Trade Using VSA (Volume Spread Analysis) | Page 371 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Volume Spread Analysis (VSA) and background 5 replies

Trading With VSA - Volatile Volume and Spread Analysis 9 replies

What is the best VSA (Volume Spread Analysis) system/indicator? 1 reply

Volume Spread Analysis (VSA) and the EURUSD 3 replies

VSA Volume Spread Analysis: No demand and accumlation 2 replies

Attachments: Trade Using VSA (Volume Spread Analysis)
Exit Attachments

Trade Using VSA (Volume Spread Analysis)

  • #7,401
  • May 19, 2010 3:53am May 19, 2010 3:53am
Quoting kamise
Why don't you google "gap-down" ?
My guess? Because any idiot can write pretty much whatever they want on the internet. There are some damn fine VSA traders in this thread. Seems a bit more credible than google to me. Just saying...
Every time you use 'hopium' in a post, God kills a kitten.
  • #7,402
  • May 19, 2010 4:34am May 19, 2010 4:34am
Quoting profxtrader
My guess? Because any idiot can write pretty much whatever they want on the internet. There are some damn fine VSA traders in this thread. Seems a bit more credible than google to me. Just saying...
ty profxtrader :-)
  • #7,403
  • May 19, 2010 6:35am May 19, 2010 6:35am
Here is a good explanation about gap

http://www.investopedia.com/terms/g/gap.asp
  • #7,404
  • May 19, 2010 10:27pm May 19, 2010 10:27pm
One of my live trade on may 19

Went long at lower low of No Selling Pressure bar.

Cause tick volume histo number showed that the SM would no longer go south so I thought they had done the hidden buying

a pic is at http://imepita.jp/20100520/442230

Regards,
  • #7,405
  • May 20, 2010 1:43am May 20, 2010 1:43am
Quoting Intel
I personally find it easier in a ranging market but thats because I'm very poor at recognising Acc/Dist which is vital for trading with the medium (or longer) term trend.
I personally find the easiest way to identify accumulation or distribution is by looking at where volume spikes in a range or a channel. If price is bouncing up and down in a range, volume spikes and squat at the bottom of that range on down bars, with smaller or low volume up bars at the top, this implies accumulation. The reverse implies distribution. If you're in a down trend or an uptrend, the range is a trending channel, with the spikes occurring at the bottom or top of the channel. Williams talks about this as trend channels in MTM.
  • #7,406
  • May 20, 2010 2:47am May 20, 2010 2:47am
Quoting f451
I personally find the easiest way to identify accumulation or distribution is by looking at where volume spikes in a range or a channel. If price is bouncing up and down in a range, volume spikes and squat at the bottom of that range on down bars, with smaller or low volume up bars at the top, this implies accumulation. The reverse implies distribution. If you're in a down trend or an uptrend, the range is a trending channel, with the spikes occurring at the bottom or top of the channel. Williams talks about this as trend channels in MTM.
That's really great what you wrote f451 :-) Is there also other ways to recognize accumulation or distribution? Anybody knows what Wyckoff is writing about it?
  • #7,407
  • May 20, 2010 6:04am May 20, 2010 6:04am
Quoting f451
I personally find the easiest way to identify accumulation or distribution is by looking at where volume spikes in a range or a channel. If price is bouncing up and down in a range, volume spikes and squat at the bottom of that range on down bars, with smaller or low volume up bars at the top, this implies accumulation. The reverse implies distribution. If you're in a down trend or an uptrend, the range is a trending channel, with the spikes occurring at the bottom or top of the channel. Williams talks about this as trend channels in MTM.


Excellent!
  • #7,408
  • May 20, 2010 11:40am May 20, 2010 11:40am
well , Lets see how fast the Good folks at cnbc change their tune ,
when Gbp starts to go up again....i'll tell ya , watching them is
like comedy Gold....
Attached Image (click to enlarge)
Click to Enlarge Name: accumulation.gif Size: 46 KB
  • #7,409
  • May 20, 2010 2:16pm May 20, 2010 2:16pm
Quoting f451
I personally find the easiest way to identify accumulation or distribution is by looking at where volume spikes in a range or a channel. If price is bouncing up and down in a range, volume spikes and squat at the bottom of that range on down bars, with smaller or low volume up bars at the top, this implies accumulation. The reverse implies distribution. If you're in a down trend or an uptrend, the range is a trending channel, with the spikes occurring at the bottom or top of the channel. Williams talks about this as trend channels in MTM.
Thanks for that.

I know what to look for in identifying acc/dist however, I see different things in charts. For example, in Taos' chart (previous post), Tao(an experienced VSAer who knows his bananas) says its showing accumulation but, I see more volume in areas higher than the bottoms. So, if the highest volume areas are not at the bottom of the range, how do we know that it's accumulation and not distribution?
  • #7,410
  • May 20, 2010 5:15pm May 20, 2010 5:15pm
Quoting Intel
Thanks for that.

I know what to look for in identifying acc/dist however, I see different things in charts. For example, in Taos' chart (previous post), Tao(an experienced VSAer who knows his bananas) says its showing accumulation but, I see more volume in areas higher than the bottoms. So, if the highest volume areas are not at the bottom of the range, how do we know that it's accumulation and not distribution?

also in looking at the volumes on the up moves to 1.4450 the volume just vapourises .... 30 min charts

this looks like defending of that support level 1.4250 only , so there is some buying there

also of note is we have had CLEAR signs of bank intervention in the fx market last 2 days . so those large volume spikes we have seen could just be intervention / bank volume.

i have been playing gj on a 15 min which is a little easier then gu right now.
EU I have steared clear of
Blogging daily now at www.volume.zone
  • #7,411
  • May 20, 2010 6:14pm May 20, 2010 6:14pm
Quoting malcolmb14
also in looking at the volumes on the up moves to 1.4450 the volume just vapourises .... 30 min charts

this looks like defending of that support level 1.4250 only , so there is some buying there

also of note is we have had CLEAR signs of bank intervention in the fx market last 2 days . so those large volume spikes we have seen could just be intervention / bank volume.

i have been playing gj on a 15 min which is a little easier then gu right now.
EU I have steared clear of
thing is a beast. i've made a killing on that thing this week. Hey man, what are you seeing for tomorrow/ next week on DOW/ES possibly? You think any chance of one last pump up or done?
  • #7,412
  • May 20, 2010 7:27pm May 20, 2010 7:27pm
Some nice set-ups today on gu. This is a 10 min chart of the lack of volume into 4450 malcolm mentioned earlier.
  • #7,413
  • May 20, 2010 7:28pm May 20, 2010 7:28pm
forgot the chart
Attached Image (click to enlarge)
Click to Enlarge Name: 6B 06-10 5_20_2010 (10 Min).jpg Size: 109 KB
  • #7,414
  • Edited 8:50pm May 20, 2010 8:01pm | Edited 8:50pm
Quoting tarco
forgot the chart
Thanks for the chart Tarco. I took this one. I've marked up your chart to show how I saw it - seemed to me to be a classic example of accumulation, strength in background and then a confirmation.

Intel - I agree it's not always very clear - (I suspect that sometimes the BB fight, or the their best laid plans get swamped by the herd, or even bigger boys on higher timeframes...)

Side note: I note that tarco's is a 10 minute chart - and the action is just as clear as it would be on a 15m or 5 min chart. Generally I'm using 15M or 30M mostly for entry checking background on 1H or 4H. I've found it helps to be able to add candles to together and imagine the resulting candle if it were on a different timeframe (i.e. two 15M candles = one 30M candle) so you can see that a 2 Bar reversal (say on 15M) is a classic single bar stopping volume or upthrust on a higher timeframe (i.e. 30M). Realising that the same pattern of action between buyers and sellers looks different depending on how you slice the bars was important for me. Now I see classic patterns like a bullish or bearish harami as the exactly the same pattern of price action as single bar upthrusts or stopping volume (assuming the associated volumes are right of course) just displayed over a larger number of slices. (If you look at the chart below you can actually see a bearish harami cross - at the top of the up move - the three bars just above the red arrow - which is an upthrust on a 30m timeframe). I thoroughly recommend learning how to add candles together.

GJ GU and EJ are offering up money like a broken slot machine at the moment. I keep missing trades 'cos I don't have time to watch them all.


f451
Attached Image (click to enlarge)
Click to Enlarge Name: 6B 06-10 5_20_2010 (10 Min) - MarkedUp.JPG Size: 126 KB
  • #7,415
  • May 20, 2010 9:11pm May 20, 2010 9:11pm
Quoting uraceulose
thing is a beast. i've made a killing on that thing this week. Hey man, what are you seeing for tomorrow/ next week on DOW/ES possibly? You think any chance of one last pump up or done?
well if 1065 breaks then 950 next week

tomorrow I have no clue we ended on the low of day on fairly high volume.

Just got to see what the euro session and tomorrows es brings.
Blogging daily now at www.volume.zone
  • #7,416
  • May 20, 2010 9:12pm May 20, 2010 9:12pm
I took both trades as well but did not get anywhere close to what I should have. I agree the short looked good on multiple time frames.

Maybe gu will give us a couple more of these tomorrow.
  • #7,417
  • May 20, 2010 9:18pm May 20, 2010 9:18pm
Quoting malcolmb14
well if 1065 breaks then 950 next week

tomorrow I have no clue we ended on the low of day on fairly high volume.

Just got to see what the euro session and tomorrows es brings.
Nice, thanks man. I was more asking for a friend of mine who's looking to get out of quite a bit of his portfolio..
He doesn't chart or understand volume at all and is basically just gonna sit there and wait for a rally, call his broker and sell quite a bit of his holdings..mainly blue chip US stocks..

Take care
  • #7,418
  • May 20, 2010 9:45pm May 20, 2010 9:45pm
Quoting uraceulose
Nice, thanks man. I was more asking for a friend of mine who's looking to get out of quite a bit of his portfolio..
He doesn't chart or understand volume at all and is basically just gonna sit there and wait for a rally, call his broker and sell quite a bit of his holdings..mainly blue chip US stocks..

Take care
well looking at weekly dj IF 10000 breaks we see 9000 ... about a 10% drop

If any thing best he could do right now is load up on dxd , at least he could hedge his portfolio. Some people just do not know when to take profit. ...

we could be in the start of a large decline into 7000. They say no double dip ... but if that low of 9869 of 2 weeks is taken out then we could see one.

I owuld love to see some form of up move and a no demand on daily again

jp morgan has already lost 25% of its value .... wonder why
Blogging daily now at www.volume.zone
  • #7,419
  • May 20, 2010 9:50pm May 20, 2010 9:50pm
Quoting malcolmb14
well looking at weekly dj IF 10000 breaks we see 9000 ... about a 10% drop

If any thing best he could do right now is load up on dxd , at least he could hedge his portfolio. Some people just do not know when to take profit. ...

we could be in the start of a large decline into 7000. They say no double dip ... but if that low of 9869 of 2 weeks is taken out then we could see one.

I owuld love to see some form of up move and a no demand on daily again

jp morgan has already lost 25% of its value .... wonder why
Do you mind if I copy and paste this post and email it to him(my friend)? I'll of course reference it to you.

I dumped my bofa stock @ 17.25 bought early march 09 @ 4.00

I'm waiting for the 7000 and below area again where I will re-load some. (options/stocks)
  • #7,420
  • May 20, 2010 10:22pm May 20, 2010 10:22pm
Quoting tarco
I took both trades as well but did not get anywhere close to what I should have. I agree the short looked good on multiple time frames.

Maybe gu will give us a couple more of these tomorrow.
EU looks to be setting up for a short too. I'm mostly taking shorts right now. Definitely took a bit of extra courage, and a super clear VSA setup for me to go long on that last one
1 trader viewing now