Grantx
@Feibel
This is something I am struggling to understand with volume analysis.
If that candle close was at a major level with high volume then that is all it is. High volume. We can not attach any meaning to the event.
Lets say contextually, you get a pinbar at a major price rally level where the overall trend is down - do you need volume to tell you that a major exchange occured?
No matter where price is or the PA signal, or how high volume is, you still only have a 50% chance of one thing happening over another.
Im not discounting volume at all, I just have doubts on the real time analysis of it. imo, hindsight is the only way to know how volume affected price.
Now, I am a complete noob when measured against your years of experience so please take this as a constructive question and not an attack on VSA. I am still intrigued by it but it has raised questions for me.
Its very difficult to answer ''what if scenarios'' I do not use candlesticks and have no clue what a pin bar is.
From my perspective I disagree, all we do with this method is to stack the odds in our favour by telling a story of strength or weakness, the quality of buying vs selling, what should happen at support or resistance etc? within context of the market as it is. Volume either confirms the presence of demand or supply, contextually via the close of the bar (which in a way is in hindsight, by one bar) Of course there are always rogue bars, remember one tree doesn't make a forest, its to the left of the chart that provides the necessary information.
We play the market by its own actions in real time by reading price and volume. Its a method that has been used for nearly a 100 years and still to this day used by many hedge funds. It's a great question and not taken personally, IF the method doesn't reside well or has internal conflicts (I had a similar situation with market profile, excellent way to trade, but not the interpretation of the market I desired), simply take whats of use and apply into your existing system.
Excellent question, thank you
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