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Trade Using VSA (Volume Spread Analysis)

  • #2,581
  • Edited 11:04pm Aug 4, 2009 10:49pm | Edited 11:04pm
Here's a trade i took yesterday on gbp$ (buy/long).
my M5 buy/long gbp$ trade was indicated by the two yellow horizontal thick lines.
(just to clarify... this were my approximate, not exact, entry & exit).
Dodger blue line on price chart is GannHiLo. then there's Bollinger bands. Better Volume 1.4 & other basic indicators.

I am not well-versed yet, but here's what i saw.
Low vol. test (lime green) [ + CCI30 bull.divergence] , i entered shortly after. (low volume yellow bar ,after the high churn lime green bar, in BetterVol.1.4 indicator correspond to a NO Supply bearish candle) my exit (chocolate vertical line) was on the bar/candle which was a low spread high churn bar (after a climax high, wide spread bar).
ADX14 & CCI30 also have "topped".
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  • #2,582
  • Aug 5, 2009 9:30am Aug 5, 2009 9:30am
Malcolmb's market profile indi draws yesterday's POC line to 160.5 and the the one that TwoBuck(nice job) posted put it to 161.28. That's quite a difference. Maybe he uses different time setting?
  • #2,583
  • Aug 5, 2009 10:16am Aug 5, 2009 10:16am
Quoting MartinFx
Malcolmb's market profile indi draws yesterday's POC line to 160.5 and the the one that TwoBuck(nice job) posted put it to 161.28. That's quite a difference. Maybe he uses different time setting?
lol .. again esignal superior data versus crappy mt4 ....lol


i set my start of session to start of london

the long of yesterdays poc in london was a give me ..... 200 pip trade
Blogging daily now at www.volume.zone
  • #2,584
  • Aug 5, 2009 11:20am Aug 5, 2009 11:20am
another question: what happens in the background?
buyers or sellers @ 160.59? i would tend to think more sellers, as the candle closed in the lower half...
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Nihil Sine Deo.
  • #2,585
  • Aug 5, 2009 11:46am Aug 5, 2009 11:46am
Quoting Scrat
another question: what happens in the background?
buyers or sellers @ 160.59? i would tend to think more sellers, as the candle closed in the lower half...
Wide spread down bar with the next bar up--more buyers
but hey--you can always wait for a TEST--whats a few pips
  • #2,586
  • Aug 5, 2009 11:54am Aug 5, 2009 11:54am
Does anyone know of a mt4 indicator which will draw the VWAP lines weighted average price as well as poc lines as per market profiler ind posted
  • #2,587
  • Aug 5, 2009 12:03pm Aug 5, 2009 12:03pm
Quoting Scrat
another question: what happens in the background?
buyers or sellers @ 160.59? i would tend to think more sellers, as the candle closed in the lower half...
I have ofund overall a 15 min chart shows a better picture than a 60 min chart ...


here is weakness showing up in gj 161.70 area

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Blogging daily now at www.volume.zone
  • #2,588
  • Aug 5, 2009 12:04pm Aug 5, 2009 12:04pm
Quoting Scrat
another question: what happens in the background?
buyers or sellers @ 160.59? i would tend to think more sellers, as the candle closed in the lower half...
Hi Scrat

If you drill down to a lower TF it shows quite clearly the buyers coming in on that one hour bar. When trading using VSA I find it useful to have a number of timeframes open for each pair.

The 15m clearly shows buyers coming in followed by a no supply bar and a low volume test (yellow arrow).

C

EDIT: I see Malcolm got there first. Also good call on the low vol test (weakness) . Its dropped 50 pips straight after that bar.
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Boxing clever since 76.
  • #2,589
  • Aug 5, 2009 12:06pm Aug 5, 2009 12:06pm
this one looks better. second arrow shows clear buying pressure @ 1.6930.
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Nihil Sine Deo.
  • #2,590
  • Aug 5, 2009 12:07pm Aug 5, 2009 12:07pm
Scrat,
Firstly, Very glad to see u here.

if u look at that huge red down bar alone, then more sellers. BUT since u are asking about the background, looking exclusively at that chart, it seems there are willing buyers (for at least the 3rd time/instance, in fact) when price reach the 160 -160.60 area. seems to that there's not much sellers above but price is not yet ready to go further up.
Until i'm corrected, that is how i view that particular chart.


btw, i have read your post in another thread about u not believing in a bullish&/bearish pinbar. have u widened/reconsidered your view ever since? just curious..
  • #2,591
  • Aug 5, 2009 12:30pm Aug 5, 2009 12:30pm
and thanks for the answers! i am using multiple timeframes - from 5min to h4 - to look at volumes, and i agree that things look better on 15min... but i can't use 15min to look at the bigger picture.
Nihil Sine Deo.
  • #2,592
  • Aug 5, 2009 12:36pm Aug 5, 2009 12:36pm
alright, thanks, that was how i thought about it. it's all about the background! i'm on the right track
about the pinbar: not really. a pinbar is just what it is = indecision or MAYBE reversal. it needs confirmation, most of the times. but bullish or bearish? i don't know, there's not much room to play with a pinbar, right?
but that's just my opinion, i might be wrong. it's just because i prefer to keep things simple.

Quoting supremeChaos
Scrat,
Firstly, Very glad to see u here.

if u look at that huge red down bar alone, then more sellers. BUT since u are asking about the background, looking exclusively at that chart, it seems there are willing buyers (for at least the 3rd time/instance, in fact) when price reach the 160 -160.60 area. seems to that there's not much sellers above but price is not yet ready to go further up.
Until i'm corrected, that is how i view that particular chart.


btw, i have read your post in another thread about u not believing in a bullish&/bearish...
Nihil Sine Deo.
  • #2,593
  • Aug 5, 2009 2:25pm Aug 5, 2009 2:25pm
Hi Folks, need your help.

Looking for a charting package that offers H1 data for more than 6 months back. My current MT4 with Active Trades (UK) does not give me enough data to trade historical H1 SR areas for the current GU market.

Gracias
  • #2,594
  • Aug 5, 2009 2:32pm Aug 5, 2009 2:32pm
ok if i do not make 50 pip on this short i am going to punch hole in screen

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Blogging daily now at www.volume.zone
  • #2,595
  • Aug 5, 2009 4:22pm Aug 5, 2009 4:22pm
here's a picture of usdchf, everything seemed great but the market still went lower before pushing up...my question is:

How long you would have hold on to that trade ?

PS. malc do you get pm's ?
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  • #2,596
  • Aug 6, 2009 12:57am Aug 6, 2009 12:57am
Quoting lumesh
here's a picture of usdchf, everything seemed great but the market still went lower before pushing up...my question is:

How long you would have hold on to that trade ?
The first labeled candle on your chart can't be No Supply. There's no "volume less than previous 2 bars", as it says in No Supply's definition. While there isn't No Supply bar, you don't look for the long side. IMHO.
  • #2,597
  • Aug 6, 2009 1:48am Aug 6, 2009 1:48am
Quoting lumesh
here's a picture of usdchf, everything seemed great but the market still went lower before pushing up...my question is:

How long you would have hold on to that trade ?

PS. malc do you get pm's ?
No supply incorrectly identified as mentioned before.

I think you went in too early, yes, there are signs of buying, but price was still sloping gently downward. What you are pointing out is potential buying, but you need a major sign of strength to enter.

That sign comes to the right, where you have a two bar reverse upthrust, on higher volume (wide spread down bar followed by wide spread up bar). After this, I'm interested in entering, if you're aggressive, immediately after the two bar rut, or if you're more cautious, on a test.
  • #2,598
  • Aug 6, 2009 1:57am Aug 6, 2009 1:57am
hmm,

ok i might have misleaded you by saying the word "no supply"...just meant no selling pressure with buying interest coming in...and then we had some form of tests...

my question is whether this kind of testing works only when the market has made somekind of upthrust with high vol previously ?



Quoting daffy
No supply incorrectly identified as mentioned before.

I think you went in too early, yes, there are signs of buying, but price was still sloping gently downward. What you are pointing out is potential buying, but you need a major sign of strength to enter.

That sign comes to the right, where you have a two bar reverse upthrust, on higher volume (wide spread down bar followed by wide spread up bar). After this, I'm interested in entering, if you're aggressive, immediately after the two bar rut, or if you're more cautious, on a test.
  • #2,599
  • Aug 6, 2009 2:04am Aug 6, 2009 2:04am
Quoting lumesh
hmm,

ok i might have misleaded you by saying the word "no supply"...just meant no selling pressure with buying interest coming in...and then we had some form of tests...

my question is whether this kind of testing works only when the market has made somekind of upthrust with high vol previously ?
I'm looking for testing after a sign of strength. It's kind of like, the sign of strength puts your tradey senses on alert, and then a test indicates it's time to enter.

the sign of strength could be that we're in an uptrend, there is evidence of accummulation, a reverse upthrust, wide spread down bar closing in the middle, etc.
  • #2,600
  • Aug 6, 2009 3:35am Aug 6, 2009 3:35am
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
DAX.

15-second.


Magnus
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