I'm sorry maybe it is better if I move to my trading journal thread for entries. This thread should be better for trading setup discussion or analysis.
- #33,087
- May 21, 2020 8:20am May 21, 2020 8:20am
:'( Reason i cry are many ! 1. Those who contributed in learning in the thread and are not with us any more. They deserve our love !!!!!!! 2. I lost much amount in trade, then learnt technicals in right way, and NOW i came to know of VSA and i am crying because of it. 3. Why is there no comments since 2016 4. Please share read good book on VSA with pictures so i can understand terminologies like bag , upthrust etc. Rgds. !!!!!!!!! Stay Blessed.
1) David Weis, especially the conceptual map in his book Trades about to happen. Study the conceptual map deeply.
2) Gary Dayton
3) Feibel (trading)
Once you learnt and studied all the available setups in detail from these guys, locate them on the conceptual map and stick it on your desk, see a small example below
purchased and watched everything these 3 offered, personally GD is the better educator, Feibel is better at everything else.
And the most important of all, structures and drawing them properly
- #33,089
- May 21, 2020 12:48pm May 21, 2020 12:48pm
- Joined Aug 2009 | Status: Reading the TAPE | 2,389 Posts
The thing that really threw me off with VSA was seeing a high volume up bar, an up thrust or no demand then the market pushing right through it. Maybe what I do isn't pure VSA, but I like to see how price reacts to volume before I make a decision. emphasis added.
I know most people don't like bar by bar analysis, mainly because it can be difficult. And I know people don't like hindsight analysis, but if it is here now, it was there then.
So let's take a look:
(1) As you correctly spotted, this is a widespread UP interval on very high volume that closes well off its high. The close off of the high implies to us that there must be some selling in this bar.
(2) This interval closes DOWN and confirms that the previous interval had some Supply (selling) within it.
The reaction:
(3) A narrow range DOWN bar that has volume less than the previous two intervals. This is No Supply. This interval is telling us that whatever selling occurred in the high volume interval may have abated. How can we be sure?
(4) This is a TEST. While this interval does close lower than the previous bar, negating the No Supply, this interval closes off its low on increasing volume. If the previous bar closed near its low on lower volume, one would expect that this interval with more volume would similarly close on or near its low. Rather, this interval closes near its midpoint. Buyers are stepping in on this interval and overcoming Sellers.
(5) This narrow range interval closes UP and confirms the Test. This interval has volume less than the previous two intervals, which means it is No Demand. But anybody that got short on the previous interval is now stuck short as this interval closes above the high of the previous interval.
The bigger picture: We have seen a successful Test within 1-3 intervals of a very high volume interval. That purports some measure of strength.
(6) An increasing spread interval that closes DOWN, but closes well off its low on increasing volume. The same issue as before, the close off the lows tells us that there must be some buyers. In fact, we noted that there are trapped shorts. Some of them are able to get out (buy) at lower prices. Once you sell, you immediately become a buyer. And at the same time, more traders are getting trapped themselves.
While the DOWN close does confirm the No Demand, the strength of the Confirmed Test is still there. The next interval explodes UP.
To be fair, this was not easy to see. I am not suggesting a Long trade should have been taken. However, I am suggesting that there was a reaction to the high volume that could have been seen and would have made one at least be hesitant in taking a Short.
Without VSA, you're playing checkers while the Smart Money plays chess.
- #33,095
- May 22, 2020 3:34am May 22, 2020 3:34am
- Joined Jan 2015 | Status: Trader | 1,460 Posts
{quote} nice, that was a good call, i got stopped out of that one. there was a spring on the 5min, and i got our early to take a small loss though. can i ask, how do u use the daily open? anything above is only longs and anything below is only shorts for the day?
AUD for example if I had followed this yesterday I would have favored shorts over longs. Obviously yesterday I was completely focused on thinking that the market was ignoring weakness so I took my long.
I also use the daily open to identify choppy markets, if price is jumping above and below the daily open or if one day is above the open and the next day is below its open then I consider it a choppy market. Choppy markets looks for buys as price gets further below the open and try to bring the trade back to the open.
- #33,100
- May 22, 2020 10:27am May 22, 2020 10:27am
- Joined Oct 2010 | Status: Looking at a few more charts... | 1,195 Posts
