vsa with Malcolm

Ahh klkl. Nah mate sorry, its part of the TG plugin.

Wow. I've gotten a few PMs about my last post. Thank you for the kind words. Since there were some similar questions/themes, I'll answer here.

* I did not delve deeply into the power and importance of Supply/Demand Zones, because I wanted him (hereinafter the trader) to the work and discover what method of identifying Zones best suits the trader as an individual.

I use Wide Spread Body (or Bar) (WRB) Analysis to identify 99% of my Zones. I didn't want to talk about WRB Analysis because I really don't want to recommend something in this thread that costs money, except for Tom's book (aka the VSA Bible).

* I did not mention multiple time frames, because it depends on the trader's method. of identifying Supply/Demand Zones. The method I employ doesn't require the use of multiple time frames.

* Yes, there are variations and other entry patterns. However, this pattern is very simple and very true. At some point, one may want to broaden out his repertoire, but it really isn't necessary. I could certainly expand on the variations, but I would first want to see evidence that the trader has firmly grasped the basic pattern.

* These charts are not cherry-picked. Typically, I like to show charts from the day of, or from only a few days passed. However, I am showing older charts for two main reasons:

1) I have been going over my own posts; and
2) Some charts go back as far as 2014, which shows this pattern has worked before and continues to work because it has to. It's the way Markets work.

Again, What you want to see; Where you want to see it.


1. Wide Spread DOWN bar on Ultra High/Climatic Volume. Closing off the highs
2. The next bar is UP.

Let's not forget the VSA here, If that wide spread DOWN bar was selling, how can the next bar be UP? The reason it is UP is that there was Hidden Professional Buying on the DOWN bar.



Now that we've seen buying (in a Demand Zone), all we need to see is evidence of a lack of selling. So we are looking for No Supply (with the next bar UP) or a Test (with the next bar UP).


I didn't realize that I grabbed only long examples. So I will conclude with this:

Yes, it works for longs as well as shorts. Yes, it works in all time frames. Yes, it works in all Markets.

This chart is from when I used Ensign. I use Sierra Charts now.

Happy New Year !!!!!!!!!!

May this be a prosperous year for all.

May this thread continue to challenge, teach, and inspire.

May you always remember, and never forget: Volume Spread Analysis (VSA) has to work because the Smart Money can't hide their footprints.

What you want to see; where you want to see it.

I recently wrote about Supply/Demand Zones as the "Where" in Where you want to see it, but a more consistent, with respect to VSA, "Where" can be found using the Trigger Number Matrix. At its core, the Trigger Number Matrix is about looking for volume (or the lack thereof) at volume.

Thus we can start off as such:

Q. What do we want to see?
A. Volume (or lack thereof).

Q. Where do we want to see it?
A. In a previous location where there was High Volume.

Attached Image (click to enlarge)

But we can go deeper.

Q. What do we want to see?
A. Signs of strength or weakness, typically hallmarked by low volume (i.e. No Supply, Test, No Demand, and Up Thrust)

Q. Where do we want to see it?
A. On or in the Trigger Number Matrix. More specifically, on the Trigger Number High, the Trigger Number Low, or Half Back (HB).

Let's take another look at the previous chart

We see an UP bar on Ultra High/Climatic Volume. We know that weakness, when it appears, usually appears on UP bar. However, the next bar is UP which does not confirm the weakness. But we also know some weakness (selling) had to occur on this bar.

At the completion of the Ultra High/Climatic Volume interval, we place the Trigger Number Matrix on it. We now have the "Where" and only have to wait for the "What".

A few intervals later, price moves down to the Trigger Number High, and we see a narrow range DOWN bar closing near its high on volume less than the previous two bars. This is a Test. We now have the "What" and it is in the right place.


The only difference in this chart is that our signals are not low volume. We have a narrow range DOWN bar with increasing volume. This is a Squat and an indication that something is capping down-side action: and that something is Smart Money buying. And this is occurring at HB.

The second entry is a Test on increasing volume. It is also a PRES Two Bar Reversal. It matters less what you call it and more that you see the strength and you see that it is happing on the Trigger Number High.

Can anyone give the link for VSA bar signal Indicator for Mt4, please.

If Gavin H from TG and other here are using SMA20 to trading. When you change the direction of trades ? After price break SMA, after price will be under or above the SMA for some of diamonds?, or market will make a lower low under the SMA for short direction.

Usually longs above the MA at strength, shorts below at weakness.

If your trading with the trend then allignment across higher timeframes would be ideal.

In some of the tradeguider strategies theres talk of waiting for 2/3 coloured diamonds in your favour as an extra confirmation.

I noticed that trading it by above or under SMA is not good enough, because price can go up down up down, and there is no trend in this case.

What do you think.

Should I look for short if there are SOS as I marked?

Nice drop on EA.

Volume at the highs, price drops below the zone, finds sellers at the 50% and a M30 UT into the 0%.

Is it good idea to short it?

Provided your higher TF bias was down, and were looking for a reason to get short.

1. Upthrust
2.Trap-up move
3 Upthrust

I reckon you could have entered off any of these 3.

Upthrust at No 3 would be the entry I would prefer after the TUM.
But likely I would have entered at Upthust No 1.

I thought it is climax and then test of low

Yes bruh, I know I noticed this situation, you described it well, but I am asking shorting after this 2 marked candles, which I sent. Could I play short there.

Wasn't it risky?

There was a low volume up bar (NBP) just before the breakout low where you maybe could have got it in. The trap up move/gotcha bar at 1. would have brought you into the trade.

Or could just enter after the gotcha bar at 1.

Me personally, I probably would have waited on a retest of that trigger bar low with an upthrust or no demand.

Thats what im seeing in hindsight though, I probably wouldnt be quick enough to react to those setups on M1 chart.

I'm assuming you're talking about the first/upper Trigger Number Matrix. Number 1 is an Up Thrust that fails to confirm and is immediately followed by a Test that fails right at the Trigger Number Low. Bingo. Get short.

There are many elements in play that make finding a signal bar easier:

1. (You don't have it one this chart) Half Back (HB) is the line in the sand. If price is above it, you are only looking to go long. If price is below it, you are only looking to go short. Accordingly, if price is below HB as it is here, you need only focus on signs of weakness.

2. The MA.If price is above it, you are only looking to go long. If price is below it, you are only looking to go short. Accordingly, if price is below the MA as it is here, you need only focus on signs of weakness

3. Medium Term Trend indicator. You don't trade with the indicator. That is to say, go long when it turns green and short when it turns red. But you don't trader against it either. Therefore, when the indicator (s) is green, you are only looking t for signs of strength, and when the indicator(s) is red you are only looking for signs of weakness.

So you really would have only been looking for No Demands, Up Thrusts, Trap Up Move, Test (failed), 2 Bar Reversal, EvRs, and Supply. These are the "What" you want to see and the Matrix is the "Where" you want to see it.

We can really add another, "When" you want to see it. And that would bed when price is on the correct side of HB, and the MA. And when the trend indicator(s) are the correct color. Note. if we choose to, we would also put multiple time frame alignment here.

P.S. Don't forget what Tom always said, "If it's here now, it was there then".

There are a million ways to trade with Volume Spread Analysis (VSA), and they all require volume......

[quote=HiddenGap;13845765]{quote} I'm assuming you're talking about the first/upper Trigger Number Matrix.{quote}

Sorry mate, In that particular one i was meaning the 2nd/lower trigger matrix. (NBP* Up bar right before the trigger low was broken) but i should have marked it a bit clearer.

Amazing explanation

EU looks enticing, altho today is FOMC, so ranges might be in play?
EDIT>news changed the situation, lookin bullish now, closed about prev supply on low vol, meanin that those sellers aren t there anymore