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Trade Using VSA (Volume Spread Analysis)

  • #201
  • Mar 21, 2009 11:18pm Mar 21, 2009 11:18pm
Quoting lolpie
I noticed that many of the buy and sell signals posted in the thread are identical to the ones in an ebook called tradinginthebuff...I just thought it was interesting because tradinginthebuff teaches you to trade without indicators, include volume and fibonacci, etc.

set up 2 they are calling a bottom ...... there may be one of 2 things happening here .

1) there maybe some form of high volume on the down candle 1 , indicating buyers as the volume show that pros are buying into the market.
2) the 2nd candle would be shown with highish volume and should clos on the high,
3) bar three must have a higher volume than bar 2 to show that pros are really buying into the market.

I have often seen these three candles reversal patterns show no volume on the third candle telling me to get out of the trade as the pros were only taking a breather on the selling
Blogging daily now at www.volume.zone
  • #202
  • Mar 21, 2009 11:26pm Mar 21, 2009 11:26pm
Quoting lolpie
I noticed that many of the buy and sell signals posted in the thread are identical to the ones in an ebook called tradinginthebuff...I just thought it was interesting because tradinginthebuff teaches you to trade without indicators, include volume and fibonacci, etc.


so I looked in my charts for these candle patterns and found it right away .. this proves that who ever wrote the ebook you were talking about does not understand the full relationship between buyers / sellers and price movement , in fact in candle 3 of the 1st set up it closed in the upper half of the candle. The author is calling it a down move / top of market ..... wrong , the fact that candle three closed in the upper half of the bar indicates buyers are hitting the market , then one would look to volume to see how hard the buyers are hitting it , in the case below you can see fairly hard and it gave a trade of 50 pips.

volume is like reading a book

the down move between the 2 vertical lines. on the this candle the volume ( higher then previous 2 bars) with the wick on the bottom and the bar finishing in the upper half of the candle indicates buyers and that price is not yet ready to go down . This is where you may have been going short , it is ok though as you would only have had a 30 - 40 pips draw down as this set up did in fact show the formation of weakness. It is not until we got the low volume second peak that the weakness was confirmed. This is a trade that I did 138.85 entry with only 10 pips of draw down

Attached Image (click to enlarge)
Click to Enlarge Name: snapshot-449.png Size: 199 KB
Blogging daily now at www.volume.zone
  • #203
  • Mar 21, 2009 11:37pm Mar 21, 2009 11:37pm
Confirmation the media baloney.

Quoting malcolmb14
the title is sound of me laughing head off when I read this article ..

http://www.marketwatch.com/news/stor...192AD8BEB92%7D

lets review the dj and see what is really going on .....

Attachment
  • #204
  • Mar 22, 2009 12:48am Mar 22, 2009 12:48am
ShamusFamous,

hmm, I dont think that is the case. Please look at the attached screenshot where I have combined the mouse over evens for both the bar chart & volume.
Attached Image (click to enlarge)
Click to Enlarge Name: ClimaxVolume2.jpg Size: 134 KB
  • #205
  • Mar 22, 2009 4:13am Mar 22, 2009 4:13am
Quoting chrys
on nt forum...

Hello
I tried to open :Better Volume.zip file but I have message that file is invalid...

Can you zip it again ...maybe will get better zip file?

Thank you
The Market pays you to be disciplined
  • #206
  • Mar 22, 2009 4:36am Mar 22, 2009 4:36am
Quoting mima
Hello
I tried to open :Better Volume.zip file but I have message that file is invalid...

Can you zip it again ...maybe will get better zip file?

Thank you
Strange because i dont zip the file i only download from nt forum so better to go on the link and take what you need: http://www.ninjatrader-support2.com/...ks.php?catid=1
  • #207
  • Mar 22, 2009 4:46am Mar 22, 2009 4:46am
Quoting thatwasme
Hmm. Sounds like you should stick with your NT instead of fxpro mt4.

Sorry you did not like it.
Ooh no,
You make good work and i (never) suggest nothing I work my money whit mt4 and i use nt and other platforms only for see vsa technic because i dont trust much mt4 data for volume but when i will have more free time i will test better...
  • #208
  • Mar 22, 2009 5:14am Mar 22, 2009 5:14am
Quoting thatwasme
It is correct on my chart. I cannot say what the problem is from your broker.

The code is a direct port over.
I test better vol. on mt4 whit my broker on usdjpy 1H chart and look like ahelix post also look from the left to the right of the chart and see how different is the bottom indi,so i beleave ibfx mt4 work better for volume technic.
I saw this different from ibfx and other broker when i was looking on tick chart.ibfx receive much different tick data
Attached Image (click to enlarge)
Click to Enlarge Name: better vol 2.jpg Size: 116 KB
  • #209
  • Mar 22, 2009 6:53am Mar 22, 2009 6:53am
hi,

may i ask where do you get the info for option expirations ?

oanda used to have it but not anymore.

thanks






Quoting malcolmb14
so I looked in my charts for these candle patterns and found it right away...
  • #210
  • Mar 22, 2009 7:08am Mar 22, 2009 7:08am
Quoting malcolmb14
check out time of those bars in channel ..... it was the dead zone .. late asia ... it was likely not accumulation rather just no pros in the market. Friday was option expiry . accumulation really happens at the bottom of a market not really the top.

there is an option expiry Monday at around 138.80. Note the lack of interest in the gj during the Friday us session . GJ looks exhausted at this level and we may well see a drop into 136 / 135 early next week
Thanks for pointing that out! Appreciate the charts you post with your analysis.

This is going to sound dumb, but do you decide what phase it is in based on the chart timeframe you're trading at?

On the daily charts, it seems like the last bear climax was on 21/1/2009, and the period we are in is the accumulation.

On the hourly chart, I thought that the last bear climax was on 19/3/2009, since prices didn't go any lower from markdown before.
The one before was on 12/3/2009.

If my assumptions are wrong, then I'm really confused!
Please enlighten me.
  • #211
  • Edited 8:46am Mar 22, 2009 8:01am | Edited 8:46am
Quoting ahelix
Thatwasme,

If I am not mistaken the highlighted bar & volume should be shown as red color (climax volume) right?

This is an interesting & fruitful thread for VSA. Thanks everyone for great contributions.
I went back and looked closely at the code and there is one occurance if volume is not greater than value3 and also less than the starting value of value3 the code can give the white bar instead of the red bar.

I isolated that logic and re-wrote it so that can not happen in the future.
This is why some charts were correct and some were not.


I am very sorry for my mistake, or more over a strange mistake in the way MT4 handles doubles. Sorry about that

So this fixes all that code I am posting the new version here and hope that FamousShanous will update his first post. I will go back and delete the indicator in the previous post where it is outdated.

EDIT......

I cannot edit my earlier post, so please use this version and FanousShanous please use this post in you link on your first page.

found one more small bug, be back with the code in just a moment.

Ok, all fixed. here it is
Attached File(s)
File Type: mq4 BetterVolume 1.1.mq4   5 KB | 2,019 downloads
File Type: mq4 BetterVolume ChartBars part1 1.1.mq4   5 KB | 1,740 downloads
File Type: mq4 BetterVolume ChartBars part2 1.1.mq4   4 KB | 1,806 downloads
  • #212
  • Mar 22, 2009 8:30am Mar 22, 2009 8:30am
Very appreciative of your work and making available, ThatWasMe.

Thank you.

Ron
  • #213
  • Mar 22, 2009 8:32am Mar 22, 2009 8:32am
Quoting ShamusFamous
I think I know what might be happening...

Likely your chart is set to foreground and down bar color is set to white.

Try setting down bar color to none to test. If that fixes it you will need to edit your chart preferences to have chart in background. (uncheck chart in foreground) in common tab of chart preferences.

That should fix it as I am fairly certain this is the problem.

EDIT: Actually that isn't likely the problem now that I look at the chart again Not sure. Wait for thatwasme to respond back after investigating.
Hey ShamousFamous, unchecking the foreground box in the common tab did solve one of my problems. Before I had to increase the line thickness on the indicator to see it, now it lays over the bars like it should.

Thanks for your help, much appreciated!

Still have the other problem with the indicator mistaking low churn (white bar) with climax (red bar). Hoping Thatwasme might know what's happening.

Also tried changing the down bar and up bar color to none with no luck.

Here's an updated pic of my chart.
Attached Image (click to enlarge)
Click to Enlarge Name: updatedchart.JPG Size: 89 KB
  • #214
  • Mar 22, 2009 8:47am Mar 22, 2009 8:47am
Quoting Scottstone
Hey ShamousFamous, unchecking the foreground box in the common tab did solve one of my problems. Before I had to increase the line thickness on the indicator to see it, now it lays over the bars like it should.

Thanks for your help, much appreciated!

Still have the other problem with the indicator mistaking low churn (white bar) with climax (red bar). Hoping Thatwasme might know what's happening.

Also tried changing the down bar and up bar color to none with no luck.

Here's an updated pic of my chart.
SEE POST 211
  • #215
  • Mar 22, 2009 8:55am Mar 22, 2009 8:55am
Quoting thatwasme
SEE POST 211
Thanks Thatwasme! That did the trick.

Greatly Appreciated!
Attached Image (click to enlarge)
Click to Enlarge Name: workingchart.JPG Size: 92 KB
  • #216
  • Mar 22, 2009 10:39am Mar 22, 2009 10:39am
They work great now, thanks Thatwasme for excellent jobs!
  • #217
  • Mar 22, 2009 11:11am Mar 22, 2009 11:11am
hi,


does anybody has this simple volume indicator (just like malcolm uses when he gives examples) where volume bar is green when price closes above open and red when it closes down...and maybe a little add-on...yellow when the open and close are the same...thanks a lot.
  • #218
  • Edited 11:48am Mar 22, 2009 11:30am | Edited 11:48am
Quoting lumesh
hi,


does anybody has this simple volume indicator (just like malcolm uses when he gives examples) where volume bar is green when price closes above open and red when it closes down...and maybe a little add-on...yellow when the open and close are the same...thanks a lot.
Just so I understand what you are asking;

When price closes above the open paint the volume bar green?
When price closes below the open paint the volume bar red?
when price closes at the open pant the volume bar yellow?

This is not how malcomb's works. His paints a green bar when volume bar > previous volume bar and a red bar when volume bar < previous volume bar.

Mt4 already has a volume indicator that can have the up volume be any color and the down volume be any color.

I would not be interested in making your indicator, even though it would only take 5 minutes, because it would be misleading and a distraction to the way this method is used.
  • #219
  • Mar 22, 2009 11:48am Mar 22, 2009 11:48am
Has anyone seen the Better Sign Wave with the support and resistance levels printed onto price chart.

Check it out and see what you think!

http://emini-watch.com/products/hilbert-sine-wave/
  • #220
  • Mar 22, 2009 12:23pm Mar 22, 2009 12:23pm
hi,


you are correct with what i wanted...

if you look more closely in malcolm charts you'll notice that you are wrong...i know excactly what you are talking about and yes mt4 has it on standard indicator list.

misleading and distracting ? sorry, but you are wrong again...

when you have this you can learn much faster and effectively by looking at historic charts and pinpoint high volume reversals visually very quickly etc.

furthermore, with this you can see the volume sentiment in down bars and compare it to up bars.

i hope you would reconsider this...especially when it only takes 5min of your time...no worries if you still refuse, i can always find somebody else to do it, i just thought others here would like that too.

thanks.


Quoting thatwasme
Just so I understand what you are asking;

When price closes above the open paint the volume bar green?
When price closes below the open paint the volume bar red?
when price closes at the open pant the volume bar yellow?

This is not how malcomb's works. His paints a green bar when volume bar > previous volume bar and a red bar when volume bar < previous volume bar.

Mt4 already has a volume indicator that can have the up volume be any color and the down volume be any color.

I would not be interested in making your indicator, even though it would...
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