A bit of an early start today. In these Futures charts there are two critical areas to focus on within the volume indicator. The first in the lowest volume of the day. This is where the session divider intersects with the volume (1) then there is the mid session volume (2).
Its consistent and its predictable. In VSA you are looking for the lowest volume because price will be drawn through these areas like a ht knife through butter. In VSA it is called "The path of least resistance."
MASTERING THE MARKETS PAGE 40:
"The following points represent the path of least resistance:
• If selling has decreased on any down-move, the market will then want to go up (no selling pressure).
• If buying has decreased on any up-move, the market will want to fall (no demand),
Both these points represent the path of least resistance.
• It takes an increase of buying, on up-days (or bars), to force the market up.
• It takes an increase of selling, on down-days (or bars), to force the market down.
• No selling pressure (no supply) indicates that there is not an increase in selling on any down-move.
• No demand (no buying), shows that there is little buying on any up-move.
Bull moves run longer than bear moves because traders like to take profits. This creates a resistance to upmoves. However, you cannot have a bear market develop from a bull market until the stock bought on the
lows has been sold (distributed). Resistance in a bull move represents selling. The professional does not
like to have to keep buying into resistance, even if he is bullish. He also wants to take the path of least
resistance. To create the path of least resistance he may have to gap-up, shake-out, test, and so on, or he
may do nothing at that moment, allowing the market to just drift.
Bear markets run faster than bull markets because a bear market has no support from the major players.
Most traders do not like losses and refuse to sell, hoping for a recovery. They may not sell until forced out
on the lows. Refusing to sell and accepting small losses, the trader becomes locked-in and then becomes a
weak holder, waiting to be shaken out on the lows."
If you want the full free manual just websearch the above book. Its literally free.
Its consistent and its predictable. In VSA you are looking for the lowest volume because price will be drawn through these areas like a ht knife through butter. In VSA it is called "The path of least resistance."
MASTERING THE MARKETS PAGE 40:
"The following points represent the path of least resistance:
• If selling has decreased on any down-move, the market will then want to go up (no selling pressure).
• If buying has decreased on any up-move, the market will want to fall (no demand),
Both these points represent the path of least resistance.
• It takes an increase of buying, on up-days (or bars), to force the market up.
• It takes an increase of selling, on down-days (or bars), to force the market down.
• No selling pressure (no supply) indicates that there is not an increase in selling on any down-move.
• No demand (no buying), shows that there is little buying on any up-move.
Bull moves run longer than bear moves because traders like to take profits. This creates a resistance to upmoves. However, you cannot have a bear market develop from a bull market until the stock bought on the
lows has been sold (distributed). Resistance in a bull move represents selling. The professional does not
like to have to keep buying into resistance, even if he is bullish. He also wants to take the path of least
resistance. To create the path of least resistance he may have to gap-up, shake-out, test, and so on, or he
may do nothing at that moment, allowing the market to just drift.
Bear markets run faster than bull markets because a bear market has no support from the major players.
Most traders do not like losses and refuse to sell, hoping for a recovery. They may not sell until forced out
on the lows. Refusing to sell and accepting small losses, the trader becomes locked-in and then becomes a
weak holder, waiting to be shaken out on the lows."
If you want the full free manual just websearch the above book. Its literally free.