paddington's bear, donkey and rabbit - tuesday, page-155

"Note - this is open to interpretation. Does the phrase "the volume will be low as it penetrates back into the old high volume day" mean, One: "low relative to a couple of days previously" or, Two: "low in relative to the volume which occurred at the previous low selling point"? I've tried to show that volume has been lower and lower than previous lows in the chart above. I think that's a satisfactory interpretation of the evidence before us and of Tom Williams's intent."

Red -
It means low relative to the bar that is being tested yes but also lower than the surrounding bars ie specifically the previous two bars on whatever timeframe you are trading and even then if they consider it too high they will test again down the track. So we want to see reducing volume on the pullbacks followed by increasing (but not excessive) volume on the rises. What we have on the DOW at the moment is the opposite. So yes, the lower volume relative to the shakeout is positive, and PERHAPS could indicate a bottom, but there is no signal that they want higher prices just yet. Presumably because they want to buy at LOWER prices until their buy orders are filled at whatever level they think they can get it at.
I appreciate you trying to teach me a little VSA Red, but I think I would prefer to continue my education in that regard from the Master Tom Williams himself who still runs live webinars as well as from those on this forum who make their living from nothing else but VSA principles. You are very good with your indicators, and your charts and analysis - but I can't work out if you are truly serious about donning the "L" plates to learn this particular (VSA) methodology or not - you aren't going to pick it up in a couple weeks. I'm on my "P" - and I only give myself a "P" because I actually use this stuff to trade.