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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This is called a Stopping volume. Upbar – A bar would be called an up bar if the close of the bar is above the close of the previous bar. Volume spread analysis is a new way of looking at the market. But I go a step further and I draw a middle line. Posted by Karthik at 4: K-Trend Indicator Version 1. Here looking for up thrusts and other weak indication becomes necessary.
Volume Spread Analysis Karthik Marar – Free Download PDF
First thing is of course to understand a little more about working of Smart Money hereafter we will just use the term SM to indicate Smart money. The next bar is an effort to Rise bar. In mark up phase after the stock has run up for some time, you will notice the volume diminishing and the spreads narrowing. Many a time, you will find, during an effort to move an up bar and the next bar would be high volume bar closing near the low indicating large supply coming in swamping the demand.
Once the smart money has a cornered a huge chunk of the stocks, they are ready for the next move. Many a time, it is hard to maintain any semblance of the uptrend continuing and so a sideways congestion move ensues. Consequently this indicates weakness. B Here the volume is increasing as the prices approach the trend line.
For that matter, the stock needs not exhibit the characteristics mentioned above. The congestion areas are characterized by Indecision. In order to move the stock up, the SM has to put in some effort. The RWI index and trend analysis deserves a separate dedicated post which I will do later. Instead, we will look at the how volume and spread can give us clues whether the trend line will hold or break. The current down Trend may possibly end soon and marrar may see an Uptrend soon.
For example, we will take an uptrend. As a starting point we will define any volume above 1. There are a few things to lookout for.
Each bar could be characterized to indicate Strength or Weakness based on the Spread and volume. But are still signs of weakness.
Volume Spread Analysis Karthik Marar
Here is an example of downward trend channel Author: This area marrar a failed test and no demand bars indicating a general weakness. Let us look at the various changes as below. Here is VPA Version 3. Many of the ranges are easily tradable.
The idea is to jack up the prices so the SM can fill their pockets. Back to my Blog after a long time. The closes are slowly getting nearer to the high. First, the indecision should be quite visible. Then, there begins the process of marking up the price.
High volume Upthrusts are a sure indication of weakness, higher the Volume the stronger the indication. This is a deviation I have taken from the general VSA concept in my analysis. If the background is weakness the No Demand bar indicates enhanced weakness.
If the volume is moderate we should see it coming in strongly soon. We need to pay lot of attention to these congestion areas for this could be final distribution areas before the mark down begins.
Experiments in Technical Analysis
Akrthik angle of ascent becomes lesser and lesser. But the mark down phase has a silver lining… towards the end it offers the smart investors many opportunities to enter into some really profitable trades.
If the Bar is wide closing down the weakness is more pronounced.