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Volume Spread Analysis (VSA) Discussion 2 replies

Volume Spread Analysis (VSA) and background 5 replies

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Learn to Trade using VSA (Volume Spread Analysis)

  • #221
  • Feb 26, 2009 11:22am Feb 26, 2009 11:22am
Quoting thatwasme
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.
Thanks.....do with code anything you want....sure you can post it here,
but I solved that problem in last version(v3) !
Respect
forexflash
  • #222
  • Feb 26, 2009 11:23am Feb 26, 2009 11:23am
thank you forexflash
  • #223
  • Feb 26, 2009 11:23am Feb 26, 2009 11:23am
Quoting FOREXflash
Thanks.....do with code anything you want....sure you can post it here,
but I solved that problem in last version(v3) !
Respect
Ok No need then Thanks
  • #224
  • Feb 26, 2009 11:39am Feb 26, 2009 11:39am
I have an idea that we can open a chat room to discuss VSA trading method.(if this doesn't against ff's rules)
share vsa resource to each other and learn together.
spot the signal in"real time".(becos there are some people in other forum said vsa is good and alway right in the "hindsight". i don't agree it at all.
it needs experience and practice and sure can make our trading skill and view better.
just my thought.
anyone??
  • #225
  • Feb 26, 2009 11:53am Feb 26, 2009 11:53am
Quoting FOREXflash
Here is a "final" code.....no more bugs, all checked!!!

Enjoy
Thanks for your efforts and help - much appreciated....
Trading Levels with WRBs
  • #226
  • Feb 26, 2009 12:04pm Feb 26, 2009 12:04pm
LITTLE UPDATE......ENJOY
Attached Image (click to enlarge)
Click to Enlarge Name: vsa.gif Size: 12 KB
Attached File(s)
File Type: mq4 VOLUME SPREAD ANALYSIS v4.mq4   38 KB | 1,377 downloads
forexflash
  • #227
  • Feb 26, 2009 12:12pm Feb 26, 2009 12:12pm
Now with final code, I was finaly observing some PA with this indicator,
and man, this baby got potential!!!
forexflash
  • #228
  • Feb 26, 2009 12:48pm Feb 26, 2009 12:48pm
Quoting FOREXflash
Now with final code, I was finaly observing some PA with this indicator,
and man, this baby got potential!!!
Every revision were getting one step closer..who'd ever thought a bunch of rookies could get things brewing like this!!
  • #229
  • Feb 26, 2009 12:54pm Feb 26, 2009 12:54pm
this is the trade took mins ago.
i watch 15m chart to see the strength and get in the trade by using 5m chart. (break the high to confirm )
and trail my stop by using 5m chart or i see something against my trade.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: euro.jpg Size: 22 KB
Click to Enlarge Name: vsa.jpg Size: 178 KB
  • #230
  • Feb 26, 2009 1:08pm Feb 26, 2009 1:08pm
Truly excellent work. The VSA Indicator is a work of art. Thank you Nyse1982 for sharing with us and thank you FOREXflash for your wonderful work. now the real work begins!

fxpilot
  • #231
  • Feb 26, 2009 1:30pm Feb 26, 2009 1:30pm
Check out how the VSA works look at the volume increase after that pullback on candle 5. Then look at how the spread increases with steady volume up to candle 1.Volume drops off and your spread peeks at 13, great time for entry. The candle 0 will close down and depending on the volume we can tell if thier is HSP or (heavy selling pressure) based on the volume, if it's strong trend will continue if not, it was a shakeout and Smart money just took out alot of stops on that move, before it heads back up!
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 34 KB
  • #232
  • Feb 26, 2009 1:39pm Feb 26, 2009 1:39pm
Quoting FOREXflash
Now with final code, I was finaly observing some PA with this indicator,
and man, this baby got potential!!!
Do you think it would be beneficial if we measure each candle to see if it reaches half the volume of the previous candle? I was thinking that say for example

Candle 1
vol:108 15m chart

So we measure half volume which is 54 and if Candle 0 volume exceeds before 7m 30sec mark which is half of each 15m candle. This way we can sort of look to see if the current bar has enough volume on the current move? I figure we can run a volume average line, which measures the strength based on half of the candle time??

The good thing is it will give us insight and it's an true measurement and doesn't lag?

Just a thought??
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 34 KB
  • #233
  • Feb 26, 2009 1:45pm Feb 26, 2009 1:45pm
[quote=nyse1982;2566955]Do you think it would be beneficial if we measure each candle to see if it reaches half the volume of the previous candle? I was thinking that say for example

Candle 1
vol:108 15m chart

So we measure half volume which is 54 and if Candle 0 volume exceeds before 7m 30sec mark which is half of each 15m candle. This way we can sort of look to see if the current bar has enough volume on the current move? I figure we can run a volume average line, which measures the strength based on half of the candle time??

The good thing is it will give us insight and it's an true measurement and doesn't lag?

Just a thought??[/quot

Just wonderful how vsa lets us follow the footsteps of the market, while everyone is using those lagging indicators...geez I actually feel sorry for some of them...
  • #234
  • Feb 26, 2009 1:48pm Feb 26, 2009 1:48pm
Quoting nyse1982
Check out how the VSA works look at the volume increase after that pullback on candle 5. Then look at how the spread increases with steady volume up to candle 1.Volume drops off and your spread peeks at 13, great time for entry. The candle 0 will close down and depending on the volume we can tell if thier is HSP or (heavy selling pressure) based on the volume, if it's strong trend will continue if not, it was a shakeout and Smart money just took out alot of stops on that move, before it heads back up!
If you shorted at Candle 3 like I pointed out you probably made a quick 20-25 pips on that move!
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 40 KB
  • #235
  • Edited 2:57pm Feb 26, 2009 2:31pm | Edited 2:57pm
Quoting Hal2611
http://www.forexfactory.com/images/s...ser_online.gif

http://www.forexfactory.com/images/icons/icon1.gif
With regards to post #191

You had indicated in previous post that the spread is HL minus HC. In the VSA basic PDF posted by lubolabo, the spread is calculated as H minus L. This makes more sense since your calculation is really L minus C. Please look into this and clearify exactly the spread calculation we should be using.

If, H= 10, C= 3, L= 2, then HL - HC = [(H-L) - (H-C)] =[(10-2)...
You are correct, mathmatically. Since we are interested in the distance between the two points, in absolute terms they are equal. A pip above (+) or below (-) a reference point is still a distance of 1 pip.

In Mastering the Markets - VSA p27 Spread is defined as H -L (see attached pdf file). The pdf from lubolabo, VSA Basic also defines it that way.
  • #236
  • Feb 26, 2009 2:59pm Feb 26, 2009 2:59pm
Quoting fxtrader2k7
You are correct, mathmatically. Since we are interested in the distance between the two points, in absolute terms they are equal. A pip above (+) or below (-) a reference point is still a distance of 1 pip.

In Mastering the Markets - VSA p27 Spread is defined as H -L (see attached pdf file). The pdf from lubolabo, VSA Basic also defines it that way.

Oops.. forget to attach the pdf. Here it is
Attached File(s)
File Type: pdf MTM - VSA p27.pdf   139 KB | 1,417 downloads
  • #237
  • Feb 26, 2009 5:30pm Feb 26, 2009 5:30pm
Quoting Airmos
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
better to be used on 5-15-30, i mean if your trading the 1H your going to have to be cautious and trade super small lots..but the method does work on the 1H. Just read the spreads and focus on decrease in volume on swing lows..Whats good about this that you always see that hammer formation as the last bar the start of an upswing.
  • #238
  • Feb 26, 2009 5:32pm Feb 26, 2009 5:32pm
Quoting nyse1982
Check out how the VSA works look at the volume increase after that pullback on candle 5. Then look at how the spread increases with steady volume up to candle 1.Volume drops off and your spread peeks at 13, great time for entry. The candle 0 will close down and depending on the volume we can tell if thier is HSP or (heavy selling pressure) based on the volume, if it's strong trend will continue if not, it was a shakeout and Smart money just took out alot of stops on that move, before it heads back up!
Not sure I understand your explanation: You state that the Volume increases with steady volume up to candle one - okay I can see this [candle 5 - 141] [candle 4 - 202] [candle 3 - 221] [candle 2 - 225] and then it goes down at [candle 1 - 189] okay got it...

Now you state that the spread increases up to candle one - I am I missing something because I see that the spread at [candle 5 - 5] [candle 4 - 22] [candle 3 - 12] [candle 2 - 11] then goes back up to [candle 1 - 13] which you state as a peek but 22 is larger or a higher peek than 13. This is where I have a difficult time trying to understand your explanations (by the way this is just one example of the many explanations that you have given in this forum that just don't add up to me - call me stupid!)

I would greatly appreciate it if you could help me understand VSA better! Thanks for everything and thanks to you for this great forum.
  • #239
  • Feb 26, 2009 6:08pm Feb 26, 2009 6:08pm
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
Okay check this out gator:

Check out Candle 5

vol 363<<strong volume
spread 17<<high spread

candle 4

vol:407<<stronger volume
spread 8<<but spread is narrowing(getting smaller)

candle 3

vol:360<<weaker then candle 5(means strength of current trend getting weaker)
spread:14<<higher spread kind of last effort to push price higher

candle 2 (I went long here) 1.2742

vol:363<<significantly lower then candle 4
spread:6<<very narrow spread compared to previous candle means that selling pressure going to reverse

candle 1

vol:338
spread:24<<jumped higher on good volume

the thing is your looking for a peak in the volume and then suddenly your volume drops off. In this instance I'm looking at my entry at candle 2 from candle 4.

Now as a continuation look at chart 2

candle 1

vol:338
spread 24<<<extremely high

now look at chart 3

my candle 1 is now candle 3 on the new chart

candle 2

vol:357<<lower then candle 4
spread 5<<spread narrowed

now you can be safe and take profit here or what I did is hold out for hard confirmation.I took profit here for 1.2767

candle 1

vol:317<<lower then candle 3
spread:4<<spread narrowed even more

candle 0

vol:113<<weak volume from candle 2
spread 6<<also spread increase

candle 0 eventually closed down..its like a cycle as the candle 1 showed us a good reason because of lower volume and the spread narrowing.During a momentum stage notice how the spread increase b/c more buyers are piling into EUR/USD. Especially if it's extremely high your going to see ridiculous spreads..like from chart one candle 1 spread of 24<<extreme.Unless theres strong volume bar over bar then it has to come down..because the supply is drying up
Attached Image(s) (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 35 KB
Click to Enlarge Name: chart3.gif Size: 34 KB
  • #240
  • Feb 26, 2009 6:10pm Feb 26, 2009 6:10pm
Quoting nyse1982
Okay check this out gator:

Check out Candle 5

vol 363<<strong volume
spread 17<<high spread

candle 4

vol:407<<stronger volume
spread 8<<but spread is narrowing(getting smaller)

candle 3

vol:360<<weaker then candle 5(means strength of current trend getting weaker)
spread:14<<higher spread kind of last effort to push price higher

candle 2 (I went long here) 1.2742

vol:363<<significantly lower then candle 4
spread:6<<very narrow spread compared to previous candle means that selling pressure going to reverse

candle 1

vol:338
spread:24<<jumped...

okay my fingers hurt from this typing
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