Trading with Volume Spread Analysis (VSA)

[nimish_rulz]

The standard of posts being posted in this thread is deteriorating and the posts are getting ugly. Request everyone to be calm and let the discussion be on the subject without any personal attacks/allegations ....

Hope all will cooperate ......

Smart_trade

Thank you I hope your view puts some sanity into the thread!

 

[chaitanyagoa]

***********

Stop that now......

Coming back to trading, I am somewhat bullish on NIFTY. I would have been much satisfied if the market had closed above the psychological level of 4950 which i thought it would!!! But unfortunately..... ... We can't be over bullish until NIFTY holds and closes above 4950....

Secondly, Nimish is right on the Dow ... it is at the major resistance level like the NIFTY and it might take a challenge to break it, thanks to the bad data coming in everyday.....

 

[adultvish]

The standard of posts being posted in this thread is deteriorating and the posts are getting ugly. Request everyone to be calm and let the discussion be on the subject without any personal attacks/allegations ....

Hope all will cooperate ......

Smart_trade

I agree bro and I understand
From now on, I will not be reacting at all
sorry for any inconvenience that I would have caused because of being instigated by PMs of Mr. Bunny

 

[chaitanyagoa]

How are u doing dude. I never knew you live is US but figured out now from your top right profile in the post. You trade in US markets?

No brother!!! I am all Desi......:thumb::lol:

 

[chaitanyagoa]

The standard of posts being posted in this thread is deteriorating and the posts are getting ugly. Request everyone to be calm and let the discussion be on the subject without any personal attacks/allegations ....

Hope all will cooperate ......

Smart_trade

I am in Sir, Nice to see some experienced trader keeping an eye on all small brats(all of us)
:rofl::lol:

 

[adultvish]

Stop that now......

Coming back to trading, I am somewhat bullish on NIFTY. I would have been much satisfied if the market had closed above the psychological level of 4950 which i thought it would!!! But unfortunately..... ... We can't be over bullish until NIFTY holds and closes above 4950....

Secondly, Nimish is right on the Dow ... it is at the major resistance level like the NIFTY and it might take a challenge to break it, thanks to the bad data coming in everyday.....

Bhai, what I have experienced in trading is that exact levels are not working with Indexes because a number of scripts have their role to play. Therefore, I think it is the movement, spread and volume on the chart which can provide some clue. lets see what comes out in coming week.
happy trading bhai

 

[bunny]

Now please try to see this with an hourly chart and you ll get a completely different picture. The day when you are talking about a downbar with huge volume happened on Friday when Dow had closed positive on thursday and saw some pressure on futures by going 100 points negative due to the Fed Interest rate. But what you fail to sight is that in the last 2 hours same day the volumes rose and market went up to 4870 at one stage showing clearly absorption of access supply. Majority of the past days you ll see massive absorption of supply only to see some shorting going on at every rise hence the spread. The best would be to analyse the chart when market went down to 4670 only to close positive. This was on monday after the special trading day I guess. I ll post the charts right now in office so no access. Will do it once I get home. You are clearly forgetting the background which signals weakness but now the smart money has held the market at support levels and will take it up. Again just my view.

Hi Nimish,

My concern is the supply zone around 4950. At first, there was no demand at 3 Feb. When the market entered the same levels on 17 Feb, the volume increased on the squat bar. They suddenly started trading the near-4950 levels actively which they had avoided on Feb 3(no demand). The next bars are down bars which means that they must have confidently sold into the Feb 17 bar knowing that lack of demand at that level will not allow the market to go beyond it. The last bar, today, is a major upthrust.

 

[nimish_rulz]

No brother!!! I am all Desi......:thumb::lol:

Aite! I live here in the UK . Track mostly all the markets. I trade for myself in the equity market. I graduated sept09 and very new to all this just learning.

But the good part is I get to go home in a few days. Back to swadesh for a nice 1 month break. It will be awesome!

 

[nimish_rulz]

Hi Nimish,

My concern is the supply zone around 4950. At first, there was no demand at 3 Feb. When the market entered the same levels on 17 Feb, the volume increased on the squat bar. They suddenly started trading the near-4950 levels actively which they had avoided on Feb 3(no demand). The next bars are down bars which means that they must have confidently sold into the Feb 17 bar knowing that lack of demand at that level will not allow the market to go beyond it. The last bar, today, is a major upthrust.

I dont dispute with you on the fact that we fell a lot from our highs. In realty we should have closed much above 4950 to have any sort of Bull run. But since that happened in the last 30 mins I guess it was more a profit taking then anything else from the day traders. Although Mutual Funds sold a lot today. But at the same time they had been buying at every fall in the nifty so they get to book some profit. As I said before to turn completely Bullish we will have to break that 4950 barrier on closing basis. But I at the same time I not bearish either. In the side ways trend I m more bull with a stop loss of 4830 under which if nifty closes, We are in trouble!

 

[chaitanyagoa]

Aite! I live here in the UK . Track mostly all the markets. I trade for myself in the equity market. I graduated sept09 and very new to all this just learning.

But the good part is I get to go home in a few days. Back to swadesh for a nice 1 month break. It will be awesome!

Better earn a few bucks to take home!!!

On a personal Note, i too graduated with my masters last year!!!

@Bunny >> Yes, Bunny.. u are partly right... the 4950 is a huge supply zone.... that is one reason i prefer to stay Neutral on the current market......

I say i am not bearish for one reason.... We have a huge support at the 4830 levels....and we are hardly 100 points above that.... But we cannot be bullish to, as we are in a major suppy zone.... i have always been telling ppl not to buy until we cross the 4920-4970 zone..... Just my peanuts worth of knowledge