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Trade Using VSA (Volume Spread Analysis)

  • #81
  • Mar 17, 2009 3:01pm Mar 17, 2009 3:01pm
Quoting brettnchrism
Hi I have justed started to study the VSA.

I have a MT4 with a volume indicator I also have a VSA indicator that tells me the Volume and Spread for the past 7 bars.

I was wondering if anyone else uses this type of indi or most use the volume candlestick type of indi?

Or if there is a better VSA indi for mt4 that Im not finding. I realize that VSA all I need so what I have may do just fine.

Thanks,
I don't know if someone use it, but here we try to talk only about the VSA pattern with only volume and candle.....

Try here http://www.forexfactory.com/showthread.php?t=154339.

Lubo.
If I know how, I tell You!! Few but Good!!
  • #82
  • Edited 3:20pm Mar 17, 2009 3:09pm | Edited 3:20pm
Thanks everyone for their insights and trade setups/charts.

When Malcolm says you don't need indicators... He's right.

I am doing as Malcolm suggests... No indicators with the exception of the fib indi I posted in first post so I can see where possible support resistance areas are, and so far I am doing very well. I am only taking the obvious VSA trades (upthrusts although I still get this wrong sometimes and low volume down bars) for now but my confidence in each trade grows the more chart time I get.

I want to thank everyone in the thread and especially the chat. It's made learning VSA much easier.
The trend always ends.
  • #83
  • Mar 17, 2009 3:25pm Mar 17, 2009 3:25pm
this may play out in next 24 hrs

Attached Image (click to enlarge)
Click to Enlarge Name: ym237.png Size: 141 KB
Blogging daily now at www.volume.zone
  • #84
  • Mar 17, 2009 4:07pm Mar 17, 2009 4:07pm
Thank God someone has started a thread on VSA,for any one who's interested in learning this method,please read Master the Markets by Tom Williams,it is one of the better book out there.I will also like to caution the use of volume,all volume are not created equally,especially with forex,esignal or Realtimedata Volume are the real deal.On the chart I see some bars closing of the highs and they are labelled upthrust,for bars to be labelled upthrust or no demand there must be weakness in the back ground,which means an up bar with ultra high volume first.Proffessional will only width draw from up moves when they know that the market is weak.Another word of caution with VSA you got to put in alot of studies it's not as easy as it looks,there are a lot of false signals,test and retest it realy takes time to master ,but once mastered you will make a very comfortable living from trading.Remember all that glitter is not gold.By the way most of my writings are laught at.I saw Todd,Jason and Garvin trade ? I have the VSA RT set and the booth camp cd so at least I know what am talking about.
  • #85
  • Mar 17, 2009 4:21pm Mar 17, 2009 4:21pm
Quoting ShamusFamous
I have updated the first post with a good article by Todd Krueger on the basics of VSA. (Original Article Here)

I will always update the first post with any new links, resources, or files useful to learning/trading VSA...

Always check the first page/post for the latest updates.
well i see you went in the right direction
  • #86
  • Mar 17, 2009 4:27pm Mar 17, 2009 4:27pm
hi malclomb,

if you look at longer tf charts like 4H do you consider that the volume patters usually repeats itself, meaning that at this time of the day it has the most activity and that's why the high vol....if you look back at 4H charts you see that volume is highest most of the days in that candle.

also, how do you know you can play the range ? when price hits resistance it usually has high vol too, meaning that it might be a breakout...just something i've noticed, glad to hear your point of view.thanks.

PS. when you trade futures do you use tick volume or contract volume ?
  • #87
  • Mar 17, 2009 4:31pm Mar 17, 2009 4:31pm
Quoting Mr Dumoulin
Hi Madog,

I would like to know if your anti-virus program detected something wrong when you installed the MT4 IBfx demo ?

Mine, Antivir, detected a trojan :

Virus or unwanted program 'TR/Crypt.XPACK.Gen [trojan]'
detected in file 'Crogram FilesInterbank FX Trader 4MetaLang.exe.
Action performed: Delete file

And I read on the Net that it was a dirty one !
So maybe it's a wrong alarm but I would like to have your feedback before doing anything.

Thanks !

& Happy Trading All

p.s : oh, btw, I have a meeting with Mr Williams in 5 hours...
I've had it installed for a few months now and havn't encountered any problems

Regards

Madog
  • #88
  • Mar 17, 2009 4:31pm Mar 17, 2009 4:31pm
Quoting Lessformore
Thank God someone has started a thread on VSA,for any one who's interested in learning this method,please read Master the Markets by Tom Williams,it is one of the better book out there.I will also like to caution the use of volume,all volume are not created equally,especially with forex,esignal or Realtimedata Volume are the real deal.On the chart I see some bars closing of the highs and they are labelled upthrust,for bars to be labelled upthrust or no demand there must be weakness in the back ground,which means an up bar with ultra high volume...

that is what i have been trying to tell them lol .....
Blogging daily now at www.volume.zone
  • #89
  • Mar 17, 2009 5:27pm Mar 17, 2009 5:27pm
Hi Folks !

Congratulation to this nice thread
It takes some time to master the VSA signals but its worth it !!
Carry on with this stuff !!
This is top notch information presented here...

Happy trading

Bernhard

P.S. Read the books of Tom Williams and practice.....
  • #90
  • Mar 17, 2009 5:49pm Mar 17, 2009 5:49pm
lets follow this .... looks intresting ... any one want to post what might happen next ?

Attached Image (click to enlarge)
Click to Enlarge Name: ym242.png Size: 190 KB
Blogging daily now at www.volume.zone
  • #91
  • Mar 17, 2009 5:54pm Mar 17, 2009 5:54pm
Quoting LuboLabo
Hi Steve, u took the trade early, the 3°th candle (red down candle) is the signal, it is an inverse Hammer or in VSA an UPTHRUST (a wide range bar, with a high volume and closing down) selling signal!!
However somehow u had hit it!!

Lubo.
Cheers LuboLabo, that confirms what I thought and is really helpful.

Can I pick your brains again, please?

The attached pic has the same vertical lines marking off the same scenario as before. The large turqoise down arrow shows the downthrust that resulted in my two trades both hitting their tp.

In my previous post, I stated that I would have gone long here had I been sat at the computer at the end of this candle. My rationale is that the volume had been high, so I could expect to buy into the selling with confidence.

Actual confirmation came with the following candle - falling volume and a close above the previous close, indicating the selling had run out of steam.

So, would I have entered long too soon had I been sat at the computer? Should I have waited until the following candle to confirm that the smart money had concluded their selling?

Cheers

Attached Image (click to enlarge)
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  • #92
  • Mar 17, 2009 6:00pm Mar 17, 2009 6:00pm
Quoting malcolmb14
lets follow this .... looks intresting ... any one want to post what might happen next ?

Attachment
Just to see if im starting to grasp VSA:

I d say that last candle is an inverse upthrust so it must go north ..the gap to be filled is a more reason to think it will go up.

did i catch it?

CORVOGRIGIO
  • #93
  • Mar 17, 2009 6:00pm Mar 17, 2009 6:00pm
Quoting SteveHopwood
Cheers LuboLabo, that confirms what I thought and is really helpful.

Can I pick your brains again, please?

The attached pic has the same vertical lines marking off the same scenario as before. The large turqoise down arrow shows the downthrust that resulted in my two trades both hitting their tp.

In my previous post, I stated that I would have gone long here had I been sat at the computer at the end of this candle. My rationale is that the volume had been high, so I could expect to buy into the selling with confidence.

Actual confirmation...


vsa is not about 1 candle , you always have to see what is going on in the background , now we know that at the time that the gj was moving down the indices were moving up , we also know that 138 is support . The volume moving into support was increasing every candle at the vertical line you showed , this could indcate increased selling interest , but on the highest vol candle it was right on support . Howveer with the markets moving up it was unlikely that GJ would break support

.... not the best vsa set up to tell you the truth .

I was just traidng the range today 138.10 to 138.5 ... happened to be the upper and lower vlaues areas of the 70% ile of volume .. fairly easy trading
Blogging daily now at www.volume.zone
  • #94
  • Mar 17, 2009 6:21pm Mar 17, 2009 6:21pm
Quoting malcolmb14
lets follow this .... looks intresting ... any one want to post what might happen next ?

Attachment
Here is what I think.

There is a gentle upward trend on the chart as shown

The three most recent lowest lows have had closes that have hardly changed.

The final Volume bar shows a huge rise, yet the candle shows a large lower wick. This indicates the sell is running out of steam.

This shows me that the market is about to rise and I would go long.

Be nice to me, please.

  • #95
  • Mar 17, 2009 6:21pm Mar 17, 2009 6:21pm
Quoting corvogrigio
Just to see if im starting to grasp VSA:

I d say that last candle is an inverse upthrust so it must go north ..the gap to be filled is a more reason to think it will go up.

did i catch it?

CORVOGRIGIO

not an inverse upthrust .... more of a selling climax (nned to see reversal candle after high vol down bar) , however i would prefer that to be on more of a pivot than a support level . You did understand what I am expecting to happen tomorrow , some kind of dead cat bounce based on the volume of today , maybe into the 35 to 36 range

try this one ....what do you make of this ?

Attached Image (click to enlarge)
Click to Enlarge Name: ym244.png Size: 159 KB
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  • #96
  • Mar 17, 2009 6:23pm Mar 17, 2009 6:23pm
Quoting malcolmb14
vsa is not about 1 candle , you always have to see what is going on in the background , now we know that at the time that the gj was moving down the indices were moving up...
Thanks. I hope my reply to your "what happens next" proves I read this with care.

  • #97
  • Mar 17, 2009 6:24pm Mar 17, 2009 6:24pm
Quoting SteveHopwood
Here is what I think.

There is a gentle upward trend on the chart as shown

The three most recent lowest lows have had closes that have hardly changed.

The final Volume bar shows a huge rise, yet the candle shows a large lower wick. This indicates the sell is running out of steam.

This shows me that the market is about to rise and I would go long.

Be nice to me, please.


lol ....ok i will be nice ... the high volume could be hidden buyers ... the fact that we got a nice reversal off intraday lows does show some buying interest . i am expecting a a bit more of a rise tomorrow maybe to fill the gap.

i will use the open range of 1st 15 min of market to get me into the long trade for a target of $2-3 for my RRSP ( pension plan here in canada)
Blogging daily now at www.volume.zone
  • #98
  • Mar 17, 2009 6:48pm Mar 17, 2009 6:48pm
Quoting malcolmb14
not an inverse upthrust .... more of a selling climax (nned to see reversal candle after high vol down bar) , however i would prefer that to be on more of a pivot than a support level . You did understand what I am expecting to happen tomorrow , some kind of dead cat bounce based on the volume of today , maybe into the 35 to 36 range

try this one ....what do you make of this ?

Attachment
well.. i see increasing volumes with increasing prices...but the last enormous volume would make me suspicious... i would expect a fall maybe after a folllowing upthrust or after a candle with reducing volume though a green one... I'm trying to guess how to compose the puzzle....but not really sure..
ur comment will be greatly appreciate.
corvogrigio
  • #99
  • Mar 17, 2009 7:03pm Mar 17, 2009 7:03pm
Quoting corvogrigio
well.. i see increasing volumes with increasing prices...but the last enormous volume would make me suspicious... i would expect a fall maybe after a folllowing upthrust or after a candle with reducing volume though a green one... I'm trying to guess how to compose the puzzle....but not really sure..
ur comment will be greatly appreciate.
corvogrigio


yes that up candle closing on the highs is very suspicious ...... it was on really high volume , It could have hidden selling volume. IF we get a reversal tomorrow this may be a buying climax

Buying Climax

A buying climax marks the end of a bull market. It is hallmarked by rapid price rises after a substantial bull market has already taken place. The volume is always high: The higher the volume, the more likely it is to be a buying climax. The spreads will be very wide, closing higher than previous bars, and the ‘news’ will be good. If prices are into all-time new high ground, this will mark the top of the market.

Note:

The volume must be extremely high.
Blogging daily now at www.volume.zone
  • #100
  • Mar 17, 2009 8:06pm Mar 17, 2009 8:06pm
Quoting lumesh
hi malclomb,

if you look at longer tf charts like 4H do you consider that the volume patters usually repeats itself, meaning that at this time of the day it has the most activity and that's why the high vol....if you look back at 4H charts you see that volume is highest most of the days in that candle.

also, how do you know you can play the range ? when price hits resistance it usually has high vol too, meaning that it might be a breakout...just something i've noticed, glad to hear your point of view.thanks.

PS. when you trade futures do you...
I am curious about this,too...On my 4hr chart of GBP/JPY the 12:00 GMT bar most always has the highest volume...would we trade based on the bars following this bar? And of course sup/res areas.
I was thinking that I could use VSA on longer timeframes but now I wonder if that might be a mistake.(except maybe on daily timeframe...exclude Sunday bar if your broker plots it).

Really eager to learn this...not nearly as easy as some have made it out to be.
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