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Volume Spread Analysis (VSA) Discussion 2 replies

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Learn to Trade using VSA (Volume Spread Analysis)

  • #881
  • Mar 10, 2009 9:24am Mar 10, 2009 9:24am
Quoting nyse1982
I believe just as clear as I'm able to monitor the fluctions of H/L-H/C and the volume between these lines and make a decision to sell at the top b/c volume peaked and spread decreased, then I'm quite sure a programmed system can recognize that also..lets be realistic. If we code the EA to look for specific patterns related to volume increase to a certain percentage and spread decrease by certain percentage then it can trade that..
We can predict what the market will do, I've proved that and so have other members...so to say that a robot can't do also..come on.Especially on the lower charts 5m-15m in a short term view.
  • #882
  • Mar 10, 2009 9:26am Mar 10, 2009 9:26am
Quoting bosun2007
And I also think that if any ea is necessary at all,then it should be the one that simply indicates the volume and spread on respective candles and probably shows a rising volume/spread or a falling volume or spread.In that case,that will not be an indicator but an identifier.There is no free lunch in forex.Every trader must work and must work smartly.
perhaps you should go check earlier threads where I predicted for 5 bars straight on a 15m chart the direction of each bar my friend..If you have a true understanding of VSA then you know that you can predict what the SM is doing. We've proven that in earlier threads..the volume just further proves the strength of each directional move..
  • #883
  • Mar 10, 2009 9:33am Mar 10, 2009 9:33am
Quoting BlackWolf
Maybe, but... some of us "human brains" aren't retired, have heavy demands on our time, full time jobs, desire to spend more free time (what little we have anyway) with family, etc. I think if nyse believes that an EA is possible, it's worth a shot. Afterall, it was the "human power of visual analysis" that built the rocket which put man on the moon, was it not? Now, on the other hand, if it is ultimately proven that an EA is not possible with trading VSA, then at least we can all walk away (and say bosun2007 was right) and say we gave...
May be it is because iam yet to locate an ea that performs so excellently.I have two ea`s that plot trendlines including mouteki but none of them plots acurately enough compare to my own hand.Perhaps it is because I have a little experience in engineering drawing.I will so much appreciate it if we can find an ea that performs correctly as touching vsa.The best ea i have now is autopivot.I respect all of you who have built ea for us here.But it just seems that this ea are not potent enough for the task on ground.Though iam not an it expert.I will be eternally grateful if we can finally get a highly reliable ea here.
we cannot succeed without a well defined risk management.
  • #884
  • Mar 10, 2009 9:35am Mar 10, 2009 9:35am
Quoting nyse1982
perhaps you should go check earlier threads where I predicted for 5 bars straight on a 15m chart the direction of each bar my friend..If you have a true understanding of VSA then you know that you can predict what the SM is doing. We've proven that in earlier threads..the volume just further proves the strength of each directional move..
Did i ever said vsa does not work? please read between the lines.
we cannot succeed without a well defined risk management.
  • #885
  • Mar 10, 2009 9:40am Mar 10, 2009 9:40am
Quoting nyse1982
perhaps you should go check earlier threads where I predicted for 5 bars straight on a 15m chart the direction of each bar my friend..If you have a true understanding of VSA then you know that you can predict what the SM is doing. We've proven that in earlier threads..the volume just further proves the strength of each directional move..
By the way,i think your goal is to give people the working principles of vsa and not just prediction.So,i encourage you to try as much as possible to make plain the principles of vsa.Give examples.Clear and complete examples.This is not a challenge.Please understand that.
we cannot succeed without a well defined risk management.
  • #886
  • Mar 10, 2009 9:46am Mar 10, 2009 9:46am
Quoting bosun2007
By the way,i think your goal is to give people the working principles of vsa and not just prediction.So,i encourage you to try as much as possible to make plain the principles of vsa.Give examples.Clear and complete examples.This is not a challenge.Please understand that.
Check out the ebook on vsa..In the meantime BK can we get an update on that EA, if you can pass that info I posted to your guy, I have to step out to work..
Attached File(s)
File Type: pdf VSA BASICS[1].pdf   665 KB | 656 downloads
  • #887
  • Mar 10, 2009 9:50am Mar 10, 2009 9:50am
Quoting bosun2007
May be it is because iam yet to locate an ea that performs so excellently.I have two ea`s that plot trendlines including mouteki but none of them plots acurately enough compare to my own hand.Perhaps it is because I have a little experience in engineering drawing.I will so much appreciate it if we can find an ea that performs correctly as touching vsa.The best ea i have now is autopivot.I respect all of you who have built ea for us here.But it just seems that this ea are not potent enough for the task on ground.Though iam not an it expert.I will...
If you've ever spent any time with a group testing a trade method and then building an EA for it, then you know that it takes a LOT of time, effort, testing, re-testing, blood-sweat-tears, etc. As you say, there's no free lunch. Trust me, my past experience has been the same as yours - 95% of the EA's out there are junk (especially the commercially marketed ones. I was just recently involved in testing one that had no less than 20 revisions and versions and we STILL didn't get it dialed it correctly yet. So for all those reading this who think that EA's are "simple and easy" to program and only take a few days to get it right, you are sadly mistaken. But the way you can help to accellerate that process is to be optimistic, positive and patient. There are at least two programmers that I know of here who are working on it now. When one is finally released, I suggest you demo test trade it on as many pairs as possible and take good notes and observations on where it failed and report them so they can be fixed and then re-issued for testing. Expect at least 10 versions of it before it even approaches that of > 50% wins.

I personally think a VSA EA has a better chance of success because it is following price and volume and the footprints of the ones who move the markets (the cause) - as opposed to most other EA's which are following things that are a result of this (the effect). You are closer to the cause/source with VSA - especially in the lower timeframes that nyse is trading with quicker trades for smaller pips but more of them (they all add up).
- Bowen (a.k.a. Wolf)
  • #888
  • Mar 10, 2009 9:52am Mar 10, 2009 9:52am
Quoting nyse1982
Check out the ebook on vsa..In the meantime BK can we get an update on that EA, if you can pass that info I posted to your guy, I have to step out to work..
Thanks for the recommendation.Meanwhile can somebody help us to bring together all the indies/ea on vsa that we have on this thread so that we test run them all.
we cannot succeed without a well defined risk management.
  • #889
  • Mar 10, 2009 10:00am Mar 10, 2009 10:00am
Quoting nyse1982
Check out the ebook on vsa..In the meantime BK can we get an update on that EA, if you can pass that info I posted to your guy, I have to step out to work..
He already has this. You've posted it numerous times. I know he's working on at least 3 EAs at the same time right now. One of the biggest hurdles and distractions for a coder is when they start to build an indi or EA based on initial input (which must always be specific, detailed, accounts for all variables and conditions and leaves no room for interpretation of how the trader wants it to perform), then the play gets changed at the line of scrimmage (i.e. hundreds of posters coming in and adding their indi's and variations on the method, etc.). That causes the coder to stop cold and re-evaluate. Hence, the reason why I suggest we FOCUS on one method (nyse's) and what HE uses to trade so successfully. Then, once we get that dialed in correctly, we can come up with other variations, themes, methods in separate EA's.

Please, however, don't interpret this as "well, he's just blind to other ways of trading VSA". No, not at all. I'm a sponge and want to know all about other methods and variations. We just can't evaluate them all at the same time. By all means, start a new thread on your variation on the theme and post the link to it in here. Just keep the discussions focused on nyse's method in here, that's all I'm suggesting.
- Bowen (a.k.a. Wolf)
  • #890
  • Mar 10, 2009 10:00am Mar 10, 2009 10:00am
Quoting nyse1982
yes lets scale back on the indies for now, until everyone can grasp whats already been created, thiers no point to continue until people understand how vsa work. Also if you do create an indie, just make sure you give a through description of how it works

good morning it was fun in the chat room last night .. managed to crank a few trades ....got out of gj to early after shorting it 5 pips off top 136.8 before drop to 135.5 , traded a little gbpchf and some GU alll in all about 230 pips in asia.

the thing that most are focusing on here are indicators .. why is easy cause most new traders want the holy grail . Do you think and Olympic athlete wakes up at age 16 and is suddenly the fastest runner out there ? no they train for it and so should we .. we have to train to become successful traders and it does not happen overnight.

... lets focus less on Ea's and more on VSA ...when a market reverses off a top go back and study the charts and volume , those that read master the markets 20 times will see why it reversed and the signs that said that it was going to..... NO EA required. when a market reverses off a pivot low ... go look back at the 10 candles before that happened .. see what volume was doing and figure out what caused it , for example gj 530 to 630 am PST on 5 min on support i had no supply bars , followed by stopping vol .. very safe trade

for those interested I pop by the chat room in asia as it is a slower market and give a few pointers. BTW I do not use any indicators ... just an esignal chart with vol on it.

I suggest reading master the markets book 20 time ... digest it all and then chart like crazy .... reading volume and spread will become like following a yeti's footprints in the snow .. the professional money will not be able to hide.

why do you think today is so slow ? easy there are no pros in the market and under these conditions best thing to do is find a channel and trade the snot out of it ..... mine in gj right now is 135.80 to 136.50 , x 3 this morning
Blogging daily now at www.volume.zone
  • #891
  • Mar 10, 2009 10:08am Mar 10, 2009 10:08am
FLYING NAKED(one indicator)---feels weird..lol
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  • #892
  • Mar 10, 2009 10:15am Mar 10, 2009 10:15am
Quoting malcolmb14
.......

why do you think today is so slow ? easy there are no pros in the market and under these conditions best thing to do is find a channel and trade the snot out of it ..... mine in gj right now is 135.80 to 136.50 , x 3 this morning

I'm agree....

Another thing you can do is look for other pairs to follow.
ex: today look at USDCAD - AUDUSD, EURUSD too.

Lubo.
If I know how, I tell You!! Few but Good!!
  • #893
  • Mar 10, 2009 10:18am Mar 10, 2009 10:18am
Hi, Forexflash, I am sorry to catch you in this thread but I need your help. I used with great success ( on my demo #) your EA, FIREBIRD SMA period 1... Daily...but when I decided to use it live it didn't le take any trade!!!Can you help me? Thanks a lot
Alain.
  • #894
  • Mar 10, 2009 10:22am Mar 10, 2009 10:22am
Quoting malcolmb14
... lets focus less on Ea's and more on VSA ...when a market reverses off a top go back and study the charts and volume , those that read master the markets 20 times will see why it reversed and the signs that said that it was going to..... NO EA required.
Malcolmb,

Of all the posters here on FF, you should know that I have the highest respect for you. You are defintiely in my top-10 list. What you have shared with the masses is amazing and I salute you. So please don't take this wrong...

If "NO EA required" ...what good is all the studying and mastery of VSA in the world going to do for you if you are away from your computer working 8-to-10-hours a day at your job, then spending another 4 hours a night helping your kids with homework, wife with daily chores, etc. and sleeping another 6 hours so you can get up and do it all over again the next day? Where, pray tell me, are you going to find time to trade, let alone study and master VSA? Hence, the need for an autotrading robot EA. No? We're not all retired or professional full-time traders here.

I think I just described the position that the majority of folks here are in. Now, with all the layoffs happening left and right around us, perhaps we will have more spare time to devote to it soon.
- Bowen (a.k.a. Wolf)
  • #895
  • Mar 10, 2009 10:42am Mar 10, 2009 10:42am
EA's are great for notifying you of a signal. You don't have to use them to trade automatically. It's also a great way to learn VSA - the EA notify's you and you then compare it to what you see. Nice to have an alarm go off instead of looking at the screen all the time.
  • #896
  • Mar 10, 2009 10:49am Mar 10, 2009 10:49am
Quoting BlackWolf
He already has this. You've posted it numerous times. I know he's working on at least 3 EAs at the same time right now. One of the biggest hurdles and distractions for a coder is when they start to build an indi or EA based on initial input (which must always be specific, detailed, accounts for all variables and conditions and leaves no room for interpretation of how the trader wants it to perform), then the play gets changed at the line of scrimmage (i.e. hundreds of posters coming in and adding their indi's and variations on the method, etc.)....
More power to your elbows all of you that are working tirelesslly to blessu with an ea that looks into the market in a new way.I can`t wait to bath your brainchild with honour and gratitudes.
we cannot succeed without a well defined risk management.
  • #897
  • Mar 10, 2009 10:52am Mar 10, 2009 10:52am
Hope traders caught this move--
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  • #898
  • Mar 10, 2009 11:04am Mar 10, 2009 11:04am
Quoting taomql4
Hope traders caught this move--
Taomql,

You appear to be doing very well considering you are 'naked!' It's reassuring to know that you've had good results using VSA, which I firmly believe in, by using minimal indicators etc.

Would it be possible for you to explain WHY you entered the trade based on the info you had in front of you - I'm struggling to be honest to understand the rules on when to take a trade and in which direction based on the indicator that you have before you.

many thanks,
Nick.

T
  • #899
  • Mar 10, 2009 11:19am Mar 10, 2009 11:19am
Numerous times the VSA indicator will give mixed buy/sell signals from candle to candle. If VSA is truly tracking "smart money", seems to me that from candle 6 to candle 1 , the signals should be consistent before large moves regardless of the time frame used.
  • #900
  • Mar 10, 2009 11:26am Mar 10, 2009 11:26am
Quoting BlackWolf
Malcolmb,

Of all the posters here on FF, you should know that I have the highest respect for you. You are defintiely in my top-10 list. What you have shared with the masses is amazing and I salute you. So please don't take this wrong...

If "NO EA required" ...what good is all the studying and mastery of VSA in the world going to do for you if you are away from your computer working 8-to-10-hours a day at your job, then spending another 4 hours a night helping your kids with homework, wife with daily chores, etc. and sleeping another...

1st thanks ....for the kind words

2nd sorry ... but

if a EA cannot work for a simple moving average cross over .. then how can it work for VSA ..... VSA is NOT about one signal ... it is about test of markets ,what was the volume at that test ,, what did price do yesterday when it was at this price. was there accumulation .. what is going on in this channel .. accumulation or distribution ..what is price doing as it tests topp of channel; .. is it upthrusting ? etc etc etc . if you get an EA that works fror VSA let me know ... but the thing that EVERYONE is ignoring is that VSA is not about one candle !!!! ..it is about reading volume and spreads , both current and past ... you do not pick up a book and start to read it in the middle... you need to understand the story and this is the thing that most are missing here....with VSA understand the background and the signal on the right side of the chart will be more meaningful

If you cannot monitor a 5 min chart due to work or other time commitments then trade on a longer time frame .. like a 4hour or even 8 hour chart or even a daily .. go for the 600 pip moves. ..attached is a 4 hour chart with vsa signals over 12 hours each at tops and bottoms that provided 1000 pips last 3 weeks

I do not belive in EAs ... never will ..... show me one that is 95% correct with 10-20 pips draw down only for 50 -100 pip trade....that is how accurate one can get with VSA. I proved this last night in the chat room .

BTW i am NOT a fulltime trader either. I am a partner in a company and cannot devote time to trading .. but can devote a few hours early morning or in asia to trade a 5 min chart .. remember 25 pips a day , with 1.5 % risk on account 1500 grows to 2 mil after 5 year

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Blogging daily now at www.volume.zone
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