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Volume Spread Analysis (VSA) Discussion 2 replies

Volume Spread Analysis (VSA) and background 5 replies

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Volume Spread Analysis (VSA) and the EURUSD 3 replies

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Learn to Trade using VSA (Volume Spread Analysis)

  • #241
  • Feb 26, 2009 6:18pm Feb 26, 2009 6:18pm
Quoting nyse1982
okay my fingers hurt from this typing
Also gator read this PDF from Tom Williams which outlines in further detail the VSA Strategy..Once you have an understanding of how accumulation and distribution you'll see that it becomes second nature..You'll be able to read and even predict, what the smart money will do.How they will mark up the price of EUR/USD and then you can tell when its time to reverse and you can then get on the right side of the trade..This method is amazing and a trader who can understand this can trade with the smart money.
Attached File(s)
File Type: pdf Trade Guide.pdf   1.5 MB | 4,314 downloads
  • #242
  • Feb 26, 2009 6:28pm Feb 26, 2009 6:28pm
Quoting nyse1982
okay my fingers hurt from this typing
Thanks nyse1982! I really appreciate you taking the time to try to explain VSA! ( however, I am sure I am not done with my gazillion questions that I am sure will arise!) Thanks again!
  • #243
  • Feb 26, 2009 6:30pm Feb 26, 2009 6:30pm
Quoting nyse1982
Also gator read this PDF from Tom Williams which outlines in further detail the VSA Strategy..Once you have an understanding of how accumulation and distribution you'll see that it becomes second nature..You'll be able to read and even predict, what the smart money will do.How they will mark up the price of EUR/USD and then you can tell when its time to reverse and you can then get on the right side of the trade..This method is amazing and a trader who can understand this can trade with the smart money.
I have read most of this PDF but, over this weekend I will read it again...
  • #244
  • Feb 26, 2009 6:59pm Feb 26, 2009 6:59pm
Quoting nyse1982
Also gator read this PDF from Tom Williams which outlines in further detail the VSA Strategy..Once you have an understanding of how accumulation and distribution you'll see that it becomes second nature..You'll be able to read and even predict, what the smart money will do.How they will mark up the price of EUR/USD and then you can tell when its time to reverse and you can then get on the right side of the trade..This method is amazing and a trader who can understand this can trade with the smart money.
Just went short on USD/JPY based on weak volume 1 which was an up bar.Closed out at 97.78
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 36 KB
  • #245
  • Feb 26, 2009 7:24pm Feb 26, 2009 7:24pm
Quoting nyse1982
Just went short on USD/JPY based on weak volume 1 which was an up bar.Closed out at 97.78
Again based on weak volume on candle 1.Looking to scalp for profits..out the trade at 97.78
Attached Image (click to enlarge)
Click to Enlarge Name: chart1.gif Size: 39 KB
  • #246
  • Feb 26, 2009 7:34pm Feb 26, 2009 7:34pm
Why not have the the histogram reflect the info. from the spread analysis, as with the indicator from post #185?
  • #247
  • Feb 26, 2009 7:44pm Feb 26, 2009 7:44pm
Quoting eagle4x
Why not have the the histogram reflect the info. from the spread analysis, as with the indicator from post #185?
Are you referring to the previous trades USD/JPY?
  • #248
  • Feb 26, 2009 9:26pm Feb 26, 2009 9:26pm
NYSE1982, I think that there is an outstanding question that still hasn't been answered. According to page 18 of the Master of the Markets Trading guide that you published,

"The price spread is the difference between the highest and lowest trading points reached during the timeframe you are looking at, which may be weekly, daily, hourly, or whatever other timeframe you choose."

The question is why have you chosen to calculate the spread differently than the guide? You are calculating spread as the (high-Low) - (high-close).

Please share why you changed the formula from what is listed in the guide.
  • #249
  • Feb 26, 2009 11:57pm Feb 26, 2009 11:57pm
What I mean is a graphical representation of the volume/spread relationship to better visualize where to enter long/short instead of showing only volume.


Quoting nyse1982
Are you referring to the previous trades USD/JPY?
  • #250
  • Feb 27, 2009 12:57am Feb 27, 2009 12:57am
Quoting eagle4x
What I mean is a graphical representation of the volume/spread relationship to better visualize where to enter long/short instead of showing only volume.
That's what I was suggesting a few posts back... spread shouldbe easy to plot as a graph line, on a scale of 0 to say 50... when the spread line approaches "0" you knowit's getting close to "go time"!

Anyway, great work so far, thanks everyone!
  • #251
  • Feb 27, 2009 1:11am Feb 27, 2009 1:11am
Quoting Afxtrader
NYSE1982, I think that there is an outstanding question that still hasn't been answered. According to page 18 of the Master of the Markets Trading guide that you published,

"The price spread is the difference between the highest and lowest trading points reached during the timeframe you are looking at, which may be weekly, daily, hourly, or whatever other timeframe you choose."

The question is why have you chosen to calculate the spread differently than the guide? You are calculating spread as the (high-Low) - (high-close).

Please share...
Yes, earlier me and another member were having a discussion and I explained that the formula that I was using is what was researched from SFO as per this article http://www.sfomag.com/homefeaturedet...ne&YearID=2006

VSA looks at the interrelationship between three variables on the chart in order to determine the balance of supply and demand as well as the probable near term direction of the market. These variables are the amount of volume on a price bar, the price spread or range of that bar (do not confuse this with the bid/ask spread), and the closing price on the spread of that bar
  • #252
  • Feb 27, 2009 1:13am Feb 27, 2009 1:13am
Quoting freedom30
That's what I was suggesting a few posts back... spread shouldbe easy to plot as a graph line, on a scale of 0 to say 50... when the spread line approaches "0" you knowit's getting close to "go time"!

Anyway, great work so far, thanks everyone!
thats a good point, because this would help us better on when to decide upon a entry point...great idea..
  • #253
  • Feb 27, 2009 1:18am Feb 27, 2009 1:18am
Quoting eagle4x
What I mean is a graphical representation of the volume/spread relationship to better visualize where to enter long/short instead of showing only volume.
Lets see if we can get another update to this beta...I think were getting real close to refining this strategy.
  • #254
  • Feb 27, 2009 1:23am Feb 27, 2009 1:23am
Quoting freedom30
That's what I was suggesting a few posts back... spread shouldbe easy to plot as a graph line, on a scale of 0 to say 50... when the spread line approaches "0" you knowit's getting close to "go time"!

Anyway, great work so far, thanks everyone!
Great idea...
  • #255
  • Feb 27, 2009 1:26am Feb 27, 2009 1:26am
Great ideas guys can someone mention this to forexflash...I'll be at work from 8am-5pm EST so I don't know that I'll catch him on..but keep me updated once we get this histogram coded.
  • #256
  • Feb 27, 2009 1:55am Feb 27, 2009 1:55am
Sorry guys....why didnt somebody point this out from the begining!
I realy dont have time to code another indicator!
Anyway, all you need to know is in last indicator......or are you to lazy
to watch the numbers?

All I can do is to refine my original indicator, but I dont know
what else to add to it!

Regards
forexflash
  • #257
  • Feb 27, 2009 1:56am Feb 27, 2009 1:56am
Quoting eagle4x
What I mean is a graphical representation of the volume/spread relationship to better visualize where to enter long/short instead of showing only volume.
I agree, although I'm beginning to see the cause and effects of the spread and volume, I'm really struggling to catch the entries based on the figures alone so a graphical indication would be great!!
  • #258
  • Feb 27, 2009 2:04am Feb 27, 2009 2:04am
...........
  • #259
  • Feb 27, 2009 7:27am Feb 27, 2009 7:27am
Hello All

I am new to this thread, but have been exploring PA for the past month as I am tired of lagging indicators. I have put together some indicators that might help. One is a histogram of the spread and the other is a histogram of the HL Range.

The coding is poor as I modified another indicator just to get it on my charts, so I only sent the .ex file

Hope this helps.

Regards,

Mark
Attached File(s)
File Type: ex4 VSA Spread.ex4   4 KB | 1,063 downloads
File Type: ex4 VSA HL Range.ex4   7 KB | 1,022 downloads
  • #260
  • Feb 27, 2009 8:35am Feb 27, 2009 8:35am
Quoting FOREXflash
Sorry guys....why didnt somebody point this out from the begining!
I realy dont have time to code another indicator!
Anyway, all you need to know is in last indicator......or are you to lazy
to watch the numbers?

All I can do is to refine my original indicator, but I dont know
what else to add to it!

Regards
hey thanks for your help, I agree we can work something out..I have no problems choosing an entry based on the numbers, however some of the members are having trouble choosing an entry or exit. So there's suggestions to see if we can come up with a histogram of some sort.

I have no clue however as to how we could create one or what even to base it on. I need some more suggestions, I know for know were using 6 candles so Im assuming if we do create a histogram it should be based on that..
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