vsa with Malcolm

buying aggression (demand overcoming supply) always appears/happens on UP bars as is evident from your chart, therefore it proves strength when appears it appears on upbars.



not a SoW is no license to go long, we wait!


pullbacks are good entry points

Hey guys !!


Shorts in euro would be the thing to look if we keep this high of the day.

In first attempt shorts could not carry on . now is second attempt if that fails then you know...

Careful fellows chasing the shorts ...

Stay well... over and out.

EURUSD looks like it's setting up for a rebound back to the days high. Back at a shared support level.

Step 1 complete. Break out traders who shorted the break of the daily low are now trapped as they sold to those of us who wanted to buy. Some of them are even getting stopped out now as I type this post.

Step 2 complete. Sellers have dried up where they once were interested no more need to hang around here as no more buy orders will be filled. Once 2244 breaks and holds it'll all be over the for weak sellers who are still hanging on...

For those not already long we are back at a key area on EURUSD... could offer a chance to get in or add on if already long. Now's the time before the final push up before London boys call it a day and take some profit heading into the weekend.

Didn't play out. The overhead sellers were still in control. We hit 50% of today's hourly zone and that capped the upmove.

Ah well I still caught a few pips for a nice 2:1 scalp (was hoping for more) off that initial false breakout long I took earlier.

That is why I only scalp when it's against my zones established trend... because most of the time the zone trend stays intact.

Was a nice example of market moves though. False break, weak sellers who blindly traded the BO (now are stuck as buyers to exit). SM who were sellers today then gladly filled their SL buy orders (to get out of the sells) to fill their own sells back at 50% of today's zone and then we saw the result. Next time back to that low I am sure there were many double / triple bounce weak buyers ready to buy the bounce and SM once again ready to take these buys and fill them with their sells.

Lovely stuff, lovely example too of the zones working their magic.

ANATOMY OF A SHARP SHOOTER TRADE :


Forgive me, but this is a long one. I hope it is taken in the spirit it was given.

First we need to understand that TradeGuider employs the SHARP SHOOTER strategy by first identifying Ultra High "Yao Ming" Volume. Typically, this would be the highest volume in some time, usually days. This is why you might not get a SHARP SHOOTER trade everyday in the same market. But there is a way around this issue.

Take a look at the first chart.

I will start out by saying this is not the best trade of the trades we will look at, but we don't know that at the time. Personal trade management, will ultimately determine whether this trade is profitable or not.

This SHARP SHOOTER trade starts with the appearance of the Ultra High Volume interval A. While the volume is colored black, indicating it is the largest volume in the last 38 periods (2 cycles of time), and it is the highest volume since the 2am est (London Open Time), it is clearly not the highest volume bar on the screen at the time. There are some greater volume bars just to the left of the screen shot. This is where using OrderFlow, specifically, AGGRESSION bar analysis, in conjunction with VSA becomes so powerful.

This interval is an Extreme Selling Aggression bar. We expect the high of this interval to act as resistance. Therefore, we can proceed to create a Trigger Line (Number) at the high, knowing full well that the volume, while climatic, is not extreme. So we have a down bar on Ultra High Volume and we place a Trigger Line at its high.

Note that Chart Modes I & II are green and price is above the Cycle of Time Line. This means we are only interested in getting long at this time. More reason to feel confident we can create a Trigger Line-even though the TradeGuider software might not.

E represents the entry signal long. Price has traded above the Trigger Line and E is the pullback towards the line. Although the volume is not low, it is clear this interval is a sign of strength. The bar closes down from the previous interval after making a lower low and closing near its high on Ultra High Volume.

Once again, how one manages the trade will ultimately determine its profitability.

Let's move on to the better opportunity(ies) of the day. Take a look at the second chart.

B is an up bar on Ultra High Volume. Again, even though this is now the highest volume of the "day", it is not excessive, as there are some intervals to the left with considerably more volume. But this interval is also an EXTREME Buying Aggression bar. With BUYING Aggression bars, we expect the low to act as support. So we place a trigger line (TL 1) at the low of this interval. Not knowing how short lived it will be.

C is the very next interval, and for the very same reasons, we would place a Trigger Line at the high of this bar. Essentially, we are moving the line up form the previous interval. This is TL 2. Note that this new short Trigger Line (TL 2) is almost at the same place as our Trigger Line from the first chart, or our long trigger line created by the EXTREME Selling Aggression bar. More confluence for us as we take the initial trade long.

D is at the high of the day and has the greatest amount of volume for the day at this time. From a VSA perspective, this is a weak bar. It is a wide spread up bar on Ultra High Volume that closes well of its high. From an OrderFlow perspective, this is an EXTREME Buying Aggression bar that has no follow through, and does not find any acceptance above. We move our short Trigger Line to the low of this bar (Trigger Line 3)

Three (3) intervals later, we are testing the low of the EXTREME Buying Aggression bar. This test fails, as the next interval,a MODERATE Selling Aggression bar, closes down and below the Trigger Line. Although we get our first close below the Trigger Line, we note that price is still above the Cycle of Time Line and Chart Modes I & II are green. So we are not yet going to get short. If we are in that original long trade, it is definitely time to reassess. The next interval is up and slightly back above the short Trigger Line, which is immediately followed by a Trap Up Move.

Now things get really interesting.

We see a Moderate Buying Aggression bar. Note that this interval fails to close above the short Trigger Line. That is to say, the short Trigger Line appears to be acting as resistance as price pulls back to it. Notice that Chart Mode I has turned red. Chart Mode II was red, but turns back to green on this interval. The very next interval, closes down below the Cycle of Time Line and completes a Two Bar Reversal pattern. Chart Mode II turns red. We now have our first SHARP SHOOTER short entry signal (E1) in a defined down trend.

(continued)

We note that the last three BUYING Aggression bars have had no follow through. We also note that the last SELLING Aggression bar is the first one for the entire day to have follow through and find acceptance below.

E2-E7 show other possible entries that I have decided not to talk about at this time.

I will note that a new long Trigger Line should actually be placed at the high of the L3 EXTREME Selling Aggression bar.

Although mr.HiddenGap described already EU best possible way, here is my short at same chart.
- we have false break of top from the left by UHV wick
- we break low of UHV and marked bar closed right at this lvl
- one of the important moment for me - marked up bar also from trendline. So my logic was "it would be nice place to go long if i would trade clear PA without volume, so if sell stop will trigger at the low of this bar, then buyres got trapped"
Not VSA setup, but still i found break of trend/S/R is reasonable to trade

Hi Nik-Nyc and other interested..
Thanks you very much for bringing this up - I was myself as a totally beginner in trading on track a few years ago trading futures on a Ninjatrader platform with the fine Jigsaw tool ordeflow tool above - it started very well and I easy doubled my 3K account with ease in 8 trading days time - especially when I stopped listening to John Gradys NO BS live webinar talking about the 10 years treasury and traded the E-mini instead...(It was a course I had bought quite expensively during the time I made my tradesetup). But hey after a heck of a ride BANG I blow the account in 2-3 days plus the money I put on extra be course I thought I got. Truth is I was so inexperienced that it had to happens.

I didnt knew anything about volume, ask bid. hidden areas of S/R and so on. But now 3 years after after maybee 100 hours bookreading and 1000 hours online forumreading (thank you FF) and the last 2 month active trading sim account 3 hours every day. PLUS 3 weeks pres78 vza thread and now this vsabymalcom and now this link to the ROCKY MAN, finally I understand the idea of orderflow and market profile and ask and bid... whouwwww - next step get rich...
THANKS alot...
Pleas ask me anything about jigsaw and John Grady No bs from a begginers perspective...!
Allthough I am thrilled about the IFO orderflow footprint software (havent bought it yet, maybee in 3 month time) - I will defently stick to the basic volume analysis ideas - and I and have no intention of speaking bad about this threads purpose, it just seems to fit so well together that it is possible to see behind the volumebars.
As It is my first post here I hope it is welcome and that it is somehow appropriate regarding context in this thread.

Thanks Malcom and thanks for being around all you wonderful traders...

We gapped up to open above the long Trigger Line, but closed below. I don't know if we will fill the gap or not, but the point to get long would be once price closes above the long Trigger Line and then pulls back towards it.

I would not be short at this point either, as price is above the Cycle of Time Line and both Chart Mode I & II are not red.

I am enjoying reading this thread especially with reference to the Numbers bars/Delta etc. Please keep posting charts relating to this method.

If there are any great links to videos/material for a beginner to learn these principle then please post also.

Thank you

Euro this morning.

Now what we actually have is a new low and people selling at lows???


If price confirms what we can see on the vol we can buy our low..

why? because sellers hitting it and market not moving is absorbing those sellers.

But we can do nothing if price action doesnt follow it

5t

Now we change our hat and scalp to the down side.

and now we close with happy 9 ticks.