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Trade Using VSA (Volume Spread Analysis)

  • #101
  • Edited 9:11pm Mar 17, 2009 9:03pm | Edited 9:11pm
Quoting malcolmb14
lets follow this .... looks interesting ... any one want to post what might happen next ?

Attachment
At this point of my knowledge, that big honking volume spike would scare me, and I would sit aside and wait for things to calm down (I need to learn patience)...but for learning purposes, I am going to say the candle before the last one looks to me as a test or maybe a fake reversal then the big drop...I would look to go long, put a buy stop at the high volume bars open (though I would rather be at the computer watching it).
  • #102
  • Mar 17, 2009 9:38pm Mar 17, 2009 9:38pm
Hi,

What criteria do you use in order to determine if volume is extremely high? Is that higher than the volume of the last 5 bars, 10, or last 20? Cheers.

Quoting malcolmb14
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

[font=TimesNewRoman][size=2][left]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...
  • #103
  • Mar 18, 2009 12:50am Mar 18, 2009 12:50am
Quoting jlouidor
Hi,

What criteria do you use in order to determine if volume is extremely high? Is that higher than the volume of the last 5 bars, 10, or last 20? Cheers.
From what I understand you cannot 'quantify' this - the example shown is blatantly obvious but usually things are a lot less exact, especially with MT4 volume data which I am sure is 'smoothed' by the brokers to some extent.

I attach the following indicator which works well after plenty of forward testing

malcolmb14.mq4

Attached Image
  • #104
  • Mar 18, 2009 3:08am Mar 18, 2009 3:08am
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 came...
Is not simple to see that in this scenario, price is ranging side way, and the candle u highlighted is not a signal di per se, it can be a selling continuation cause high volume closing in the middle, and buyers was assorbed by sellers, but as Malcolm said we have to look at past scenario to see if there's is weakness or strenght, not just a candle. I like to operate in this way, looking at 15 min TF VSA pattern and in the same time trade from 5 min TF for confirmation of 15 min TF. I look at higher scenario too, like 1H TF..... find the support and resistance.....

Yesterday on GJ there was a channel where price ranging, in this case a great help came from TIM ORD method, the candle u highlighted didn't confirm the breaking down maybe cause there wasn't enogh volume to pass trough, u have to look at previus attempt to break to see how is the volume in that case. look here http://www.tradingmarkets.com/.site/...les/-76494.cfm , and at attached pdf.

Lubo.
Attached File(s)
File Type: pdf PriceVolume.pdf   330 KB | 5,118 downloads
If I know how, I tell You!! Few but Good!!
  • #105
  • Edited 3:46am Mar 18, 2009 3:31am | Edited 3:46am
'Morning,

Here's a chart with a NT VSA indi downloaded yesterday : it looks interesting but I have no idea what all the chart symbols are (the colored squares and diamonds). I've asked on the NT forum, but no reply as yet : I note they correspond with some of the charts on the pdf file in Post #80 (which I think may be Amibroker charts).

Is anyone familiar with this particular form of VSA analysis & could clarify it, please ?

Edit : chart times are CET.
Edit 2 : the 3 sets of comments written on white background are part of the indicator and update on completion of each bar (I think !).
Attached Image (click to enlarge)
Click to Enlarge Name: 6E 06-09 18_03_2009 (5 Min).jpg Size: 76 KB
  • #106
  • Mar 18, 2009 3:50am Mar 18, 2009 3:50am
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
Here goes!

Price took 3 attempts to push through the blue resistance line on the graph, but eventually did so on higher volume.

I would expect a reaction down after that last very high volume bar, but any down move only as far as that blue line on the graph which would now act as support.
  • #107
  • Mar 18, 2009 6:46am Mar 18, 2009 6:46am
Hello everyone, I'm posting some potential setups that didn't work as I would expect. Any opinions?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gu.gif Size: 12 KB
Click to Enlarge Name: gj.gif Size: 14 KB
  • #108
  • Mar 18, 2009 7:33am Mar 18, 2009 7:33am
5 min and 15 min GU VSA.
Before that stopping vol, the scenario was weak, and bad news on gu too.

Lubo.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 5minGU.png Size: 44 KB
Click to Enlarge Name: 15minGU.png Size: 46 KB
If I know how, I tell You!! Few but Good!!
  • #109
  • Mar 18, 2009 7:48am Mar 18, 2009 7:48am
Quoting LuboLabo
5 min and 15 min GU VSA.
Before that stopping vol, the scenario was weak, and bad news on gu too.

Lubo.

what feed you using .... on the stopping volume the volume was not ultra high .. yet on esignal it was


Attached Image (click to enlarge)
Click to Enlarge Name: snapshot-442.png Size: 168 KB
Blogging daily now at www.volume.zone
  • #110
  • Mar 18, 2009 8:10am Mar 18, 2009 8:10am
I am trying to practice on old data by hiding the right hand bars of a chart and then pressing the right arrow to see if my predictions work out.

Unfortunately every time I press the righ arrow the chart jumps forward 4 bars rather than individually.

Is there a way to change this?

Madog
  • #111
  • Edited 8:30am Mar 18, 2009 8:16am | Edited 8:30am
Quoting malcolmb14
what feed you using .... on the stopping volume the volume was not ultra high .. yet on esignal it was


Attachment
It was very high here on IBFX as well.

I am starting to get interested in this VSA stuff

EDIT:

I thought the extra stuff on my chart was distracting. I'll try to post a chart with only volume and price as that is the way It is suggested it should be done

Scott
Attached Image (click to enlarge)
Click to Enlarge Name: ScreenHunter_065.jpg Size: 67 KB
  • #112
  • Mar 18, 2009 8:21am Mar 18, 2009 8:21am
  •  FxChi
  • | Joined Dec 2007 | Status: Cash Rules Everything Around Me | 749 Posts
Quoting Madog
I am trying to practice on old data by hiding the right hand bars of a chart and then pressing the right arrow to see if my predictions work out.

Unfortunately every time I press the righ arrow the chart jumps forward 4 bars rather than individually.

Is there a way to change this?

Madog
F12 should work for you.
"Wishful thinking dies hard." Igor T.
  • #113
  • Mar 18, 2009 8:24am Mar 18, 2009 8:24am
Quoting malcolmb14
what feed you using .... on the stopping volume the volume was not ultra high .. yet on esignal it was


Attachment
Malcolm, look at page 5 post 75, I had placed a request to you, maybe you have missed it.

Is IQ DTN feed, forex premium feed....

Thanks.

Lubo.
If I know how, I tell You!! Few but Good!!
  • #114
  • Mar 18, 2009 8:53am Mar 18, 2009 8:53am
Quoting LuboLabo
Malcolm, look at page 5 post 75, I had placed a request to you, maybe you have missed it.

Is IQ DTN feed, forex premium feed....

Thanks.

Lubo.
I used to use that feed in the early 90s It was a big black box that sat on my desk and had a cable going to a satellite dish on my roof back then. It cost me about $500 a month back then. How times have changed. LOL
  • #115
  • Edited 11:05am Mar 18, 2009 10:04am | Edited 11:05am
Quoting smjones
I used to use that feed in the early 90s It was a big black box that sat on my desk and had a cable going to a satellite dish on my roof back then. It cost me about $500 a month back then. How times have changed. LOL
LOL - another "oldtimer" - I was the first trader here to install a satellite system - a 2 meter dish pointing to the PanAm satellite low on the western horizon.....made the trades by phone - land line of course - a mobile then was also a huge black box carried over your shoulder....
Trading Levels with WRBs
  • #116
  • Mar 18, 2009 10:06am Mar 18, 2009 10:06am
Quoting FxChi
F12 should work for you.
Madog
  • #117
  • Mar 18, 2009 12:30pm Mar 18, 2009 12:30pm
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
malcolmb, what do you think of those financials? JPM/SKF/FAZ
  • #118
  • Mar 18, 2009 1:00pm Mar 18, 2009 1:00pm
Quoting sunpost
malcolmb, what do you think of those financials? JPM/SKF/FAZ

not sure .. seems they are being driven by markets and 30 % rise in citi. I think the lower they go the better the value I did get a few FAZ at 34 , getting hurt on that right now , but it is for longer term . The drop on the 60 min is on low volume , but do not see any sign of buying . Need the indexes to drops and right now we seem to be undergoing a bear market rally.
Blogging daily now at www.volume.zone
  • #119
  • Mar 18, 2009 1:05pm Mar 18, 2009 1:05pm
Quoting malcolmb14
not sure .. seems they are being driven by markets and 30 % rise in citi. I think the lower they go the better the value I did get a few FAZ at 34 , getting hurt on that right now , but it is for longer term . The drop on the 60 min is on low volume , but do not see any sign of buying . Need the indexes to drops and right now we seem to be undergoing a bear market rally.
we have the FED coming up so it might get a little volatile...not that FAZ is not all the time
  • #120
  • Mar 18, 2009 1:42pm Mar 18, 2009 1:42pm
Quoting sunpost
we have the FED coming up so it might get a little volatile...not that FAZ is not all the time
You're not kidding. I was on the long side of that insane bar... and here I was upset that I didn't trade last night LOL Hope you guys caught the moves too. UJ was a nice short too.

See you in the chat.
The trend always ends.
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