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Volume Spread Analysis (VSA) Discussion 2 replies

Volume Spread Analysis (VSA) and background 5 replies

What is the best VSA (Volume Spread Analysis) system/indicator? 1 reply

Volume Spread Analysis (VSA) and the EURUSD 3 replies

VSA Volume Spread Analysis: No demand and accumlation 2 replies

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Learn to Trade using VSA (Volume Spread Analysis)

  • #1,241
  • Apr 5, 2009 7:44pm Apr 5, 2009 7:44pm
Quoting nyse1982
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
Let's just get this straight, I do trade using 15m charts and longer charts also but I'm concentrating on 15M. I won't stand for any bashers, constructive critism is welcome but no bashing and I will delete you!
  • #1,242
  • Apr 5, 2009 7:52pm Apr 5, 2009 7:52pm
I went long on candle 3 based on the info from candle 4

Candle 4 had higher volume and an increasing spread, I admit I got in kinda late but I still made some good pips. As candle 3 closed I sold my position b/c the spread was extremely high, and what you want for a continuation of move is gradual spread and volume, if one is off then the trade is more than likely going to turn. I then bought candle 1 b/c the info from candle 2 showed that the volume was lower then the previous candles and the spread was 0. This told me that the move downward had no real strength behind it.
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  • #1,243
  • Apr 5, 2009 8:16pm Apr 5, 2009 8:16pm
Quoting nyse1982
I went long on candle 3 based on the info from candle 4

Candle 4 had higher volume and an increasing spread, I admit I got in kinda late but I still made some good pips. As candle 3 closed I sold my position b/c the spread was extremely high, and what you want for a continuation of move is gradual spread and volume, if one is off then the trade is more than likely going to turn. I then bought candle 1 b/c the info from candle 2 showed that the volume was lower then the previous candles and the spread was 0. This told me that the move downward...

If you notice a pattern from candle 4 and candle 3, the reason you had the pullback is b/c of the brief imbalance which occurred in the spread, the spread jumped from 13 - 21 which is an extreme and not gradual spread. You will always get a pullback especially if the volume is high on the conituation bar. Now from candle 1 to candle 0 notice how the spread is 18 and candle 0 spread is 12 which is different from the previous example. The spread increase wasn't extreme in this case on the following bar, so you'll get a continuation of the up move!
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  • #1,244
  • Apr 5, 2009 8:18pm Apr 5, 2009 8:18pm
Quoting nyse1982
If you notice a pattern from candle 4 and candle 3, the reason you had the pullback is b/c of the brief imbalance which occurred in the spread, the spread jumped from 13 - 21 which is an extreme and not gradual spread. You will always get a pullback especially if the volume is high on the conituation bar. Now from candle 1 to candle...
Sure enough look how it closes up!
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  • #1,245
  • Apr 6, 2009 3:04am Apr 6, 2009 3:04am
Quoting malcolmb14
other option is spend the cash ion esignal GTIS feed .. 300 sources on a single feed and representative of volume in market as whole....
I suspect you are right, but there is a possibility the whole market may be in one direction and your own broker played by a single big hitter, especially on shorter time frames, so in different direction. Even if the direction doesn't change, it possible there could be different spreads or slight variations of price.
  • #1,246
  • Apr 6, 2009 10:25pm Apr 6, 2009 10:25pm
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.
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  • #1,247
  • Apr 7, 2009 12:08am Apr 7, 2009 12:08am
Anyone looking to learn how to trade VSA just pm me. Make sure you have skype so we can talk in detail.
  • #1,248
  • Apr 7, 2009 5:47am Apr 7, 2009 5:47am
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...
Just an update up 276 pips
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  • #1,249
  • Apr 7, 2009 7:17am Apr 7, 2009 7:17am
Quoting nyse1982
Anyone looking to learn how to trade VSA just pm me. Make sure you have skype so we can talk in detail.

nyse, I am interested. I have PMed you several time requesting this from you. I live in Baltimore MD My email is [email protected]

Al
  • #1,250
  • Apr 7, 2009 8:00am Apr 7, 2009 8:00am
Anyone interested in learning VSA. I'm on skype nyse1982 I'm on from 5PM - 2AM est. So feel free to pm me your skype id so we can go over VSA techniques. As you can see I just had a monster day with EUR/USD
  • #1,251
  • Apr 7, 2009 11:23pm Apr 7, 2009 11:23pm
Quoting ShamusFamous
NYSE While I appreciate any contribution to the thread. Please don't use this as your personal message board / advertisement service.

The idea for this thread was to discuss pure VSA... not come in and say "hey I'm up 200 pips ask me how in private" type posts.

Keep this stuff in the old thread if you'd like.

Thanks.

also 297 ,,,monster ???/ that is a regular days trading on gj for me ..... 2000 pip I would be impressed
Blogging daily now at www.volume.zone
  • #1,252
  • Apr 8, 2009 6:27pm Apr 8, 2009 6:27pm
Well yesterday the EUR/USD closed down again and I managed to get out with 50 pips, so not bad. I comprised another spread sheet and noticed that the selling pressure is beginning to decrease. For the past several days most of the pressure has been weak holders selling as there is no real selling pressure on the pair. The volume continues to be weaker the 30 day average for the past 3 day all the spread is also decreasing, which implies this movement has run out of steam. I've opted based on the data to enter a long position. So I'm looking for this bar to close green.
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  • #1,253
  • Apr 8, 2009 6:32pm Apr 8, 2009 6:32pm
Quoting pipsqueesk
nyse, I am interested. I have PMed you several time requesting this from you. I live in Baltimore MD My email is [email protected]

Al
have you been able to download skype yet?
  • #1,254
  • Apr 9, 2009 1:45am Apr 9, 2009 1:45am
If you follow the chart the smart money accumulation takes place between the major support resistance at 1.4648 and 1.4756. I entered at 1.4718 based on the 5 min chart and exited at 1.4770, right before the markup begins to occur.
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  • #1,255
  • Apr 9, 2009 6:40am Apr 9, 2009 6:40am
nyse, I downloaded skype, now I need to buy a headset. I 'll be in touch. Thanks
  • #1,256
  • Apr 9, 2009 9:57am Apr 9, 2009 9:57am
I'm following the 1m chart for USD/CAD and from 04/09 14:41 - 04/09 16:45 you had a huge accumulation in the form of smart money began to buy up the pair and should begin the markup phase pretty soon. The I-reg indicator confirms this by showing a rounded cup or bottoming out. I'm going long at 1.2270. I'm showingi two charts the next one I zoomed out to show a more outward view of the activity so far.
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  • #1,257
  • Apr 9, 2009 10:28am Apr 9, 2009 10:28am
I just noticed something, the pink lines I've plotted represent the period of distribution starting about 04.09@12:54 and it ends in oversold territory about [email protected] now thats roughly about 3 hours it took for smart money to distribute. The white lines, I've plotted represent about the beginning time frame of the accumulation. Now if it took 3 hours to roughly distribute thier may be a correlation that it would take about 3 hours for accumulation, if thats the case 18:00 would be the end of the accumulation. Just a thought b/c 1.2360 to 1.2207 that represents about 98% decline or in the case of smart money a 98% discount on merchandise. I've increased my position substantially from my inital post.
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  • #1,258
  • Apr 9, 2009 10:45am Apr 9, 2009 10:45am
Quoting nyse1982
I just noticed something, the pink lines I've plotted represent the period of distribution starting about 04.09@12:54 and it ends in oversold territory about [email protected] now thats roughly about 3 hours it took for smart money to distribute. The white lines, I've plotted represent about the beginning time frame of the accumulation. Now if it took 3 hours to roughly distribute thier may be a correlation that it would take about 3 hours for accumulation, if thats the case 18:00 would be the end of the accumulation. Just...
markup occurring
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  • #1,259
  • Edited 3:40pm Apr 9, 2009 2:42pm | Edited 3:40pm
I'm following the EUR/USD on 1m chart,measuring from 1.3245 which is the pivot point to 1.3153 which is a drop of 100% decline. Now when looking at the market from a professional view smart money is looking to accumulate especially with such a steep decline in the EUR/USD. For the simple fact that the merchandise is on sale, easily put. So between 04.09@17:25 to [email protected] is a heavy accumulation period. So noticing that accumulation area, I've taken several positions based on the 1m chart.Remember from Tom Williams book he expalins that anytime you have congestion, that means that accumulation is taking place...all the distribution for EUR/USD occur earlier in the day, thats the reason the stock fell b/c no professional volume supported the pair at higher levels. Think as EUR/USD as a stock in a market,the run up was from smart money marking up the prices of the pair. The smart money has to sell into up bars so naturally if you have an overflow of orders the pair is going to peak at usually 100% which is your overbought territory. With any item it has to eventually go on sale again. So naturally the pair isn't being supported by smart money, so it begins to fall and smart money waits until it retraces back atleast 100% before they step in to form a bottom. Right now the bottom is more than likely being supported.
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  • #1,260
  • Apr 9, 2009 5:42pm Apr 9, 2009 5:42pm
For the users following at home this is an insert from Karthik Marar, who outlines the Tom Williams VSA Strategy in a nutshell.

So the question was …How one checks if the congestion area is really an accumulation area.
There are a few things to lookout for..
• First, the indecision should be quite visible. In other words the volume should be low and quite. No huge volume upsurges. Even if the volume is relatively higher the range between up day volumes and down day volume should be narrow.
• Second, the spread of the bars (High – Low) should be narrow.
• Third, the volume should shrink near the support line and expand near the resistance line.
• Fourth, the stock should be trading in a range for some weeks if not months.
Also you may see some shakeouts in the trading range. The SM would temporarily drive down the prices below the support line in order to takeout the stop losses and panic the weak hands into selling. You will see the stock bounces back above the support line immediately. By this process the SM is shaking out the weak money from the stock. For most of us it is just a failed breakout. Sometime the stock instead of bouncing back would continue to drop if there was too much supply. So trading these breakouts could be tricky.
Also it would a good sign if the stocks trading range is much above the support line. Normally we would see some of the above signs if not all in the accumulation area.


For those following I have placed two pink lines which show the accumulation by smart money. Notice how it outlines the overshoot area, which is nearly 100% retraction from the red pivot. I have taken 4 long positions within the pink lines. So I in a sense am accumulating like SM at this point.
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