Trading with Volume Spread Analysis (VSA)

[bunny]

I bet we close below 4910 can we have spread betting here ?

Hi Vikas,
I and others will appreciate if you can keep the posts relevant to VSA, or trading with VSA. If you want to discuss waves or any other non-VSA concept, please excuse this thread.

Thanks,
-Bunny.

 

[bunny]

But I do have. If it will not be green, then it will not be red either.
difference of 5-15 points doesn't make a difference. But it will definitely be showing its intentions on bar today.

Green closing is fine, only as long as we have volumes to support it. Otherwise, there exists a possibility of manipulated green(no-demand markup). On the other hand, if we close in red on low volumes, we know that there is no professional selling interest.

 

[bunny]

sir i have seen charts called volume profile charts which i have attatched in another thread "volume profile chart" and one member reffered ur name for explaination of chart.will u pls reffer to that chart.i attatch the same in this post for ur ready ref.i will be thankful to u if u can educate me regarding this.
with regards,
shripad

Hi Shripad,
Volume profile charts are different from Volume Spread Analysis. The volume price charts can be called as "Volume at price" charts, which shows how much volume was there at every price level. Apart from that, it can also show the timeframes during which the volumes were generated. I am not sure, but I think there are pieces of a concept called Market Profile. I think there are not many active member on this forum who discuss MP concept, but you can contact another member names jdm (Joydeep Mitra) - he, I suppose use MP concept and also provides free volume profile charts on his website.

 

[bunny]

Is that a spring board?

 

[nimish_rulz]

NIFTY spot at 4880 or -51. The market had opened with gap down and gone more down. BUT, the volumes are very low. Even after more than 4.5 hours of market opening, the volume is only 92 mn compared to yesterday's whole day volume of approx. 164 mn. Time to buy this manipulated markdown.

NIFTY F&O volumes are half of yesterday as of writing this.

If you do not feel aggressive, you can aslo wait till closing to see complete volume.

Hey dude don't get me wrong but the logic you are suggesting is slightly doubtful. If smart money wants to accumulate stock and the market is falling with low volumes that means most of the volumes are sell volumes and no real absorption from the smart money. What we want is when market goes down and for absorption to happen there should be significant volumes like their were on the day when nifty touched 4766. Many thanks

 

[adultvish]

Hey dude don't get me wrong but the logic you are suggesting is slightly doubtful. If smart money wants to accumulate stock and the market is falling with low volumes that means most of the volumes are sell volumes and no real absorption from the smart money. What we want is when market goes down and for absorption to happen there should be significant volumes like their were on the day when nifty touched 4766. Many thanks

Smart money has already occupied a large chunk
And if you call today market movement as falling, it is not so
it will be considered falling if it violates the support point, wherefrom it started to move up i.e. 4766.

 

[adultvish]

Is that a spring board?

can't confirm
but have a look at this

The danger to any professional operator who is bullish is supply coming into his market [selling], because on any rally, selling on the opposite side of the market will act as resistance to the rally and may even swamp his buying. Bullish professionals will have to absorb this selling if they want higher prices to be maintained. If they are forced to absorb selling at higher levels, by more buying, the selling may become so great that prices are forced down. They will have been forced to buy stock at an unacceptably high level and will lose money if the market falls.

and

High volume or high activity shows there is in fact selling [supply] on the mark down.This process is known as testing. You can have successful tests on low volume and tests on high volume, usually on 'bad news'. This not only catches stops but shakes the market out as well. This process allow for higher prices. Testing is a sign of strength [as long as you have strength in the background]. Low volume or successful test tells you the market is ready to rise immediately, higher volume test usually tells you "yes I want to go up but buyers be very cautious, I may not be quite ready yet" and I may want
to re-test this price area again at a later time.

and that is why I am happy with low volumes

 

[nimish_rulz]

Smart money has already occupied a large chunk
And if you call today market movement as falling, it is not so
it will be considered falling if it violates the support point, wherefrom it started to move up i.e. 4766.

If they already acquired the huge chunk why are they not interested in getting more and that too at lower levels. Btw using my analysis and Bunnys analysis for VSA we have been expecting an up move since the markets shed the first points from 5220 to 5070 and since then it has been going down. VSA has been successful for me on intra day analysis but EOD you can't depend on just VSA. Need to use a lot more tools and also how the global markets stand. I have have said millions of times that India is closely correlated to Hong Kong and China, look where Hong Kong was yesterday and today and see where our market landed. I do agree though that we might not see a further down turn if Nifty holds 4830 which is the next low after 4766 since the up move started on the 28th of Jan.

 

[bunny]

If they already acquired the huge chunk why are they not interested in getting more and that too at lower levels. Btw using my analysis and Bunnys analysis for VSA we have been expecting an up move since the markets shed the first points from 5220 to 5070 and since then it has been going down. VSA has been successful for me on intra day analysis but EOD you can't depend on just VSA. Need to use a lot more tools and also how the global markets stand. I have have said millions of times that India is closely correlated to Hong Kong and China, look where Hong Kong was yesterday and today and see where our market landed. I do agree though that we might not see a further down turn if Nifty holds 4830 which is the next low after 4766 since the up move started on the 28th of Jan.

We both could have been wrong in our analysis?

 

[nimish_rulz]

We both could have been wrong in our analysis?

I accept I was! Background showed strength so the upthursts were signs of sell. This gets confusing day by day right now pure VSA application is made almost impossible by the world markets and everyday a manipulated piece of crap coming in the markets which is trying to only reflect the bad news but no appreciation of the good news.