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Volume Spread Analysis (VSA) Discussion 2 replies

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Learn to Trade using VSA (Volume Spread Analysis)

  • #661
  • Mar 6, 2009 10:36am Mar 6, 2009 10:36am
Good observation chartist, but I also compared the change between the candles and spreads on FXDD and Alpari, and noticed that they do not correspond every time. For example, on e/j 4hr:
FXDD on candle 4, volume = 2850, Alpari = 12,476
FXDD on candle 3, volume = 2743, Alpari = 14,829

So, the volume decreased from candle 4 to 3 on FXDD, but increased on Alpari.

Also, I made similar oberservations comparing the spread between the two platforms.

Seems to me like for this system to be viable, the changes between the VSA parameters should be approximately the same regardless of the platform used.



Quoting Fx chartist
Your broker is using 5 digit pricing feed hence your tick volume indicator show a greater number of ticks than his broker.
  • #662
  • Edited 11:55am Mar 6, 2009 11:18am | Edited 11:55am
Quoting eagle4x
Good observation chartist, but I also compared the change between the candles and spreads on FXDD and Alpari, and noticed that they do not correspond every time. For example, on e/j 4hr:
FXDD on candle 4, volume = 2850, Alpari = 12,476
FXDD on candle 3, volume = 2743, Alpari = 14,829

So, the volume decreased from candle 4 to 3 on FXDD, but increased on Alpari.

Also, I made similar oberservations comparing the spread between the two platforms.

Seems to me like for this system to be viable, the changes between the VSA parameters should...
Eagle,

My interpretation of this harks back to my earlier post where I used the analogy of a casino and black jack tables. The players at each black jack table (FXDD table #1, Alpari table #2, etc.) are all deploying different strategies at any given moment in time, yet, eventually they will all move in unison with the market price direction. In fact, I would argue that their combined strategies (similar and disimilar) are moving the overall market price itself. I wouldn't expect ANY of our volume indicators to be exactly the same - if they were, then we would have universal volume like stocks and other centralized markets do.

In your example above, nyse might have taken a trade in one direction (i.e. short) and you might have taken a trade in the opposite direction (i.e. long) and you both might have closed out those trades in profit - based on the volume and PA displaying at YOUR blackjack table at that time. Perhaps I'm wrong but just my thought anyway.

What this tells me is that if we ever get into a testing phase on this, don't expect us to all have the same trade entries, exits and profits/losses - because we are all playing at differnt blackjack tables. Doesn't mean that the volume and spreads will be wrong or not tradable, just means they will be different for each of us at different times.
- Bowen (a.k.a. Wolf)
  • #663
  • Mar 6, 2009 11:43am Mar 6, 2009 11:43am
Eagle,

Ah-ha!!! There's another variable I just noticed here as well. It appears that nyse is using Alpari (US) and you are using Alpari (UK). I was just recently a part of the Slingshot EA testing that damonl started on his thread and we ran across the same issue - HUGE differences in price (and probably volume as well but we didn't use that) between the two. Several of our testers were using Alpari (US) and others were using Alpari (UK) and we got two totally different results using the same EA with the same settings on these two platforms. That's probably a major contributing factor in your case as well.

In fact, what we also discovered is that you can have two testers on the SAME broker but on different trade servers and also get totally different trade results.
- Bowen (a.k.a. Wolf)
  • #664
  • Mar 6, 2009 11:58am Mar 6, 2009 11:58am
Dear thread starter,I deeply appreciate your passion for success and the style with which you pursue it.I know that you will doubtlesslyreach the top with joy and singing in your journey of life.The reason is simple,because you know the greatest law of success.The law states that whatever you make happen to others,God will make happen to you in an exponential order.You are making people happy here and Iam glad to have people like you here.There are few people like you here.

I went through your write-ups and I saw an awesome potential in them.Please can you explain very briefly the associativity of the following notions to entry or exit a trade;

A1)when volume is decreasing and spread is decreasing in an uptrend what do we do if we are in a winning trade?

A2)when volume is decreasing and spread is decreasing in a downtrend what do we do if we are in a winning trade?

B1)when volume is increasing and spread is increasing in an uptrend what do we do if we are in a winning trade?

B2)when volume is increasing and spread is increasing in a downtrend what do we do ?

C1)when volume is increasing and spread is dedreasing in an uptrend what do we do if we are in a winning trade?

C2)when volume is decreasing and spread is increasing in an uptrend what do we do if we are in a winning trade?

C3)when volume is increasing and spread is dedreasing in a downtrend what do we do if we are in a winning trade?

C4)when volume is decreasing and spread is increasing in a downtrend what do we do if we are in a winning trade?

D1)when volume is increasing and spread remains unchanged in an uptrend what do we do if we are in a winning trade?

D2)when volume is increasing and spread remains unchanged in a downtrend what do we do if we are in a winning trade?

D3)when volume is decreasing and spread remains unchanged in an uptrend what do we do if we are in a winning trade?

D4)when volume is decreasing and spread remains unchanged in a downtrend what do we do if we are in a winning trade?

E1)when spread is increasing and volume remains unchanged in an uptrend what do we do if we are in a winning trade?

E2)when spread is increasing and volume remains unchanged in a downtrend what do we do if we are in a winning trade?

E3)when spread is decreasing and volume remains unchanged in an uptrend what do we do if we are in a winning trade?

E4)when spread is decreasing and volume remains unchanged in a downtrend what do we do if we are in a winning trade?

F)what is the minimum number of bars or candles to be considered in order to obtain an approximate data of change in spread and/or volume with respect to price analysis.

I know this task is priceless indeed! some derive their own happiness from making others happy,some derive their pleasue from making others sad, and some are always looking for happiness all their life time.The truth is there is a God that rewards everyone according to his input to the life of others.That same God will reward you and others who are working tirelessly and selfishlessly just to make others,especially strangers happy.Thank you once again.
we cannot succeed without a well defined risk management.
  • #665
  • Mar 6, 2009 12:02pm Mar 6, 2009 12:02pm
Quoting BlackWolf
Eagle,

Ah-ha!!! There's another variable I just noticed here as well. It appears that nyse is using Alpari (US) and you are using Alpari (UK). I was just recently a part of the Slingshot EA testing that damonl started on his thread and we ran across the same issue - HUGE differences in price (and probably volume as well but we didn't use that) between the two. Several of our testers were using Alpari (US) and others were using Alpari (UK) and we got two totally different results using the same EA with the same settings on these two platforms....

HAHA Love the sig. "VSA it speaks volumes to me" (For the benefit of those reading with sigs turned off.)
The trend always ends.
  • #666
  • Mar 6, 2009 12:08pm Mar 6, 2009 12:08pm
Quoting ShamusFamous
HAHA Love the sig. "VSA it speaks volumes to me" (For the benefit of those reading with sigs turned off.)
You're the first to notice and acknowledge it - thanks!

Careful that you don't give yourself indigestion eating pancakes at that rate!!!
- Bowen (a.k.a. Wolf)
  • #667
  • Mar 6, 2009 12:15pm Mar 6, 2009 12:15pm
Quoting bosun2007
Dear thread starter,I deeply appreciate your passion for success and the style with which you pursue it....

I went through your write-ups and I saw an awesome potential in them.Please can you explain very briefly the associativity of the following notions to entry or exit a trade;

A1)when volume is decreasing and spread is decreasing in an uptrend what do we do if we are in a winning trade?

A2)when volume is decreasing and spread is decreasing in a downtrend what do we do if we are in a winning trade?

B1)when volume is increasing and spread...
The answer to all of these is...PRAY! (Just kidding) It will be interesting to see nyse's response to this one. Sure will go a long ways to writing an EA for it!!!

Chuckle of the Day: What is the definition of "Liquidity"? Answer: When you look at your retirement portfolio and wet your pants!!!

Ok, I've reached my maximum allowed stupid posts for the day threshold, time to sit down and shut up, I know.
- Bowen (a.k.a. Wolf)
  • #668
  • Mar 6, 2009 12:52pm Mar 6, 2009 12:52pm
Quoting bosun2007
Dear thread starter,I deeply appreciate your passion ....
hi bosun
it really depends on your trading style.
and i see your question focus on bar by bar analizy.
you have to see all background otherwise you could be jumping in and jumping out all the time .
for example ,you take a long after strong long signal and price keeping up,retrace little bit ,show a "test bar "and up again,you can trail your stop under the last low 2-3 pips.in a up trend the price action usually show a higher high and higher low.you can use higher low to protect your long trade's profit.
and then you see a weakness signal appears,and price near the resistant ,you can close half of your position.
if there are several weakness shows on your chart left.
i suggest close all and wait the signal to take short trade.
hope this help.
  • #669
  • Mar 6, 2009 12:54pm Mar 6, 2009 12:54pm
Looks like everything is normal in the neighbourhood--right--on the Daily charts

well look closely --with the red arrow--an upthrust bar--- thats SMART MONEY AT WORK--hmmm---lets go to the 4 hr chart, shall we-lets take a closer look.

a classic "smart money operation" on a downtrend--notice i they absorb the volume----they will do what they have to do-even take hits--its all for the Goood..

Best
Attached Image(s) (click to enlarge)
Click to Enlarge Name: daily.jpg Size: 111 KB
Click to Enlarge Name: dailyline.jpg Size: 112 KB
Click to Enlarge Name: done.jpg Size: 127 KB
  • #670
  • Mar 6, 2009 12:59pm Mar 6, 2009 12:59pm
hi..forexflash--zigzag levels-divergence system--

am still trying to figure out your system--i need more info on your forum

thanks
  • #671
  • Mar 6, 2009 1:17pm Mar 6, 2009 1:17pm
Well... even with my limited understanding of VSA thus far I was able to use it in conjunction with my own system to pull 336 pips (live) from just prior to Tokyo's open till a few hours ago (normally I average 200 per day so it definitely helped a lot)

VSA helped me stay in Good trades longer than I normally would have and completely out of trades I might otherwise have taken.

To say I'm impressed is a massive understatement.

I have already taken some of my coders (I own a software company) off other projects to try to get a proper system done.
The trend always ends.
  • #672
  • Edited 1:32pm Mar 6, 2009 1:20pm | Edited 1:32pm
I realy like where this thread is going, so I just need to make another
contribution to it.....here is another on-chart signal based on VSA,
but this one is analysing last 4bars & 4volumes......

Green "B" ----BUY
Red "S" ----SELL
Green "R" ----BUY REVERSAL
Red "R" ----SELL REVERSAL


ps. I hope you guys understand that mt4 volume doesnt work...

Regards
Attached File(s)
File Type: mq4 VSA signals.mq4   4 KB | 1,410 downloads
forexflash
  • #673
  • Mar 6, 2009 1:56pm Mar 6, 2009 1:56pm
Quoting ShamusFamous
Well... even with my limited understanding of VSA thus far I was able to use it in conjunction with my own system to pull 336 pips (live) from just prior to Tokyo's open till a few hours ago (normally I average 200 per day so it definitely helped a lot)

VSA helped me stay in Good trades longer than I normally would have and completely out of trades I might otherwise have taken.

To say I'm impressed is a massive understatement.

. . .
Yup. Very impressive results, and at the end of the day that's what really counts!

  • #674
  • Mar 6, 2009 1:57pm Mar 6, 2009 1:57pm
Quoting FOREXflash


ps. I hope you guys understand that mt4 volume doesnt work...

Regards
The trend always ends.
  • #675
  • Mar 6, 2009 2:15pm Mar 6, 2009 2:15pm
-BTW-

Those guys on wall street are a bunch of crazy folks==they all have gathered in a HERD mentality and have convinced themselves that the world is falling apart and aree selling ----boy--i wish i have enough capital--i woulld be accumulating like crazy now--with all these crazy low stock prices--i have a feeling that DOW--is going to POP pretty soon.

I know thatt some dude is accumulating right now-----

This is how Billionaires are created folks...........
  • #676
  • Mar 6, 2009 2:17pm Mar 6, 2009 2:17pm
Quoting FOREXflash
I realy like where this thread is going, so I just need to make another
contribution to it.....here is another on-chart signal based on VSA,
but this one is analysing last 4bars & 4volumes......

Green "B" ----BUY
Red "S" ----SELL
Green "R" ----BUY REVERSAL
Red "R" ----SELL REVERSAL


ps. I hope you guys understand that mt4 volume doesnt work...

Regards

An excellent indicator as always. The only problem is the labels are printed way above the bars and sometimes completly off the chart. Is there a way to keep this from happening?
The trend always ends.
  • #677
  • Edited 2:43pm Mar 6, 2009 2:28pm | Edited 2:43pm
Shamus Ill work that out tomorow(regarding the indi)

This indicator is coded by OnTheRoad, and it is a pure briliance at work.......

Volume Based indicators

These are 2 modified indicators based on :
3_Level_ZZ_Semafor

the 3_Level_ZZ_Semafor_volcano shows the summation of Volumes of Bars that exist from UP#x to DN#x and from DN#x to UP#x (x =1,2,3 ) (each leg of ZZ ).

If you take a look at the indi you will see that this baby got it all,
it respects the fibs, pivots, psych........
Like I said, pure briliance at work!
Attached Image (click to enlarge)
Click to Enlarge Name: 3zz_vol_fib_eu.gif Size: 29 KB
Attached File(s)
File Type: mq4 3_Level_ZZ_Semafor.mq4   8 KB | 708 downloads
File Type: mq4 3_Level_ZZ_Semafor_volcano.mq4   13 KB | 843 downloads
forexflash
  • #678
  • Mar 6, 2009 2:40pm Mar 6, 2009 2:40pm
This week trades(4 days).......As you see this proves that Volume sucks!!!
Attached File(s)
File Type: zip Statement.zip   4 KB | 693 downloads
forexflash
  • #679
  • Mar 6, 2009 2:48pm Mar 6, 2009 2:48pm
agree

using mt4 volume to trade forex is a very very bad idea.

Guys ,it doesn't work at all.
  • #680
  • Mar 6, 2009 3:00pm Mar 6, 2009 3:00pm
Is thier a zigzag indicator that plots volume at the turning points
like a volume label at the zigzag point ?


Quoting FOREXflash
Shamus Ill work that out tomorow(regarding the indi)

This indicator is coded by OnTheRoad, and it is a pure briliance at work.......

Volume Based indicators

These are 2 modified indicators based on :
3_Level_ZZ_Semafor

the 3_Level_ZZ_Semafor_volcano shows the summation of Volumes of Bars that exist from UP#x to DN#x and from DN#x to UP#x (x =1,2,3 ) (each leg of ZZ ).

If you take a look at the indi you will see that this baby got it all,
it respects the fibs,...
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