to follow Wyckoff, there are any number of ways to suppose a change in trend and/or a reversal. Sperandeo is one. However, if you're operating in a VSA context, I suggest you'd have much better luck looking for answers within VSA.

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