Applied Volume Spread Analysis [VSA and VPA]
Tried to work over Volume Spread Analysis concepts
The Script Helps one figure out the analysis of Price Volume as per the Tom William's book "Mastering the Markets"
with some of my modifications to find out volumetric level of judgement,
You can see The notifications of a pattern on the chart,
Also gray and black lines which you see are the volumetric derived price action levels!
Some definitions
Up Thrusts
Up-thrusts are designed to catch stops and to mislead as many traders as possible. They are normally seen after there has been weakness in the background. The market makers know that the market is weak, so the price is marked up to catch stops, encourage traders to go long in a weak market, AND panic traders that are already Short into covering their very good position
upthrust bar at high volume is a sure sign of weakness. One may even seriously consider ending the Longs AND be ready to reverse. Also note that when A wide spreaddown-bar that appears immediately after any up-thrust, tends to confirm the weakness (the market makers are locking in traders into poor positions). With the appearance of an upthrust you should certainly be paying attention to your trade AND your stops. On many upthrusts you will find that the market will 'test' almost immediately. A wide spread down bar following a Upthrust Bar.This confirms weakness. The Smart Money is locking in Traders into poor positions.
Strength Bar
The stock has been in a down Trend. An upbar with higher Volume closing near the High is a sign of strength returning. The downtrend is likely to reverse soon. when the volume is very much above average. This makes this indication more stronger.
Pseudo Up Thrust
A pseudo Upthrust. This normally appears after an Up Bar with above average volume. This looks like an upthrust bar closing down near the Low. But the Volume is normally Lower than average. this is a sign of weakness.If the Volume is High then weakness increases. Smart Money is trying to trap the retailers into bad position. A downbar after a pseudo Upthrust Confirms weakness. If the volume is above average the weakness is increased.
Low Volume Test applied
The previous bar was a successful Test of supply. The current bar is a upbar with higher volume. This confirms strength
Trend Change
The stock has been moving up on high volume. The current bar is a Downbar with high volume. Indicates weakness and probably end of the up move
Effort Up
Effort to Rise bar. This normally found in the beginning of a Markup Phase and is bullish sign.These may be found at the top of an Upmove as the Smart money makes a last effort to move the price to the maximum
Effort Down
Effort to Fall bar. This normally found in the beginning of a Markdown phase.
No Supply Bar
No Supply. A no supply bar indicates supply has been removed and the Smart money can markup the price. It is better to wait for confirmation
Stopping Volume
This will be an downbar during a bearish period closing towards the Top accompanied by High volume. A stopping Volume normally indicates that smart money is absorbing the supply which is a Indication that they are Bullishon the MArket.Hence we Can expect a reversal in the down trend.
No Demand Bar
Any up bar which closes in the middle OR Low, especially if the Volume has fallen off, is a potential sign of weakness. Things to Look Out for: \n if the market is still strong, you will normally see signs of strength in the next few bars, which will most probably show itself as a Down bar with a narrow spread, closing in the middle OR High. * Down bar on Low Volume.
How can you get Access
Just private message me!
Will be happy to help, use comment box for constructive comments only
The Script Helps one figure out the analysis of Price Volume as per the Tom William's book "Mastering the Markets"
with some of my modifications to find out volumetric level of judgement,
You can see The notifications of a pattern on the chart,
Also gray and black lines which you see are the volumetric derived price action levels!
Some definitions
Up Thrusts
Up-thrusts are designed to catch stops and to mislead as many traders as possible. They are normally seen after there has been weakness in the background. The market makers know that the market is weak, so the price is marked up to catch stops, encourage traders to go long in a weak market, AND panic traders that are already Short into covering their very good position
upthrust bar at high volume is a sure sign of weakness. One may even seriously consider ending the Longs AND be ready to reverse. Also note that when A wide spreaddown-bar that appears immediately after any up-thrust, tends to confirm the weakness (the market makers are locking in traders into poor positions). With the appearance of an upthrust you should certainly be paying attention to your trade AND your stops. On many upthrusts you will find that the market will 'test' almost immediately. A wide spread down bar following a Upthrust Bar.This confirms weakness. The Smart Money is locking in Traders into poor positions.
Strength Bar
The stock has been in a down Trend. An upbar with higher Volume closing near the High is a sign of strength returning. The downtrend is likely to reverse soon. when the volume is very much above average. This makes this indication more stronger.
Pseudo Up Thrust
A pseudo Upthrust. This normally appears after an Up Bar with above average volume. This looks like an upthrust bar closing down near the Low. But the Volume is normally Lower than average. this is a sign of weakness.If the Volume is High then weakness increases. Smart Money is trying to trap the retailers into bad position. A downbar after a pseudo Upthrust Confirms weakness. If the volume is above average the weakness is increased.
Low Volume Test applied
The previous bar was a successful Test of supply. The current bar is a upbar with higher volume. This confirms strength
Trend Change
The stock has been moving up on high volume. The current bar is a Downbar with high volume. Indicates weakness and probably end of the up move
Effort Up
Effort to Rise bar. This normally found in the beginning of a Markup Phase and is bullish sign.These may be found at the top of an Upmove as the Smart money makes a last effort to move the price to the maximum
Effort Down
Effort to Fall bar. This normally found in the beginning of a Markdown phase.
No Supply Bar
No Supply. A no supply bar indicates supply has been removed and the Smart money can markup the price. It is better to wait for confirmation
Stopping Volume
This will be an downbar during a bearish period closing towards the Top accompanied by High volume. A stopping Volume normally indicates that smart money is absorbing the supply which is a Indication that they are Bullishon the MArket.Hence we Can expect a reversal in the down trend.
No Demand Bar
Any up bar which closes in the middle OR Low, especially if the Volume has fallen off, is a potential sign of weakness. Things to Look Out for: \n if the market is still strong, you will normally see signs of strength in the next few bars, which will most probably show itself as a Down bar with a narrow spread, closing in the middle OR High. * Down bar on Low Volume.
How can you get Access
Just private message me!
Will be happy to help, use comment box for constructive comments only