Trading with Volume Spread Analysis (VSA)

[bunny]

hi Bunny ,

which is this software/Afl ?

cheers
raj

Hi rajeabc,

That chart was from my broker's trading terminal - Sharekhan's "Trade Tiger".

 

[bunny]

Re: S&P CNX NIFTY: Volumes on 23 Feb 2010

Bunny , what your target before exp. I short of 500 nifty with marginal profit.

Hi rajeabc,

I am bearish and would advise you to hold to your any position that profits from bearish movement.

I could not make out whether 500 is future or options, but in case you have bought put options, then be careful about the STT to be paid if the option can be exercised on expiry.

 

[nimish_rulz]

Re: S&P CNX NIFTY: Volumes on 23 Feb 2010

Hi Nimish,

I am not sure how you have concluded this, but I assume that this is because you have seen high volume on some down bars in recent bars.

Lets assume that there will be an rally on budget. This means that today we are in the last days of accumulation. So we are now expecting that the professionals will have accumulated all the stock and taken a bullish view on the market.To have a successful rally, all the floating supply must have been absorbed by the professionals. But if you have seen high volume in the recent bars, doesn't it mean that there is still floating supply in the market?

One of the "Differential Diagnosis" of such high-volume wide-spread down bars can be "Effort to go down". The stock may be approaching a supportive trend line and the high volume couples with wide spreads may be the efforts to break below that trendline.

The volumes were high on the down days in previous week but now this week gradually with every down bar both the spread and volumes are decreasing which I believe is testing of supply. Today we could have closed red but we didnt because there was buying at 4850 levels consistently. Lets see how tomorrow pans out after this massive fall in the US markets.

 

[bunny]

Re: S&P CNX NIFTY: Volumes on 23 Feb 2010

The volumes were high on the down days in previous week but now this week gradually with every down bar both the spread and volumes are decreasing which I believe is testing of supply. Today we could have closed red but we didnt because there was buying at 4850 levels consistently. Lets see how tomorrow pans out after this massive fall in the US markets.

Hi Nimish,

You are mistaking something else for test of supply.

 

[rajeabc]

Re: S&P CNX NIFTY: Volumes on 23 Feb 2010

Hi rajeabc,

I am bearish and would advise you to hold to your any position that profits from bearish movement.

I could not make out whether 500 is future or options, but in case you have bought put options, then be careful about the STT to be paid if the option can be exercised on expiry.

10 lots of Nifty future short.. anyway , tomorrow I will close as soon market open.Volatile market gives lot of heart burn

 

[chaitanyagoa]

Re: S&P CNX NIFTY: Volumes on 23 Feb 2010

10 lots of Nifty future short.. anyway , tomorrow I will close as soon market open.Volatile market gives lot of heart burn

if u have shorted 10 lots then u might make a few bucks tonight:thumb:

All the best

 

[rajeabc]

Re: S&P CNX NIFTY: Volumes on 23 Feb 2010

if u have shorted 10 lots then u might make a few bucks tonight:thumb:

All the best

thanks.. I am expecting same.. lets see.

 

[bunny]

Re: S&P CNX NIFTY: Volumes on 23 Feb 2010

I am still bearish on this market.

A very few stocks have been showing signs of strength. I still have my reservations on them. Others are mostly showings signs of weakness. Bearish opinion continues.

 

[chaitanyagoa]

Re: S&P CNX NIFTY: Volumes on 23 Feb 2010

A very few stocks have been showing signs of strength. I still have my reservations on them. Others are mostly showings signs of weakness. Bearish opinion continues.

Hey Bunny,

I have been quietly watching your analysis and i respect your Opinions about the overall market view...

I do not watch as many individual stocks as u do... But i have been watching Bank NIfty and CNXIT futures for a week now.... they are at the massive support levels now an have been holding up very nicely indeed!!!! this makes me believe that we are in for a short term rally after the BUDget......Just my 2 cents...:thumb:

 

[bunny]

Re: S&P CNX NIFTY: Volumes on 23 Feb 2010

Hey Bunny,

I have been quietly watching your analysis and i respect your Opinions about the overall market view...

I do not watch as many individual stocks as u do... But i have been watching Bank NIfty and CNXIT futures for a week now.... they are at the massive support levels now an have been holding up very nicely indeed!!!! this makes me believe that we are in for a short term rally after the BUDget......Just my 2 cents...:thumb:

Hi Chaitanya,

Thanks for dropping in.

I do not maintain charts of indexes and futures due to technical difficulties. I did have a look at major Banking and IT stocks. Most of these stocks are showing signs of weakness. If you wish, I can share comments on all those 32 banking and 20 CNX IT stocks.

As far as a budget rally is concerned, I cannot comment on it. Rallies can occur in weak markets too, as a trap for long traders and to shakeout short traders. Even a strong market can be marked down on important events. Better to close your positions and take a holiday than stress yourself so much about something that you have no control on.