Trade Using VSA (Volume Spread Analysis)

This is one of my first trades using VSA. Ended up with close to 40 pips on this one. Very tight stop, very easy trade. Any guidance from the seniors on this thread (speaking of experience, not age or senility)?

Thanks,
MB

Please keep this discussion going this should be the top forum in FF. I have learned alot from Malcomb and now am learning alot from the rest of you as well. Flash can't use your indies so I really need to learn how to read the volume.

Malcomb......you suck...LOL. Im still waiting for your answer regarding that 150 candle.
Dont get mad, it is a joke!

I wish people would hang out here during the Asian and US sessions and call what they see (not to enter here exit there) but what you experienced volume traders see.(Those are the times I can trade) I know London is good but I need to sleep to be able to focus on a chart.

Malcomb,

If you hung out here several would come,(hopefully) not the mangy one.

Downloaded these indicators and tried to use them but it crashes the program. Comes up with a crash report but not being a programmer I have no idea what's wrong. Anyone else have this problem ?

I am using the previously posted Tick separated volume indicator and a demo account with FXDD. I trade the 4H time frame and on this time frame I do not get the dramatic tick/vol differences per bar that I have seen posted here for smaller time frames. Or else the vol. details supplied by FXDD is not up to par. What do you think ???

Futhermore when I go back on previously closed bars I do not get the up tick/ down tick vol info as is displayed on the bar now forming. So a informative background information is missing. Another helpful background information that is missing is bar by bar cumalative onbalanced tick vol. This would provide a background trend information of the result of the interaction between buyers ans sellers etc. If this was printed over each bar it would provide a visiable picture of the progressing trend.

Any comments from Flash and others appreciated. Thanks.

Some info..

ES Emini futures...

The market opened higher than yesterday’s close, fell off over the first 15 minutes to A, and then tried to rally.

B – the rally to B did not bring out demand, and the bars at B were weak, closing on their lows.

C – A very weak bar with an increase in spread and volume to the downside. Supply came into the market here.

D – No demand on the first rally after weakness appeared and a good short.

E – Volume drops off as the market moves lower into the area of yesterday’s close.

F – A bottom reversal on good spread indicating demand.

G – the market tests the lows of E/F and is unable to draw supply. As it begins to rally, it tests again at G1.

H – An increase in volume with a good close, but the spread narrows – caution for longs.

J – Down bar, on wide spread and high volume shows supply has reentered the market.

J – No Demand followed by a small hidden upthrust.

K – Again we come back into the lows and find no supply and the market rallies.

T – Tests occur below the resistance at I indicating a rally and a break of I.

L – small bottom reversal/key reversal bar which tests for supply by dipping lower one last time before moving up to close on its high.

M – Break through the resistance at I and a rally into the noon hour. Note that the volume falls off as we move into the noon hour and come into the morning supply at A.


http://clip2net.com/clip/m15756/1241...-clip-69kb.png

APPL Stock had nice buying oppertunity..
in 1 hour chart..

http://clip2net.com/clip/m15756/1241...clip-151kb.jpg

Conclusion on friday's trade
Sorry for the crazy handwritting am testing a new editor..lol


we now have a new support and resistance line created by SM activity @149.70 and @149.30--

If you wanna trade naked charts with no other indicators of any kind--you wanna make sure that you take your trade(entry between this two lines--its like a buffer) so pray for a no demand bar or in other cases no supply bar between these two lines(and luckily for me i got one--it gives me extra assurance that i can always get out safe if trade somehow went against).

You also have another trade at the bottom you can trade---but caution---watch the WALL..lol..as you can see some HEROES bump their nuts against it--but i could have taken another long on the other side of the wall===after SM helped push through SUPPLY--

--hope this helps alittle

P.S
NOW--tex--all this started on the 1 hour chart--don't go looking for random setups on the 5 minute charts(caution:you could get whipsawed by doing that---this will come later )--Get your high volume on the 1 hour chart might be because SM's are respecting a KEY S/R line(hey--you just gotta wait--most books don't say that enough)--then--Go investigate on smaller time-frames to see whats going on.


NITE

Nice post and explanations tao

And the handwriting is fine

Guidance systems break down
A struggle to exist
To resist
A pulse of dying power in a clenching plastic fist


It replays each of the days
A hundred years of routines
Bows its head and prays
To the mother of all machines

Another week begins. I hope you all had a great weekend. See you in the chat.

I entered my first VSA trade in forex this morning. I think it illustrates the importance of using multiple time frames to gain the best entry. We'll see!. Sorry if the charts aren't annotated enough, but I was trying to put it together while I was in the trade. This is what I woke up to. I'll update as the trade develops.

Am I getting this, or am I getting lucky?

i think malcomb was taking more of a longer term approach than you flash--i think this was what he was looking at---the distribution channel--

Got in way too late on this trade--i think am going to stop sleeping

They currently dropping folks on their heads as we speak

4 hour is selling in the background.

selling rallies is way to go

no demand on 4 hour is huge

Looking at the 5min chart, I thought about panicing and gettting out here, until I looked at the 1 hour chart and saw that I was smack dab in the middle of a Climax High bar. I'm hanging in!

Malcolm,

Thanks for your input. I've learned to respect your opinions from this thread. I see what you mean about the 4 hr chart. I will have to pay close attention to what happens around the cyclic resistance line at 1.3655. I have a little profit anyways.

I took my 40 pip profit and ran. I still have a lot to learn!

MY Next Vacation Stop--PANAMA BABY!!!--don't ask me what spot..lol

hey guys,

I m new in using VSA and i wanted to thank shamus for starting this thread and collecting this very good materials and of course malcomb that i read since a very long time. I m always learning something from him.

i have made an indicator based on volume. OK like malcomb i m hating indicators because they are lagging. Finally i ve found my style! I was disappointed for 30mn, 1h and 4h charts. It s so periodic that i found it very difficult to read. I didnt find an indicator removing this periodic movement.

So about the indicator, it measures the activity on the bar. If activity is superior to 1, this shows more activity than usual. If less than 1, well ...

I m calculetting for every bar the average volume of each bar of each days at this time. i mean for the hour chart, say at 14h, i get the average of each 14h bar of the history and activity = volume / average.
U can see the average Volume by setting in the parameters the ShowAverageVolume to true.

Maybe this will be usefull for somebody. i m using it since 1 week and my progress is spectacular