Trading with Volume Spread Analysis (VSA)

[bunny]

Bunny
Is this reco based on VSA?

Yes.

I will supports all my reco by charts once the market closes.

 

[AW10]

That time it bounced back from 200 DMA . let see this time

Ofcourse it bounced back from 200 dma in Jan-08 but what happened after that ?.
did that bouce sustain ? It bounced back to test 50dma again and failed there to drop back.

Anyway, we don't have to look too far.. take each day as it comes. Anything can happen in the market so better to keep us away from bias and trade what we see.

Happy Trading

 

[bunny]

NIFTY spot at 4885. Again some signs of accumulation or professional buying.

 

[nimish_rulz]

This is the most volatile session I have ever witnessed. Anyways interested in Buying ABAN should I wait for couple of day or buy today. I rolled over my longs for now not sure if did the right thing. One thing I see is no or little change in the interest rate policy as Banks are going up. Also want to know I want to buy Aditya Birla Nuvo good time to enter according to you bunny I ll check my system when I go home. Many thanks

 

[Pchartis]

Re: One VSA query

hi bunny

One query to clear my doubt
In daily chart of mercator lines a bullish bar,narrow spread on 15 jan with heavy volume what could be its better interpretation
1: On 14 jan it is down day with low volume and on 15 its a upday same spread with heavy volume. If it is single bar reversal on heavy volume then it is bearish
2: On 15 jan spread is narrow and price is facing resistance as previous trading high, does narrow spread means selling by smart money giving the weaker hands what assume to be good prie bargain and
as on heavy volume could not able to take price at new high so its bearish
3: Or its a upbar with heavy volume so strength and narrow spread bcoz of resistane as their is strength in back ground and the next fall ie from 19 jan to 27 jan is like shake out on global bad news

what would be more appropriate interpretation of this bar with proper reasoning
Pls do suggest

Regards,
Panno

Awaiting your eply bunny...............

 

[bunny]

Re: One VSA query

hi bunny

One query to clear my doubt
In daily chart of mercator lines a bullish bar,narrow spread on 15 jan with heavy volume what could be its better interpretation
1: On 14 jan it is down day with low volume and on 15 its a upday same spread with heavy volume. If it is single bar reversal on heavy volume then it is bearish
2: On 15 jan spread is narrow and price is facing resistance as previous trading high, does narrow spread means selling by smart money giving the weaker hands what assume to be good prie bargain and
as on heavy volume could not able to take price at new high so its bearish
3: Or its a upbar with heavy volume so strength and narrow spread bcoz of resistane as their is strength in back ground and the next fall ie from 19 jan to 27 jan is like shake out on global bad news

what would be more appropriate interpretation of this bar with proper reasoning
Pls do suggest

Regards,
Panno

The upbar on 15 JAN 2010 is confusing, the volume under it being the factor. If you zoom out of your chart sufficiently, then you will find a trading range at the same price level during JUN 2010. Hence, its is not clear whether the professional money has sold into the high volume or absorbed from locked in traders. In hind-sights, few warning signals could be found(but I am not sure if they really "exist" or it is my subconscious bias as I have seen the chart), but doing it on immediate basis is difficult. Anyways, let learn and move on.

 

[bunny]

This is the most volatile session I have ever witnessed. Anyways interested in Buying ABAN should I wait for couple of day or buy today. I rolled over my longs for now not sure if did the right thing. One thing I see is no or little change in the interest rate policy as Banks are going up. Also want to know I want to buy Aditya Birla Nuvo good time to enter according to you bunny I ll check my system when I go home. Many thanks

ABAN - Looks good, seems like we had a shake-out today. Wait for one more day when it closes up and on the high.

ABIRLANUVO - Same as for ABAN. ABIRLANUVO too seems in the shake-out mode. Its is also near a valid support trend line.

 

[nimish_rulz]

Re: One VSA query

The upbar on 15 JAN 2010 is confusing, the volume under it being the factor. If you zoom out of your chart sufficiently, then you will find a trading range at the same price level during JUN 2010. Hence, its is not clear whether the professional money has sold into the high volume or absorbed from locked in traders. In hind-sights, few warning signals could be found(but I am not sure if they really "exist" or it is my subconscious bias as I have seen the chart), but doing it on immediate basis is difficult. Anyways, let learn and move on.

Bunny lets also keep in mind with our system the FIIs and DIIs buying and selling. I am creating a historical record of it trying to see how it affects the market. The overall money inflow has been negative since 12th Jan or so and it was a sharp sell off when Nifty reached 5280 and from there on. But since the last 3 trading days not counting today MFs or DIIs have invested massive amount but the overall result is negative because FIIs have sold but the good thing is that deficit or negative money balance is reducing which I think should be a good indication. Also keep in mind FIIs can short but most DIIs can't because of the fund structure of MFs.

 

[bunny]

Re: One VSA query

Bunny lets also keep in mind with our system the FIIs and DIIs buying and selling. I am creating a historical record of it trying to see how it affects the market. The overall money inflow has been negative since 12th Jan or so and it was a sharp sell off when Nifty reached 5280 and from there on. But since the last 3 trading days not counting today MFs or DIIs have invested massive amount but the overall result is negative because FIIs have sold but the good thing is that deficit or negative money balance is reducing which I think should be a good indication. Also keep in mind FIIs can short but most DIIs can't because of the fund structure of MFs.

If such large institutions like DII and DII have been selling, who is buying? Retail traders? Can retail traders absorb so much selling, that too in a "weak" sentiment. Accumulation and Distribution takes much longer rather than two few a couple of week apart.

 

[nimish_rulz]

Re: One VSA query

If such large institutions like DII and DII have been selling, who is buying? Retail traders? Can retail traders absorb so much selling, that too in a "weak" sentiment. Accumulation and Distribution takes much longer rather than two few a couple of week apart.

No, the net is negative but there has been huge buying from DIIs in the last few days. Overall still negative inflow