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Trade Using VSA (Volume Spread Analysis)

  • #1,661
  • Jun 5, 2009 2:49pm Jun 5, 2009 2:49pm
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting lolpie
I'm reading Master The Markets from the first post but this is all really counter intuitive...but does anyone trade live using VSA?

Yes.
  • #1,662
  • Jun 5, 2009 2:56pm Jun 5, 2009 2:56pm
Quoting lolpie
I'm reading Master The Markets from the first post but this is all really counter intuitive...but does anyone trade live using VSA?
yes and here is prime example in GU


Attached Image (click to enlarge)
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Blogging daily now at www.volume.zone
  • #1,663
  • Jun 5, 2009 10:58pm Jun 5, 2009 10:58pm
Hi Shamus,
Can you tell me if you are still using this template and if so could you provide an explanation of how to read the various indicators please?
Regards
Denis
Quoting ShamusFamous

Rediscover the Lost Art of Chart Reading


Using Volume Spread Analysis



by: Todd Krueger


(Original Article Here)



[font=Cambria][size=3]Most traders are aware of the two widely known approaches used to analyze...
  • #1,664
  • Jun 6, 2009 3:47am Jun 6, 2009 3:47am
Quoting malcolmb14
yes and here is prime example in GU
Attachment
I guess I'm slow; I've never really been able to understand VSA. I think I know the reason, now. I looked around for a comparison. The peak of non-VSA representation of chart motion is a thread that is actively making new types of oscillators, which the majority of older indicators (MACD, Stochastics, CCI, etc.) are. On that thread, I found this: http://www.forexfactory.com/showpost...7&postcount=92 . VSA is best at reading a crowd; it's a direct language. After all, what is volume except a crowd of people, regardless of being 'smart' or with deep pockets?

Perhaps I should compile and review all of the best VSA traders' approaches until I get it.
I still say price spread ( http://www.forexfactory.com/showpost...&postcount=299 ) works, apparently in its own separate language. How, am working on it.
  • #1,665
  • Jun 6, 2009 4:18am Jun 6, 2009 4:18am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting ha-pattern
... VSA is best at reading a crowd; it's a direct language. After all, what is volume except a crowd of people, regardless of being 'smart' or with deep pockets?...

You're missing something fundamental to VSA if this is what you think.

Have a re-read of MTM (assuming you're read it already).

While very new to VSA myself I can see you are having problems with the theory of it - perhaps this is why implementation is not working for you so for.

This is a good thread to ask if you have any questions.


Magnus
  • #1,666
  • Jun 6, 2009 11:45am Jun 6, 2009 11:45am
For those who followed the chatroom discussion about WallSt's breakout strategy, here is the current version of the Breakout Boxes indicator.....
Attached File(s)
File Type: mq4 BreakOutBoxesV1.21.mq4   37 KB | 929 downloads
  • #1,667
  • Jun 6, 2009 12:01pm Jun 6, 2009 12:01pm
Quoting Yuppie
You're missing something fundamental to VSA if this is what you think.
Have a re-read of MTM (assuming you're read it already).
While very new to VSA myself I can see you are having problems with the theory of it - perhaps this is why implementation is not working for you so for.
This is a good thread to ask if you have any questions.
Magnus
Well, it helps me to ground in theory what the method's originator is after, so that I can easily attach VSA to the rest of my chart.
The MTM author does seem to build on crowd behavior, dividing volume into different trading crowds and then interpreting volume as an accumulation/distribution in which each crowd shapes differently how the volume looks.
I guess I'm trying for a spread system, using volume spread on price bars and price spread on trendlines for the bars to react to. It'd use post #1247's fairly even use of volume-to-price including trendlines, and borrows traditional labels for 1247's pivots for trendlines from another thread ( http://www.forexfactory.com/showpost...1&postcount=80 ) . I'm very early in the making, first hour in fact.
Now that VSA is a part of my approach, I will follow on your advice.
  • #1,668
  • Jun 6, 2009 12:20pm Jun 6, 2009 12:20pm
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting ha-pattern
...
The MTM author does seem to build on crowd behavior, dividing volume into different trading crowds and then interpreting volume as an accumulation/distribution in which each crowd shapes differently how the volume looks. ...

If you're trading is going well - well done, I probably have no justification for comment.

However, your comment above is not right, that's not what Tom Williams espouses.

I have to point this out as this thread is for learning VSA and so anyone who is trying to learn VSA via this thread may be mis-informed by your comment.


With respect...

Magnus
  • #1,669
  • Jun 6, 2009 12:25pm Jun 6, 2009 12:25pm
Grath, you do indeed rule our mules!!!

Thank you for all the time and effort you put into this breakout indi...you work is truly appreciated

wallst

Quoting Grath
For those who followed the chatroom discussion about WallSt's breakout strategy, here is the current version of the Breakout Boxes indicator.....
  • #1,670
  • Jun 6, 2009 12:39pm Jun 6, 2009 12:39pm
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting wallst500
Grath, you do indeed rule our mules!!!

Thank you for all the time and effort you put into this breakout indi...you work is truly appreciated

wallst

wall, I'm in the chat every day, but don't really contribute (as you may have noticed ) - I spend most of my time drawing up charts etc. and find typing/chatting too much of a distraction.

May I be so bold as to ask you to outline your box strategy - I've not been able to decipher your methods through the chat.


Magnus
  • #1,671
  • Jun 6, 2009 1:17pm Jun 6, 2009 1:17pm
Quoting Yuppie
If you're trading is going well - well done, I probably have no justification for comment.

However, your comment above is not right, that's not what Tom Williams espouses.

I have to point this out as this thread is for learning VSA and so anyone who is trying to learn VSA via this thread may be mis-informed by your comment.


With respect...

Magnus
I'm not sure where you got how my trading is going, I never mentioned this. To me, it's irrelevant at this point, since, as I told you, I'm still working on making an approach.
That you dismissed my note about crowd behavior, without, for the second time, offering a correct opinion, lends me to offer the quote that spurred me (along with the link in my first recent post) to make such a statement:

"It is called a buying climax because to create this phenomenon there has to be a huge demand for buying from the public, fund managers, banks and so on. It is into this buying frenzy, that syndicate traders and market-makers will dump their holdings, to such an extent that higher prices are now impossible."
-- Tom Williams, MTM, page 22

This quote lists several trading crowds from which supply/demand or accumulation/distribution (also in the book) would arrive.
Anyhow, I only made this statement to begin learning VSA's framework of action, not to purvey its essence on the chart, which of course I cannot do.

The chart I quoted in my first recent post was an example of pure VSA (no!?), and inspired me. On the other hand, there have been a lot of indicators in this thread that are not VSA, which contradicts your last statement or rebuff. The upshot of my last post was that I was working on an approach that uses indicators that more-closely go with VSA, which would actually increase the chance that they can be included in this thread.

My ultimate aim in this series of posts is to get permission to use VSA in my own thread, learning, just like others, the method from this and similar pure-VSA threads. Up to now, I've only been toying with the idea of VSA in the back of my mind; now, I have a place for it.
Then, when my system is good enough, I'll simply, in one post and like everyone else, post indicators (or a pdf of a manual indicator, or similar) that may go along with pure VSA. In the meantime, I may post on this thread what I'd guess was pure VSA on my charts until you (in the plural) say it's about right. I just don't want to be dismissed as not knowing VSA when I'll be talking about VSA extensively on another thread. That would not work for you or me.
The alternative, if you wish, is that I use a name other than VSA, and go ahead and use everything from this thread anyhow, while not posting on this thread.
If your rebuff meant the alternative answer is better for me in terms of you, there's no need to answer this post. If it's the main choice, that's great, I'll do everything I can. How does that sound?
  • #1,672
  • Jun 6, 2009 1:54pm Jun 6, 2009 1:54pm
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting ha-pattern
I'm not sure where you got how my trading is going, I never mentioned this. To me, it's irrelevant at this point, since, as I told you, I'm still working on making an approach.
That you dismissed my note about crowd behavior, without, for the second time, offering a correct opinion, lends me to offer the quote that spurred me (along with the link in my first recent post) to make such a statement:

"It is called a buying climax because to create this phenomenon there has to be a huge demand for buying from the public, fund managers, banks and...

I haven't the foggiest as to what you're on about...

Anyway, my concern was with the statements:


Quoting ha-pattern
...VSA is best at reading a crowd; it's a direct language. After all, what is volume except a crowd of people, regardless of being 'smart' or with deep pockets?...

Quoting ha-pattern
...The MTM author does seem to build on crowd behavior, dividing volume into different trading crowds and then interpreting volume as an accumulation/distribution in which each crowd shapes differently how the volume looks...

VSA is intrisically about ascertaining what the smart money is doing. The corollary of this is that the smart money tends to have the deep pockets. The smart money moves the market.

Thus, the core of VSA is about following the trail of clues that the smart money leaves (in the form of price and volume) as they move the market. There is only one crowd that can be followed when watching volume - and this is the smart money crowd. If there is volume there - the smart money crowd are there. If there is no volume - the smart money crowd are not there. That is it. That is what volume shows.


Magnus
  • #1,673
  • Jun 6, 2009 2:04pm Jun 6, 2009 2:04pm
Thanks for answering.
Now I have to see if I can, one day, get close to doing as well in trading as you suggested.
  • #1,674
  • Jun 6, 2009 2:51pm Jun 6, 2009 2:51pm
Quoting denis1
Hi Shamus,
Can you tell me if you are still using this template and if so could you provide an explanation of how to read the various indicators please?
Regards
Denis

Yes I am still using this template.

The indicators are there primarily just to let me know certain things.

Time and session clock is fairly obvious it just let's me know which sessions are open and bar times ie time to close etc.

The information indicator gives me price and spread information that I can see from a distance on any of my monitors. It also provides a bit of information for each tf on strength etc, but I do not use this at all since VSA shows me strength and weakness in real time.

The MML I use for targets likely support resistance areas etc. and entry points.


Better volume and it's guide is in the first post.

I think that's it. I really just use Volume for trade decisions nothing fancy although sometimes I will take trades through the sma 50 but only if VSA shows a good signal.

Hope this helps and let me know if I missed anything.
The trend always ends.
  • #1,675
  • Jun 6, 2009 2:54pm Jun 6, 2009 2:54pm
Quoting Grath
For those who followed the chatroom discussion about WallSt's breakout strategy, here is the current version of the Breakout Boxes indicator.....
I know I keep saying this but you did an awesome job on this! and I thank you for it.

One quick question though is this a newer version than the one posted in chat yesterday?

If so what were the changes?

Thanks.
The trend always ends.
  • #1,676
  • Jun 6, 2009 5:37pm Jun 6, 2009 5:37pm
Quoting Grath
For those who followed the chatroom discussion about WallSt's breakout strategy, here is the current version of the Breakout Boxes indicator.....

As i missed this chat, if anyone could point me to someplace where i could read up on this strategy, i'd be grateful...
  • #1,677
  • Jun 6, 2009 7:46pm Jun 6, 2009 7:46pm
Just to let you guys know, there is no way to know volume in forex. I know this voids the whole thread but its better now than another 2000 posts.
Economists have forecast 9 out of the last 5 recessions
  • #1,678
  • Jun 6, 2009 7:59pm Jun 6, 2009 7:59pm
Quoting markmm
Just to let you guys know, there is no way to know volume in forex. I know this voids the whole thread but its better now than another 2000 posts.
Thank you for saving me from wasting anymore time on VSA. Any other pearls of wisdom for us new guys?
The trend always ends.
  • #1,679
  • Jun 6, 2009 8:01pm Jun 6, 2009 8:01pm
Quoting farizu
As i missed this chat, if anyone could point me to someplace where i could read up on this strategy, i'd be grateful...

Wallst has put up an explanation of the UK BO strategy at pipbuilders.com
The trend always ends.
  • #1,680
  • Jun 6, 2009 8:01pm Jun 6, 2009 8:01pm
Quoting ShamusFamous
Thank you for saving me from wasting anymore time on VSA. Any other pearls of wisdom for us new guys?
Yeah, indicators cant predict shit. Remove all indicators and use price action.
Economists have forecast 9 out of the last 5 recessions
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