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Trade Using VSA (Volume Spread Analysis)

  • #561
  • Apr 4, 2009 10:36am Apr 4, 2009 10:36am
Quoting Willowgal
I think I am confused now as this is what I have noted as a shake-out is

"A shake-out is a sharp downward move but then quickly reversing to close at or near the high (i.e. about where it started) and is always on high volume. A weak holder is a trader who has got himself into a bad trading position. He will be under stress because he can't really afford to lose if the Market turns against him. So he will panic and be "shaken-out" of what could have been a good position."

I understood a 'test' is usually on low volume.

Can...
deleted..

checked again and yes you're right guys.
I recommend you read something else as this sentence is now concluded.
  • #562
  • Apr 4, 2009 11:14am Apr 4, 2009 11:14am
Quoting Adamthoery
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Hi~
you can see this a price level is a higher than left.
and the bar before "1" bar is an up bar but with heavy vol.it is a kind of weakness signal.
it doesn't mean price would reversal sharply,after all the trend is up.but it could mean the sm start transfer their position to the herd.
3 is an up-thrust and next bar is a test.
the test bar's vol is not high ,sm don't decide to the downside yet.
it means price would go up .but there are several weakness signals in left.price may not go far.

i still learn...

that high volume bar seemed to have been a lot of sellers BUT the fact that the bar closed in the top half of the bar indicated that in fact the sellers were absorbed by the buyers
Blogging daily now at www.volume.zone
  • #563
  • Apr 4, 2009 11:38am Apr 4, 2009 11:38am
Quoting tonirai
WG,
you're right (I think Obaidah didn't mean to say that and made some confusion with words maybe);

A shake-out is seen in bottoms before reversing - it's the equivalent to the upthrust in tops, so it's also called a reversed upthrust - and it comes with high volume.

The "ideal sequence" (ideal, because it can change sequence and shapes a bit) is:

on tops:
1 - hidden potential selling (buying climax; very high spread and very high volume, closing near but ideally not at the high, with a rising market behind it);
2 - end of a rising market...
Excellent post
  • #564
  • Apr 4, 2009 11:53pm Apr 4, 2009 11:53pm
Now I get it !! Thanks people these posts really help, keep it up
Continuous periods of Total Misunderstanding followed by Complete Confusion
  • #565
  • Apr 5, 2009 3:48am Apr 5, 2009 3:48am
I have just updated the first post with a couple of new articles from SFO.

One is regarding candle stick analysis and VSA by Todd Krueger and a companion article regarding high probability trades.

The second article is something that has been discussed many times in the chat (Both Vantage and Islander have good success with these types of trades)

Enjoy. Hope everyone is having a good weekend. See you guys in the chat for TO.
The trend always ends.
  • #566
  • Apr 5, 2009 4:01am Apr 5, 2009 4:01am
Since the port of BetterVolume went over very well I thought we might find someone to try this out.

I think we are sorely lacking in the whole VAP type profile indicators for mt. I found this one at NT support and it seems like it might be a good fit for VSA traders.

http://www.ninjatrader-support2.com/...kid=179&size=0

I've included an attachment for the NT source if someone wants to take a stab at porting it.
Attached File(s)
File Type: zip jtRealStats_3.zip   7 KB | 1,279 downloads
The trend always ends.
  • #567
  • Apr 5, 2009 11:12am Apr 5, 2009 11:12am
Keeping an eye on how cable develops this week. Last week saw a push though the Price Pivot Zone (PPZ) and fib line on higher volume. See daily chart below.

On the hourly chart we can zoom in on this move but what's interesting is the retest that follows on low volume before another move up.

Keep a close look for Price Action around 1.47 wouldn't bee surprised to see another test of 1.47.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbpusd.gif Size: 24 KB
Click to Enlarge Name: gbpusd1hr.gif Size: 16 KB
  • #568
  • Apr 5, 2009 8:15pm Apr 5, 2009 8:15pm
http://www.traders.com/documentation...s/Letters.html

WYCKOFF METHOD

Editor,
I am currently studying the Wyckoff course through the Stock Market Institute in Arizona and have also read material by Tom Williams, whose software, Vsa5, you reviewed in the August 1999 STOCKS & COMMODITIES. However, I am confused as to the difference between the two approaches; although Williams has based his work on the Wyckoff method, he seems to concentrate largely on individual bars as opposed to the big-picture approach, which the Wyckoff course takes. As information regarding such a specialized area is so hard to obtain in the United Kingdom, I would be very grateful if you could assist me in providing a possible answer to this query.

Mark Quinn, via E-mail

Tom Williams ([email protected]) replies:
The difference in approach stems from the fact that I have used modern technology in the shape of the personal computer to try to isolate market activity. This technology is a relatively recent development, and as such, many proponents of Wyckoff have yet to make the investment in developing analysis software to apply the principles. As a result, they tend to restrict their analysis to the big picture, as this will not change too often.
Computerized analysis allows more frequent analysis of multiple markets and multiple time frames, something that is just not possible if you are doing the analysis manually. Our software does allow the analysis of all time frames so longer-term scenarios can be assessed. However, if you subscribe to the Wyckoff principles and accept that supply and demand, accumulation and distribution, trending and congestion are market characteristics, then you also believe that the forces generating this activity are present in a variety of time frames in the same market, since several distinct groups of trading populations are present, each with its own time horizon.
We always recommend that a market is analyzed in the longer term first and then the analysis is telescoped down to shorter time periods (perhaps to intraday bars), but that the very short-term bars are used for the tactical application of a strategy derived from the long-term analysis.
Hope this clarifies matters.
  • #569
  • Apr 5, 2009 9:21pm Apr 5, 2009 9:21pm
Hi,

Pls enjoy old VSA Workbook.pdf
Attached File(s)
File Type: pdf workbook.pdf   1.4 MB | 3,257 downloads
  • #570
  • Apr 5, 2009 11:42pm Apr 5, 2009 11:42pm
Hi censura,

attached you see my indicators. the pivot one (includes the daily open) is changed by me. but don't relay on the lines alone, as these are only close to the point where they should be. this is as a mt4 problem, as i only attached the line as a text. have fun.

cheers robBroker
Attached File(s)
File Type: mq4 AutoDayFibs_alt.mq4   10 KB | 810 downloads
File Type: mq4 Pivot Points Multitimeframe.mq4   49 KB | 794 downloads
  • #571
  • Apr 5, 2009 11:44pm Apr 5, 2009 11:44pm
and here are the last two indicators. the vol. indicator you find in the first post.
cheers
Attached File(s)
File Type: mq4 #SpudFibo.mq4   8 KB | 712 downloads
File Type: mq4 b-clock_modified.mq4   2 KB | 751 downloads
  • #572
  • Apr 6, 2009 7:41am Apr 6, 2009 7:41am
Quoting robBroker
and here are the last two indicators. the vol. indicator you find in the first post.
cheers
Thank you for posting these Roberto.
The trend always ends.
  • #573
  • Apr 6, 2009 8:48am Apr 6, 2009 8:48am
Hi all!
Thanks Shamus to start this thread, and thanks all for share your chart!
I'm try to learn VSA, this is what i see
http://www.jetScreenshot.com/demo/20...-g1j-134kb.jpg
Be Right Back!
  • #574
  • Apr 6, 2009 11:23am Apr 6, 2009 11:23am
Quoting Defcon
Hi all!
Thanks Shamus to start this thread, and thanks all for share your chart!
I'm try to learn VSA, this is what i see
http://www.jetScreenshot.com/demo/20...-g1j-134kb.jpg
Not sure I understand what you are getting at here?
  • #575
  • Apr 6, 2009 12:29pm Apr 6, 2009 12:29pm
Quoting Defcon
Hi all!
Thanks Shamus to start this thread, and thanks all for share your chart!
I'm try to learn VSA, this is what i see ("High Volume, Cndles close under the middle of high/low candle spread")
Hey yeah, thanks. Glancing over other close climax bars, I can see they perhaps 'exhaust' the immediate chart, and, with various conditions like overly big climax bars, a yellow bar in-between, and other, generally either return to the same area the climax bars occupied or center, like you said, the next several bars. Although your example is more the exception than the rule, it's a great idea that leads related examples.
  • #576
  • Apr 6, 2009 12:38pm Apr 6, 2009 12:38pm
Can you please post VSA Candle indicator as you have used in youe chart.
Quoting Defcon
Hi all!
Thanks Shamus to start this thread, and thanks all for share your chart!
I'm try to learn VSA, this is what i see
http://www.jetScreenshot.com/demo/20...-g1j-134kb.jpg
  • #577
  • Apr 6, 2009 2:50pm Apr 6, 2009 2:50pm
Willowgal: I want just talk about what Master Guys see, the only way to close my hole in mind about VSA is hear what the Master look, and say.Nothing else. :-)

ha-pattern:of course, exception occur often :-/ but we could learn how read the chart so understand what happen :-)

skyscraper: I have done VSA_candle, it's simple code, it show the spread of candle high/low, and the close of the candle comparate to the middle of spread candle high/low.
Attached File(s)
File Type: mq4 VSA_Candle.mq4   4 KB | 1,621 downloads
File Type: ex4 VSA_Candle.ex4   4 KB | 1,023 downloads
Be Right Back!
  • #578
  • Apr 6, 2009 10:11pm Apr 6, 2009 10:11pm
I've composed a spreadsheet which analyzes the volume and spread for EUR/USD on a daily chart.

The volume % change is based on a 30 day volume average and I divide the 30 day average volume with the current volume. The spread % change is based on a 30 day average also and I utilize the same formula. What you look for is particular patterns which occur within the spreadsheet. For example 3/25-3/26 the volume % change went from (+ 9.68) to (-10.97) and the spread % change went from (+9.70) to (-14.02) and it closed down on the 3/27. I noticed that pattern and saw that particular setup was occuring 04/02 - 04/03. After noticing that pattern that prompted me to take a short position 04/06. Last count I'm up 180 pips.

Note the red markings show that the volume or spread is less than the 30 day average and the green markings show that the volume or spread is higher than the 30 day average.


VSA at it's core details following background information, which gives you insight to patterns which occur within a particular market.
Attached Image (click to enlarge)
Click to Enlarge Name: chart 50.gif Size: 69 KB
Attached File(s)
File Type: pdf eurusd1440[1].pdf   382 KB | 877 downloads
  • #579
  • Apr 6, 2009 11:56pm Apr 6, 2009 11:56pm
Quoting nyse1982
I've composed a spreadsheet which analyzes the volume and spread for EUR/USD on a daily chart.

The volume % change is based on a 30 day volume average and I divide the 30 day average volume with the current volume. The spread % change is based on a 30 day average also and I utilize the same formula. What you look for is particular patterns which occur within the spreadsheet. For example 3/25-3/26 the volume % change went from (+ 9.68) to (-10.97) and the spread % change went from (+9.70) to (-14.02) and it closed down on the 3/27. I noticed that...

I just woke up but...

http://petersonstory.files.wordpress...fused-full.jpg
The trend always ends.
  • #580
  • Apr 7, 2009 3:31am Apr 7, 2009 3:31am
Quoting nyse1982
I've composed a spreadsheet which analyzes the volume and spread for EUR/USD on a daily chart. .... etc.
Regarding the bottom indicator on the chart.... help!

I thought I had understood from The Book that "spread" is the difference between H and L. Is it that you define it differently or did I mis-read The Book?

G
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