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Trade Using VSA (Volume Spread Analysis)

  • #2,121
  • Edited 7:10pm Jun 28, 2009 6:36pm | Edited 7:10pm
Yep, just when we think we have put this indicator thing to bed, along comes another one!

I found myself confused with the BV indi when i started my VSA education, so i coded this indi, and found that it helped a lot. I added some text and decided to post it here for all those who are just starting out.This indi is not intended to give any signals, it is a teaching tool to help new VSA'ers learn volume.

I found it was sometimes difficult to distinguish what was truly low volume or high volume, even comparing to an MA. This indi uses a very long time span to create "normal" ranges, much like standard deviations. I find the ranges are very close, although it is still necessary to use some personal discretion, but that is what VSA is all about anyway.





The background of the indi is separated into 6 zones.

  1. Ulra Low Volume Zone

  2. Low Volume Zone

  3. Normal Volume Zone

  4. High Volume Zone

  5. Very High Volume Zone

  6. Ultra High Volume Zone


The bars are colored according to whether they are;

  1. Greater than the previous 2 bars - Teal
  2. Less than the previous 2 bars - Orange
  3. Niether - Blue
  4. Ultra Low - Yellow

  5. Ultra High - Red

Text is displayed on the side which explains each bar, and is colored to match, making identification easier. The text can be turned off when you get bored with it..





Attached Image (click to enlarge)
Click to Enlarge Name: VSA_Teacher_Volume_Window_pic.png Size: 73 KB

Attached Image (click to enlarge)
Click to Enlarge Name: VSA_Teacher_Volume_pic.png Size: 202 KB





The Last Bar's volume is also displayed in the same color as the bar. Current volume is displayed in the appropriate color as it progresses through the different types of bars.


You can see at a glance whether the volume is historically high, low or in the normal range.


(I tried to choose colors which would work with both White & Black screen backgrounds.)


Due to number of bars necessary to calculate the Zones, when you use it on any tf greater than H1, all the bars turn out red. Don't worry, it will take care of itself in a few years..


I have tested it out, and didn't find any bugs, but if you find something, please email me and i will look into it.


Both the source code and the executable code are posted, so those who don't want source code need only download the ".ex4" file.


My deepest appreciations go out to all those who have worked so hard and contributed so much to this thread and to teaching us all. I hope this is a help to some of those who are new to VSA.


Sincerely,


Chief

P.S. I have optimized the indi to use as few computer resources as possible. I currently have 8 charts up and no slowdown.

Attached File(s)
File Type: mq4 VSA Teacher Volume v032.mq4   19 KB | 912 downloads
File Type: ex4 VSA Teacher Volume v032.ex4   16 KB | 680 downloads
  • #2,122
  • Jun 28, 2009 6:44pm Jun 28, 2009 6:44pm
[quote=ShamusFamous;2835060]

Guy do you then sugest takeing that TG ?

I am realy new in this VSA story and what do i get in that tradeguider?

Are those entry exit signals based on volume and work very well or it is another expensive kit wich is not worth of that money?

Please if somebody have time to explain me..

Malcomb or Shamus

Regards
Work smart not hard
  • #2,123
  • Jun 28, 2009 7:00pm Jun 28, 2009 7:00pm
three posts , one indie and one expecting entry signals in tradeguider.

Read the thread guys ... vsa is not about one candle it is about background

some of my best trades , that I could happily have risked 20 % of account on I have stalked for 3 hours or more , watching them set up .
Blogging daily now at www.volume.zone
  • #2,124
  • Jun 28, 2009 7:01pm Jun 28, 2009 7:01pm
Quoting chief1oar
Yep, just when we think we have put this indicator thing to bed, along comes another one!

I found myself confused with the BV indi when i started my VSA education, so i coded this indi, and found that it helped a lot. I added some text and decided to post it here for all those who are just starting out.This indi is not intended to give any signals, it is a teaching tool to help new VSA'ers learn volume.

I found it was sometimes difficult to distinguish what was truly low volume or high volume, even comparing to an MA. This indi uses a very...

nice work and explanation
Blogging daily now at www.volume.zone
  • #2,125
  • Jun 28, 2009 7:10pm Jun 28, 2009 7:10pm
Hello

Successful trading consist of three parts: method, mind and money management. I attached some article that might be useful to someone and contribution to second part: mind.
Attached File(s)
File Type: pdf mantra.pdf   122 KB | 1,357 downloads
The Market pays you to be disciplined
  • #2,126
  • Jun 28, 2009 7:17pm Jun 28, 2009 7:17pm
Hello to all. For people who are new to VSA, here is what I recommend to do first before doing anything else as this was posted earlier by Malcolmb14 and others.

1) Get book of Tom Williams, either the "Undeclared Secret of the Stock Market" (which is the older version) or "Master the Market" (which is the new version.

Read that book at least 10 times and every week to make sure that you grasp and become proficient in remembering the concepts presented in the book.

What I am doing also is that all the important info that I found in the book, I am copying them into a word document so that I can check it everyday to refresh my memory.

One very very important thing to remember about VSA, if not the most important one, is that any VSA signal or pattern that you see on a chart, either it be an UPthrust followed by a No Demand or a Shakeout followed by a test or a no supply test will will only be relevent and tradable according to the overall background that you see on your chart from left to right and from going to higher timeframe then what you are currently looking at.

2) After getting a good grasp of the concepts in the book, use a demo account for few months to practice and practice and practice those concepts on a real time charting sofware and looking at the background story unfolding before your eyes.

As somebody said earlier (Malcolmb14 hehe you again you should look at VSA as an open book where there is a great story unfolding in front of you where every single new bar and volume bar associated with it is like a new page adding a little more to the overall story.

3) Then to educate yourself further on, you can get the bootcamp from TG, which is certainely one of the best thing they have done, to increase your practical knowledge of the VSA patterns.

4) and even more important than all before, learn to rely on yourself and yourself alone as it will be YOU and only YOU that will trigger a trade and nobody else. We should not look at this thread as put all hard work for you and nothing to do mentality but more as a "gift of God" as great knowledgable traders like Dr. Geppynius, Malcolmb14 and Shamus have come here to share their time and great knowledge with us.

So, finally, in order to shows our gratitude and respect to those great people, please dont ask questions that you can find answer by taking the time to go through the thread.

Then, after that, if you still have questions, then you can post it here and people will try to help you out.

But first, educate yourself and dont be lazy, take the time to read the book and master it as its title imply and read this thread. There is a lot of "pure gold" in it.

Hope it is helpful

Sincerely

Shreem
  • #2,127
  • Jun 28, 2009 7:22pm Jun 28, 2009 7:22pm
Quoting mima
Hello

Successful trading consist of three parts: method, mind and money management. I attached some article that might be useful to someone and contribution to second part: mind.

Hello Mima, Thanks to put that PDF here as it is one of the most well writen booklet about psychology of trading and how we should approach the market. I have red this thing lots and lots of time and never bored to look at it as it contain so much useful info to develop as a trader.

So, thanks again for bringing it into this great thread.

Sincerely

Shreem
  • #2,128
  • Jun 28, 2009 11:12pm Jun 28, 2009 11:12pm
Quoting chief1oar
Yep, just when we think we have put this indicator thing to bed, along comes another one!

I found myself confused with the BV indi when i started my VSA education, so i coded this indi, and found that it helped a lot. I added some text and decided to post it here for all those who are just starting out.This indi is not intended to give any signals, it is a teaching tool to help new VSA'ers learn volume.

I found it was sometimes difficult to distinguish what was truly low volume or high volume, even comparing to an MA. This indi uses a very...
Wow. Nice work. Is this the final version? If so let me know and I'll link it from the first post.
The trend always ends.
  • #2,129
  • Jun 29, 2009 2:42am Jun 29, 2009 2:42am
Quoting malcolmb14
three posts , one indie and one expecting entry signals in tradeguider.

Read the thread guys ... vsa is not about one candle it is about background

some of my best trades , that I could happily have risked 20 % of account on I have stalked for 3 hours or more , watching them set up .

Hello guys but this is still not clear to me...and yes i read this tread very often and very pasinonate...but would like to see how that tradeguider can help me?!

Please ..anybody?
Work smart not hard
  • #2,130
  • Jun 29, 2009 2:16pm Jun 29, 2009 2:16pm
don't forget that the volume from late NY session going on to Asian open is NOT ultra low volume !

it's no activity in general due to trading hours not "no activity from the smart money"...

i've seen examples of 1H charts saying that the volume is very low when it really isn't...

just my 2 cents...

take care and thanks for the indi.





Quoting chief1oar
Yep, just when we think we have put this indicator thing to bed, along comes another one!

I found myself confused with the BV indi when i started my VSA education, so i coded this indi, and found that it helped a lot. I added some text and decided to post it here for all those who are just starting out.This indi is not intended to give any signals, it is a teaching tool to help new VSA'ers learn volume.

I found it was sometimes difficult to distinguish what was truly low volume or high volume, even comparing to an MA. This indi uses a very...
  • #2,131
  • Jun 29, 2009 2:21pm Jun 29, 2009 2:21pm
Quoting chief1oar

Attachment
Attachment

I have tested it out, and didn't find any bugs, but if you find something, please email me and i will look into it.

I downloaded the mq4 and compiled it. Compiler warning: Function "PrintErr" is not referenced and will be removed from exp-file.

Is the indi supposed to produce the text as per the chart you displayed? I have 'showtext' set to true, but I don't have any text (see attachment).

I had BV 1.4 running when I added the indi to the chart. It puts the colour bands on BV instead of the Teacher.

Must be something I'm doing wrong? What do you think, Chief1Oar?

G
Attached Image (click to enlarge)
Click to Enlarge Name: screenshot3.gif Size: 29 KB
  • #2,132
  • Jun 29, 2009 2:44pm Jun 29, 2009 2:44pm
Hey Grath, I think you just need to have the indicator in the first window and then better volume underneath.
  • #2,133
  • Jun 29, 2009 4:05pm Jun 29, 2009 4:05pm
Quote
malcomb14

nice work and explanation

Quote
Shamus

Wow. Nice work. Is this the final version? If so let me know and I'll link it from the first post.

Coming from the two who have contributed so much, thank you. Shamus, I would suggest we wait for a few days until anymore "bug" reports come in and are resolved before linkning it. Thank you again.

Quote
Lumesh

don't forget that the volume from late NY session going on to Asian open is NOT ultra low volume !

it's no activity in general due to trading hours not "no activity from the smart money"...

i've seen examples of 1H charts saying that the volume is very low when it really isn't...

just my 2 cents...

take care and thanks for the indi.

Lumesh.. Very well said. Excellent information for people to keep in mind. Volume is there for a reason. In order to make good trading decisions it's crucially important to know what that reason is. One of those "personal discretion" items. Thank You.

Quote
Grath

I downloaded the mq4 and compiled it. Compiler warning: Function "PrintErr" is not referenced and will be removed from exp-file.

Is the indi supposed to produce the text as per the chart you displayed? I have 'showtext' set to true, but I don't have any text (see attachment).

I had BV 1.4 running when I added the indi to the chart. It puts the colour bands on BV instead of the Teacher.

Must be something I'm doing wrong? What do you think, Chief1Oar?

Grath:

Thanks for the "bug report".

I learned when I was an Operating Systems Analyst that if there is an error in the code, all you have to do is give it to a user and they will find it for you ! Thank you.

I have fixed the bug; the window selection was hardcoded, which placed the zones in indicator window #1, (your BV indi was in the first window created). I took a page from from your BOB indi and used the WindowFind() function. It should fix the problem.

The "Print Err" function has been removed, it was being used to debug the code and it isn't important to the indi.

Thanks Lumesh and Grath for your contribution, hope the indi works, and helps. Keep reporting those bugs...

I also found a couple of minor issues and fixed them and I have attached the "fixed" indicator. Again if anyone wants only the compiled indicator download the ".ex4" file.

Sincerely,

Chief
Attached File(s)
File Type: mq4 VSA Teacher Volume v033.mq4   19 KB | 793 downloads
File Type: ex4 VSA Teacher Volume v033.ex4   16 KB | 611 downloads
  • #2,134
  • Jun 29, 2009 7:39pm Jun 29, 2009 7:39pm
Quoting chief1oar
Coming from the two who have contributed so much, thank you. Shamus, I would suggest we wait for a few days until anymore "bug" reports come in and are resolved before linkning it. Thank you again.



Lumesh.. Very well said. Excellent information for people to keep in mind. Volume is there for a reason. In order to make good trading decisions it's crucially important to know what that reason is. One of those "personal discretion" items. Thank You.



Grath:

[color=blue]Thanks...
indy Looks Good--pick one--they all named "malcolmb"
Attached Image (click to enlarge)
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  • #2,135
  • Jun 29, 2009 7:50pm Jun 29, 2009 7:50pm
Quoting taomql4
indy Looks Good--pick one--they all named "malcolmb"

damn cute ... look like chocolate lab puppies i went to see the other day
Blogging daily now at www.volume.zone
  • #2,136
  • Jun 29, 2009 8:26pm Jun 29, 2009 8:26pm
Quoting taomql4
indy Looks Good--pick one--they all named "malcolmb"
cute pups make a grown man cry
{Promotion Removed}
  • #2,137
  • Jun 29, 2009 8:29pm Jun 29, 2009 8:29pm
Quoting ShamusFamous
Actually it's Frank Zappa that named his daughter Moon Unit.
Please don't forget his son "Dweezil"
  • #2,138
  • Jun 29, 2009 8:54pm Jun 29, 2009 8:54pm
Quoting RickW00716
Please don't forget his son "Dweezil"
And Ahmet? Something like that...
The trend always ends.
  • #2,139
  • Jun 29, 2009 8:55pm Jun 29, 2009 8:55pm
Quoting chief1oar
Coming from the two who have contributed so much, thank you. Shamus, I would suggest we wait for a few days until anymore "bug" reports come in and are resolved before linkning it. Thank you again.

Okay and nice job so far.
The trend always ends.
  • #2,140
  • Jun 29, 2009 8:58pm Jun 29, 2009 8:58pm
Quoting pipsr4kids
cute pups make a grown man cry
lost 13 year old lab a while back .. decided to get new dog.Here they are at 3 weeks old

Attached Image (click to enlarge)
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Blogging daily now at www.volume.zone
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