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Learn to Trade using VSA (Volume Spread Analysis)

  • #981
  • Mar 11, 2009 3:19am Mar 11, 2009 3:19am
Quoting Islander
A few days ago I posted that I'd found a couple of other volume indys. I also said that I would try them before posting. As I personally find them easy to use, here's a chart with both.

The upper one's bars are coloured as per candles and will change colur on higher vols - settings are adjustable. The gold line is a 14 period RSI of the volume.

My charts aslo always have the 50 and 100 sweet spots and often the Daily Pivots - here the red line at 1.3656 is the S1 level......notice how the confluence of this and the 650 sweet spot just happened...

great chart...have you placed any trades using vsa yet??
  • #982
  • Mar 11, 2009 3:28am Mar 11, 2009 3:28am
Quoting Islander
A few days ago I posted that I'd found a couple of other volume indys. I also said that I would try them before posting. As I personally find them easy to use, here's a chart with both.

The upper one's bars are coloured as per candles and will change colur on higher vols - settings are adjustable. The gold line is a 14 period RSI of the volume.

My charts aslo always have the 50 and 100 sweet spots and often the Daily Pivots - here the red line at 1.3656 is the S1 level......notice how the confluence of this and the 650 sweet spot just happened...
Hi Islander,

I am sure this is the place to post this ! I think that certain people introducing bollinger bands etc. must be what was annoying our thread starter.... I understand why also :-)

That looks interesting - I have been using the bottom of the two indi's you posted but I can see how using the 2 togethercould help 'tell more about the story'

Do you mind posting the Volume Average indicator please?

Also, could you explain the chart you put up and what your 'reading' of it (based on the indicators) is from left to right ie. if I am right, the move down on the left shows a 'selling climax' ... a large spread bar is seen yet the volume average is still dropping showing that the SM is not involved in this move down.

Am I reading this right and also how do you interpret the other moves on the chart using the 2 volume indicators ie. vol. & spread.

Thanks

WG
  • #983
  • Mar 11, 2009 3:43am Mar 11, 2009 3:43am
Quoting bosun2007
@madog.Thanks for yuour recommendation.I will try and get one volume indicator and check it as you suggested.Although I don`t have one yet.It will be very nice if you can send one to me.
Bosun,

There is a custom volume indicator usually with Metatrader or there have been some excellent volume/spread indicators given earlier on this thread, see the attachment button in the top right hand side of screen the ones I personally like are the ones called CDRW Volume and CDRW Spread. I put the Spread Indicator on top of the Volume Indicator.

Thanks

Regards


Madog
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  • #984
  • Mar 11, 2009 4:00am Mar 11, 2009 4:00am
If there is a test for supply bar (green/up with long wick to the bottom) it would likely be a short setup right? or does it need to be confirmed and if so how?

Just got one on GU m15 it was followed by a big red so not sure if the test bar was the trigger or not.
The trend always ends.
  • #985
  • Mar 11, 2009 4:05am Mar 11, 2009 4:05am
Quoting ShamusFamous
If there is a test for supply bar (green/up with long wick to the bottom) it would likely be a short setup right? or does it need to be confirmed and if so how?

Just got one on GU m15 it was followed by a big red so not sure if the test bar was the trigger or not.
Your right, also depends on the spread alot of times those bars have high volume mainly b/c you have huge exchange of buyers and sellers
  • #986
  • Mar 11, 2009 4:07am Mar 11, 2009 4:07am
Quoting nyse1982
great chart...have you placed any trades using vsa yet??

Thanks - my approach is a little different in that I'm using VSA to try and improve my existing methodolgy which I use mainly on 5 min charts and also to move onto longer TFs as during the spring / summer I will have less time available for trading and research.

This thread has many of my posts on my existing methodology...

http://www.forexfactory.com/showthre...75#post2594875
Trading Levels with WRBs
  • #987
  • Mar 11, 2009 4:18am Mar 11, 2009 4:18am
Quoting Willowgal
Hi Islander,

I am sure this is the place to post this ! I think that certain people introducing bollinger bands etc. must be what was annoying our thread starter.... I understand why also :-)

That looks interesting - I have been using the bottom of the two indi's you posted but I can see how using the 2 togethercould help 'tell more about the story'

Do you mind posting the Volume Average indicator please?

Also, could you explain the chart you put up and what your 'reading' of it (based on the indicators) is from left to right ie. if I am...
Hi WG - thanks - if you follow the link that I've just posted you'll get a good idea of how I've just been using the chart that I posted here and also my 5 min set up.

Here are the 2 indys

J
Attached File(s)
File Type: mq4 VolumeAverage_v1.mq4   4 KB | 666 downloads
File Type: mq4 VolumeRSI_v1.mq4   3 KB | 660 downloads
Trading Levels with WRBs
  • #988
  • Mar 11, 2009 4:20am Mar 11, 2009 4:20am
Quoting ShamusFamous
If there is a test for supply bar (green/up with long wick to the bottom) it would likely be a short setup right? or does it need to be confirmed and if so how?

Just got one on GU m15 it was followed by a big red so not sure if the test bar was the trigger or not.
Your right, also depends on the spread alot of times those bars have high volume mainly b/c you have huge exchange of buyers and sellers.



check out my original trade i wrent short USD/[email protected], I want to see if someone can explain why I got in trade based on the vsa
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  • #989
  • Mar 11, 2009 4:39am Mar 11, 2009 4:39am
I'm always looking at the Price Action around levels - just look at the grey ellipses. Add VSA to the mix - its the "extra" dimension to the PA.....

PS These are the 2 Vol indys that I just posted, although I've reset the colours. The gold line is the Vol RSI indy. These are both "work in progress"
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Trading Levels with WRBs
  • #990
  • Mar 11, 2009 5:10am Mar 11, 2009 5:10am
With my internet connection down for two weeks now, I haven't been able to practise NYSE's methodology, but have been taking the opportunity to ingrain its workings in my mind.
I for one am learning both from nyse as well as Malcolm and others, so welcome all inputs, even if the methodology and timeframes may be different. Ultimately, there is not so much difference, its about vol, range and spread. Interpret these and you're well on your way.
I find a big advantage to NYSE's method of calculating spread. Here, spread as a percencentage of H-L is telling you immediately where the candle closed - top, middle or bottom. The close is an important aspect of VSA. H-L tells you the range, which combined with vol tells its own story in terms of sustainability of move.
All these figures are in the excellent indicator coded by forex-flash.
I just wish that instead of 6 candles, there was a way to display this info below each candle somehow, that way you have the full story. Maybe display the numbers vertically, since they would take too much space as displayed horizontally.
Is that possible?
Thanks also to Lubo for posting vsa for NJ. It will certainly help the learning by relating the indicator to vol and spread for each bar and seeing how the move transpired.
NYSE, you can use the period converter opt indi to create any time frame charts as a multiple of 1 min. I'll post it later if you want.
Thanks again.
Pardy
  • #991
  • Mar 11, 2009 8:18am Mar 11, 2009 8:18am
morning folks---

Okay--let me give this a shot--am not done reading your tutorials yet--nyse

your candle 6 and candle 5 are steadily increasing in volume and spread showing buyers are in control--and since you are looking for weakness on the uptrend--

your candle 4 shows are sudden increaSE IN volume--to be know who is responsible for the uptick in volume--you check the H/L and H/c on that candle--which shows an no increases in HL --which indicates buyers were unable to push the prices higher and the HC increase by 4--which indicates supply is takin hold of the price

there was an increase in spread on candle 3--to 9--which i think also proves that the supply as now taken hold cause the H/l did not fall and HC-3- still shows an improvement compare to candles 6 and 5 with HC 1 and 2 respectively--


so you went short.

Hope am slightly correct....


Okay--back to your tutorials--an not quiet done yet
  • #992
  • Mar 11, 2009 8:24am Mar 11, 2009 8:24am
jeez---booy--- i should read my english before i post--hope you get what am driving at--

in short---HC increased on candle 4-showing strenght from supply and weakness in demand--(also volume increased)--no change in HL--demand failed to raise or take prices higher
  • #993
  • Mar 11, 2009 8:53am Mar 11, 2009 8:53am
annd ohh---the volume dropped off on candle 3 to 125--compared to candles 6 and 5 which are 174 and 139--respectively--when demand was in control--but yet the spread on candle 3 is now much bigger that candles 6 and 5 on lower volume

which now indicates supply is in control---so go short
  • #994
  • Mar 11, 2009 9:06am Mar 11, 2009 9:06am
NYSE1982--usually comes in late to the foruum-

members can make corrections if am wrong---
  • #995
  • Mar 11, 2009 9:37am Mar 11, 2009 9:37am
sorry--spread bigger than candle 4 and 6
  • #996
  • Mar 11, 2009 10:11am Mar 11, 2009 10:11am
My trades for this morning. Done for the day
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  • #997
  • Mar 11, 2009 10:17am Mar 11, 2009 10:17am
Quoting Pardy
With my internet connection down for two weeks now, I haven't been able to practise NYSE's methodology, but have been taking the opportunity to ingrain its workings in my mind.
I for one am learning both from nyse as well as Malcolm and others, so welcome all inputs, even if the methodology and timeframes may be different. Ultimately, there is not so much difference, its about vol, range and spread. Interpret these and you're well on your way.
I find a big advantage to NYSE's method of calculating spread. Here, spread as a percencentage of H-L is...
yes can you do that thanks
  • #998
  • Mar 11, 2009 10:19am Mar 11, 2009 10:19am
Quoting thatwasme
My trades for this morning. Done for the day
excellent job that.. since you have an understanding for it, can you follow a particular pair and give signal calls if you see a setup? Which pair do you usually trade?
  • #999
  • Mar 11, 2009 10:21am Mar 11, 2009 10:21am
Quoting nyse1982
excellent job that.. since you have an understanding for it, can you follow a particular pair and give signal calls if you see a setup? Which pair do you usually trade?
also can you post that indies, that your using on that chart, the one on the uppper left side.
  • #1,000
  • Edited 10:42am Mar 11, 2009 10:22am | Edited 10:42am
Quoting nyse1982
excellent job that.. since you have an understanding for it, can you follow a particular pair and give signal calls if you see a setup? Which pair do you usually trade?

Unfortunately I do not want to commit that much time to this forum. I have probably spent too much time here already. I am very sorry, I should not have posted. I only did so that others might see my methodology.

I will step aside now. I am truly sorry for the inconvenience.

PS, look at the 4 hour EURUSD a nice Upthurst on high volume, if it holds to the end of the bar.
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