Technically you are right, todays bar in isolation, went up on a bit of No Demand.
It was not a perfect No Demand & it's not really in the right place on the chart either.
So you need to put the indicator into context within the chart.
Atlas now has some potential strength right behind it, from the bars on the 19th & 20th October and the bar on 26th October, these were all down bars that show potential accumulation.
There are also a few other bars back a bit further, that are showing potential strength as well.
No Demand works best with weakness behind it, so even if it plays out, with potential strength behind us now, it might just knock the price sideways or down a few bars at most.
With potential strength, behind a weakness indicator, we discount the strength (or power) of that potential weakness.
I think we floated up today (26/10/2011), more on a lack of selling pressure, as the sellers at this level were potentially absorbed yesterday (27/10/2011), so with a lack of selling pressure the shareprice could float up, even though the volume was not strong.
You will often see this happen after potential accumulation occurs, there is a short term imbalance between supply and demand, where most of the supply has been bought and the path of least resistance is then up, sort of like a temporary vacuum has been formed at that level, which allows the shareprice to float higher easily.
I do however, expect they will take the price back down to at least the top of those bars I mentioned to test at some point in the future, if supply is much lower than previously, a potential long set up may occur.
Also
Check out the charts forum on Hot Copper as well, there are a number of VSA chartist's who post charts and comment on them regularly.
You can also ask VSA questions on there, plenty of experts and also new users, who will enjoy answering questions.
cheers
AGO Price at posting:
$3.23 Sentiment: LT Buy Disclosure: Held
