Ultra High Volume Bar

Ultra High Volume

We have 2 kinds of Ultra high Volume Bars to take note of.

Ultra high volume up bar usually indicates weakness, it usually mean that professional are selling in the market while the herds are buying. Usually occur near market tops, the ultra high volume bars is usually followed by an upthrust the following day. 

However, there are instances that professionals are bullish and ultra high volume can actually mean strong demand too. The question is when and where in the chart?

In VSA, we respect the effort to push through the old tops. Look at the charts from the left and identify previous resistances.The professionals, if they are bullish will push through old market tops/resistance from the left of the chart.

Definitely, supply is immense if not the volume will not be ultra high. Thus, look for tests in the next few bars. If volume is low on the test, this is a high probability trade that we will see a continued effort from the professional to long.

Below is an example on Interra Resources, pushing through an resistance and followed by a test.








Comments

  1. bhoomi23 February 2016 at 19:07

    Nice stuff. I found a cool news blog for update. Now I can see the latest news. Worked like a breeze.. share market tips

    ReplyDelete

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