How to trade breakouts using VSA (Volume Spread Analysis)

[Greenscreen]

Don't have time to mark up a chart right now.
BUT a clear answer is seen in the WEEKLY chart.

Have a look and see if you can spot it!

Refer to my comments on the Continuation Breakout thread and join the dots!

I've joined some dots. Not sure what shape it makes but here are my thoughts

Ultra high volumes on the weekly whose range is tested on the weekly and price subsequently 'jumps the creek', hold a greater validity as the aforementioned price bars contain more meaningful volume due to the very nature that a weekly bar covers more time.


On the weekly I can see a no supply test soon after those ultra high volume bars meaning that any subsequent breakout would move well irrespective of volume of the breakout.


Is this what you were me towards?


On a similar point, has anybody done any analysis of position of test bar within the range of the UHV bar? And volume of the test bar in relation to the bar it is testing? My thoughts are the greater the volume disparity the better.

 

[tech/a]

I've joined some dots. Not sure what shape it makes but here are my thoughts

Ultra high volumes on the weekly whose range is tested on the weekly and price subsequently 'jumps the creek', hold a greater validity as the aforementioned price bars contain more meaningful volume due to the very nature that a weekly bar covers more time.


On the weekly I can see a no supply test soon after those ultra high volume bars meaning that any subsequent breakout would move well irrespective of volume of the breakout.


Is this what you were me towards?


On a similar point, has anybody done any analysis of position of test bar within the range of the UHV bar? And volume of the test bar in relation to the bar it is testing? My thoughts are the greater the volume disparity the better.

Pretty good

 

[pavilion103]

Pretty good <img src="https://www.aussiestockforums.com/forums/attachment.php?attachmentid=60739"/>

Love this sort of analysis. Have saved many many of your posts (charts) to my personal files over the past 4 years.

I look forward to getting back into stocks at the next opportune time.

 

[Greenscreen]

Pretty good


View attachment 60739

Many thanks Tech/A. I do feel comfortable with entering on the LPS after a period of accumulation. Now the trick is to distinguish between accumulation and distribution.

 

[tech/a]

Many thanks Tech/A. I do feel comfortable with entering on the LPS after a period of accumulation. Now the trick is to distinguish between accumulation and distribution.

I'll private mail you with a trick I use
Merry Xmas