VSA learching

Quoting Gesek

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Also read the attached pdf, lascavel posted the link to this stuff.

Here its also explained what is SM doing during accumulation, markup, distribution and mark down phase,but read it with reserve, because there are some curious things: such as during accumulation on the schematics 2 the text explains that how disribution is working, so the text is not properly connected to picture. But its very good article.

Enjoy!

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Quoting lascavel

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Here is another example of VSA mapping it to Wyckoff Schematics.

Attachment 544442

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Quoting HiddenGap

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SOW's on this chart should be SOS's:

SOW-Sign of Weakness
SOS-Sign of Strength

I know you know, just clearing it up for everyone else.

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Quoting HiddenGap

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B: ... note that volume is above average and increasing.
With all that volume, how can the candle have such a narrow range?
Something must be compressing the range.
That something is the supply of the professional side of the market.

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//+-----------------------------------------------------------+
//| INDICATOR for volume compression          Compression.mq4 |
//| copy to [experts\indicators] and recompile or restart MT4 |
//+-----------------------------------------------------------+
//| Free software for personal non-commercial use only.       |
//| No guarantees are expressed or implied.                   |
//| Feedback welcome via Forex Factory private message.       |
//+-----------------------------------------------------------+
#property copyright "Copyright © 2010 Robert Dee"
#property link      "www.forexfactory.com/member.php?u=12983"

/**
   ==== NOTES ABOUT 'COMPRESSION' AS AN IDEA TO DESCRIBE MARKET ACTIVITY ====

   compression is measured in tics per point (tics of volume / range of candle)
   in other words how many tics of volume are 'compressed' into the candle
   basically high compression means a lots of activity but not much price movement

   for example: a candle with volume = 1632 tics, range = 136 points (13.6 pips) 
                therefore compression = (1632 tics / 136 points) = 12 tics/point

   small candles with exceptionally high compression are interesting and useful
   exceptional compression highlights trading activity 'hiding' in smaller candles
   when the pressure blows out the price will move away on bigger 'low compression' candles
**/

#define INDICATOR_VERSION    20100917
#define INDICATOR_NAME       "Compression"
#define RELEASE_LEVEL        "Public"
#define MT4_BUILD            226

#property indicator_separate_window
#property indicator_buffers 2

#property indicator_color1 Green   // MoreCompression histogram colour
#property indicator_color2 Orange  // LessCompression histogram colour
#property indicator_width1 1
#property indicator_width2 1

// persistent variables
double MoreCompression[];
double LessCompression[];
double lastcompression;

//+------------------------------------------------------------------+
//| init() sets up the display buffers once when indicator is loaded
//+------------------------------------------------------------------+
int init()
{
// MoreCompression style
   SetIndexStyle(0,DRAW_HISTOGRAM);
// LessCompression style
   SetIndexStyle(1,DRAW_HISTOGRAM);
// setup indicator buffers
   SetIndexEmptyValue(0,0);
   SetIndexEmptyValue(1,0);
   SetIndexBuffer(0,MoreCompression);
   SetIndexBuffer(1,LessCompression);
// names for DataWindow and indicator subwindow label
   IndicatorDigits(1);
   IndicatorShortName(INDICATOR_NAME);
   SetIndexLabel(0,"MoreCompression");
   SetIndexLabel(1,"LessCompression");
// message to the experts log (shows in reverse order)
   Print("Copyright © 2010 Robert Dee, All Rights Reserved");   
   Print("Free software for personal non-commercial use only. No guarantees are expressed or implied.");
   Print(INDICATOR_NAME+" indicator version V"+INDICATOR_VERSION+" for "+RELEASE_LEVEL+" release, compiled with MetaTrader4 Build "+MT4_BUILD);
return(0);
}

//+------------------------------------------------------------------+
//| start() function is called once every time price changes (tic)
//+------------------------------------------------------------------+
int start()
{
int      shift;
double   multi = MathPow(10,Digits);
double   range, compression;

shift = Bars-1;
while(shift >= 0)
   {
   range = High[shift] - Low[shift];            // find the range of this candle (High - Low)
   if(range == 0) range = Point;                // prevent divide by zero errors, make the range at least one point
   compression = Volume[shift] / range / multi; // find the compression (Volume / Range)
   if(compression > lastcompression) {MoreCompression[shift] = compression; LessCompression[shift] = 0;}
   if(compression < lastcompression) {LessCompression[shift] = compression; MoreCompression[shift] = 0;}
   lastcompression = compression;               // remember this compression to compare next time
   shift--;                                     // move forward one candle
   }
} // end of start()

//+------------------------------------------------------------------+
//| deinit() does the cleanup once when the indicator is shutdown
//+------------------------------------------------------------------+
void deinit()
{
int i = 0;
while(i < Bars)  // cleanup
   {
   MoreCompression[i] = 0;
   LessCompression[i] = 0;
   i++;
   }
}

Quoting lascavel

Disliked

Here is a illustration of GU 15mins distribution wave sequence per Wyckoff Schematic.

Attachment 545234

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Quoting Gesek

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Robdee, you can also post charts with your compression indicator, but please separate it somehow from VSA indicator.

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Quoting robdee

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Hi Gesek, yes I certainly do not want to confuse this thread by imitating VSA with something that is not VSA. As a VSA newbie I cannot decide how useful (or not) this compression idea is, so I will wait for others with more experience to comment.

Anyone wanting more background about why I wrote the compression indicator please read HiddenGap's post #34. I have been reading it again and again. It is an excellent brief on why we should all be interested in the relationship between...

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Quoting Gesek

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OK, so you can speculate what happened here and try to analyze the trade for yourself or even better: for us(write down) what do u think!
http://i1008.photobucket.com/albums/...1magnified.jpg

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Quoting PrymeTyme

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Hi Gesek

Thnx for your work thus far .. your thread actually got me into Learning VSA
i read mtm .. 3 times now...

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Quoting lascavel

Disliked

After a huge spread down move, we see climatic action on GU. Here is a 5mins view as per Wyckoff schematics, latest feed showing a secondary test of a form like a shakeout. Is call a mini-shakeout at around 79% retrace level of the recent swing in 5mins. *Note that in this example, the preliminary support or PS is the same point as the climax.

Next sequence will be a test of no supply around the previous supply zone of AR point. Or it could be more test down the retracement area again or even fail all together & move down...

edit: possible...

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