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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)

  • #1,121
  • Mar 14, 2009 4:22pm Mar 14, 2009 4:22pm
Thats it I break it all down,I'll see everyone in a week and when I come back, hopefully you guys would have made some money!!
  • #1,122
  • Mar 14, 2009 5:35pm Mar 14, 2009 5:35pm
Just a thought, Ord mentioned that the 3% and 8% (in an earlier thread there was a the longer version that had a download link to a file sharing site) was his experience with the New York Stock Exchange, and while we are finding that VSA is working in (dare I say) most markets, the 3%-8% percent levels may not quite fit on each currency pair...I hate to mention it (because he has done so much alread), but if FF does make a change to display those levels, perhaps he can make it an external variable so we could "tweak" the percentages a bit...ie. maybe on EUR/USD pair the 3%-8% works but we find on the USD/JPY 2%-6% (just an example) works better.

Of course I am a bit further behind most of you, but that was my thought when I saw your post and wanted to mention that.


Quoting Willowgal
Thanks FF

A very interesting article.

Well done with the indicator also - is there a reason why the volumes are swing out or can this be changed for ease of reading it.

Nice one ... could the 3%/8% required volume levels be displayed on screen when approaching a SR level ?
  • #1,123
  • Mar 14, 2009 5:38pm Mar 14, 2009 5:38pm
Quoting nyse1982
im out of commission b/c my laptop needs repair ...Thank you again for your assistance and contributions everyone!!
Sorry to hear that about your laptop NYSE1982, and thank you for starting this great thread! See you as soon as you get back!
  • #1,124
  • Mar 14, 2009 5:56pm Mar 14, 2009 5:56pm
The buy/sell criteria in the article is different than in Ord's book - not sure which one is more up to date.


Quoting Narrew
Just a thought, Ord mentioned that the 3% and 8% (in an earlier thread there was a the longer version that had a download link to a file sharing site) was his experience with the New York Stock Exchange, and while we are finding that VSA is working in (dare I say) most markets, the 3%-8% percent levels may not quite fit on each currency pair...I hate to mention it (because he has done so much alread), but if FF does make a change to display those levels, perhaps he can make it an external variable so we could "tweak" the percentages a bit...ie....
  • #1,125
  • Mar 14, 2009 6:01pm Mar 14, 2009 6:01pm
Quoting BlackWolf
Ah, but Master Jedi Malcolmb, you spoke previously about the importance of analyzing "background". How would that apply here now? Not doubting you, just trying to understand.

So did I earn a Milky Bar?
well as there is insistence to write an EA for VSA the upthrust and stopping volume are liekly the very best indicators to focus on . Not sure how we could take the background into account on an EA for these tow signals ... let me think about that . Maybe something as simple as

'if we get stopping volume vsa trigger on a price levels that has not been broken by more than 30 pips within the last 100 candles (has to be room for things like spikes down) , then go long if next bar closes higher than the stopping volume candle by 3pips. The EA should set the stop 10 pips under the low of the stopping volume candle. '

for longs use the inverse logic , the checking of support level within 100 candles

I am not sure if this EA would work ....
Blogging daily now at www.volume.zone
  • #1,126
  • Edited 9:46pm Mar 14, 2009 8:06pm | Edited 9:46pm
Quoting malcolmb14
well as there is insistence to write an EA for VSA the upthrust and stopping volume are liekly the very best indicators to focus on . Not sure how we could take the background into account on an EA for these tow signals ... let me think about that . Maybe something as simple as

'if we get stopping volume vsa trigger on a price levels that has not been broken by more than 30 pips within the last 100 candles (has to be room for things like spikes down) , then go long if next bar closes higher than the stopping volume candle by 3pips. The EA should...

malcolmb14---BlackWolf---- Willowgal---there's only one guy that i think can write an EA for this VSA system or at least come up with alert indicators on multiple pairs -when we have the right setups---but he's very busy right now--updating almost on a daily basis this EA-http://www.forexfactory.com/showthread.php?t=152341


He's a monster programmer--but if we can all write him and convince him about this system--he might just join in-----He's one of the fastest programmers out there.I just dropped him a pm today--so hopefully he gets it. Believe me folks--we have forexflash here--now we need him----


so everybody --if you get the chance -drop him a PM---he's ---------STEVEHOPWOOD



BEST
  • #1,127
  • Mar 15, 2009 2:36am Mar 15, 2009 2:36am
Quoting taomql4
malcolmb14---BlackWolf---- Willowgal---there's only one guy that i think can write an EA for this VSA system or at least come up with alert indicators on multiple pairs -when we have the right setups---but he's very busy right now--updating almost on a daily basis this EA-http://www.forexfactory.com/showthread.php?t=152341


He's a monster programmer--but if we can all write him and convince him about this system--he might just join in-----He's one of the fastest programmers out there.I just dropped him a pm today--so hopefully he gets...
This guy looks to be a super coder from what he has produced on here.

In Master The Markets the 'Glossary Of Terms' section does explain pretty well with examples, various phenomenon which we are looking for in VSA.

Alerts for instances such as "Effort, Effort To Rise Failed, Failed Down Move, Supply Has Entered The Market, End Of Rising Market, Selling/Buying Climax, Possible Test, Upthrust etc...." I am sure could be coded based on this section of the book.

Even 'signals' alert the possibility of these would be very useful, ... I would prefer to get the alerts to analyse, rather than any automatic trades being placed, pretty much as TradeGuider does it (I assume!).
  • #1,128
  • Mar 15, 2009 4:37am Mar 15, 2009 4:37am
Here is a link to more info on VSA

www.tradersworld.com-hawkes.pdf

and http://www.hawkeyetraders.com
  • #1,129
  • Mar 15, 2009 5:05am Mar 15, 2009 5:05am
www.hawkeyetraders.com

I was test this system and i dont like it but this is my opinion..
  • #1,130
  • Mar 15, 2009 5:55am Mar 15, 2009 5:55am
Quoting taomql4
malcolmb14---BlackWolf---- Willowgal---there's only one guy that i think can write an EA for this VSA system or at least come up with alert indicators on multiple pairs -when we have the right setups---but he's very busy right now--updating almost on a daily basis this EA-http://www.forexfactory.com/showthread.php?t=152341


He's a monster programmer--but if we can all write him and convince him about this system--he might just join in-----He's one of the fastest programmers out there.I just dropped him a pm today--so hopefully he gets...
Hehe. Cheers guys. I would have to be less than human not to respond to such kind words. Thanks to those of you who pm'd me.

I have read the first couple of pages of this thread with mounting excitement. Attached is my first offering; if someone has already done this then my apologies for adding something irrelevant. It is an EA and so should go in your Experts folder.

All it does is maintain a display of the Range and Volume of the previous candle, and the current Volume - saves you having to do the maths. Simply drag it onto the charts you trade - there are no inputs. I had to write this as an EA because I cannot write indicators.

I am becoming something of a serial trading EA coder. In the 74 pages separating where I am in the thread with here, has a trading system evolved?

If so, and someone would care to post the strategy then I can code a robot to trade it. Sunday is a busy day for me; I am a piano teacher by profession and have a busy teaching schedule today, but I can certainly knock something together tomorrow.

Back to page 3 now...........



Edit: sing out if you want any info added to the attached EA - can be done in seconds.
Attached File(s)
File Type: mq4 Volume and Range display.mq4   2 KB | 1,311 downloads
  • #1,131
  • Mar 15, 2009 7:03am Mar 15, 2009 7:03am
I'm glad to see u here Steve.
If u want the topic is here http://www.forexfactory.com/showpost...&postcount=185on VSA_Basic pdf and u u like there are also NinjaTrader and Amibroker code(VPA), here http://www.forexfactory.com/showpost...&postcount=241 on Tradeguder pdf.

Cheers.

Lubo.

P.s.
Good luck with EA coding.
If I know how, I tell You!! Few but Good!!
  • #1,132
  • Mar 15, 2009 7:34am Mar 15, 2009 7:34am
Quoting malcolmb14
well as there is insistence to write an EA for VSA the upthrust and stopping volume are liekly the very best indicators to focus on . Not sure how we could take the background into account on an EA for these tow signals ... let me think about that . Maybe something as simple as

'if we get stopping volume vsa trigger on a price levels that has not been broken by more than 30 pips within the last 100 candles (has to be room for things like spikes down) , then go long if next bar closes higher than the stopping volume candle by 3pips. The EA should...
I'm agree with u again, Malcolm.
The key points are the UPTHRUSTS with very HIGH VOLUME and STOPING VOLUME with very HIGH VOLUME, the first at high level or on a resistence and the second at low level or on a support.
Imho 15 min TF is quite good to see these points.

But i have a question to ALL:
Why don't try to be profitable with VSA manual trading before aim for EAs?

Lubo.

P.s. since some have asked me, if have I time, today I'll post a new setup for NT, although now in the last few days I'm using AmiBroker.

A picture from Amibroker of GU 15 min TF VSA Analysis.
Attached Image (click to enlarge)
Click to Enlarge Name: GU_15_VSA_Analysis.png Size: 50 KB
If I know how, I tell You!! Few but Good!!
  • #1,133
  • Mar 15, 2009 9:09am Mar 15, 2009 9:09am
Nyse1982,

Thank You for sharing your ideas.
Volume Spread Analysis is a great tool to understand new dimensions about the future market behaviour. Tom Williams' Book is really full of interesting topics.

ForexFlash,
Thank You for taking time to program the Volume Spread Analysis v4 among others ! I read you were from Croatia, well we are on the same continent then, Paris here

LuboLabo,
Thanks also for showing us your personal approach of the VSA - and Ninja Trader .

Malcolm,
Thanks for joining this great thread, highlighting the accuracy of some VSA parameters.

As a total beginner on the markets, I'm happy to find you, people, on Forex Factory to make progress.

p.s : for those like me just starting with Metatrader 4 but studying on white charts, I have modified colors, font and size of the ForexFlash Indicator so you can read it better, if it can help

Attached File(s)
File Type: mq4 VOLUME SPREAD ANALYSIS v7.mq4   38 KB | 1,586 downloads
  • #1,134
  • Mar 15, 2009 9:52am Mar 15, 2009 9:52am
Quoting nyse1982
When will people understand that you can learn to trade in harmony with the smart money be it stocks or forex or any market. Every market has smart money which are market makers for particular stocks or large banks etc. They don't follow lagging indicators, they follow volume analysis which gives tre insight to how the market is moving. When you trade using VSA you trade ahead of the lagging indicators. Stop being suckered into believing that indicators work b/c they don't. I trade no indicators, just follow the volume and spreads on the current...
Vsa , could I please have and insight on how a spread can help in determining which way a trade may go . Thanks a bunch of pips . Tom
  • #1,135
  • Mar 15, 2009 11:19am Mar 15, 2009 11:19am
Quoting LuboLabo
I'm agree with u again, Malcolm.
The key points are the UPTHRUSTS with very HIGH VOLUME and STOPING VOLUME with very HIGH VOLUME, the first at high level or on a resistence and the second at low level or on a support.
Imho 15 min TF is quite good to see these points.

But i have a question to ALL:
Why don't try to be profitable with VSA manual trading before aim for EAs?
Lubo.

P.s. since some have asked me, if have I time, today I'll post a new setup for NT, although now in the last...
I agree .. those that have seen my charts in chat know that I do not even use any form of indicators for vsa . All I need is volume and candles .....
Blogging daily now at www.volume.zone
  • #1,136
  • Mar 15, 2009 11:30am Mar 15, 2009 11:30am
Thanks Lubo,

I have downloaded vsa for NT, but since my net is down, can't test it till next week. Since you are using amibroker now, would you say that is a better option. Could you post the setup for amibroker together with where to get a demo platform etc, just as you kindly did for NT.

Thanks

Regards
Pardy


Quoting LuboLabo
I'm agree with u again, Malcolm.
The key points are the UPTHRUSTS with very HIGH VOLUME and STOPING VOLUME with very HIGH VOLUME, the first at high level or on a resistence and the second at low level or on a support.
Imho 15 min TF is quite good to see these points.

But i have a question to ALL:
Why don't try to be profitable with VSA manual trading before aim for EAs?

Lubo.

P.s. since some have asked me, if have I time, today I'll post a new setup for NT, although now in the last few days...
  • #1,137
  • Edited 12:35pm Mar 15, 2009 12:14pm | Edited 12:35pm
Quoting SteveHopwood
Hehe. Cheers guys. I would have to be less than human not to respond to such kind words. Thanks to those of you who pm'd me.

I have read the first couple of pages of this thread with mounting excitement. Attached is my first offering; if someone has already done this then my apologies for adding something irrelevant. It is an EA and so should go in your Experts folder.

All it does is maintain a display of the Range and Volume of the previous candle, and the current Volume - saves you having to do the maths. Simply drag it onto the charts you...


Welcome to the room---STEVEHOPWOOD--you 've being expected--.

Little story---i bet if you ask most traders on forex-factory why the markets go up and down--they simply have no clue--they don't know--they wake up in the morning -they slap on their favorite lagging indicators and EA's and they just follow the signals like zombies----

Answer--its the professional syndicates(with big bucks)and market makers who have the buy and sell orders sitting right in front of them and they know precisely when demand as increased more than supply--so they start to fill in orders and change the direction of the markets--they also run test to see if they have gotten rid of supply if they want to send the markets up--and sometimes this test fails---(thats when folks ususally wonder why their indicators fail)

Keep in mind they have millions of orders to fill --so they do it --in a sly way---with selling climax and stopping volume---(then they run tests)---this is where we wanna nail them when they start this process---so we can join them for the ride--

i attach very easy docs for the "smart money process"--its simple read--(newcomers can start here too.).

i think Malcomlb14 has traded this system for a while so he has some inputs what an ea can start with and look for---(maybe alerts that traders can then analyse themselves(not doubting your abilities--but the VSA takes alot of discretion sometimes)..

the VSA traderguiderpdf platform is what we are trying to create here(make it even better)--since you don't write indicators--maybe alerts by an EA--


BEST
Attached File(s)
File Type: doc Daily_Euro_2008-09-03.doc   119 KB | 641 downloads
File Type: doc Daily_Euro_2008-09-04.doc   161 KB | 590 downloads
File Type: doc Daily Euro 2008-09-09.doc   177 KB | 668 downloads
File Type: doc Euro 2008-09-10.doc   81 KB | 604 downloads
File Type: pdf VSA BASICS[1]traderguider.pdf   665 KB | 1,647 downloads
  • #1,138
  • Mar 15, 2009 1:42pm Mar 15, 2009 1:42pm
Quoting SteveHopwood
sing out if you want any info added to the attached EA - can be done in seconds.
Hi Steve,

Thanks for joining us !

I am not a coder so I don't know if EA's can produce histograms or not.

So, if they can,

Could a histogram be displayed of the last x candles with a (say) red bar for the volume and right next to it a (say) blue bar for the spread/range of the bar..so we have 2 bars for each candle on the screen (one for volume and one for spread)

This might be visually helpful.

If EA's can't do this then

FOREXflash... can you provide this? I feel it would be more useful than the Spread line graph that was coded earlier on in this thread. I am sure it would look a lot clearer than a histogram with a line running through it.

Thanks guys,

WG
  • #1,139
  • Mar 15, 2009 2:18pm Mar 15, 2009 2:18pm
Pardy, you can find the AmiBroker indicator here:
http://vpanalysis.blogspot.com/
The NT version was ported from that one.

Quoting Pardy
Thanks Lubo,

I have downloaded vsa for NT, but since my net is down, can't test it till next week. Since you are using amibroker now, would you say that is a better option. Could you post the setup for amibroker together with where to get a demo platform etc, just as you kindly did for NT.

Thanks

Regards
Pardy
  • #1,140
  • Mar 15, 2009 3:14pm Mar 15, 2009 3:14pm
Quoting Willowgal
Looking good so far !!

I see you got it down Willow good job..
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