Using Market Indicators to deduct market bottoms.

New Web Site

The main limitation of a blog is the lack of facility for discussions. So i have opened a new web site where we can discuss VPA in more detail. A discussion forum is provided for this purpose.You can also post your queries and post. I hope to provide more topics on VPA in this web site. I have also consolidated all my other works on TA in this website. If you are interested please check it our.

Regards

Karthik

www.tatechnics.in

VPA Commentary

I realized that many users of VPA afl are not keeping the Interpretation window open. Please keep the Interpretation window open. We have tried to provide some commentary on the various signals being generated by the VPA afl. This commentary will help you understand the signals better.

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VPA1.1

There have been many requests for VPA 1.6. The truth is that there is no real version 1.6. The version number 1.6 you see in some of the charts posted here was an internal trial version. The attempt was to create a mechanical system out of VPA. However we did not really succeed and further attempts were put on the backburner. Any we are presented the next version VPA1.1. We have included facility to plot support and resistance lines which are play a good role in volume spread analysis. Also included is the strength meter scan. Hope the new version will be helpful. Here is a screen shot of VPA 1.1.

TRADABLE BASES

Accumulation bases can be found in various shapes and sizes. The most common recognizable one is the one where the stock moves sideways in a narrow range and the volume has dried up.. However we will also find rectangular bases where the stock moves up and down but restricted within a wider range. You will find weakness coming in at the top of the range and strength at the bottom of the range.

Many of the ranges are easily tradable. For a trader or investor with longer term view the idle time to get in would be when the stock bounces back from the support line. This way it the stock breakout he would have the idle entry point. He also has the option to quit at the stock fails to cross the resistance at the range top, For a short term trader who is adapt in trading the long and short this kind of base provides good opportunities to go long at the support line and go short at the top of the range.

Just like the Trend channels described before we can find a zone in the middle of the range which I call the conflict zone where many reactions take place.

Here is just an example of tradable base. More tradable bases will be Posted later.