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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Same is the case for the Supports.
The difficult lies in the recognizing the strength returning after the bottoms. Going short on a low karthuk break of support could result in a bad trade. This would mean that the demand is drying up.
It is not very easy to spot distribution. The next bar shows that supply has decreased which encouraged the SM to push further.
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You will find that the volume is more on down days and less on up days. Today is karhtik day to Indians. As a result the stock will soon see side ways movement or go into a long accumulation phase. You will find that both the arrows are in the same direction in retracements. In the same way if supports are broken with high volume it is a sign of bearishness and low volume crossing should be viewed with caution.
It would be nice to look at Wyckoff methods time to time as his work is the basic one and others have built on it. Some Basic Bar definitions. These are not effective karthkk the Upthrust.
Fourth, the stock should be trading in a range for some weeks if not months. Suddenly it can just pop out of the congestion zone. Babu Kothandaraman from the above website Page 5 top would indicate a successful breakout.
Many a time, it is hard to maintain any semblance of the uptrend continuing and so a sideways congestion move ensues. There could be a series of upthrusts and then…….
Volume Spread Analysis Karthik Marar – Free Download PDF
We will also see sideways movement during the up move which would be congestion areas. The angle of ascent becomes lesser and lesser. It is easy to identify these bars. By this process the SM is shaking out the weak money from the stock.
So the first thing the SM does is find something that is available a plenty and cheap. The buyers are not willing to pay a higher price for the stock. If the down bar is with low volume and closing up, then the weakness of the upthrust bar is still in question.
The retracement is mainly due to short term traders booking their profits. A TEST bar typically dips into a previous high volume area and recovers to close near the high on low volume.
Experiments in Technical Analysis
Also too much volume is not good. So, we have to always look out for weakness in an uptrend and for strength in a downtrend. From a VSA perspective we will find support or strength coming near the bottom trend line. 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 in trading the long and short, this kind of base provides good opportunities to go long at the support line and go short at the top of the range.
The congestion areas are characterized by Indecision. Finally, the stock could make a climax run where the price and volume explode. The SM often attempt to push through the Resistance areas with a huge volume.
Then, there begins the process of marking up the price. The repeat move could be good entry points.
If Resistance areas are crossed with high volume it is a sign of bullishness and if the crossing is with low volumes caution is advice. The stock moves within an upper resistance or supply area and a lower support or demand area.