Hi Trim - Have you read "Trading in the Shadow of the Smart...

Hi Trim - Have you read "Trading in the Shadow of the Smart Money?"

I've added a few notes on your chart - We don't really have a good VSA short setup yet - We also have strength coming in at the last low (though the subsequent rise has been anaemic volume wise)
We do have a no demand on the weekly - but the weekly is still in an uptrend - and the daily isn't really in a proper downtrend - and even though the diamonds have started to roll a bit its been moving straight up since the last low -2 days up - one day down - 2 days up.
Friday wasn't a no demand - needs to be the lightest volume in 3 bars (the pink volume bars actually highlight the lightest volume in 3 bars by the way on Tradeguider) and needs to be an up bar (can be a down bar if it has a higher high - but JUST - the close not too far below the close of the previous bar - otherwise it could probably be a test or low supply).

I see why you like it - And I wouldn't be surprised if it came off - but not a proper short setup yet. For a good short setup we want high (climactic) volume up (we have that one further left but I wouldn't mind a new one) - let it break below the climactic volume (we are right in the range of it at the moment) - then we wait for it to upthrust and reject the range of the climactic bar (preferably on high volume) - and then the no demand after that sets up the short - draw our down trend channel when it rolls and then we can short every weak bar at the top of our downtrend channel - We don't really have a good (steeper) downtrend channel at the moment - more of a trading range.

Also I would connect the two lows for your channel because the last high you used hasn't pivoted yet - we don't know yet if its a swing high yet. But Its not quite steep enough a channel for me to like it yet.

So in summary - the last move up looks weak but we haven't got a VSA short setup yet - and we have some high volume areas beneath us we could probably look at for possible long setups if it retraces and tests those areas -
All your horizontal Support resistance levels I would use exactly the same.

Hope I haven't confused you yet.