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Volume Spread Analysis (VSA) Discussion 2 replies

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Learn to Trade using VSA (Volume Spread Analysis)

  • #201
  • Feb 26, 2009 9:20am Feb 26, 2009 9:20am
Quoting nyse1982
I immediately go opposite of what the current trend is. For example

Red- Bar 1
EUR/[email protected]
Vol: 300
H/V: half volume 150

Red- Bar 2
EUR/[email protected]
Time: 7min 30sec
Vol: 100

In this case the H/V wasn't reached by the halfway mark so I'm going opposite of the current trend based on volume weakness from the market to push through on the current trend. I'm still testing this method so I'm not making claims that it works.

nyse1982... Any update on this method???
  • #202
  • Feb 26, 2009 9:23am Feb 26, 2009 9:23am
I think every candle tells a different story compared to its volume but using some simple mathematic formula to extract a number which doesnt tell us anything is pretty naive IMO. Reading price/volume is an art/science thing it cant be closed in couple of formulas.
  • #203
  • Feb 26, 2009 9:24am Feb 26, 2009 9:24am
Quoting Greenhaze
(H-L)-(H-C) = C-L. Why spread is calculated like that , why candle close - low should be relevant to volume analysis?
Spread is a trading range between H-L and H-C. Then subtract the (H/L) - (H/C) = Spread.

Its defined like that in T.Williams book.
  • #204
  • Feb 26, 2009 9:26am Feb 26, 2009 9:26am
Quoting Gator
nyse1982... Any update on this method???
Not yet, still doing research. When I find out something I'll get back to you..
  • #205
  • Feb 26, 2009 9:37am Feb 26, 2009 9:37am
Hey Nyse,

Great thread, like seeing new ideas put into action.
The Method looks interesting, still cant really addapt it to my 1h trading style, + got the feeling that this is like a double edge sword.
Anyways just stopped by to say thanks, and please dont let most of the newbies turn this thread into a search of the "holy grail".

PS. Thanks also goes to FOREXflash for the time and thought he put into this.

Amis
simple....
  • #206
  • Feb 26, 2009 9:44am Feb 26, 2009 9:44am
Quoting nyse1982
Spread is a trading range between H-L and H-C. Then subtract the (H/L) - (H/C) = Spread.

Its defined like that in T.Williams book.
Just copied that from T.Williams book:

"The price spread is the difference between the highest and lowest trading points reached during the timeframe you are looking at" which is H-L.

It shows us market activity in this candle timeframe... then you take open & close to analise bears & bulls role in this candle. Volume will tell what were smart money doing at this time. One candle tells only part of the story but if you look on broader picture you got better chances to guess what smart money are up to. I dont see any logic hided behind those spread calculations ,all i need is on the chart , what exact info are you trying to extract from OHLC candles?
  • #207
  • Feb 26, 2009 10:02am Feb 26, 2009 10:02am
Quoting Greenhaze
Just copied that from T.Williams book:

"The price spread is the difference between the highest and lowest trading points reached during the timeframe you are looking at" which is H-L.

It shows us market activity in this candle timeframe... then you take open & close to analise bears & bulls role in this candle. Volume will tell what were smart money doing at this time. One candle tells only part of the story but if you look on broader picture you got better chances to guess what smart money are up to. I dont see any logic hided behind those...
I don't want to beat a dead horse people, but when your looking at volume and spreads your looking to see if the selling pressure has ended or atleast slowed down..You can tell this by the spread or price action. I tell you I just traded this method look at this chart.It works I don't know what else I have to do?? Look at my entry point and last check I'm up 19 pips
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 35 KB
  • #208
  • Feb 26, 2009 10:04am Feb 26, 2009 10:04am
Quoting nyse1982
I don't want to beat a dead horse people, but when your looking at volume and spreads your looking to see if the selling pressure has ended or atleast slowed down..You can tell this by the spread or price action. I tell you I just traded this method look at this chart.It works I don't know what else I have to do?? Look at my entry point and last check I'm up 19 pips
I would see if I was just saying it but I'm trading it and I have no other TA on my charts, period. Point blank you don't need them if you can grasp this concept!
  • #209
  • Feb 26, 2009 10:05am Feb 26, 2009 10:05am
Quoting nyse1982


I would see if I was just saying it but I'm trading it and I have no other TA on my charts, period. Point blank you don't need them if you can grasp this concept!
Your going to get pullbacks naturally but I just caught the trend reversal.You can do this it's not hard
  • #210
  • Feb 26, 2009 10:12am Feb 26, 2009 10:12am
Quoting nyse1982
I don't want to beat a dead horse people, but when your looking at volume and spreads your looking to see if the selling pressure has ended or atleast slowed down..You can tell this by the spread or price action. I tell you I just traded this method look at this chart.It works I don't know what else I have to do?? Look at my entry point and last check I'm up 19 pips
Up 22 pips from last check..
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 35 KB
  • #211
  • Feb 26, 2009 10:15am Feb 26, 2009 10:15am
Quoting nyse1982
Up 22 pips from last check..
peeked at 30 pips will probably get a slight pull back from profit taking then keep moving up.

I love giving play by play...
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 35 KB
  • #212
  • Feb 26, 2009 10:26am Feb 26, 2009 10:26am
Quoting nyse1982
peeked at 30 pips will probably get a slight pull back from profit taking then keep moving up.

I love giving play by play...
I have my take profit at 1.2789 which is the 38.2 retracement on the fibo..
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 35 KB
  • #213
  • Feb 26, 2009 10:43am Feb 26, 2009 10:43am
Quoting nyse1982
I have my take profit at 1.2789 which is the 38.2 retracement on the fibo..
Now take notice b/c I saw that the spread was now narrowing so to be on the cautious side, I closed out early..See the volume pickup

Candle 3
H/L:25
H/C:1
spread 24

Candle 2
H/L:25
H/C:5
Spread: 20

Candle 1
H/L: 21
H/C:17
Spread: 4

so narrowing of spread gave me an exit..So pretty simple to read..hey you get 38 pips not bad move.Now sit on your hands and wait for the next setup.

Possibly may go short depending on the spread!
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 34 KB
  • #214
  • Feb 26, 2009 10:49am Feb 26, 2009 10:49am
Quoting nyse1982
Now take notice b/c I saw that the spread was now narrowing so to be on the cautious side, I closed out early..See the volume pickup

Candle 3
H/L:25
H/C:1
spread 24

Candle 2
H/L:25
H/C:5
Spread: 20

Candle 1
H/L: 21
H/C:17
Spread: 4

so narrowing of spread gave me an exit..So pretty simple to read..hey you get 38 pips not bad move.Now sit on your hands and wait for the next setup.

Possibly may go short depending on the spread!
Now see how the spread on

Candle 1:

H/L:20
H/C18
Spread 2

just narrowed on down bar so you could have possibly gone short...but it looks as though its moving within range, which points to accumulation!Therotically if you went short (candle 2) that wouldn't have been bad move..but again check your volume to see if there is selling pressure
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 36 KB
  • #215
  • Feb 26, 2009 10:51am Feb 26, 2009 10:51am
Here is a "final" code.....no more bugs, all checked!!!

Enjoy
Attached Image (click to enlarge)
Click to Enlarge Name: vsa.gif Size: 11 KB
Attached File(s)
File Type: mq4 VOLUME SPREAD ANALYSIS v3.mq4   24 KB | 1,264 downloads
forexflash
  • #216
  • Feb 26, 2009 10:51am Feb 26, 2009 10:51am
Quoting nyse1982
I have my take profit at 1.2789 which is the 38.2 retracement on the fibo..
Where are you getting those so called Grey up and down arrows that are shown on you chart??
  • #217
  • Feb 26, 2009 10:54am Feb 26, 2009 10:54am
Quoting Gator
Where are you getting those so called Grey up and down arrows that are shown on you chart??
Try fractals
forexflash
  • #218
  • Feb 26, 2009 10:55am Feb 26, 2009 10:55am
Quoting Gator
Where are you getting those so called Grey up and down arrows that are shown on you chart??
check #185 and once you download package into your indicators on metatrader it's called fractal up..
  • #219
  • Feb 26, 2009 10:56am Feb 26, 2009 10:56am
Quoting FOREXflash
Here is a "final" code.....no more bugs, all checked!!!

Enjoy
thanks your a genuis..
  • #220
  • Feb 26, 2009 11:10am Feb 26, 2009 11:10am
Quoting FOREXflash
Try fractals
Hey Flash, If you did not get the arrow problem solved, I modified your v3 if you don't mind my posting it as 3b. Let me know, I solved the arrow error, without changing time frames.

BTW that is a great indicator and your programming style is very organized. I love to read code like this, so easy to understand.

Or

I can just send it to you and you can look it over and if you like it, you post it. Just PM me an email address.
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