VSA Chart Analysis Discussion Thread

[tech/a]

I don't want to derail this excellent VSA thread but I did have COE in a watch list for a few days and this is about another way of looking at this type of stock behaviour.
I run my weekly scan of the All Ords stocks (~500) during the week sometimes just for a heads up and sometimes an opportunity to enter a weekly buy on a Friday when it is obvious that the signal will still be valid at the end of the day (and week).

In the case of COE, it came up in both the weekly and daily scans on Tue 28th Feb but because I now lean towards weekly only I held off to see how it would hold up for the rest of the week and the weekly OHLC bar in the pic below says it all (to me anyway).

While I occasionally miss out on some short term fast runners I am finding that this approach reduces the number of failed trades and gives me a better win/loss ratio.

Sorry for the thread disruption, just thought that the bigger picture was worthwhile mentioning and I was familiar with this stock for about a week

View attachment 70588

All good
The weekly shows a high and a low which could be tested
Note how tight the closes have been ( in a Range ) for the last 6 weeks

 

[Cam019]

For me the initial pattern was weak which wasn't certain until the very next bar. (5/10) .

Tech, could you elaborate on why the initial pattern was weak? Was it because the Tuesday 28th bar closed off its high which would indicate supply entering and demand was not able to absorb all the supply? Could you have known how weak it was on that 'assumption' alone without waiting the see the weakness in the Wednesday 1st and Thursday 2nd bars?

I don't want to derail this excellent VSA thread but I did have COE in a watch list for a few days and this is about another way of looking at this type of stock behaviour.
I run my weekly scan of the All Ords stocks (~500) during the week sometimes just for a heads up and sometimes an opportunity to enter a weekly buy on a Friday when it is obvious that the signal will still be valid at the end of the day (and week).

In the case of COE, it came up in both the weekly and daily scans on Tue 28th Feb but because I now lean towards weekly only I held off to see how it would hold up for the rest of the week and the weekly OHLC bar in the pic below says it all (to me anyway).

While I occasionally miss out on some short term fast runners I am finding that this approach reduces the number of failed trades and gives me a better win/loss ratio.

Sorry for the thread disruption, just thought that the bigger picture was worthwhile mentioning and I was familiar with this stock for about a week

View attachment 70588

Thanks for the input Boggo. It's always helpful to be able to see another persons view on an unfolding situation. To me, the weekly chart you posted shows weakness as supply has not been absorbed by demand on the bar ending March 3rd, not the mention the bar testing the October 2014 high which would suggest buyers who got locked into a bad trade around that end of 2014 area on the left of the chart are looking to get out at B/E or with a slight profit after waiting over 2 years for the price to bounce back.