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Volume Spread Analysis (VSA) and background 5 replies

Trading With VSA - Volatile Volume and Spread Analysis 9 replies

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Volume Spread Analysis (VSA) and the EURUSD 3 replies

VSA Volume Spread Analysis: No demand and accumlation 2 replies

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Trade Using VSA (Volume Spread Analysis)

  • #601
  • Apr 8, 2009 8:41am Apr 8, 2009 8:41am
Quoting Obaidah
probably you dont have the original RSX in your indicator folder, copy the following file to your indicators folder and then it will be visible
  • #602
  • Apr 8, 2009 10:19am Apr 8, 2009 10:19am
Quoting bowldog
I would have waited for confirmation(lower volume) because the volume is high on both charts.
well if you do realise, many times you do not see a no demand bar forming before it actually falls.

so how do you actually go around this?
  • #603
  • Apr 8, 2009 11:02am Apr 8, 2009 11:02am
Quoting hwsv07
well if you do realise, many times you do not see a no demand bar forming before it actually falls.

so how do you actually go around this?
Instead of waiting for the conventional no demand bar, i check to make sure volume is lower than previous 2 bars
  • #604
  • Apr 8, 2009 2:41pm Apr 8, 2009 2:41pm
Hey guys, looks like only few people post and discuss charts here. So I will try to post some charts here when I have time and the chart looks interesting.
Many times I hear about background. People say that VSA is all about background. So what is background?
I am attaching GU 5min chart with my view on VSA. I have marked most of the obvious signals.

1. Reverse upthrust.
2. Upthrust
3. Upthrust
4. Upthrust
5. Some kind of indecision/stopping volume after effort to fall on wide spread high vol down bar.
6. Upthrust
7. Low vol test of previous low, no supply
8. Reverse upthrust
9. Very low vol up bar-no demand
10. Hidden upthrust
11. Decreasing vol on upmove, no demand
12. Hidden potential selling/climax bar
13. Selling pressure-high vol very high spread down bar closing on the low
14. No demand bar
15. High spread up bar with very low vol-probably SM are not participating
16. Upthrust(pseudo)
17. Upthrust(pseudo)
18. Reverse upthrust(pseudo)
19. Reverse upthrust(pseudo)
20. Reverse upthrust
21. Reverse upthrust(pseudo)
22. Hidden reverse upthrust
23. Upthrust
24. Upthrust(pseudo)
25. Upthrust

Some guys and Malcolm mentioned in the morning(at London open) that GBP has weakness in background. So look at the chart, at the huge amount of up/down signals and decide how you would trade it. And I will repeat my question-what is background,and how do we determine it?
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  • #605
  • Apr 8, 2009 3:48pm Apr 8, 2009 3:48pm
azuremaster........let me give it a shot.......the onlything i will say about your gu 5 min chart is.......in order to figure out what the background is doing you will need to check other timeframes.. 15m 30m 60m and even the 4hr....to see what has been happening.....im not saying you cant do it only on a 5m but i think you will increase your probabiliy of a successful trade if you do....now for your 5m gu.... i personally like to enter on the 5 m with those PA bars you point out....but with the higher TF's on my side.....keep in mind i have been following this thread since inception and still learning so if a senior vsa'er thinks im wrong please let me know......

Ps. i like your chart and keep the charts comming ...... i will do the same..... it has been a great way to learn for me....
  • #606
  • Apr 8, 2009 7:09pm Apr 8, 2009 7:09pm
Quoting hwsv07
sure. anyway, would shamus kind enough to comment on the chart reading?
its like imax indicator
  • #607
  • Apr 9, 2009 3:26am Apr 9, 2009 3:26am
GM Shamus, Wall, Rob and all of the guys from the chat.

At present I'm in a Research and Development mode - in another life, I was an R & D engineer for the best UK car company. Thanks to Shamus, I was pointed to the Murray Maths system of Support and Resistance levels and as I researched them I discovered that they are based on Gann's work and are fractal - they can be sub-divieded.

They also - depending on the fractal used - have levels very similar to the Sweet Spots and Daily Pivots that I have been using.

So here's this morning's Frankies Hour as I saw it......still "work in progress" http://www.forexfactory.com/images/icons/icon12.gif

Both the short term trend - aqua ema and the hourly trend - dark blue ema - were trending upwards, so longs were the prefered trade.

At ellipse 1 price failed to reach the 4709 level, thus putting in a higher low on low volume and the wide range green candle - effectively a bullish engulfing candle - confirmed the buy.

The ultra wide range green candle was on low volume, so an uptrust / fakeout. In ellipse 2 this was confirmed by the high volume long wicked green candle at the high - so take profits ~the 4771 level and start thinking about a sell.

The red doji 3 candles later was the ideal time as it put in a lower high a~at the 4771 line.

The red long wicked high volume hammer 4 candles lower showed some profit taking down into ellipse 3 and the aqua ema was showing that the short term trend was rolling over.

The bounce up into ellipse 4 at the 4740 level - also into the fib decision zone - not shown to avoide clutter - and was the area in which to consider another short entry and the small doji was an additional alert on very low volume. The ultra wide high volume candle that follwed has confirmed that both short term and the hour trends are now bearish and I will be looking at my 15m and 60 min charts with their larger fractals to find my next targets.

I will also consider forcing my short term TFs to update their MM fractals.....
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Trading Levels with WRBs
  • #608
  • Apr 9, 2009 5:07am Apr 9, 2009 5:07am
Quoting Islander
GM Shamus, Wall, Rob and all of the guys from the chat.

At present I'm in a Research and Development mode - in another life, I was an R & D engineer for the best UK car company. Thanks to Shamus, I was pointed to the Murray Maths system of Support and Resistance levels and as I researched them I discovered that they are based on Gann's work and are fractal - they can be sub-divieded.

They also - depending on the fractal used - have levels very similar to the Sweet Spots and Daily Pivots that I have been using.

So here's this morning's Frankies...

Beautiful work Islander. Malcolm deserves the credit for MM lines though as he was the one I first heard of them though (I need to send him a fruit basket or something... first VSA and now MM). We (in the chat) are also finding MM is deadly accurate when combined with VSA.

I wanted to start bringing some of these other aspects into the thread as well... I don't think it's a fluke that you see a lot of strong vsa signals around the key lines. So it's likely smart money is using these lines as well.

On another note: We were wondering (in the chat) where both you and Vantage have been (although we're pretty sure Vantage got stuck by the pointed stick ). Glad to know you are OK and looking forward to hearing your results.

Hopefully we'll see you guys soon.
The trend always ends.
  • #609
  • Apr 9, 2009 5:23am Apr 9, 2009 5:23am
Another nice clean chart, Islander - I have MM lines on my "to do" list (I currently have Taylor Trading Technique in the R&D Dept, but doing so on the DAX, so not posting here).

Hmmm ... the best UK car company - probably owned by BMW or VW now ... ...

& I'm wondering which island you're on (I lived in Pollensa on Majorca for 2 years in the late '90s) ?

J.
  • #610
  • Apr 9, 2009 6:11am Apr 9, 2009 6:11am
Quoting jtrade
Another nice clean chart, Islander - I have MM lines on my "to do" list (I currently have Taylor Trading Technique in the R&D Dept, but doing so on the DAX, so not posting here).

Hmmm ... the best UK car company - probably owned by BMW or VW now ... ...

& I'm wondering which island you're on (I lived in Pollensa on Majorca for 2 years in the late '90s) ?

J.
LOL - its always nice to find that there are a few who actually take note of what I post http://www.forexfactory.com/images/icons/icon7.gif......I should have said best UK high performance car co......the one of leaping cat fame http://www.forexfactory.com/images/icons/icon12.gif.....and yes, right island, other side, close to Puerto Portals......been here 30 years.....
Trading Levels with WRBs
  • #611
  • Apr 9, 2009 10:31am Apr 9, 2009 10:31am
can someone chart me up on this? was there any way to see how far it was going to drop? i can only see going off the bar i marked.
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  • #612
  • Apr 9, 2009 10:49am Apr 9, 2009 10:49am
hi everyone...how have your trades been going today? I've tried to look in hindsight for any signs that might have shown the impending drop in the euro before it happened, but I don't seem to be able to...

Would anyone be able to post a EURUSD chart with annotations for signs of weakness?

Thanks
  • #613
  • Apr 9, 2009 10:55am Apr 9, 2009 10:55am
Quoting RaverStyleTim2
can someone chart me up on this? was there any way to see how far it was going to drop? i can only see going off the bar i marked.
Well, there's 31 pips between 2/8 and 3/8 - but it would have to be a pretty reckless person to have placed a buy order to open at 1.4587

G
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  • #614
  • Apr 9, 2009 10:58am Apr 9, 2009 10:58am
[To thatwasme or others interested]

Based on the logic that in a genuine down move supported by the SM then we should expect greater volume in the down bars than upbars (across the downphase) and the reverse true of the up moves.

Would it make sense to code an indicator which
1) calculated a moving avarage for the volume on each down bar across say 30 bars (obviously could be a varible) (MA1) and calculated the volume on each up bar (MA2)

You would expect that plotting these two moving averages would potentially provide a useful visual in seeing how a down move for eg progresses and as interest from SM wanes towards a shift in sentement.

2) Perhaps if more appealling it could be shown as a bar similar to that used in tradeguider ie more red than green the down move is supported

personnaly i thing the ma's would be easier to confirm trade decsioons on

hope it proves useful

thanks
  • #615
  • Apr 9, 2009 10:59am Apr 9, 2009 10:59am
Quoting RaverStyleTim2
can someone chart me up on this? was there any way to see how far it was going to drop? i can only see going off the bar i marked.
Raver

This is most proberbly a selling climax. (very high spread and very high volume, closing near but ideally not at the lows, with a falling market behing it). On GBPUSD pair in the 5M timeframe is this a bar that is usually greater than 35 pips. What you will notice is a couple of average spread bars and then one big spread bar with high volume down to your point of support at 1.4587 area. This is usually the end of the move, unless more selling pressure comes in. After this we usually experience a distribution period as the professionals slowely offload their holdings. Expect the market to go back up.
Boxing clever since 76.
  • #616
  • Apr 9, 2009 11:06am Apr 9, 2009 11:06am
Quoting ShamusFamous
Beautiful work Islander. Malcolm deserves the credit for MM lines though as he was the one I first heard of them though (I need to send him a fruit basket or something... first VSA and now MM). We (in the chat) are also finding MM is deadly accurate when combined with VSA.

I wanted to start bringing some of these other aspects into the thread as well... I don't think it's a fluke that you see a lot of strong vsa signals around the key lines....
Thanks Islander for your chart , very good explanation . Something I have found works with the MML settings : open the inputs box for your MML indicator , second line from top is MMPeriod , which is usually set to 15 . Change that to 60 . Because most experienced MML traders such as ns karhik on his MML thread watch the 60min for their setup then maybe enter on the 5min , this keeps the settings on different T/F charts at the same level . Someone has also posted another MML indi on that thread that does this but it has too many levels for my liking . When the MM levels are the same on each chart it helps me to keep track of it . If I knew how to put two charts in one window I would post two so you can see what I am saying . Hope it helps . glass
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  • #617
  • Apr 9, 2009 11:16am Apr 9, 2009 11:16am
Quoting copi88
Raver

This is most proberbly a selling climax. [color=black][font=Verdana](very high spread and very high volume, closing near but ideally not at the lows, with a falling market behing it). On GBPUSD pair in the 5M timeframe is this a bar that is usually greater than 35 pips. What you will notice is a couple of average spread bars and then one big spread bar with high volume down to your point of support at 1.4587 area. This is usually the end of the move, unless more selling pressure comes in. After this we usually experience a distribution period...
Oh, damn & blast; just as I thought I was beginning to understand The Book a bit. I thought the SM went into an acquisition phase after they had driven the price down and that distribution occurs after they've driven the price up. Ah well, back to the reading room for me!
G
  • #618
  • Apr 9, 2009 11:20am Apr 9, 2009 11:20am
Quoting ShamusFamous
Beautiful work Islander. Malcolm deserves the credit for MM lines though as he was the one I first heard of them though (I need to send him a fruit basket or something... first VSA and now MM). We (in the chat) are also finding MM is deadly accurate when combined with VSA.

I wanted to start bringing some of these other aspects into the thread as well... I don't think it's a fluke that you see a lot of strong vsa signals around the key lines. So it's likely smart money is using these lines as well.

On another note: We were wondering (in the chat)...

fruit basket ..I was thinking more of coming down to see you , you take me to best steak house in town and then best ' massage ' place in town ...lol

MML are based on gann and seem to work very nicely . GJ was lovely sell of 6/8 line today for 110 pip in quiet market. i did not take as do not trust markets on days before long weekends
Blogging daily now at www.volume.zone
  • #619
  • Apr 9, 2009 11:20am Apr 9, 2009 11:20am
Quoting jtrade
Another nice clean chart, Islander - I have MM lines on my "to do" list (I currently have Taylor Trading Technique in the R&D Dept, but doing so on the DAX, so not posting here).

Hmmm ... the best UK car company - probably owned by BMW or VW now ... ...

& I'm wondering which island you're on (I lived in Pollensa on Majorca for 2 years in the late '90s) ?

J.
no islander used to work for TVR .....lol they are the best
Blogging daily now at www.volume.zone
  • #620
  • Apr 9, 2009 11:37am Apr 9, 2009 11:37am
Quoting emios
hi everyone...how have your trades been going today? I've tried to look in hindsight for any signs that might have shown the impending drop in the euro before it happened, but I don't seem to be able to...

Would anyone be able to post a EURUSD chart with annotations for signs of weakness?

Thanks

no sign of weakness at all .... easter weekend liekly just dropping as no pros / buyers supporting it
Blogging daily now at www.volume.zone
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