What does high or low volume accompanying a doji mean?

Well, lets look at some

scenarios. If a stock is running higher and shows a pattern of slowing down on the move
and then shows us a doji on very high volume and where the stock closes the session
well off of its high, that is a sign of reversal. The stock tried to continue its run, but
sellers jumped in big time and drove it back to where it started the day on high volume.
That is usually a sign that some stronger selling is coming the next few sessions. If the
same occurs but the doji is on light volume, it still means that move may be over. If a
stock hits a high on low volume, that means not many buyers are supporting the move
to the high; selling is most likely. However, it may not be as severe as if there is that
high volume reversal where the sellers just jump onto the stock. You have to be careful,
and doji’s are not automatic signals; they are flags saying ‘take note of me.’ Wait for
confirmation, but be ready; the doji was your warning flare. Low volume doji’s may
mean less virulent selling. Indeed, we like to see those low volume pullbacks to near
term support as that means no share dumping and most likely a good buy point or ‘add
to’ point is coming at near term support.

On the downside the results are similar. A high-volume doji that occurs after a stock
sells way down and then recovers is good. We call that a doji with a long tail; how
poetic. Anyway, what that means is that the stock sold way down, but then buyers
jumped in to push it back up to where it opened. Perhaps we are being told a reversal
just occurred and buyers now outnumber sellers. If this occurs at support, we get really
excited. As for the low volume variety, it is not as strong a signal as that doji with a long
tail on high volume, but if the sell off down to the support or the doji has been on low
volume, the low volume doji is just fine; it can indicate that the move to the upside is just
around the corner (the next day or two). Again, the pattern is just a signal and not a
‘buy’ signal. Let there be confirmation of the move the next day (it actually starts up),
and then make the move.

VSA No Demand pattern sends a signal that the current price in the market is too high

No Supply Candles. (No Sellers)

No supply candles indicate a potential long trade. The criteria for a no supply candle is as follows.

The Volume within the candle formation has to be lower than the volume of the previous 2 candles.
The candle has to close bearish (red body).

There has to be some sort of rejection (pin or wick) at the low of the candle.

If the candle closed at the bottom it would not be a no supply candle.

No Demand Candles. (No Buyers)

No demand candles indicate a potential short trade.

The criteria for a no demand candle is as follows.

The Volume within the candle formation again has to be lower than the volume of the previous 2
candles.

The candle has to close bullish (green body).

There has to be some sort of rejection (pin or wick) at the high of the candle.

If the candle closed at the top it would not be a no supply candle.

VSA

Signs of strength and weakness in the market

Signs of strength and weakness in the market respond to bullish and bearish
sentiment in the market. And they correspond to certain patterns of bars that are
characterized by:

 Down-bar or up-bar. Down-bar – closing is lower than closing of the previous

bar. Up bar – closing is higher than the previous bar.
 The type of volume is characterized by: low, medium, high or very high.
 The candle spread is divided into: narrow, medium and high.
 Closing of the bar, which is divided into third: the top third of the bar, the
middle third of the bar and the bottom third of the bar.

Weakness A

 down bar
 high volume
 medium or narrow spread
 closing in the lower third of the bar, or on the bottom third of the bar

No demand
  up bar
 low volume (first of all, you need to compare with the previous bar, it should
be lower)
 narrow spread
 closing in the lower third or on the bottom third of the bar
 the first signs of weakness should have appeared on the background
 A good sign during a rollback on a downtrend

Weakness B

 up bar
 high or very high volume (the higher, the stronger the sign)
 narrow or very narrow spread
 closing in the lower third or in the middle third of the bar
 on the background there should be other signs of weakness, for certainty it is
worth waiting for additional signs

Up-trust

 up bar or down bar

 this bar must update the local maximum and its maximum should not be
redrawn
 spread high
 the closing should be in the lower third
 volume is high or very high

Pseudo Up-trust

 up bar or down bar

 as well as up-trust this bar should update the local maximum and its
maximum should not be redrawn
 spread high
 closing in the lower third
 volume is low
 this attribute is less effective than the normal up-trust, therefore this feature
requires confirmation

Stop Volume

 up bar
 broad spread
  very high volume
 need to wait for confirmation

Power patterns SIGN OF STRENGTH

Power A

 up bar
 spread average
 medium or high volume
 closing in the upper third of the bar

Force B

 down bar
 narrow spread
 closing in the upper third
 high volume
 there must be other signs of strength

Lack of offer

 down bar
 narrow spread
 low volume
 closing in the lower third
  it is necessary to look for an additional signal of market strength

Reverse Up-Trust

 up bar or down bar (down-bar)

 this bar should update the local minimum and its minimum should not be
redrawn
 spread high
 the closing should be in the upper third
 volume is high or very high

Pseudo Up-trust

 up bar or down bar (down-bar)

 as well as up-trust this bar should update the local minimum and its minimum
should not be redrawn
 spread high
 closing in the upper third
 volume is low
 this feature is less effective than the normal reverse up-trust, therefore this
feature requires confirmation

Stopped volume

 down bar
 spread narrow
 closing in the middle third of the bar
 volume is very high
 it is necessary to wait until the market strength is confirmed

The primary signs of strength that you should look for at the bottom of a market are:
1. Testing is one of the best indications of strength. The prices will be marked down rapidly during
the day, (or any other timeframe), but the price then recovers to close on the high of the day, and
will be accompanied by low volume.
2. Any reaction back down into an area that had previously shown high volume, and is now showing
low volume, is also a sign of strength (supply has disappeared in both cases).
3. Stopping volume is another good sign of strength – it results from huge blocks of buy orders that
are large enough to stop a down-move, and is seen as a high volume down-day, usually closing on
the highs.
4. A shake-out will also stop a down-move. Here, prices have gapped down and fallen alarmingly
after a bearish move has already taken place. If the market gaps-up on the following day (or bar),
you have all the signs of a shake-out, and a good sign of strength

The main signs of weakness are:

1. A buying climax.
2. An up-thrust.
3. A no-demand day (or bar).
4. A narrow spread, on an up-day (or bar), which is into new high ground, on very high volume.
5. High volume present on on up-day (or bar), whilst the market falls on the next day (or bar), and
fails to make higher prices, or the market may even fall.

1 - Climactic action + Supply swamping demand - wide spread down closing off the low on ultra high
volume gives us the climactic action bar. The fact that it is pushing down through the Tokyo channel
support tells us that supply is swamping demand.

2 - Climactic action + Potential selling climax - wide spread down closing off the low on ultra high
volume gives us the climactic action bar. This is recogniseable as a selling climax (potential) due to it's
position compared to the background. We appear to be in recent new lows. Had we been approaching
a support level, this would still be valid but, we need to see how the market reacts to this bar before
we can say whether it is a selling climax or a supply swamping demand style bar as above.

3 - This bar is more puzzling. Pres has it as a Supply swamping demand bar. I dissagree with this but
only with the degree that supply is winning the battle. It shows that supply is winning but, there's
nothing about the bar that says supply is SWAMPING demand. For me it just says that the market
isn't ready to go up quite yet.

4 - Basic test - narrow to medium spread down bar, closing towards the high on average volume. This
bar should make a new low. The only real difference between this and a test is that, the volume is a
little higher and can look very close to being a failed test. Also, these are often used to simply check if
there is any supply still about. We can see by the volume that there is some but not a huge amount.
SM may decide to take advantage of this later.

5 - Shake out + demand swamping supply - wide spread down bar closing on the high on high
volume. This is an up bar which actulally makes it a HIDDEN shake out. This is a mark down in price
to fool the herd into selling. Once SM are happy that they have absorbed all the supply they will
sharply mark the price back up again to lock in the herd. Shake outs are not always a 'demand
swamping supply' bar. We are in an up trend (just) so there isn't a huge amount of supply to be
'swamped', but this case is a little different. Look where SM have marked the price down to.....our
earlier Basic test. Remember we said that the volume was a little high. SM have come back to see off
the herd and make some more money out of them! So in this case there is supply about, the SM hit it
and swamped it!

6 - Supply coming in - wide spread up bar closing in the middle on high volume. Some of that volume
has to be selling or it would have closed near the high.

7 - Test - narrow to medium (narrow is better) spread down bar, closing towards the high on low
volume. Here SM are testing the supply found on the previous bar.

8 - Up thrust + supply swamping demand - wide spread up bar closing on the low on high volume.
This is a down bar which actulally makes it a HIDDEN up thrust. Finding new high ground is much
better. SM have realised their new price and have sold off their holdings to the herd by swamping the
market with supply. This has the affect of sharply dropping the price to lock in the herd.

1. F. Supply Swamping Demand (SSD). This and the next bar creates a hidden gap and continues the
move down from the previous bar. For a high volume that has the potential  to be strong the reaction
is poor and the low is taken out within two bars.

2. K. Potential Selling Climax. Higher volume than at 1, a sure sign that something is cooking, slightly
better reaction with the next few bars closing up but still not showing a lot of strength.

3. I. Supply Coming in - not really sure what this is, we see an increase in volume and it closes in the
middle before pushing down after ND.

4. O. Test - High (not less than previous two) volume test, low dips below previous 3 bars before
closing on the high.

5. J. Shake Out - market is driven down quickly, almost to the low of the test on bar 4 before closing
near the highs. Catching stops and or sucking people in short.

6. P. Buying Climax - Big spike in volume but the bar closes in the middle. Some weakness in this bar
but this fails as the next bar is...

7. C. Basic Test - Test in it's simplest form, volume less than previous two, closes on the high. It
doesn't make a lower low though, which would have been nice.

8. G. Up Thrust - Hidden up thrust. It thrusted up. Closed on the low.

According to trade Guider/ tom Williams an Ideal No demand bar is a Upbar bar with narrow spread
closing in the middle or lower and the volume is less than the volume of the previous bars. Though this
is their basic definition I have seen subtle difference in the No Demand bar throwing up different
commentaries.

But in general any narrow spread low volume Upbar closing in the lower half of the bar indicates No
demand.

What does this No Demand Bar indicate?

A No Demand bar indicates that there is no support from the SM. The SM is not interested in higher
prices and they are not supporting the stock. Whatever buying or selling is from the stray weak money
entering and exiting.

Consequently this indicates weakness. The No Demand bar does not indicate any immediate reversal.
While analyzing a No demand bar we have to look at the prevailing background.

Upbars with high volume with narrow spread and closing in the middle or low indicates that supply is
swamping the demand. This kind of bars would normally be seen near resistance lines. This by itself
does not portend great weakness. But the following bars would indicate whether the supply is persisting
or not. Persisting supply would definitely reinforce weakness. Enclosing the chart of L&T for the recent
times when supply came in at the resistance line. The next bar shows that supply has decreased which
encouraged the SM to push further. But the move faltered at the next level.