Trade Using VSA (Volume Spread Analysis)

my First M1 chart post here....

i initially posted this on another thread... (slightly edited version here)

"i intended this gu short trade to be a scalp. i particularly waited for spreads to normalize a bit (gu spread went up to 10-14+ pips prior/during FOMC; when i entered trade @1.6457 --after the pinbar/upthrust-- it was 4-5pip).... my platform freezed for about 10-20seconds but thankfully my TP was hit (27 pips @ 1.6430, yesterday's low; marked by a short Aqua horizontal line)
check mark shows the small pin bar/upthrust (UT) off of MML (murrey math line) at 1.6479.

it's past 2.30am here (Philippines), im not eager to take another trade (avoid overtrading, greed; trading when im sleepy/past my bedtime) but i could've traded the no supply (?) bar (yellow vertical line; for a long trade)."

i know i said i would stop posting profiler charts... but i can't help it, i gotta post this one
this is what happened during and after FOMC news. look how those levels from profiler behaved... unbelievable!
coincidence...?

Okay Scrat you've sold me on the marketprofiler.

Market profile is to be used for value area trading ... and high volume pivots

in actual fact the areas that we bounced between today were the upper and lower value areas of today. The lower value area is also high vol pivot 11 days back . I did sell off POC in Asia for 158.30 test

in order to determine market direction tomorrow I will use the value area of today , note that we have been contained today mostly in the value area of yesterday today ( red lines) , this could be some form of accumulation day

above 159.33 very bullish , below 157.87 very bearish ... in between scalp both ways

What are the system requirements of the Esignal charting program? They recommend 3gig ram but is it really needed? Also, you have to pay rsx, vwap, market profile indis?

yes you do ... they are not cheap but well worth it... well for me anyway , but each trader has their own style of trading

Hi guys. We've seen hot action last night. Large volume was thrown after FOMC rate decision. Look at 6E 1 min chart.

#1: This is wide range down bar with very high volume, so demand might came in here. After such bars we're looking for signs of supply's weakness.

#2: But instead of No Supplies we've seen this - narrow range up bar with volume less than last 2 bars. Classic No Demand. Would you go short on the very next bar?

#3: Same as #1, down WRB with high volume. Looking for No Supplies, tests, etc.

#4: Yeap, it is. Narrow range down bar (yeah, close NOT lower, but anyway) with less volume - No Supply. And we've seen test on even less volume after that NS bar (big boys were testing the market to go short, but there was no interest). Would you go long?

Well, then maybe it's not my platform, still hasitating. I found Jurik's site but could you post a link to other indis you described in this topic lately?

Thanks
Martin

These are the ones for esignal: http://www.sr-analyst.com/studies.htm

mt4 versions for them (including jurik) can be found throughout this thread.

GM all - I hope that any traders who have ever wondered why I keep talking about FO /LO, Frankies Hour etc will take a look at this morning's 1 min charts......those wide range high volume candles all happened 6:00am gmt at the FO as some Big Dogs bought Cable & Euro and sold Swissy.

I've now closed my longs in cable and EJ and am looking for a pull back to buy again - lets hope that it happens before I have to go out for the day
__________________

Edit: - lets also hope that Malcolmb drops in and gives us his thoughts on that action.....

In addition, I must add that I saw a reversal (buying climax) on the weekly charts of the euro and cable. It has never failed. Both pairs are on a downward ride for now.

don't know how you guys analyse 1 minute charts,
scares me to no end--you are brave souls..
if it all goes well--if the lows(156.200) of geppy doesn't fall apart,
the up move could be very substancial(am talking break tthe bank moment) and vice versa.

and dow watchers, if dow ever breaks 11800(wet dream), you can forget it,
its dow 19500--think call of 9600 is almost close--
this is how the warren buffets are made...

i see you guys like my trainer--lol
here's the front view--
Nice weekend everybody--

hey guys,

found this great indicator over at the mlq4.community. I really like it because you can draw some nice trendlines to let you now when levels are being held or broken!! Let me know what you guys think.

On Balance Volume Technical Indicator (OBV) is a momentum technical indicator that relates volume to price change. The indicator, which Joseph Granville came up with, is pretty simple. When the security closes higher than the previous close, all of the day’s volume is considered up-volume. When the security closes lower than the previous close, all of the day’s volume is considered down-volume.

The basic assumption, regarding On Balance Volume analysis, is that OBV changes precede price changes. The theory is that smart money can be seen flowing into the security by a rising OBV. When the public then moves into the security, both the security and the On Balance Volume will surge ahead.

If the security’s price movement precedes OBV movement, a "non-confirmation" has occurred. Non-confirmations can occur at bull market tops (when the security rises without, or before, the OBV) or at bear market bottoms (when the security falls without, or before, the On Balance Volume Technical Indicator).

The OBV is in a rising trend when each new peak is higher than the previous peak and each new trough is higher than the previous trough. Likewise, the On Balance Volume is in a falling trend when each successive peak is lower than the previous peak and each successive trough is lower than the previous trough. When the OBV is moving sideways and is not making successive highs and lows, it is in a doubtful trend.

Once a trend is established, it remains in force until it is broken. There are two ways in which the On Balance Volume trend can be broken. The first occurs when the trend changes from a rising trend to a falling trend, or from a falling trend to a rising trend.

The second way the OBV trend can be broken is if the trend changes to a doubtful trend and remains doubtful for more than three days. Thus, if the security changes from a rising trend to a doubtful trend and remains doubtful for only two days before changing back to a rising trend, the On Balance Volume is considered to have always been in a rising trend.

When the OBV changes to a rising or falling trend, a "breakout" has occurred. Since OBV breakouts normally precede price breakouts, investors should buy long on On Balance Volume upside breakouts. Likewise, investors should sell short when the OBV makes a downside breakout. Positions should be held until the trend changes.

Here is an Example!

D-ramon,
OBV is/has been a default indicator in Metatrader4.

supremeChaos O!!!! cool never noticed it!!!! Thanks. And even if I did i would not have known how to use it until I started to study VSA and how to use volume! It kind of functions like the bars do to show volume but in a line graff sort of way!

I am new to this thread & feel this threads use of vol is brilliant. Its the bit Ive been missing from my trading!

However, altho indicator is good & it certainly seems useful, can someone explain why none of the experienced guys screenshots seem to include it? Are they using it? Have they used it & not found it useful in the greater scheme?

DAX.

15-second.

See this every so often... ~3 moves down (or up)... heads-up for a reversal...

Nice, is that orange line at the bottom the MP line