Volume Spread Analysis is an attempt to predict the market direction. If you want to follow the footprints of the big players in the market, relying. Home Tags Kartik Marar. Tag: Kartik Marar. Smoothed RSI by Kartik Marar · nfzrmn – September 27, 1 · Nick Swing MA AFL by Kartik Marar. Trading The MACD Ver by Karthik Marar – Largest database of free formulas, indicators, oscillators and trading systems for Amibroker (AFL), Metastock.
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High volume Upthrusts are a sure indication of weakness, higher the Volume the stronger the indication. Karthk the next bar is a Downbar closing down it is clear that the weakness has set in and the immediate trend is reversing. The No Supply bar is a narrow range, low jarar down bar closing in the lower half.
If the Bar after the Upthrust bar is an Upbar closing up, then it would mean that the weakness projected by the upthrust is negated. Like the markup phase we will karthiik some rallies in the downtrend. These are clearly evident on the ,arthik in terms of high volume wide range bars.
There is option to select the background color. Also some signals like Zero line cross, Zero line bounce and zero line loop were added. The breakout is just the beginning.
Congestion area are mostly sideways range bound movements where the stock appears to have no interest either to move up or to move down. The next step is to create a scarcity of the same and get people interested in it which in turn generates the demand.
Babu Kothandaraman from the above website Page 31 different form the horizontal trading ranges where the stock movement is sideways. Many a time, you will find, during an effort to krthik an up bar and the next bar would be high volume bar closing near the low indicating large supply coming in swamping the demand.
Some Basic Bar definitions. These are Sentiment Change Indicators. The end is generally indicated by a stopping volume or an absorption volume.
This matar itself does not portend great weakness. VSA attempts to read the moves of the smart money by looking at the price, volume and the spread of prices. It is also common to find mraar bars in an up trend which are indications of continuation of the trend. What does this No Demand Bar indicate?
Sometime you would find weak up thrusts in early trends. Once a large quantity has been absorbed, the number of floating stock reduces and the demand increases.
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Normally in a down trend, you will see mara down bar with high volume bar closing on the upper side. These Efforts without result are good indications of weakness. The weakness is more pronounced now. The next bar is an effort to Rise marxr. Just like the Upthrust bar, in a bearish move, we will find a High volume wide range up bar with the low chartering into new lows and the closing will be near the high.
Falling volume and decreased spread would mean that stock would be stalled at these areas. At a later stage we can discuss about methods to arrive at better methods of defining the average which works at all times. But then the stock may go for another up move. He also has the option to quit at the stock fails to cross the resistance at the range top, For a short term trader who is adapt marsr trading the long and short, this kind of base provides good opportunities to go long matar the support line and go short at the top of the range.
The next bar shows that supply has decreased which encouraged the SM to push further. The next bar looks more like a test for supply. Then they would check again to see supply is present.
But in general any narrow spread, low volume Upbar closing in the lower half of the bar indicates No demand. So, we have to always look out for weakness in an uptrend and for strength in a downtrend. In the same way decreased volume and spread as the stock approaches support area is sign that the stock would take support in that area and reverse.
Also while analyzing the bar action we will also keep in mind the general background of the market.
The foundations for volume spread analysis were laid by R. The SM has decided to start the game all over again and to stop the down tide and start accumulating. It is also common to see consolidation bases at the bottoms.
Experiments in Technical Analysis
The AFL can be downloaded from my shared folder. They have to give very little chances to dumb money which is generally slow in reacting to exit. Karthi, steep an ascent is also a problem. As the availability decreases and more people want it then the demand increases. It is not very easy to spot distribution. VSA measures the weakness and strength of individual bars. The code itself kafthik undergone a big change. For the version 1. There are many other patterns which signify accumulation.