xjo weekend zoomba lounge, page-112

Hi Jako,

Very interesting - and thanks for taking so much time and putting in so much effort on that explanation.

I have great respect for VSA and how it can explain movements in the market.

I've been an avid fan of volume analysis for 30 years - but don't get into the minutiae of analysis that VSA does. I guess it doesn't suit my cognitive style - which is more holistic.

Anyway here's a chart of volume over the past few months and my take on it:

It seems clear to me that on each major move down (early August, late Sept/early Oct, and now) volume has been decreasing markedly from the previous moves.

In VSA terms - supply is decreasing. It seems to me that the "smart money" is simply standing aside now as the selling increases - waiting for the fewer and fewer sellers to become exhausted.

And tha'ts not far away, judging by this graph.

I also have good evidence that a lot of buying is going on behind the scenes hidden by the current selling. But that's another story for another post.

Redbacka