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Learn to Trade using VSA (Volume Spread Analysis)

  • #1,221
  • Apr 4, 2009 1:41pm Apr 4, 2009 1:41pm
Quoting nyse1982
notice how both the volume and spread are extreme in relation to the average, so the price closes down. This is amazing, we can just trade off reading the tape, omg no charts even necessary,wow!!
This is certainly not what I am looking for .... I think we all quite like to have a look at the charts before placing a trade?

There are plenty of intra-day VSA trading opportunities via the charts, so surely a self-updated spread-sheet is a step back 20 (or 100) years ?

WG
  • #1,222
  • Apr 4, 2009 6:44pm Apr 4, 2009 6:44pm
I am starting to use murrey math lines (fractuals ) ... these things are insane !!! I have not been messing with them for long but know that the 4/8 is majopr support / resistance lines and is hard to break ... look where gj found support friday on 15 min chart

when price gets to 1/8 and even +2/8 there is 95% chance of strong reversal and look where gj is now on 1 ) bearish volume divergence and bearish rsx )

lets see how this plays out next week ... not sure that rules will be adhered to
due to weekend

I have noticed in my looking at charts that 4/8 mml and when we get into the overbought and ovewrsold zones with a nice valid vsa trigger alot of pips can be made

If i get time next week (very busy at work) I will play with this and do some trades around the 4/8th and 0/8 , 8/8 lines, and let you know ho it goes . I

This is anticipating trades instead of waiting for vsa triggers ... using MML I think we can know the areas to expect to see valid vsa set ups , almost crystal ball like ....

Attached Image (click to enlarge)
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Blogging daily now at www.volume.zone
  • #1,223
  • Apr 4, 2009 6:47pm Apr 4, 2009 6:47pm
Hey Guys,

Although I still don't yet have my arms completely wrapped around what nyse is talking about yet (but I'll re-read it all again, usually have to with nyse - LOL!), a few years ago I used to use data feeds from my MT3 platform (not MT4), piped right into an Excel spreadsheet that I built a calculator in which would have visual alerts of when to trade short/long a certain pair, etc. It was based on a system called Noah's 10 pips a Day. It wasn't too difficult to build. I'm pretty sure you can do the same thing with MT4 as well but you could probably just build a custom indi inside MT4 for this.
- Bowen (a.k.a. Wolf)
  • #1,224
  • Apr 4, 2009 8:16pm Apr 4, 2009 8:16pm
Maybe we can set up a excel sheet to do this this automaticly with
the DDE server, but i am not sure if you can get the volume with DDE and meta trader


Quoting nyse1982
I figured it out>>>look at the chart, whenever the vol % change and the spread % change is under the average volume % change and the average spread % change the price will close higher, on the chart check out the following dates mar. 30 - apr 2. Notice how the price continues to rise higher when the vol % change and the spread % change is under the average volume % change and the average spread % change. Also go back and look how the price goes lower when the the vol % change and the spread % change is higher then the average.

So we can drawup...
  • #1,225
  • Apr 5, 2009 1:32am Apr 5, 2009 1:32am
Quoting malcolmb14
I am starting to use murrey math lines (fractuals ) ... these things are insane !!! I have not been messing with them for long but know that the 4/8 is majopr support / resistance lines and is hard to break ... look where gj found support friday on 15 min chart

when price gets to 1/8 and even +2/8 there is 95% chance of strong reversal and look where gj is now on 1 ) bearish volume divergence and bearish rsx )

lets see how this plays out next week ... not sure that rules will be adhered to
due to weekend

I have noticed in my looking at charts...
Hi Malcolm,

Looks interesting ... possible move up to the resistance around 150.00 ? Maybe a gap up to trap the retail ?

This chart is 1 hour with MM - do you adjust the MMperiod when changing timeframes ... yours is 15min I think, so do you set MMperiod to 15 on that chart ?

Not used MM much but I see what you mean

WG
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  • #1,226
  • Apr 5, 2009 1:37am Apr 5, 2009 1:37am
Similar story on the USDJPY
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Click to Enlarge Name: vsa-usdjpy-15m.gif Size: 47 KB
  • #1,227
  • Apr 5, 2009 5:08am Apr 5, 2009 5:08am
Hi Nyse !

Nice to see you again. I hope you got a good laptop from now which you can rely on.

I'm really new to trading even if I have read a lot of stuffs about it since 4/5 years (Stan Weinstein, John Bollinger..) and I have an idea to thank you for pointing the VSA style one month ago.

I was wondering if you learned about VSA during the New-York Traders Expo at the beginning of February 2009 ? Did you meet Gavin Holmes or Tom Williams in person ?

So, my idea is to send you a bottle of French Champaign (one I particularly appreciate !) by post-mail so I can thank you my way. You can contact me for this, that would be nice !

Still Learning however last week, I have managed to get my "first" 629 pips profit...

Wish you all the best !

p.s : Thanks also to you Malcolm for pointing the "intrisic simplicity" of the VSA approach ( : "You just need Volume and Candles, that's all folks !"), Thanks very much !
  • #1,228
  • Apr 5, 2009 6:33am Apr 5, 2009 6:33am
Quoting Mr Dumoulin
p.s : Thanks also to you Malcolm for pointing the "intrisic simplicity" of the VSA approach ( : "You just need Volume and Candles, that's all folks !"), Thanks very much !
What does Malcolm get ? a bottle of beer ?

  • #1,229
  • Apr 5, 2009 7:03am Apr 5, 2009 7:03am
Quoting malcolmb14
I am starting to use murrey math lines (fractuals ) ...
Where do you get the Murry Math info from? Is there a Metatrader indicator for them?
  • #1,230
  • Apr 5, 2009 10:23am Apr 5, 2009 10:23am
Quoting crabbydog
Where do you get the Murry Math info from? Is there a Metatrader indicator for them?
Here you go
Attached File(s)
File Type: mq4 Murrey_Math_Line_X_eng.mq4   13 KB | 676 downloads
  • #1,231
  • Apr 5, 2009 10:50am Apr 5, 2009 10:50am
Hi Willowgal,

May I know how you add the back line in the BetterVolume indicator?
  • #1,232
  • Apr 5, 2009 11:04am Apr 5, 2009 11:04am
Quoting ahelix
Hi Willowgal,

May I know how you add the back line in the BetterVolume indicator?
It is an RSX indicator which is a much-smoother trend guide compared to RSI. Handy to check for divergence also.

I actually think Malcolm uses it on his charts also.

Here it is
Attached File(s)
File Type: mq4 RSX.mq4   2 KB | 725 downloads
  • #1,233
  • Apr 5, 2009 11:23am Apr 5, 2009 11:23am
Thanks Willowgal! Could you enlight me how to overlay them? I can't find the option for placing the RSX to the volume indicator.
  • #1,234
  • Apr 5, 2009 11:34am Apr 5, 2009 11:34am
Quoting Willowgal
It is an RSX indicator which is a much-smoother trend guide compared to RSI. Handy to check for divergence also.

I actually think Malcolm uses it on his charts also.

Here it is
Thanks for this indi , also thanks for the link you posted awhile back to the
tradeguider live presentation yesterday . It was basic but nice to hear Tom
Williams speaking . Do you use their software or know anyone that does ?
It looks impressive while spendy . Just curious if its that much more effective than what we are doing here ? I am still demoing VSA as I don`t feel I have it nailed down yet . I read everything on both threads , have visited the chat but find that a distraction to my trading . Thats just me , I know its good for others . Will post a chart with questions as well , maybe that will help speed up the learning curve .
  • #1,235
  • Apr 5, 2009 12:52pm Apr 5, 2009 12:52pm
Quoting ahelix
Thanks Willowgal! Could you enlight me how to overlay them? I can't find the option for placing the RSX to the volume indicator.
Just left-mouse-click, hold, drag and drop in onto the Volume indi already on the bottom of your chart.
- Bowen (a.k.a. Wolf)
  • #1,236
  • Apr 5, 2009 1:58pm Apr 5, 2009 1:58pm
Quoting glass
Thanks for this indi , also thanks for the link you posted awhile back to the
tradeguider live presentation yesterday . It was basic but nice to hear Tom
Williams speaking . Do you use their software or know anyone that does ?
It looks impressive while spendy . Just curious if its that much more effective than what we are doing here ? I am still demoing VSA as I don`t feel I have it nailed down yet . I read everything on both threads , have visited the chat but find that a distraction to my trading . Thats just me , I know its good for others ....
No probs. I know that chat is popular, but I only have limited time and have not benefited personally from it - maybe, I was just in there at the wrong times though.

I don't own Tradeguider and have no plans to purchase it. I know Malcolm owns it but he now finds that although it was useful , he is now more adept at reading the charts with his eyes rather than waiting for 'signals' from the software. The key is understanding what has been happening in the background therefore helping make sense what is happening now, and what will probably happen in the near future.

I am sure if we can learn to trade VSA without this software it will set us all up for ever, rather than relying on signals.

The other thread (especially Shamus's first post) probably provides enough information we all need to be succesful.... apart from the hardest bits ie. screen time, focus and perseverance.

WG

PS ... Keep reading 'Master The Markets' or buy 'The Undeclared Secrets That Drive The Stock Market' (Tom Williams)

I have also found that Todd Krueger's stuff is very clear and concise .... just Google him.
  • #1,237
  • Apr 5, 2009 4:23pm Apr 5, 2009 4:23pm
Quoting Willowgal
No probs. I know that chat is popular, but I only have limited time and have not benefited personally from it - maybe, I was just in there at the wrong times though.

I don't own Tradeguider and have no plans to purchase it. I know Malcolm owns it but he now finds that although it was useful , he is now more adept at reading the charts with his eyes rather than waiting for 'signals' from the software. The key is understanding what has been happening in the background therefore helping make sense what is happening now, and what will probably happen...
Thanks again , I will do the reading . You mentioned background and Malcolmb refers to it often . Am I correct in understanding the background as longer T/F data , for instance daily data is background to all smaller T/F `s ?
  • #1,238
  • Apr 5, 2009 4:46pm Apr 5, 2009 4:46pm
Thanks for the murrey indicator willowgal.

For people want8ing to know VSA there are some very good discussions at Traders Laboratory http://www.traderslaboratory.com/for...-vsa-5357.html

Especially read the detailed comments by Eiger.

Also two other threads there

http://www.traderslaboratory.com/for...ysis-1369.html

http://www.traderslaboratory.com/for...t-ii-3428.html

As always there is some rubbish, but a lot of good stuff.

I am still trying to make it work consistently but have reached the conclusion you don't need any software to use VSA, but rather just read the price and volume.

The Tom Williams book is invaluable but difficult to follow. You could also read Wyckoff's books, especially his one about tape reading.

I am still trying to figure it out in detail but have the feeling that with some more effort and discipline it will fall kinto place. Its not a holy grail, but should allow success I think.
  • #1,239
  • Apr 5, 2009 7:29pm Apr 5, 2009 7:29pm
Thanks Willowgal & BlackWolf! That's simple enough
  • #1,240
  • Apr 5, 2009 7:41pm Apr 5, 2009 7:41pm
I'm offering to work with a small group of 3 people really looking to understand VSA, either to trade forex or equities. I've come with a twist to VSA/ I've been mainly using VSA to trading equities and having great success. However due to the fact that our room was being overcrowded with indicators and so forth alot of people have left. Which is good so now we can concentrate on trading VSA with small group of people
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