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Trade Using VSA (Volume Spread Analysis)

  • #2,361
  • Jul 21, 2009 11:50am Jul 21, 2009 11:50am
Quoting malcolmb14
yeah shock wall street my arse they want it there...... I am long gj all way to 160

I do use esignal better volume ...today threw me off though as they did a nice shake out. Managed to buy off dip later in day for 50 and again for 50


really ? how did that turn out ?

i hope you got in way earlier...
  • #2,362
  • Jul 22, 2009 8:00am Jul 22, 2009 8:00am
I'd like to get comments about my reading of the market. Backround being the hardest and most important part of VSA I'm hoping I'm at least starting to make some head way in that regard.

Woke up and got to the computer just as bar A was closing. 1h trend is down. Bar A is a high volume up bar closing off the high=could be sellers. Next bar is down. Market drifts up but look at the volume on the up bars diminishing. Bar B has the highest volume in a while closing off the high. Bar C and even the following bar have high volume but the price really doesn't move up. We than have price reaching the daily pivot and a Murray Math Line and being rejected. With the longer time frame trending down, the rejection at S/R lines and Bar D having higher volume then previous bar, entered short 1 pip below the low of bar D. My stop was 1 pip higher than the high of bar D. The reason for the tight stop is this is not a trade I've made before.

What I've noticed is when the market is trending you can wait for the perfect VSA signal and confirmation (test, no supply, no demand...etc) but when the market is ranging alot of times you don't get the perfect entry signal though you do get a good one on Bar E. Even bar E is not perfect as bar E as it is the third bar in a row to make a higher low and it is close to a support line the price had been reluctant to break.

So my thoughts on entering this trade were downtrend in the 1h, weakness showing itself over multiple bars, rejection at resistance line.

My doubts about this trade were while the 1h had a down trend the last 3 or 4 bars had been going up. Could be just a pull back, could be a trend reversal, could be the start of a ranging day. At the time I couldn't know, hence the tight stop.
Attached Image (click to enlarge)
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  • #2,363
  • Jul 22, 2009 9:09am Jul 22, 2009 9:09am
I have been using the BreakOut Box strategy as outlined by WallSt over the last couple of weeks and I've made tweaks to the indicator as I have gone along.

The latest one, for example, is to save me having to change the Stop Loss from chart to chart. (I usually have GU, GJ, EU, EJ, GBPCHF, USDCHF charts open.) The Auto-StopLoss facility will automatically set the SL when the indicator is put onto one of these six charts. You'll have to change the MQ4 file though to make it work on other pairs.

Two other things I found I wanted were the on-screen display of Margin and Stop Loss.

Some comments in the Chat Room suggest that a number of us are finding WallSt's strategy beneficial to their pipping. I hope this indicator will be useful to you. (Don't be shy about your results; feedback is great.)

G
Attached File(s)
File Type: mq4 BreakOutBoxesV2.06.mq4   58 KB | 960 downloads
  • #2,364
  • Jul 22, 2009 11:08am Jul 22, 2009 11:08am
Hi guys...long time no see!!!
Another gift for VSA traders....conversion of TradeGuider trendDiamonds.
I think it is pretty close.
Regards
Attached Image (click to enlarge)
Click to Enlarge Name: td.gif Size: 17 KB
Attached File(s)
File Type: mq4 VSA© TrendDiamonds.mq4   4 KB | 1,893 downloads
forexflash
  • #2,365
  • Jul 22, 2009 11:23pm Jul 22, 2009 11:23pm
FOREXflash,
i believe Shamus is incorporating this feature/symbol in the upcoming "SMART" system indi.
  • #2,366
  • Jul 23, 2009 12:27am Jul 23, 2009 12:27am
Quoting supremeChaos
FOREXflash,
i believe Shamus is incorporating this feature/symbol in the upcoming "SMART" system indi.
hey supreme

havent seen you around in the chat for awhile
hope you keeping well
Boxing clever since 76.
  • #2,367
  • Jul 23, 2009 12:33am Jul 23, 2009 12:33am
doing fine Sir. thanks copi88.
btw, u know my VSA chatname huh? i thought only Flem26 knows
i hope all is well with u & the VSA thread & chat, as well
  • #2,368
  • Jul 23, 2009 1:04am Jul 23, 2009 1:04am
Quoting supremeChaos
doing fine Sir. thanks copi88.
btw, u know my VSA chatname huh? i thought only Flem26 knows
i hope all is well with u & the VSA thread & chat, as well
I know everything except which way the GU is going to go
Boxing clever since 76.
  • #2,369
  • Jul 23, 2009 1:48am Jul 23, 2009 1:48am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Trade taken yesterday.

DAX.

1-min.
Attached Image(s) (click to enlarge)
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  • #2,370
  • Jul 23, 2009 2:15am Jul 23, 2009 2:15am
Quoting copi88
I know everything except which way the GU is going to go
. Safe answer.



Yuppie,
nice to see non-FX charts.
u dont like DAX, do u?
  • #2,371
  • Jul 23, 2009 2:18am Jul 23, 2009 2:18am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting supremeChaos
. Safe answer.



Yuppie,
nice to see non-FX charts.
u dont like DAX, do u?

cheers, starting to do DAX, yes.
  • #2,372
  • Edited 9:39am Jul 23, 2009 9:25am | Edited 9:39am
Well, Dow 9000 is here let the hysteria begin.....
with the "Good existing homes sales report"
its probably going to 9641 now
larry kudrow is about to pee in his pants..lol

its funny watching the folks(analyst) on "business news" waiting for
""side money==smart money to come into the market..LOL
look at the DAX monthly index--these mutherF**ers have been trying
to stop the market like 8 months ago..lol..now you have a low supply
bar compare the 2 previous bars--i would be behinde that bar..lol
the least its going to 5527---

Inserted Video
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  • #2,373
  • Jul 23, 2009 10:00am Jul 23, 2009 10:00am
I like Yuppies chart - will make the same one ;]]]

B,
Tom
  • #2,374
  • Edited 2:55pm Jul 23, 2009 10:07am | Edited 2:55pm
Quoting FOREXflash
Hi guys...long time no see!!!
Another gift for VSA traders....conversion of TradeGuider trendDiamonds.
I think it is pretty close.
Regards
Nice work--flash
Attached Image (click to enlarge)
Click to Enlarge Name: geppyaccu1.gif Size: 54 KB
  • #2,375
  • Jul 23, 2009 10:26am Jul 23, 2009 10:26am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting tfflyer
I like Yuppies chart - will make the same one ;]]]

B,
Tom

I demand royalties and commission!!...

Black and White, although as 'clean' as you can get, is pretty hard on the eyes.

I do this for printing.

Would advise a cream/kahki coloured background perhaps.


Magnus
  • #2,376
  • Jul 23, 2009 10:27am Jul 23, 2009 10:27am
I am having a bit of trouble trying to decipher VSA on this chart. There are 2 very noticeable huge spikes in volume (this is an IBFX demo account) but it did not do what I would have predicted.

The first spike was high spread bar on very high volume but it immediately retraced the entire length of it and then only managed a feeble rally not far beyond the top of the spike. If this was pro's all going long, surely it should have triggered a much bigger rally soon after?

Then the second huge spike was extremely high volume, large spread bar and closed right at its low with a huge spike on top, which to me would indicate pro's all going short? it then retraced most of the bar back up again, dropped a bit further down then rallied hard for 200 pips, but not one volume spike in the entire rally was as big as this one. So it would seem this spike was pro's going long, but if thats the case it couldnt have closed at the low of the bar.

Clearly I must be reading something completely wrong or VSA simply isnt working on this chart.

http://i32.tinypic.com/xfxkk8.gif
  • #2,377
  • Jul 23, 2009 10:44am Jul 23, 2009 10:44am
Hey,i'm pretty new to VSA but these were both spikes on news. 1st was on GBP retail sales and the second on US unemployment data (probably GBP/JPY following GBP/USD on that one).

I'm not really sure how to read these 'news' spikes using VSA (or at all ) -as they often have this sort of reaction - so tend to stay away until the dust has settled.

I'm sure someone more experienced probably has something more insightful to sya and i'd be glad to hear it.

Alan
  • #2,378
  • Jul 23, 2009 11:49am Jul 23, 2009 11:49am
Quoting ewokuk
I am having a bit of trouble trying to decipher VSA on this chart. There are 2 very noticeable huge spikes in volume (this is an IBFX demo account) but it did not do what I would have predicted.

The first spike was high spread bar on very high volume but it immediately retraced the entire length of it and then only managed a feeble rally not far beyond the top of the spike. If this was pro's all going long, surely it should have triggered a much bigger rally soon after?

Then the second huge spike was extremely high volume, large spread bar and...

The first one was a Classic Mount Fuji Fakeout! Sorry couldn't resist... they were news candles in any case so you should avoid reading too much into those times... from our work in the chat we find that VSA often prepositions for news so if a major news announcement is coming look for some clear signals ahead of the news.
The trend always ends.
  • #2,379
  • Jul 23, 2009 11:56am Jul 23, 2009 11:56am
is there a timeframe that works best for vsa in forex? as far as I can see, higher timeframes are less useful due to the different timezones and sessions (obviously volume is always going to go up during london/ny overlap). I would guess the lower the timeframe the more obvious vsa signals are?

been trading 5min charts and failing miserably. dont know whether to go down to 1 or up haha
  • #2,380
  • Jul 23, 2009 12:02pm Jul 23, 2009 12:02pm
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting ewokuk
is there a timeframe that works best for vsa in forex? as far as I can see, higher timeframes are less useful due to the different timezones and sessions (obviously volume is always going to go up during london/ny overlap). I would guess the lower the timeframe the more obvious vsa signals are?

been trading 5min charts and failing miserably. dont know whether to go down to 1 or up haha

Both.

I look at a range of charts.

I post charts here that are either 1, 3, 5, etc -min. But I look at them all at the same time. 30, 60, etc -min also.


Magnus
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