Volume Spread Analysis

[nick721156]

20Dec2010:

According to candle stick pattern it is a kind of rikshawman which is appearing after a minor rally. it is considered bearish. according to VSA, it is a down bar with below avg volume closing in the middle which is positive because there are not many sellers. yet, after a rally and then sideways movement, a down bar with below average volume tells that Smart money is not taking part. they are waiting. again today's bar has not crossed the resistance with high volume. rather it is approaching resistance with low volume. it is bearish. again, it is a variation of upthrust that failed to close on high which is again -ve. formation of descending triangle is still looming large. odds are in favour of the bear. as chart is not clear, better adopt wait & watch policy.

please correct me wherever I am wrong.

 

[nick721156]

approaching res with low vol. until it breaks the res with good vol. upside is limited.

 

[nick721156]

no clear direction.

 

[nick721156]

indecision in the market is still there.

 

[nick721156]

good force will be required to move up.
there is a minor rally. after which a kind of last bullish engulfing pattern has appeared which is considered bearish, because bullish engulfing pattern should appear after a downtrend and not after a rally. again it is at res with low volume. so, good force will be required.

 

[nick721156]

position only after clear direction.

 

[Gang123]

20Dec2010:

According to candle stick pattern it is a kind of rikshawman which is appearing after a minor rally. it is considered bearish. according to VSA, it is a down bar with below avg volume closing in the middle which is positive because there are not many sellers. yet, after a rally and then sideways movement, a down bar with below average volume tells that Smart money is not taking part. they are waiting. again today's bar has not crossed the resistance with high volume. rather it is approaching resistance with low volume. it is bearish. again, it is a variation of upthrust that failed to close on high which is again -ve. formation of descending triangle is still looming large. odds are in favour of the bear. as chart is not clear, better adopt wait & watch policy.

please correct me wherever I am wrong.

Agreed,

But cant we think it in other way. Means The smart money is in a process of buying at bottoms( at 2700 to 2850) for a re accumulation........ OR ....... sellling at Hight re-distribution 2950 to 6100. I doubt, they may take this market upto 6200 in Jan and start marking down from there.

I may be wrong,

Gang.

 

[SavantGarde]

Nick,

If You want to get true picture....use the Nifty Spot or NF instead of Minifty

SavantGarde

 

[SavantGarde]

Nick,

If You want to get true picture....use the Nifty Spot or NF instead of Minifty

SavantGarde

 

[jagankris]

Dear Gangaji,

Pls enable your private message settings.

Thanks,
JK