These are “No Selling Pressure” bars as discussed in this guide.If you are not sure, please read this VSA guide before moving on to the example below. To understand the examples below, you must know what a “No Selling Pressure” bar is. Here, you will see one of the most popular methods in action - the volume spread analysis (VSA). There are many methods to use volume in market analysis. If you are not confident of your price analysis, adding volume to your arsenal will only confuse you.īut if you are skilled in reading volume signals alongside price movements, you have a great deal to gain. #3: 9/30 Trading Setup With Volume Spread Analysis (VSA) Principlesīe careful when analysing volume. In the process, they also assured us of bullish undercurrents. Here, the dual moving averages helped to clarify the raw price action. Observe how the 9 EMA stayed above the 30 WMA despite the seemingly sideways price action. When trading the 9/30 setup, don’t forget to pay attention to the moving averages. The second bounce off the support zone was also a conservative long 9/30 setup.These two bounces showed that the market responded to that support area. The congestion area implied a support zone.In this case, for consistency, we used the definition in my trading course. There are many ways to define congested price action. We’ve identified a congestion area here.In the example below, let’s look at how a congestion area can help you to find a higher quality 9/30 setup. They offer great value for any trader looking to improve their trading odds. #2: 9/30 Trading Setup With Congestion ZonesĬongestion areas are excellent support and resistance areas. That was a strong bullish signal, not to mention the trend line support. The setup bar finished as a strong bullish trend bar despite the bearish opening gap. However, there was a solid redeeming factor. Hence, the bearish momentum was evident and might have deterred some traders. The setup bar in this example was not only below the 9 EMA. This conservative 9/30 setup (entire bar below the 9 EMA) bounced off the bullish trend line - a great long setup.(The trend line drawing technique is taught in my trading course.) This conservative 9/30 setup (whole bar below the 9 EMA) bounced off the bullish trend line - a great long setup. This bullish trend line was drawn based on past price action.We have two different tools looking for similar price action behaviour. While a trend line relies on price action structure, the 9/30 setup uses a pair of indicators. With this premise in mind, it’s easy to think of the trend line bounce. It seeks to align itself with the prevailing market trend. The 9/30 setup is essentially a retracement setup. When attempting to improve a trading setup, never forget its premise. #1: 9/30 Trading Setup With Trend Line Bounce Place sell stop order below the low of the bar that closes above 9 EMA.Bar closes above 9 EMA (More conservatively, entire bar above 9 EMA). Place buy stop order above the high of the bar that closes below 9 EMA.Bar closes below 9 EMA (More conservatively, entire bar below 9 EMA).30-period weighted moving average (WMA).
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