Re: Daffy Trades Micro Patterns under 20c
Hey tech/a, got a VSA question on API.
Looks like a few no supply bars last last week around the 1.55 level.
Then we get this big bar on tiny volume last fri. I've read some pretty conflicting stuff on this kind of low vol move.
Ill answer this here although not a stock in this thread---but raises questions that are relevant.
The section of quote in
Black.
My light bulb moment in the battle between bull and bear was when I looked at any instrument and determined that its price was governed buy one thing
SUPPLY---not demand.
Supply has the capacity to swamp demand and supply can and is withdrawn.
Price can only rise if Supply is withdrawn.
If supply keeps hitting bids at a level price cant go up.
If supply cant get filled it will search for lower prices.
Supply is more emotive than demand.
Supply causes volume spikes---either by its withdrawal from the market-- or its entry into the market.
To your chart
I might also take this opportunity to answer a question often asked re volume and VSA (Particularly applicable to small caps)
How much volume is needed to be able to use VSA to be meaningful
My answer is as much as possible.
Volume and Range can be impossible to read but in an instant massive changes in price can make it instantly readable and often highly predictable. Take one on my current watch list MRF
Instant massive volume shows a vertical rise and a move of around 100% +
Sellers cant ignore that---There have been people bottom drawing this for 12 mths
This IS XMAS to some of these punters so OUT THEY COME.(So now we see massive supply)
Often
a weekly chart can give you enough volume and range to have some meaningful analysis.
Even one bar can hold a lot of information.
I'm watching to see where this level stops.(Find support---where supply withdraws).
This could represent an opportunity to get on as these recent highs are tested.
OR it could fizz and do nothing but range for another year.
There are some bars that could be coming very soon which could give us some good trading opportunities.