Trade Using VSA (Volume Spread Analysis) | Page 90 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Volume Spread Analysis (VSA) and background 5 replies

Trading With VSA - Volatile Volume and Spread Analysis 9 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

Attachments: Trade Using VSA (Volume Spread Analysis)
Exit Attachments

Trade Using VSA (Volume Spread Analysis)

  • #1,781
  • Jun 11, 2009 2:27am Jun 11, 2009 2:27am
Quoting malcolmb14
vsa all over the intenet now ... just a matter of time before they screws with volume

tro has vsa all over his site with rsx ... wonder where he got that from !!!

I said that too...Brokers will start to manipulate with volume as they do with prices and spread...Brokers want only illusion for retail traders...
The Market pays you to be disciplined
  • #1,782
  • Jun 11, 2009 8:34am Jun 11, 2009 8:34am
I was confused by the circled area. Buying climax bars on a down candle? Sandwiched in between two selling climax candles? Was there a signal for an entry in either direction? The last candle on the right ends at 8:30 am EST. (Right before news came out)
Attached Image (click to enlarge)
Click to Enlarge Name: 5mineurusdqu.jpg Size: 187 KB
  • #1,783
  • Jun 11, 2009 10:00am Jun 11, 2009 10:00am
Quoting Crownj
I was confused by the circled area. Buying climax bars on a down candle? Sandwiched in between two selling climax candles? Was there a signal for an entry in either direction? The last candle on the right ends at 8:30 am EST. (Right before news came out)
Hi Crown,

Change your Broker. Look at the ODL and the Alpari Chart.
I prefer ODL.

Edit: First is the Alpari Chart
Attached Image(s) (click to enlarge)
Click to Enlarge Name: alpari.gif Size: 25 KB
Click to Enlarge Name: odl.gif Size: 27 KB
  • #1,784
  • Jun 11, 2009 11:28am Jun 11, 2009 11:28am
Quoting Crownj
I was confused by the circled area. Buying climax bars on a down candle? Sandwiched in between two selling climax candles? Was there a signal for an entry in either direction? The last candle on the right ends at 8:30 am EST. (Right before news came out)

last 6 candles starting from red one
1) high vol down bar low spread = sign of buyers . red one
2) next 3 candles same volume off support , one was a reversal to up side , indicates buyers
3) the 2nd candle from right was the give way for the long. Low volume test after you had seen buying in the backgroud . That would have been your entry.


actually almost a perfect vsa set up for long
Blogging daily now at www.volume.zone
  • #1,785
  • Jun 11, 2009 11:52am Jun 11, 2009 11:52am
Quoting malcolmb14
last 6 candles starting from red one
1) high vol down bar low spread = sign of buyers . red one
2) next 3 candles same volume off support , one was a reversal to up side , indicates buyers
3) the 2nd candle from right was the give way for the long. Low volume test after you had seen buying in the backgroud . That would have been your entry.


actually almost a perfect vsa set up for long
Thanks Malcomb. Once you explain, I can see it. Can't see them own my own in real time all that well yet
  • #1,786
  • Jun 11, 2009 11:53am Jun 11, 2009 11:53am
Quoting bbartha
Hi Crown,

Change your Broker. Look at the ODL and the Alpari Chart.
I prefer ODL.

Edit: First is the Alpari Chart
Thanks. I switched
  • #1,787
  • Jun 11, 2009 1:09pm Jun 11, 2009 1:09pm
Wouldn't I expect a down move here?
Attached Image (click to enlarge)
Click to Enlarge Name: eu5minq.jpg Size: 239 KB
  • #1,788
  • Jun 11, 2009 1:38pm Jun 11, 2009 1:38pm
Quoting Crownj
Wouldn't I expect a down move here?
wrong & wrong

this cannot be a selling climax, could only have been a buying climax but it was just regular move through resistancen.

5 minute no-demands in an uptrend mean nothing.
  • #1,789
  • Jun 11, 2009 2:58pm Jun 11, 2009 2:58pm
Quoting Crownj
Wouldn't I expect a down move here?
Hi again,

This is very simple: the next candel closes higher then the Doji, this is a successful test. But this is not a very clear signal IN MY EYES.

But look at this....
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eu090611-5m.jpg Size: 131 KB
Click to Enlarge Name: eu090611-60m.jpg Size: 130 KB
  • #1,790
  • Jun 11, 2009 3:11pm Jun 11, 2009 3:11pm
Hey bbartha,

thanks for the heads up on the volume.....

I meant to label that a buying climax bar, not a selling climax. Would it be better to wait for the close of a candle below the no demand bar before entering? You might miss some pips but might save some if the market moves the way it did in this case
  • #1,791
  • Jun 11, 2009 3:54pm Jun 11, 2009 3:54pm
Quoting Crownj
Wouldn't I expect a down move here?
Crownj

During the day there a times when volume will die off in anticipation of an event. This often happens before news annocuments and before the opening of LDN and NY Stock markets.

Those two bars where just before the open of the NY market and traders wait to see how the markets react. You cannot read anything into them.
Same thing on GBP/USD today.
Boxing clever since 76.
  • #1,792
  • Jun 11, 2009 4:04pm Jun 11, 2009 4:04pm
Thanks Copi. Good Point I forgot about that.
  • #1,793
  • Jun 11, 2009 4:04pm Jun 11, 2009 4:04pm
Quoting Crownj
Hey bbartha,

thanks for the heads up on the volume.....

I meant to label that a buying climax bar, not a selling climax. Would it be better to wait for the close of a candle below the no demand bar before entering? You might miss some pips but might save some if the market moves the way it did in this case
Hi,

the volume is to high for a no demand. Ideal entrys are very low Volume bars (Low Volume Tests, No Demand/Supply Bars) with confirmation on the next bar. After these Climax bars look out for either Low/High Volume Tests, No Demand/Supply Bars, Upthrusts or Squat Bars. When you get the confirmation and you are with the trend then go in.
Keep in mind that Low Volume Tests respond fast while High Volume tests often gets revisited...
  • #1,794
  • Jun 11, 2009 4:12pm Jun 11, 2009 4:12pm
Quoting copi88
Crownj

During the day there a times when volume will die off in anticipation of an event. This often happens before news annocuments and before the opening of LDN and NY Stock markets.

Those two bars where just before the open of the NY market and traders wait to see how the markets react. You cannot read anything into them.
Same thing on GBP/USD today.
You are right, but NY opens more then one hour before @ 13:00 GMT.
  • #1,795
  • Jun 11, 2009 4:53pm Jun 11, 2009 4:53pm
Quoting Dr.Geppynius
i really regret that i have begun to talk about vsa here on ff about one year ago. should hav kept that to myself and a few others.....

.....but, at least, the difference between vsa and other systems which worked at the begin is, that even with this knwoledge 80% will fail because they cannot interpret the things they see on the charts right...

It is not just VSA or other terchnical...there are emotions, money management...many things form good trader.
The Market pays you to be disciplined
  • #1,796
  • Edited 5:38pm Jun 12, 2009 1:29pm | Edited 5:38pm
Hello all - my first post on FF. Many thanks for the great info presented on this thread.

Can anyone point me to a simple bar indicator that displays only High-Low-Close, and can be set to different thicknesses? The default widths of MT4 bars can be hard to see, plus I'm not analyzing Open prices.

I've modified indicators to add alerts and simple logic, but don't have the experience to write this indi from scratch.

Thanks again!
  • #1,797
  • Jun 13, 2009 9:50am Jun 13, 2009 9:50am
Guys, thought I'd warn you that nyse1982 has a new alias, its pipsr4kids in the trading journals section, from the trading w/smart money thread.
  • #1,798
  • Edited 8:24pm Jun 13, 2009 3:52pm | Edited 8:24pm
Just wanted to share the indi I've been working on. My goal is to be able to read VS action like music. What you're looking at:
1. In the indicator window, black histo is MT4 volume with a dark 20 SMA. The wide grey histo is spread with lighter dotted 20 SMA. Thick colored lines are RSI.
2. Main window has 4 MAs for reference, Barry S/R dots and Labtrend1 large dots. The stars are what I've been working on to identify convergence/divergence in volume and spread:

Comparing any bar to the previous bar:
Vol+ Spread+: Lime dot positioned over the close of bar. Effort is showing and price is moving.
Vol+ Spread-: Yellow dot, over the close also... Compression bar - may be resistance to the price move.
Vol- Spread+: Blue dot, same. Expansion bar - movement with less effort, coasting.
Vol- Spread-: Black dot, same. Pros are out of the trend, which loses energy and drifts.
The colors can be confirmed by the volume/spread bars in the indi window.

Thin stars show when volume is below the 20 bar SMA of volume.
Fat stars show when volume is above the SMA, giving a quick view of what's happening.

I was going to add two other size stars: Fatter star if bar volume is more than some multiplier (1.4?) above the SMA. And another thinner star if volume is below .7 of the SMA. Or maybe it's better to just change the shape to a round dot. The MQ4 file has some code commented out, where I was starting to work on that. I hit a couple of roadblocks that an experienced coder could probably fix or replace quickly. I don't know much about MQL yet. Thrusts and low volume bars are easy to see in the indi window, but adding this feature would give a more complete overview on the bars themselves.

If I ever locate the traditional Hi Lo Close bars I mentioned two posts back, that would be the icing on the cake.

All feedback appreciated. Thanks for looking!
Attached Image (click to enlarge)
Click to Enlarge Name: vsa_dots.gif Size: 30 KB
Attached File(s)
File Type: mq4 DRT-VSA_Dots.mq4   5 KB | 994 downloads
  • #1,799
  • Jun 13, 2009 3:56pm Jun 13, 2009 3:56pm
Hey there,

Just going through this thread and came across this post that helped articulate a question I have about "the test" and understanding the concept behind it.

Is the marketmaker/specialist/smart money/wizard of oz trying to incite a decline in the price to see if they get downward movement as a way seeing how many people want to keep dumping the currency - volume stays tight and price rebounds - no one to actually push down further - the general market is in a buying mood and time to start marking up and distributing their holdings. Based on what I have read, this is the general idea, but for some reason I keep thinking that an upward test of big movement on little volume would show that the public is in the buying mood and receptive to higher prices.

Having said that, I have found shorting after a widespread low volume bull bar to be profitable.................

The other question I have is, how much "risk" does professional "smart money" take. In other words how much of a move against them will they take before they pack it in and liquidate. Any thoughts?

thanks

I
Quoting Willowgal
Nope.... definitely not high volume !...
  • #1,800
  • Jun 13, 2009 8:35pm Jun 13, 2009 8:35pm
Quoting razorboy
Hey there,

Just going through this thread and came across this post that helped articulate a question I have about "the test" and understanding the concept behind it.

Is the marketmaker/specialist/smart money/wizard of oz trying to incite a decline in the price to see if they get downward movement as a way seeing how many people want to keep dumping the currency - volume stays tight and price rebounds - no one to actually push down further - the general market is in a buying mood and time to start marking up and distributing their holdings....

How long is a piece of string?!...
2 traders viewing now