Trading with Volume Spread Analysis (VSA)

[nehasharma]

thanx bunny

 

[rkkarnani]

Bunny,
Fully understand your not 'posting' the charts unless something typical is to be pointed out.

However how about posting a single chart of any script giving details of the VSA funda, its entry SL, exit , target etc. That would work as a reference material for 'slow' learners like me. And as they say a picture is worth a thousand words!!! Please do it whenevr time permits, no hurry.
Thanks for starting the thread!!!

 

[bunny]

Bunny,
Fully understand your not 'posting' the charts unless something typical is to be pointed out.

However how about posting a single chart of any script giving details of the VSA funda, its entry SL, exit , target etc. That would work as a reference material for 'slow' learners like me. And as they say a picture is worth a thousand words!!! Please do it whenevr time permits, no hurry.
Thanks for starting the thread!!!

Yeah sure, I will attach the charts. I have few archives of charts. I will make a single PDF file of those.

 

[rajeabc]

Bunny ,

very nice thread. This thread would be a great help to clear my doubt as I am going through the book .

Thanks

 

[AW10]

Great to see this thread from you Bunny. I have read a little bit about VSA but never took it seriously. But your thread will certainly help me in taking next step.

I know, VSA can compliments /be a very powerful tool for Price action based traders.

Looking forward for more posts in this thread.

Suggstion - maybe you would like to reserve some free post area on this thread.. I can forsee some valuable stuff on VSA coming on this thread in due course.

All the best.
Happy Trading.

 

[prabit]

hi bunny,
thanks for starting the thread and giving yr time and energy.Seems to be promising and getting good response. Pl continue.

 

[prabit]

bunny,
today I checked prices of all stocks,all have given positive results. great start. thanks

 

[java.sunny.kumar]

Re: For trading from 11 JAN 2010 onwards

BARTRONICS
The stock has crossed its short-term resistance at 159 and is trading near that value, Daily bars of 05 and 06 JAN 2010 are high-volume wide-spread bars that pierce through 159. Daily bars of 07 and 08 JAN 2010 are down bars with progressively reducing volumes. Likely that smart money has turned bullish and prepared to absorb the supply from traders locked-in at the trading range.
Action: Buy BARTRONICS with stop-loss of 155 and target of 180.

KAUSHALYA
KAUSHALYA has seen some violent and bulky up-moves in the last week. These wide-spread up-bars are across its seller-circuits in JUN 2009 and tradings ranges in SEP 2009. The last two daily bars are down-bars on progressively reducing volumes. Hints at absorption and thus an underlying bullish view.
Action: Buy KAUSHALYA with stop-loss of 26 and target of 35.

MLL
MLL has seen high-volume up-days on 05 to 07 JAn 2010. The daily bar of 08 JAN 2010 is a narrow-spread low-volume down bar. What must the high-volume up bars have meant? Probably they indicated absorption from traders who were locked-in at similar price levels when the stock formed a trading range during OCT 2009 and lost ground thereafter.
Action: Buy MLL with a stop loss of 63.50 and target 78.

NATIONALUM
On 05 JAN 2010, the stock has seen a very steep rise in a single traading session, almost 15% over previous closing. The daily bar of 05 JAN 2010 is a wide spread, high volume that closes on its high. The bar is directly across a trading range(resistance) created during the last week of July 2008. The very high volume may have meant "absoprtion of supply from the locked-in traders". This action is called "Pushing up through supply" and indicated bullishness. During the last three trading sessions, the stock has been going down progressively lower volumes. This indicates reducing selling pressure.
Action: Buy NATIONALUM with stop-loss of 460 and target 540.

ROHITFERRO
ROHITFERRO is trading near its resistance zone of 45 to 50. The daily bar of 08 JAN 2010 shows an up-bar, very high volume, closing in the lower part of the spread. Observe how the bar is gapped up. Gaps are of peculiar importance. They commonly occur while crossing a trading range or near the top.
Action: Sell ROHITFERRO.

ROLTA
ROLTA has been down for three continous trading sessions - 06 to 08 JAN 2010. The volume associated with these bars is reducing progressively. These are signs of reducing selling pressure.
Action Buy ROLTA with a stop-loss of 189 and target of 235.
The target has been derived from across a unfilled gap around 225 - 230 levels during 1st week of JAN 2008. Signs of reducing selling pressure near its previous resistance(205) indicate bullishness. We are likely to see a high-volume(absorption) up-bar that fills this gap quicky.

VIDEOIND
Daily bar of 08 JAN 2010 shows an up-bar, high-volume, wide spread and closing in the middle of the spread. Hints at selling by professional money.
Action Sell VIDEOIND and reenter on signs of strength.

Hi Bunny,

Many thanks for starting a new thread on VSA. Really it is a good initiative. I read book on VSA which you have shared only once need to go through it again

One question what is the expected time frame for the above stocks to reach their targets. Please let us know this.

Thanks in advance
Sunny

 

[chaitanyagoa]

Hey Bunny,

I am back. This will be a great thread

Can i post a few charts with your Permission Monsieur?

Thanks

 

[bunny]

Telecom stocks may start (out)performing

Telecom stocks have underperformed the broader markets for few weeks now. However, they may soon start outperforming.

Volumes in BHARTIARTL are drying-up consistently. This indicates reduction in supply.

IDEA has crossed a trading range near 60 - 61. Daily bars of 07 and 08 JAN 2010 are down bars with progressively reducing volumes. The next trading range is near 65. IDEA looks prepared to pass through it too.

RCOM is trading near its most recent resistance - around 185. Daily bars of 05 to 11 JAN 2010 show noticeable higher volumes. What could this mean? Perhaps absorption by professional money which has taken a bullish view of the situation.