wee ree tol week3, page-45

Actually its really simple..

An up bar appears because there is demand for the share from the buyers whom are willing to pay more and the sellers are asking more for it which by definition is strength.

A downbar appears because the sellers are willing to accept less for the share and the buyers are offering less.

Strength or weakness can appear at either point (upbar or downbar) through the buyers and sellers supporting a trend or reversing a trend through their actions in the marketplace.

This is driven by information generally. Good positive information makes buyers pay more and sellers ask for more and the reverse is true.

Buyers always want to pay less for what they get so if they are bidding up due to positive news and the sellers are asking more for their shares then this supports higher prices, sellers always want to get more for their share so if they are accepting less and buyers are offering less then the news must be bad.

The news could be any type of information from economic to related markets to company specific. There is a lot of information that can affect a SP.

Dont let the VSA infect your mind and have you thinking backwards, it is intended to confuse you into thinking that you can follow the "smart money" which is the biggest load of hooooey I have ever heard in my life.

VSA will have you thinking up is down and there are guys jumping out of the walls to try and get you...

Think pure economics and common sense instead and you will be ok.

In charting try and look at general trends and indications that are tried and proven.

If you think you can get tricky and beat the market by trying to use VSA to drive your decisions by figuring out what "smart money" are doing then you will lose ...BIG TIME.

Why do I say this? Because I almost listened to VSA advice instead of backing myself and if I had done so I would have lost tens of thousands of dollars. No kidding mate.

VSA was wrong, way off and would have caused me a HUGE loss.

Be VERY careful with this stuff, thats all I will say.

It will quite literally have you thinking up is down, black is white with a heap of really smart sounding terms and a story based on conspiracy theories that sound so damn tempting as an explaination.

It is a con forget it..all it will do is confuse you into thinking that you can beat the market and you wont using its logic.