Quote from tradingbug:
What were you looking at to indicate an inventory shift with reg volume indicator? I see the circled areas...but a little confused on how that indicates an inventory shift...thanks.
VSA (vol spread analysis) theory explains that increased activity with small spread is a warning sign of inventory shift. If you're humming along on a downtrend and activity (volume) picks up while price momentum slows down, you have to consider what this means. If it was more bearish activity, why did momentum slow down?
Go to youtube and type in "tradeguider". The guy explains how strength (bull) appears on downbars and weakness (bears) appears on up bars. Trend changes occur as Smart Money positions themselves BEFORE it's clear to the public. They can hide their intentions but they can't hide volume. The TG guys are heavy market-manipulation believers (so they'll probably get along great with AMT

). While I don't necessarily believe that every single bar has a purpose and that is SM being out to screw you, I think the TG guys have a pretty solid understanding of the price/volume relationship. I definitely don't agree with their "marriage" to the arbitrary close of 1,3,5,15 minute bars. (You'll see what I mean if you watch their videos).
Definitely worthwhile to sit down for a day or two to go over all of their free webinars/videos/texts.
p.s. I'm not affiliated with them.. I don't own any of their products as it's quite overpriced, IMO. Just a big fan of anything that discusses price & volume
Anyways, not to get off topic, just wanted to throw in a look at CD with additional volume reading skills to get higher probability entries.