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Any Volume spread analysis / Wyckoff traders?

Rubn (Rubn)
Dec 02 2013 at 15:46
85 posts
Fake break? Supply is very strong in the highs, though. Also an unusual high volume Monday. Mondays usually are low volume/activity.

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Preservation of capital and home runs.
Thalantas
Dec 02 2013 at 15:50
192 posts
Rubn posted:
Fake break? Supply is very strong in the highs, though. Also an unusual high volume Monday. Mondays usually are low volume/activity.


I believe that this is related to this inactivity from last thursday / friday (long weekend). Maybe some indicators got post-poned to be released this monday. I noticed much more news than this average monday ;)

A smooth sea never made a skillful sailor.
Rubn (Rubn)
Dec 02 2013 at 15:53
85 posts
Thalantas posted:

I believe that this is related to this inactivity from last thursday / friday (long weekend). Maybe some indicators got post-poned to be released this monday. I noticed much more news than this average monday ;)


You are very right, my friend. Did not think of that before. Have a great week, mate. :-)

Preservation of capital and home runs.
Rubn (Rubn)
Dec 03 2013 at 13:15
85 posts
Look at this beautiful action, break with volume, test on decreasing volume an continuation.

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Preservation of capital and home runs.
Rubn (Rubn)
Dec 10 2013 at 05:14
85 posts
This is an example of a low volume test (also a no supply bar) a few hours ago, basically the break with volume / test on low volume pattern.

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Preservation of capital and home runs.
Rubn (Rubn)
Dec 10 2013 at 05:17
85 posts
Rubn posted:
This is an example of a low volume test (also a no supply bar) a few hours ago, basically the break with volume / test on low volume pattern.


In my humble opinion that is one of the best no volume test I've ever see. The volume is super low and its in middle of a high volume time-moment. The next bar is on average/nice volume and it was super bullish.

Preservation of capital and home runs.
Thalantas
Dec 10 2013 at 07:25
192 posts
Hi Ruben,

Just to be clear, what you call a low volume test is a situation following a high candle where you have a 'hammer' or any candle with few to no price move ? Or you only look for long wicks?

Cheers,

A smooth sea never made a skillful sailor.
Rubn (Rubn)
Dec 10 2013 at 14:27
85 posts
Thalantas posted:
Hi Ruben,

Just to be clear, what you call a low volume test is a situation following a high candle where you have a 'hammer' or any candle with few to no price move ? Or you only look for long wicks?

Cheers,


Hello my friend!

I've added the -from book- definition in this comment. In my personal opinion, that is what you want to look for at first, but often times the price does not do exactly that, with this in mind I consider to be a low volume test (on a bullish scenario):

One or more down bars (after the break with nice volume to the upside) with volume decreasing or relative low (relative to the moment, for example in the middle of London or NY session when volume/activity is usually high). Long wicks rejecting the broken level are very good but not always appear, you just need to look to price action coming back to the broken level with little momentum / volume.

Also in the example of yesterday what gave me extremly confidence was the fact that the low volume test was actually another VSA indicator called 'no supply'.

A no supply bar is a narrow spread or body down bar (really narrow) closing off the lows (usually with little wicks) with volume lower than the previous two bars (if volume is lower than more previous bars is better), this indicator shoulda appear after a sign of strenght (the break to the upside with nice volume was the sign of strenght in the market at that point).

I hope my answer is clear. If you have any other question, please shoot :-)


Attachments:


Preservation of capital and home runs.
Rubn (Rubn)
Dec 10 2013 at 14:29
85 posts
Take a look at this, this is basically the Wyckoff method, it explains also the low volume test in a more 'considering the forest and not just the trees' way.

Cheers!

Attachments:


Preservation of capital and home runs.
Rubn (Rubn)
Dec 10 2013 at 14:31
85 posts
Rubn posted:
Take a look at this, this is basically the Wyckoff method, it explains also the low volume test in a more 'considering the forest and not just the trees' way.

Cheers!


The low volume test would be called 'jump the creek' by Wyckoff purists.

Preservation of capital and home runs.
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