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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In general, it always pays to give due attention to resistance zone even karthuk you are using you own trading systems. Like I said before, the breakout traders, greenhorns rush in and the shorts will run for cover. Normally in a down trend, you will see a down bar with high volume bar closing on the upper side. Lower the closer the stronger the indication of weakness. Much care is taken not to make it visible.
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. However we will also find rectangular bases where the stock moves marrar and down but restricted within a wider range. The stock trend may even flatten. Any high volume wide range upbar in a down trend would indicate strength. The repeat move could be good entry points.
An Ideal Stopping Volume bar will be down bar with high volume and msrar near the top. Cause and Effect 3.
C We have a bar with increased volume and closing near the low. The karfhik is to jack up the prices so the SM can fill their pockets. The volume would kagthik be excessive. These are Sentiment Change Indicators. You will find that the volume is more on down days and less on up days.
Babu Kothandaraman from the above website Page 10 prices were marked up during the day for simplicity we use day, it is equally applicable on all time framesthe trading activity was High as indicated by the High volume and the prices dropped to near the low or to the low towards the closing hours. Also messages are displayed when the price cross a support or resistance line. First thing karthikk of course to understand a little more about working of Smart Money hereafter we will just use the term SM to indicate Smart money.
This is actually Author: In the final climax run, the stock explodes in terms of volume and price. The AFL can be downloaded kartbik my shared folder. There is nothing special about it. We are a non-profit group that run this website to share documents.
Volume Spread Analysis Karthik Marar – Free Download PDF
When the SM has disposed off most of the accumulated stock they start the most dramatic move of crashing down the prices. Soon more and more dumb money starts rushing into the market not wanting to be left out of the big rally.
High volume should be an important consideration. All the selection can be performed from the parameter window. The SM may be absorbing the stocks to start the game again. So how do we get a clue whether it is a retracement or a reversal? VSA Basics — Part 11 Reversal and Retracements Written by karthik Marar Tuesday, November Reversal and Retracement One of the difficulties we face when analyzing the prices is determining whether the stock is going through a reversal or just a retracement.
It takes some effort to get the dumb money interested in buying into the rally. They have to give very little chances to dumb money which is generally slow in reacting to exit. All the adjustments and selection are done from the Parameter window. Trend lines are resistance areas and some effort is karthil to break them.
Experiments in Technical Analysis
mxrar As a result the stock will soon see side ways movement or go into a long accumulation phase. A test bar viewed in isolation does not signify anything.
But then the stock may go for another up move. This would mean that the SM is interested to keep up the price and they have karyhik the supply on the previous day. Please fill this form, we will try to respond as soon as possible.
Still we will look at these phases more in details as this would help us to understand the SM operation better which in turn would give a better perspective to VSA. We will also see weakness creeping in in terms of upthurst bars or pseudo upthrust bars near the upper trend line. Many a time you will notice Upthrusts with low volume.
Unfortunately the retail traders are the last to get in. He also calls area above the upper trend line or supply line as over bought zone and the area below the lower trend line as over sold zone. However, not all the candle stick rules apply here. One has to be very careful trading the breakout from the distribution zone. For an example, we will look at the chart of HCC where a clear accumulation indication was seen in June A swing high can be considered as a marxr only if the price reacts at that level.
However the signals were generated were too many creating a confusing picture. Babu Kothandaraman from the above website Page 8 A wide spread Bar — If the spread of the bar is above 1. These are elementary and most of you understand this. This means the SM was really successful in marking the price up and many traders get trapped into bad positions in the kartnik of the day.
At the same time the SM also supports the prices above a certain lower line which is the support area. Volume need not be very high.