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Trade Using VSA (Volume Spread Analysis)

  • #2,241
  • Jul 8, 2009 12:48am Jul 8, 2009 12:48am
Quoting TwoBuckChuck
...Plus it's 100% tax deductible, so you have nothing to lose and everything to gain.
Got my attention!! Nice post.
  • #2,242
  • Jul 8, 2009 6:53am Jul 8, 2009 6:53am
Quoting TwoBuckChuck
Hi people. I am a long time reader of the factory, first time poster.

Shamus, may many good fortunes come your way. You Sir are truly a genuine person, which is hard to find these days. I cannot thank you enough for opening my eyes to the world of VSA.

Most appreciative of what you guys and gals are doing here. Malc, you Sir are also an absolute legend. Appreciate the time you take to teach us on here and in the chat. I save every chart you post and learn from each of them. Thank you again mate.

And to a heap of others, the list is just too...

Fantastic! I'm glad the Knobblets got you sorted. It's great to see you here.
The trend always ends.
  • #2,243
  • Edited 8:06am Jul 8, 2009 7:43am | Edited 8:06am
Hello
I got on this trade.. price went 40 pips up.. and was not sure where to close order.. and then price came back and i closed trade at BE ...

How would You manage this trade ?


Thank You.


Best,
Tom
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  • #2,244
  • Jul 8, 2009 8:07am Jul 8, 2009 8:07am
Quoting tfflyer
Hello
I got on this trade.. price went 40 pips up.. and was not sure where to close order.. and then price came back and i closed trade at BE ...

How would You manage this trade ?


Thank You.


Best,
Tom

Very nice entry Tom, I took that trade myself. Chart shows how I managed it. I took 35 pips in the end.
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  • #2,245
  • Jul 8, 2009 8:13am Jul 8, 2009 8:13am
Thanks 2 $ for explanation.

When i saw that Upthrust in TOp i tough this is those traders who missed the trade and got sucked in at the top and i was waiting for further UP move.. But.. till i was waiting - i got at BE

Just one of the first my entries on VSA.


Thanks.

Best,
Tom
  • #2,246
  • Jul 8, 2009 8:15am Jul 8, 2009 8:15am
Quoting tfflyer
Hello
I got on this trade.. price went 40 pips up.. and was not sure where to close order.. and then price came back and i closed trade at BE ...

How would You manage this trade ?


Thank You.


Best,
Tom
I would say trail it, especially if taken against the main trend.

There are several other ways; what I personally do is enter with multiple smaller orders - 3 in my case;
I move stop to BE in all orders afters x pips, but:
- In one, I only put a TP, at 20 to 40 pips (depending on what I see in the chart);
- In the other two, I put trails, one smaller and one larger (like 8/16, or 10/20).

This is meant to capture pips in all possible situations (fast reversal, beginning of a fast or slow trend, etc).

tonirai (aka whats_up).
  • #2,247
  • Jul 8, 2009 8:20am Jul 8, 2009 8:20am
Quoting tfflyer
Thanks 2 $ for explanation.

When i saw that Upthrust in TOp i tough this is those traders who missed the trade and got sucked in at the top and i was waiting for further UP move.. But.. till i was waiting - i got at BE

Just one of the first my entries on VSA.


Thanks.

Best,
Tom
No you did well Tom, BE is better than -'ve pips any day.

Weakness (background) + the up thrust = get out asap.

Or you can trail your stops like tonirai mentioned. I prefer myself to use VSA as an exit. Especially when trading against the trend.

Not to worry, with time and practice, you'll get it wired.
  • #2,248
  • Jul 8, 2009 8:31am Jul 8, 2009 8:31am
Quoting TwoBuckChuck
...Or you can trail your stops like tonirai mentioned. I prefer myself to use VSA as an exit. Especially when trading against the trend.
Congrats for being able to do that
I just can't do it... I can be very calm and analytic in my entries, but I suck at my exits
Once in a trade, I prefer to let it run with trails and targets, and forget about it - I will resume analysing charts once out, to find other entries.
  • #2,249
  • Jul 8, 2009 8:45am Jul 8, 2009 8:45am
Quoting TwoBuckChuck
No you did well Tom, BE is better than -'ve pips any day.

Weakness (background) + the up thrust = get out asap.

Or you can trail your stops like tonirai mentioned. I prefer myself to use VSA as an exit. Especially when trading against the trend.

Not to worry, with time and practice, you'll get it wired.
Weakness (background) + the up thrust = get out asap.
or
ideal entry for reverse position
  • #2,250
  • Jul 8, 2009 8:48am Jul 8, 2009 8:48am
Thanks also to Tonirai !

B,
Tom
  • #2,251
  • Jul 8, 2009 10:34am Jul 8, 2009 10:34am
please coment on my chart 1M....

in the box does it show up move i thought it up move but i was not.

low volume on 1st down bar
High on 2nd up bar
low volume on 3rd down bar
here i thought that traders are not investing in down bar.


please tell me about happend here.

Regards.
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  • #2,252
  • Jul 8, 2009 11:39am Jul 8, 2009 11:39am
Quoting wajid
please coment on my chart 1M....

in the box does it show up move i thought it up move but i was not.

low volume on 1st down bar
High on 2nd up bar
low volume on 3rd down bar
here i thought that traders are not investing in down bar.


please tell me about happend here.

Regards.
1m chart? Bro, you gotta look behinde you--higher TF for Background.
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  • #2,253
  • Jul 8, 2009 1:43pm Jul 8, 2009 1:43pm
Here is one thing I'm hung up on with VSA. Looking to sell rallies on the EJ this morning. I've marked in red, low volume, low spread, up bars that did not pan out. I marked in green the one right before the big drop. Higher time frames 10m, 15m, 30m were shwoing the same consolodation. Is there a difference between the bar marked green and the bars marked red I'm not seeing? If not, where could I have gotten in on that down move as there was no low volume up move after it started moving down? It had been whipping around all morning and I didn't want to sell at the bottom

Thanks
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  • #2,254
  • Jul 8, 2009 2:03pm Jul 8, 2009 2:03pm
Quoting wajid
please coment on my chart 1M....

in the box does it show up move i thought it up move but i was not.

low volume on 1st down bar
High on 2nd up bar
low volume on 3rd down bar
here i thought that traders are not investing in down bar.


please tell me about happend here.

Regards.
I don't think 1m is a good time frame for VSA but even if that was a 1H chart, it was telling you long probably wasn't going to happen. You are in a downtrend, high volume up bar finishes off the high, next bar relatively high volume, low spread up bar. No way is that going to reverse the downtrend.
  • #2,255
  • Jul 8, 2009 2:13pm Jul 8, 2009 2:13pm
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
ES (e-mini S&P).

1-min.

THE critical factor here was 886.00 area was very significant historical S/R level.

Entry and exit as circled.


Magnus
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  • #2,256
  • Jul 8, 2009 3:53pm Jul 8, 2009 3:53pm
Response to the VSA Teacher Volume Indicator that I posted was so well received, I decided to add some enhancements to make it more functional over the last couple of weeks. It is now tested and ready for use.

For a recap of the original indicator see page 142, post 2121.

The basic purpose and function of the indicator hasn't changed, I have added some user selectable features to the indi to provide more choices, as well as enhanced some of the calculation functions and solved some text display issues that arose when using this indi on a lower resolution screen.

All of the text, volume zone and volume bars' colors are now completely user selectable as is the Current Volume font size and color. Text size & spacing have not changed, and may still be toggled on/off at will.


The calculation of the zones was enhanced and provide a more accurate picture of historical volume. A recalculation routine was added to ensure the chart doesn't go stale after long periods, by recalculating all the zone values periodically.

The volume zones can now be resized, expanded or contracted, up to 15% to provide a better view of the historical volume in times of changing volatility, especially slower markets with lower than normal volume. By combining the Zone Adjustment with SampleSize and the bars shown, it is possible to achieve a very accurate picture of current market conditions as they relate to either very long history, or even better, more recent volume.

A median avg line was added which shows at a glance the current volume's relationship to the historical avg, as well as the deviations from that avg. The median line may be toggled on/off as desired and color is selectable as well.

I have added 4 moving averages, SMA, EMA, SMMA, LWMA, to the volume chart. Each is selectable and may be toggled on/off as desired. Period and color are also selectable.

The range values, SampleSize and Show_Bars have been reworked to provide a better method of calculation, and provide more flexibility is setting up the chart according to the present conditions or the user's preferences.

Because there are now so many possible choices for each person and for different charts, it is now possible to save your "custom" settings and re-use them on other charts, saving the necessity of manually setting up each chart with the same indicator settings. Custom Settings can now be saved to a file and re-used whenever the indicator is loaded on a different chart, or accidentally lost.

Custom settings may saved either as a global default for use on all charts, or they may be saved for use only on a specific currency. Once custom settings have been saved, you may choose to use the Indicator Defaults, custom global settings or settings for that specific currency.

Complete error checking has been included which will alert the user to any parameter that is outside of the indicators limits.

I have included a couple of screenshots that show some of the enhancements..


I know all of this sounds confusing, so a Help document has been created, with Shamus's assistance, to show and explain all of the choices available and is attached as a .pdf file to this post.

In order to avoid any potential confusion with some things that are planned for near future, the indicator has been renamed to "Volume Teacher". The original VSA Teacher Volume indicator should be deleted from your platform.

Both the source code .mq4 has been attached and the compiled code .ex4 for those who dont want to compile the source code.

My deepest gratitude to all those that have assisted in this effort, it has made all the difference. Thank you.

Offered here in hopes this will help...

Sincerely,

Chief

P.s. if anyone encounters any problems please P.M. me, I would like to not clutter up this great thread. Thanx
Attached Image(s) (click to enlarge)
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Attached File(s)
File Type: mq4 Volume Teacher v4.mq4   43 KB | 2,367 downloads
File Type: ex4 Volume Teacher v4.ex4   33 KB | 1,554 downloads
File Type: pdf Volume Teacher Help.pdf   249 KB | 5,889 downloads
  • #2,257
  • Jul 8, 2009 5:06pm Jul 8, 2009 5:06pm
Quoting chief1oar
Response to the VSA Teacher Volume Indicator that I posted was so well received, I decided to add some enhancements to make it more functional over the last couple of weeks. It is now tested and ready for use.......
Excellent work Chief. Very nicely written docs too.
  • #2,258
  • Jul 8, 2009 5:16pm Jul 8, 2009 5:16pm
Chief you have outdone yourself! This is a truly an awesome contribution and an excellent post regarding all the new features.

I'm looking forward to giving it a spin around the block.

The trend always ends.
  • #2,259
  • Jul 8, 2009 5:17pm Jul 8, 2009 5:17pm
Quoting Crownj
Here is one thing I'm hung up on with VSA. Looking to sell rallies on the EJ this morning. I've marked in red, low volume, low spread, up bars that did not pan out. I marked in green the one right before the big drop. Higher time frames 10m, 15m, 30m were shwoing the same consolodation. Is there a difference between the bar marked green and the bars marked red I'm not seeing? If not, where could I have gotten in on that down move as there was no low volume up move after it started moving down? It had been whipping around all morning and I didn't...

something really odd about todays move. .....

remember vsa is about background you missed this bar about 1.5 hrs before drop on 15min

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Blogging daily now at www.volume.zone
  • #2,260
  • Jul 8, 2009 8:53pm Jul 8, 2009 8:53pm
After spending a bunch of days working on the VSA system... wham... A beautiful trade on EJ. 150ish pips from first entry. 100ish from second. Textbook VSA.

EDIT: I inadvertantly posted screenshot from system rather than normal chart... LOL Not ready for the World to see it just yet.

Here's the slightly less exciting version...

http://content.screencast.com/users/...07-08_2157.png
The trend always ends.
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