Trade Using VSA (Volume Spread Analysis)

Here is a 30 min chart on the gold. Lets see what u think..................

AUDUSD short setup.

Background questionable... but i think we have seen break of no demand bar on 1hr (strong break) with a gay pullback on low vol and very high vol upthrusts on 5min breaking now for short setup.

PS - not in on this till close of down bar on 5min.

UPDATE: no trade... upthrust broken to topside. F***ing SSE...

Hey bro,

Nah i dont trade gold... just a big fan of the show 'entourage'!... might start having a look at it though... I usually only refer to it for a read on the risk aversion situation. Pretty bearish action on the chart you posted, though. I would think it will get a little sticky in the blue box you have highlighted... but i would be looking for an Inside bar or outside bar to reenter short on any rallies in the hope of seeing a retest of the lows to the left...

Im guessing you're already short... right?!

Still long

? how do you get the high value areas on your charts?

Thanks

D-ramon

could you go over the Gold chart! looks interesting!!!


i would of said short until it hits the blue box then long!!!!


D-ramon

high vol up bar knocked market sideways channel

does not seem much in way of selling pressure ....

do not agree

the bulk of volume in up move was at top ...that is sellers hitting market eu and has knocked market sideways. Now we have to have good up day tomorrow / thru london and renewed buying to counter that selling interest

eu right now is a very good short candidate

Okay, thanks Malcolm.

hi guys,

allow me here.

i was looking at the daily TF for GY. can anyone guide me what i'm seeing her?
is the beast gearing for a next move up again?

Euro/USD had been range bound.

That doesn't mean there weren't a few pips available. As I write this, it we have just seen a strong sign of strength followed by a test that last S/D zone so am looking for prices to rise.

But let's take a look back. 2 trades here to the long side.

Trade 1 :

A: Narrow Spread on a down candle that closes in it upper 1/3 on increased volume. This is a squat. Strength (demand) enters here.

B: Wide Spread (EB7) that closes up but off its highs with the next candle down. Volume is not that high, so although the close off the high and the next candle down signal some weakness, we know there was more strength in the candle. Markets don't like up candles on very high volume, because there could be hidden selling within them. However, bullish volume would be increasing volume on an up candle (and decreasing volume on a down candle). It changes when the amount of volume reaches relatively high levels.

C: First place to look for an entry. Narrow spread down bar on volume less than the previous two candles. We have strength in the background and now we see no supply.

D: Price moves up a bit and then starts to fall slightly. On D we see another no supply. Again, volume is less than the previous two candles and the range is narrow (NR7). The next candle, however, is not up. This might be a place to enter, if you enter without confirmation. But if you were entering on a breach of the high, it did not happen on the next candle.

Note that the volume on D is yellow: lowest volume bar in the last 20 bars. No desire for lower prices here.

E: Wider spread candle that opens lower than the previous bar and makes a lower low then closes on it highs and higher than the previous close on increasing volume. Professional support (for higher prices) enters here.
We also note that this candle engulfs not only the previous candle but the no supply candle which is two candles back from E.

If you are not yet long, this is it. Prices are likely to move up to the S/D zone above us, so we have a price target in place......

Trade 2:

1: We see a very wide spread (ER7) down bar on ultra high volume that is also and Effort to Fall. The close is off of the lows and the next candle is down. So we know that some buying must be hidden in this down candle. This is a candle of strength.

2: A narrower candle that closes near its highs and closes down from the previous bar on increased volume. This is a squat. The Long Shadow tells us that buyers stepped in as prices fell. If this bar was bearish, the close should be on the low of the candle, not in the upper portion.

3: This candle is down. The volume is less than our squat candle and the close is off of the low with the next candle up. This is a sign of strength. It's a bit tricky but what weakness this candle shows is not yet enough to swamp the strength we have just seen.

4: Things get even trickier. 4 is a no demand within a S/D zone created by the Effort to Fall. In addition, notice that the candles leading up to 4 all have decreasing volume as they rise. This signals that there is not a lot of interest in the up side just yet. However, it still appears that there is more strength than weakness.

One would be justified in taking a short here, regardless of outcome.

5: This is a key reversal candle and a test all in one. From a "test" point of view, we have a candle with volume less than the previous two candles that is marked down and then marked back up to close off its lows and in the upper 1/3 of its range. Making a lower low than the previous candle, but closing higher signals that support came in at the lows and pushed prices up.

From a key reversal candle standpoint, we have a candle that makes a lower low, opens above the close of the previous candle and close higher than both its open and the previous candles close. And off of its high.
If you got short the no demand, time to stop and reverse. If you saw the strength and ignored the no demand, now you have confirmation of that strength. Get long.

Two candles later, we have an Effort to Rise candle (EB7) confirming the change in the supply/demand dynamic in the market. Our target, the same Delta zone as the first trade.

[quote=HiddenGap;2971198]Euro/USD had been range bound.That doesn't mean there weren't a few pips available. As I write this, it we have just seen a strong sign of strength followed by a test that last S/D zone so am looking for prices to rise.quote]


Excellent stuff HG

Vsa is my girlfriend for sure....

Balance 1/4 sl @ BE. 4-5 minute trade. waiting on the rest now...

I was asleep but this would have been a real easy trade with some small draw down due to a little blow over but would have been real sweet. I will catch the next one maybe. 200 pip drop right to the 61.8

My goodness look at the 15m chart what a sell trade at the res trend line volume huge and a dark cloud cover candle and holds trend line. wow wow wow!!!!

LOL PJ, some of us do trade the European Session....that spike was a stop sweep on the UK news as I've posted elsewhere.... http://www.forexfactory.com/images/icons/icon12.gif....and yes, various shorts were also taken....http://www.forexfactory.com/images/icons/icon6.gif

Hi,
I'v been demo trading w/ibfx. I've seen a big difference in
volume the last couple of days.
I was wondering if it is on my end or if it's there for everyone.

I hope you did not short it and if you did, you got out with your pips intact. It is still not a short candidate for now. Cheers

i think you will be in for a nasty shock ....

we are testing the supply level on low volume last 3 hours.

OPtion expiry stock market tomorrow , that is what is holding the markets up.

ES destined for 980 Monday and eu / gu will drop ....

cut this out and put on fridge ..lol

I have been doiung this VSA stuff for 18 months now .. know a good set up when i see one. I do not trade EU. If I had the choice right now I would do nothing till after topmorrow. For sure i would not be going long