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Learn to Trade using VSA (Volume Spread Analysis)

  • #681
  • Mar 6, 2009 3:12pm Mar 6, 2009 3:12pm
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

lol ...good works but neds some work on it ... missed a while bunch of trades on GJ

do any of the indiactor you develop take into account the background .... for example after NFP GBPJPY increased 200 pips on declining volume ., i was just waiting for the upthrust bar to show up and was hoping close into 140 .. hit it to the pips .... that was my short .. in fact I got a confirmation after the upthrust / buying climax with a double top with no demand bar . This was such a great trade I overleveraged myself (5% risk ) and sold right on top ... it was a very rewarding trade with a great set up . .. 25% return on account .

I see a lot of new VSA users in her .... one thing that no one talks about is the backgrounbd .. this is critical , one signal on its own means NOTHING

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Blogging daily now at www.volume.zone
  • #682
  • Mar 6, 2009 3:23pm Mar 6, 2009 3:23pm
Quoting malcolmb14
I see a lot of new VSA users in her .... one thing that no one talks about is the backgrounbd .. this is critical , one signal on its own means NOTHING
Indicators for the Vsa are extremely "easy" to code, but I need a solid
rules for them....If you have something in mind, feel free to send me a PM
with your rules etc, and I will code it!

Regards
forexflash
  • #683
  • Mar 6, 2009 3:46pm Mar 6, 2009 3:46pm
Quoting FOREXflash
Indicators for the Vsa are extremely "easy" to code, but I need a solid
rules for them....If you have something in mind, feel free to send me a PM
with your rules etc, and I will code it!

Regards

i wished i could but VSA is not as simple as most in this forum think it is..... you are doing a great job coding singular vsa triggers .. however if you use ninjatrader this has been done already . Piters has the coding.

i am just trying to explain that to be really good at vsa and get into the runs on a 2 hour chart that go for hundred of pips you have to look at what has happened before the VSA signal .

I have been a use of tradeguider for over a year , and now cast it aside as all i need is a chart with volume on it. i look at 4 time frames , 60 , 15 , 5 and 3 for entry , often my draw downs on gj are only 20 pips ( not much for GJ ) and rewards 50 - 200 pips. The thing is that not ALL vsa signals generate decent trades or any trade at all.

Interesting buying in the last hour of the market on the ES. The dialy looks like stopping vol , but not quiet high enough Not sure on the reason .. maybe something going to go down on the weekend that may cause market to have bear rally.

I have been expecting GJ to break the accumulation channel that is is currently in to the upside and moive into 145 to 150.. one more low volume test of 136 is all i need to confirm it
Blogging daily now at www.volume.zone
  • #684
  • Mar 6, 2009 4:15pm Mar 6, 2009 4:15pm
Quoting malcolmb14
i wished i could but VSA is not as simple as most in this forum think it is..... you are doing a great job coding singular vsa triggers .. however if you use ninjatrader this has been done already . Piters has the coding.

i am just trying to explain that to be really good at vsa and get into the runs on a 2 hour chart that go for hundred of pips you have to look at what has happened before the VSA signal .

I have been a use of tradeguider for over a year , and now cast it aside as all i need is a chart with volume on it. i look at 4 time frames...
In keeping with this idea of looking in the background for your trades, I have condensed many of the concepts and text from Tom Williams book. There is useful information about a check list of things to look for when going long or going short. Here are my notes and excerpts from the text. I hope this will be helpful. I have read this book now 6 times and had it printed by my son who owns a printing shop, so I can review in context with Wyckoff. Hint, almost identical concepts and very valid still today after over 60 years.
Attached File(s)
File Type: txt Notes on VSA Volume.txt   64 KB | 1,336 downloads
File Type: txt Refined notes VSA.txt   5 KB | 1,623 downloads
  • #685
  • Mar 6, 2009 4:26pm Mar 6, 2009 4:26pm
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....
good observation...bk everyday you amaze me...
  • #686
  • Mar 6, 2009 4:28pm Mar 6, 2009 4:28pm
Quoting bosun2007
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...
hey get note however, to consume time, I'm going to offer up a pdf regarding VSA trading which explains Tom Williams technique in depth..
Attached File(s)
File Type: pdf VSA BASICS[1].pdf   665 KB | 1,089 downloads
  • #687
  • Mar 6, 2009 4:39pm Mar 6, 2009 4:39pm
Quoting malcolmb14
i wished i could but VSA is not as simple as most in this forum think it is..... you are doing a great job coding singular vsa triggers .. however if you use ninjatrader this has been done already . Piters has the coding.

i am just trying to explain that to be really good at vsa and get into the runs on a 2 hour chart that go for hundred of pips you have to look at what has happened before the VSA signal .

I have been a use of tradeguider for over a year , and now cast it aside as all i need is a chart with volume on it. i look at 4 time frames...
Malcolmb,

I hear what you are saying and I don't necessarily disagree with you. I would also think that background strength and weakness is very important and all the books on VSA speak to this. What nyse is doing is VSA on short term trading (i.e. 15M TF). It appeals to me because I subscribe to the school of thought and belief that the longer you are in a trade the more risk you assume and by the minute to boot! BUT...

What I would like to see discussed further (and have been waiting to see other folks here post about) is drilling down the TF's to see the background and/or applying indicator filters that account for strength/weakness on larger TF's. Similar to "trading with the trend" but more specific to "trading with the current Volume/Spread on the higher TF's". Example; If background strength on the Daily, 4H or 1H is weak and you see a signal on the 15M TF to go long, you might not take that one, and only trade shorts, etc. Is it safe to say that you can trade VSA in forex on larger TF's just as nyse is doing on smaller TF's? Does this make any sense at all or am I totally off here?
- Bowen (a.k.a. Wolf)
  • #688
  • Mar 6, 2009 4:41pm Mar 6, 2009 4:41pm
Quoting nyse1982
hey get note however, to consume time, I'm going to offer up a pdf regarding VSA trading which explains Tom Williams technique in depth..
It seems contrary to me for members to say tick volume doesn't work and the VSA method is invalid.We have proof, what else do we need..most people over analyze this technique and try to figure out why volume goes up yet the stock closes down..For the last time it has to do with accumulation and distribution..Thats it. Also to the point that you have to look at the background of a chart I totally agree,however that depends mainly on which timeframe you trade..As you see I trade 15m so I follow two bars priors to the current bar, which works just fine to show me how smart money is behaving..People please stop over thinking this, it's really quite simple....We have great indicators created by our members which work perfectly fine in recognizing setups and entry points, just use them..
  • #689
  • Mar 6, 2009 4:45pm Mar 6, 2009 4:45pm
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

great results flash...
  • #690
  • Mar 6, 2009 4:52pm Mar 6, 2009 4:52pm
Quoting BlackWolf
Malcolmb,

I hear what you are saying and I don't necessarily disagree with you. I would also think that background strength and weakness is very important and all the books on VSA speak to this. What nyse is doing is VSA on short term trading (i.e. 15M TF). It appeals to me because I subscribe to the school of thought and belief that the longer you are in a trade the more risk you assume and by the minute to boot! BUT...

What I would like to see discussed further (and have been waiting to see other folks here post about) is drilling down the...
of course you can trade VSA on longer time frames , at GJ 130 a while ago every one was calling break to 120 , I was calling long .... guess what it was an 1100 pip trade in a week. i did same agian this week on low volume test ofgf 135.5 ,..everyone was screaming 120 and lower .. I was quietly buying and closed at 140

however I typically trade 3 min charts for trades that may last 2 hour , but more often than not only last 15 - 30 minutes . In order to be successfull i look at 15 min charts and then trade only with the direction of the trend a / pros using vsa i can see if pros are buying dips or selling rallies) ... trades are about 85 % accurate with very little draw down .
Blogging daily now at www.volume.zone
  • #691
  • Mar 6, 2009 5:04pm Mar 6, 2009 5:04pm
Quoting nyse1982
great results flash...
Please tell me you are kidding, right? (I think FF was as well). The signals were so eradic and sparse (B's without S' that followed, B's where S's should have been, etc.) that the only thing I saw it useful for was a good chuckle. Either that, or it malfunctioned on my charts or my platform has a serious problem - LOL!
- Bowen (a.k.a. Wolf)
  • #692
  • Mar 6, 2009 5:08pm Mar 6, 2009 5:08pm
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, pivots,...
please go more indepth on 3_Level_ZZ_Semafor, what am I looking for and how can I read it?
  • #693
  • Mar 6, 2009 5:11pm Mar 6, 2009 5:11pm
Quoting BlackWolf
Please tell me you are kidding, right? (I think FF was as well). The signals were so eradic and sparse (B's without S' that followed, B's where S's should have been, etc.) that the only thing I saw it useful for was a good chuckle. Either that, or it malfunctioned on my charts or my platform has a serious problem - LOL!
no...please dont get me confused I was referring to flash results he posted on his trading account, he posted in before. That new indicator isn't valuable at all..It needs a major overhaul...Here's the best indicators thus far, from my testing

1. CDRW
2. 3_LEVEL_ZZ_SEMAFOR<<STILL INVESTIGATING
3. VOLUME SPREAD ANALYSIS V4
4. VOLUME AVERAGE_V1
  • #694
  • Mar 6, 2009 5:28pm Mar 6, 2009 5:28pm
Quoting nyse1982
no...please dont get me confused I was referring to flash results he posted on his trading account, he posted in before. That new indicator isn't valuable at all..It needs a major overhaul...Here's the best indicators thus far, from my testing

1. CDRW
2. 3_LEVEL_ZZ_SEMAFOR<<STILL INVESTIGATING
3. VOLUME SPREAD ANALYSIS V4
4. VOLUME AVERAGE_V1
Thanks for the information nyse .... very interesting
  • #695
  • Mar 6, 2009 8:10pm Mar 6, 2009 8:10pm
There is a thread how to use 3_level_zz on the forex-tsd forum:

http://www.forex-tsd.com/indicators-...cator-mt4.html

The small semafors repaint a lot on any timeframe, and I know the yellow ones repaint at least one or two bars on a 4 hr chart, possibly more.


Quoting nyse1982
please go more indepth on 3_Level_ZZ_Semafor, what am I looking for and how can I read it?
  • #696
  • Mar 6, 2009 8:36pm Mar 6, 2009 8:36pm
...and this thread here at home on FF starting with post #113 forward:

http://www.forexfactory.com/showthre...=132537&page=8
- Bowen (a.k.a. Wolf)
  • #697
  • Mar 6, 2009 11:07pm Mar 6, 2009 11:07pm
Quoting eagle4x
There is a thread how to use 3_level_zz on the forex-tsd forum:

http://www.forex-tsd.com/indicators-...cator-mt4.html

The small semafors repaint a lot on any timeframe, and I know the yellow ones repaint at least one or two bars on a 4 hr chart, possibly more.
In as much as both the small and the yellow repaint more times than not,then it is just similar to the normal zigzag indicator.We will still need to subject it to a reasonable long time of test till we get the operational properties on the basis of reliability before we can build a trading system around it.I stand to be corrected.Forexflash,you are doing a wonderful job here.Please keep helping us out.May be that is your pleasure.Thanks forex flash.thank thatwasme,thanksblackwolf.thanks all contributors.You just refuse to let me die.
we cannot succeed without a well defined risk management.
  • #698
  • Mar 6, 2009 11:09pm Mar 6, 2009 11:09pm
Can someone please code an indicator that can indicate the direction of a trend. Can the visual ques be posiibly diamonds of red or green that change color depending on the trend?

Green diamonds show trend is up
Red diamonds show trend is down
White diamonds show trend is changing


Also can you include a congestion indicator which can identify areas of congestion and display them on the chart. This can help us ride through risky congestion areas and benefit from the full potential of a move without being subject to whipsaws.

As per Tom Williams..

Also it would be great if we visual impact of supply and demand in the market represented by
red and green squares..

Thanks guys, were getting closer to perfecting this system..I'm excited..
  • #699
  • Mar 6, 2009 11:14pm Mar 6, 2009 11:14pm
Quoting bosun2007
In as much as both the small and the yellow repaint more times than not,then it is just similar to the normal zigzag indicator.We will still need to subject it to a reasonable long time of test till we get the operational properties on the basis of reliability before we can build a trading system around it.I stand to be corrected.Forexflash,you are doing a wonderful job here.Please keep helping us out.May be that is your pleasure.Thanks forex flash.thank thatwasme,thanksblackwolf.thanks all contributors.You just refuse to let me die.
If you know how the zigzag works then you know how 3 semafor works. Its just 3 zigzag in 1 is all.

If you take a zigzag and set it to any of the 3 semafor zigzag levels it will draw out the same levels as the 3 semafor.

fini

Xard777
we cannot succeed without a well defined risk management.
  • #700
  • Mar 6, 2009 11:17pm Mar 6, 2009 11:17pm
Truth is were alot closer to perfecting this system, everyday we get a revision or update coded and we can test the various indicators and see how each one correlates to each other. I believe its only a matter of time before we can have a solid system to run on the different broker platforms. More like a universal system to work across the various MetaBrokers..which will take in to consideration the various tick volumes and GMT times that are used on the systems were using. I'm so excited!!

Once we get a solid system, I'd like to distribute it around so we can all benefits from it.Personally our days of paying for overpriced systems is in the past, once this gets achieved were all going to benefit from it's use..Then I'll personally send Mr. Tom Williams a thank-you card.
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