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Trade Using VSA (Volume Spread Analysis)

  • #1,521
  • May 26, 2009 2:41am May 26, 2009 2:41am
is this VSA ?
normaly after the break downside i would be short . But if i understand VSA right, its better to waite for more to come?
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  • #1,522
  • May 26, 2009 5:58am May 26, 2009 5:58am
Quoting MJurban
is this VSA ?
normaly after the break downside i would be short . But if i understand VSA right, its better to waite for more to come?
Hi Jurban,

in this example i would wait for a CLEAR break of the 3930 level. Clear means a high Vol down bar with close on the low, in other words: SM is supporting the break. The background ist bearish at the moment, so wait for a low Vol test (two or more updabars with decrasing volume) or an Upthurst (High Vol bar closing in the middle or lower) then go short. Always go short on Upbars. Look out for the 3830 Level, its the Weekly Pivot and looks like a strong resitance for me.

be careful with this statement. Im also a VSA Newbie
  • #1,523
  • May 26, 2009 6:19am May 26, 2009 6:19am
No Demand bar + Bearish Background = Sign of Weakness.
SM isnt supporting the price to go up.
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  • #1,524
  • May 26, 2009 6:48am May 26, 2009 6:48am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting bbartha
No Demand bar + Bearish Background = Sign of Weakness.
SM isnt supporting the price to go up.

bbartha,

I'm learning this also, so could be waaaaay off the mark, but I interperet the VSA here as buyers coming in.

See your chart below that I have unapologetically butchered...


Magnus


EDIT: Appreciate the background weakness. Strength must come in at some point though.
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  • #1,525
  • May 26, 2009 7:06am May 26, 2009 7:06am
Quoting Yuppie
bbartha,

I'm learning this also, so could be waaaaay off the mark, but I interperet the VSA here as buyers coming in.

See your chart below that I have unapologetically butchered...


Magnus


EDIT: Appreciate the background weakness. Strength must come in at some point though.

Hi Magnus,

You are right, i didnt catch that
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  • #1,526
  • May 26, 2009 10:38am May 26, 2009 10:38am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting bbartha
Hi Magnus,

You are right, i didnt catch that


Wow! I was even more right than I thought...
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  • #1,527
  • May 26, 2009 10:40am May 26, 2009 10:40am
I was just referred to this thread and look forward to learning and ending the misfunction of my account. Is there a particular platform/chart service better then another? I'm currently using GFT and charts on the platform well as fxstreet. Seems I pick the wrong direction most of the time.
Thanks
  • #1,528
  • May 26, 2009 10:57am May 26, 2009 10:57am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting currencyexch
I was just referred to this thread and look forward to learning and ending the misfunction of my account. Is there a particular platform/chart service better then another? I'm currently using GFT and charts on the platform well as fxstreet. Seems I pick the wrong direction most of the time.
Thanks

I think most Metatrader platforms are fine.

I use ODL mainly.


Magnus
  • #1,529
  • May 26, 2009 12:35pm May 26, 2009 12:35pm
Hey all I'm just trying to get better at VSA, so please let me know what you think of this interpretation on GBP/JPY.

I entered at 151.23 for what it's worth. (short)

It looks like distribution is going on to me, because most of the up bars have declining volume (no demand) on all tfs between 1m and 1hr, and the last three touches of the resistance around 150.30-40 have had declining volume. I feel like a substantial downmove might be coming up.

Thanks in advance for any advice/criticism! This thread is great and I'm loving learning about VSA.

Cory
  • #1,530
  • May 26, 2009 12:58pm May 26, 2009 12:58pm
Quoting currencyexch
I was just referred to this thread and look forward to learning and ending the misfunction of my account. Is there a particular platform/chart service better then another? I'm currently using GFT and charts on the platform well as fxstreet. Seems I pick the wrong direction most of the time.
Thanks
Hey currencyexch I also have GFT as my broker and quickly found that the Volume data is shithouse

I use IBFX for my charts which works fine for me, But when I compare the two GFT seems to miss A LOT of the data I get from IBFX
Time hides Nothing
  • #1,531
  • May 26, 2009 2:21pm May 26, 2009 2:21pm
Quoting CindyXXXX
Hey currencyexch I also have GFT as my broker and quickly found that the Volume data is shithouse

I use IBFX for my charts which works fine for me, But when I compare the two GFT seems to miss A LOT of the data I get from IBFX
Thanks for the info I will check it out as I'm wondering how one gauges volume in the FX market without knowing the volume
  • #1,532
  • May 26, 2009 2:45pm May 26, 2009 2:45pm
Quoting currencyexch
Thanks for the info I will check it out as I'm wondering how one gauges volume in the FX market without knowing the volume
Well to put it simply Volume in Forex is the number of ticks a candle has.

I'm sure someone else could expand on this - I started to have a go but then realised i didnt know what I was talking about lol - something about the more banks a forex broker is linked to the more acurate the volume or tic data is...
Time hides Nothing
  • #1,533
  • May 27, 2009 2:06am May 27, 2009 2:06am
GM all - I hope you guys are watching the action in GBPUSD around the 1.6000 level......I've just reversed to short...........stop now BE +2.....
Trading Levels with WRBs
  • #1,534
  • May 27, 2009 2:13am May 27, 2009 2:13am
I hope you are wrong Islander! I'm long gbp
  • #1,535
  • Edited 2:48am May 27, 2009 2:27am | Edited 2:48am
Quoting currencyexch
Thanks for the info I will check it out as I'm wondering how one gauges volume in the FX market without knowing the volume
VSA is all about following the professional money and doing the opposite to the herd. So, if you don't have volume then look at the charts full of emotion and when you see price rise think long. When you see price fall think short. And then do the exact opposite of what you thought! sell= buy and buy = short

The above might not sound as stupid as it seems. It will help to try and understand how the herd thinks. It is useful market psychology. However it doesn't replace volume. You can't gauge volume, you have to see it alongside price, as it is what drives price.
  • #1,536
  • May 27, 2009 3:06am May 27, 2009 3:06am
Quoting pa18
I hope you are wrong Islander! I'm long gbp

Time Will Tell......UK data in half an hour, so expect more chop till then....
Trading Levels with WRBs
  • #1,537
  • May 27, 2009 3:06am May 27, 2009 3:06am
Quoting Porkpie
VSA is all about following the professional money and doing the opposite to the herd. So, if you don't have volume then look at the charts full of emotion and when you see price rise think long. When you see price fall think short. And then do the exact opposite of what you thought! sell= buy and buy = short

The above might not sound as stupid as it seems. It will help to try and understand how the herd thinks. It is useful market psychology. However it doesn't replace volume. You can't gauge volume, you have to see it alongside price,...
Its certainlly not as silly as it sounds - How many times have you taken a trade purely on impulse because you didnt want to miss out on a nice move - only to feel like the biggest sucker in the world when price immedietly turned 50 pips against you

Just had a quick scroll throught the charts and made a few "black sheep" calls - its a great little system lol

BTW just want to thank Karthik Marar for the VSA basics PDF - I find it a lot easier to follow then the 180 + page Tom Williams PDF - Although now I've been through the basics I think the TW PDF will make much more sense....

I don't know if if Karthik is a member here at FF so thanks to who ever posed it...
Time hides Nothing
  • #1,538
  • May 27, 2009 3:27am May 27, 2009 3:27am
I deo traded this one earlier saw obvious weakness on the bearish candles then the re test if the Supply with a reverse up thrust - (I just call them Pin Bars lol)... The volume on the upthrust bar wasn't all that high - below average actually but more than the previous candle with the spread roughly the same...

Comments anyone?
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Time hides Nothing
  • #1,539
  • May 27, 2009 3:35am May 27, 2009 3:35am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting CindyXXXX
I deo traded this one earlier saw obvious weakness on the bearish candles then the re test if the Supply with a reverse up thrust - (I just call them Pin Bars lol)... The volume on the upthrust bar wasn't all that high - below average actually but more than the previous candle with the spread roughly the same...

Comments anyone?

Yeah, I had difficulty interpreting VSA on this one.

I just left it as a double-bottom with regard to price only.

However, the subsequent bars interested me.

See chart.


Magnus
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  • #1,540
  • May 27, 2009 3:43am May 27, 2009 3:43am
Quoting Yuppie
Yeah, I had difficulty interpreting VSA on this one.

I just left it as a double-bottom with regard to price only.

However, the subsequent bars interested me.

See chart.


Magnus


I bought this one on the second up candle but out now with +30. Market looks choppy but it looks like my long target .52 could have worked out (if it stays up there)
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