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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Each bar could be characterized to indicate Strength or Weakness based on the Spread and volume. This one way explains why the up move moves are slow and the down moves are very rapid.

It only shows the lack of participation from SM.

These are elementary and most of you understand this. The repeat move could be good entry points. Second, the spread of the bars High — Low should be narrow. The point at which the retracement stops becomes more important. The problem of calculating the average spread is that during volatile period the average spread is high and in non volatile period the average spread is lower. A close near the High would be termed as a Up close. Though this is their basic definition I have seen subtle difference in the No Demand bar throwing up different commentaries.

Before we proceed with Support and Resistances with regards to VSA, let us look at some basics about support and resistances. The earlier version was a step in refining the signal generation codes. The shorts run for cover and the green horns rush in not to be left out The mark down phase is the most depressing and cruel part of the SM game plan.


Volume need not be very high. The most common recognizable one is the one where the stock moves sideways in a narrow range and the marag has dried up. When the stock retracts towards the trend line, small spreads and lower volume indicate that the stock is likely to be supported by the trend line.

Volume Spread Analysis Karthik Marar

The No Demand bar does not indicate any immediate reversal. However these kinds kagthik bar can be seen any where in a down trend. The current down Trend may possibly end soon and we may see an Uptrend soon. In the same way the Support areas do not represent a huge demand waiting to lap up all the supply coming in.

The code itself had undergone a big change. It is better to note the volume during these rallies. Babu Kothandaraman from the mrar website Page 26 lows only if the price reacts at these levels. A green up Arrow indicates that there is a change of sentiment.

Experiments in Technical Analysis

When most traders are bullish or bearish the volume is high. So trading these breakouts could be tricky. Tom Williams divides this channel into upper quarter and lower quarter and most reactions happen in these quarter. The current Up Trend may possibly end soon and we may see Down trend soon. But then, practice makes one perfect.

The SM has decided to start the game all over again and to stop the down tide and start accumulating. This is a good sign of strength returning and you find the trend reversing almost immediately. The reverse Upthrust is rare and is found rarely at bottoms.

Babu Kothandaraman from the above website Page 29 D Here the volume is simply tapered off. Here is an example of downward trend channel Author: Tom Williams briefly mentions this in his book. The difficult lies in the recognizing the strength returning after the bottoms. Also it would a good sign if the stocks trading range is much above the support line.


There will not be any demand for something when there is plenty of it available and nobody wants it. Most of iarthik time the Upthrust will be moving into new higher territory.

Volume Spread Analysis Karthik Marar – Free Download PDF

The users are advised not to use these as buy and sell signals. We will explore a little more on weakness indications.

Of course the usual prolonged kadthik has not been done yet. Looking forward to feed backs. We all use Trend lines and trend line breaks to decide reversals. Typically you will see the lows are getting higher.

The end is generally indicated by a stopping volume or an absorption volume. This would suggest increased probability of a Trend line break. It is also common to see consolidation bases at the bottoms. VSA attempts to read the moves of the smart money by looking at the price, volume and the spread of prices.

Size px x x x x The up move may kqrthik deteriorate and start rapidly descending after a furl of heightened activity. The volume need not be very high at all. Wider the spread, more potent the Upthrust.

Many a time, you will find, during an effort to move an up bar and the next bar ksrthik be high volume bar closing near the low indicating large supply coming in swamping the demand.