Trade Using VSA (Volume Spread Analysis)

Is anyone interested in posting a quick USDJPY H4 analysis?

I'm always surprised with that efforts. What will you see on H4 charts? Just peaks and valleys of volume due to the Asian, London and US market sessions. I wonder how can you read those charts through VSA. IMHO.
P.S. If you have an example of H4, please feel free to post, it'll be interesting to look at.

First time using VSA. This was a calculated risk which turned out well. Using VSA, i waited for selldown to abate, before taking a long 2 candles after the volume peaked (white volume bar). Trailing stop was used.

USDJPY: Long 92.354 (SL 92.154, trail step 15), closed 93.00.

I don't know if there are many vsa traders in the same situation as me, who have little time to devote to watching the charts for good vsa setups especially during working hours. What I would like is an EA or script that sends an email if any of the following conditions are met.
1. No demand - narrow spread up bar, low volume that closes in the middle or low.
OR
2. No supply - narrow spread down bar, low volume that closes in the middle or high.
OR
3. Narrow spread bar that has higher than average volume.
I have attached an vsa indicator that could be used as guide. Thanks to all the contributers to this thread whose knowledge and support is invaluable to those of us who are trying to grasp vsa. Thanks in advance to those who expertise would be greatly appreciated.

WHAT ....

good to see you use the one news item i avoid like the plague to start using VSA ....lol

what tf is that?
what is this type of chart(indicator) how to download it?
thx

Your broker is lying to you. MT4 does not support contract volume. It's activity or "tick" volume. Even if your broker has futures/CFD's/indexes on MT4.

"double Volume[]
Series array that contains tick volumes of each bar of the current chart."

http://docs.mql4.com/predefined/variables/volume

What happend to my last two posts? If they do not show up, I will not be posting again.

I must have missed the meeting where the community decreed that YOU must use VSA.

I don't think anyone here would assert that VSA is the only way to make money in the markets.

VSA is not the holy grail.

There is no holy grail. In part because everyone cannot trade the same way. Look at the charts in this thread. Some have trend lines, some have ichi clouds, some have RSI, some have ma's, and some are just bars and volume.

I do not think you would be reading this thread if you had already found what you were looking for. And apparently, VSA is not it. I'm sorry you feel that way.

But the onus is not on us to prove VSA is right for you, it's on you to prove it to yourself.

Beautiful trade.

"The downfall of most traders is to believe that the purpose of trading is to predict the future; rather than to identify trade set-ups within the context of their trading methodology."

News trading is a bit of a fool's game for the retail trader. VSA teaches us that the SM uses the news to their advantage. Many tops occur on good news and many bottoms are created when the news is at its bleakest.

That is why VSAers attempt not to focus on the reaction to the news, but instead the reaction to the reaction of the news.

Take a look at the chart below. This was a pretty interesting trade set-up that started on the NFP release. There was no need to know what a "good" number was or what a "bad" number was. All that was needed was an understanding of volume, range (spread), and close. Add to that a "place" where you would like to see what you are looking for and then you can pull the trigger.

A: This candle ends at 0830 hrs. The time of the release. Note that this candle already has very high volume. It closes down and makes a lower low than the previous candle. However, the close is in the upper portion on the range. There is demand (Strength) in this candle.

B: Things change. This candle has a wider range. It is an outside candle, making both a higher high and a lower low than the previous candle. Volume spikes up to ultra high. While the close is up from the previous candle it is well of the high of the range. Supply enters here. What is likely happening here is some SM bought into the report and are taking profits on the next candle.

C: While volume is still climatic and very high, it is down on this candle. But the range is narrowing. This candle makes a higher high, then price is pushed down to close below the midpoint of the range (although still up from previous candle). the BBs are selling on this candle: weakness.

D: Supply swamped demand on the previous interval and prices now fall. We see a wide spread down candle. Note that the volume is actually decreasing and the close is well off the low. The close tells us that there is likely some buying "hidden" in this down candle.

E: The BBs see this, so what do they do? They test. A narrow range down candle closing in its upper 1/3 on volume less than the previous two candles is a test. Although volume is less than the previous two candles, it is still relatively high. Which is one reason this test ultimately fails.

F: Down candle with increased range and volume. The range and the volume are only 2/3s of the picture, however. Look at the close. Here again we see a close that is well off of its low. Even as price is falling, demand is entering.

G: Another narrow range down bar with volume less than the previous two bars. This is another test. This time, the close is near the low of the range. Thus the problem with this test is the close.

H: Increasing range and increasing volume on this candle. Yet again, we have to look at the close. And again, we see that the close if off of the low.

I: This is an interesting candle. Volume is lower than the previous candle, but the candle makes a lower low. In fact, this candle makes the lowest low thus far. That is key. It's key because, while it makes the lowest low so far, it closes in the upper portion of its range more so than any of the previous candles. In other words, more support (strength) can be found in this candle even as it makes a lower low.

Even with 6 straight dark (close<Open) and down candles, we have seen buyers (strength) stepping in. This is our background.

J: Up candle closing on its high on increased volume. Here again we see a large wick. As before the wick shows buyers stepping in. Unlike before, however, the close is up and the candle is white. This is a place for a very aggressive entry.

K: Wide spread down candle closing near its lows on volume less than the previous two candles. This is no selling pressure. The supply has been taken out of the market now. If this candle was truly bearish, the volume would be higher. As VSA tells us, generally speaking, bullish volume is increasing volume on up bars and decreasing volume on down bars. This is an example of the latter.

J: Key Reversal Bar. This candle makes a lower low. But the open is higher than the close of the previous candle and the close is higher than both the open and the close of the previous candle. And this is done on increasing volume.

We have seen signs of buying as prices fell and now within the supply/demand delta zoned we see signs that the supply/demand dynamic has changed. This is our signal to get long.

***************************************************************************************

In my previous post I mentioned using expansion bodies for partial exits. Here I have shown an alternative method for those who like to trail their stop.

As we see expansion bodies in the direction of our trade, we move our stop to just below the low of that candle. So once we see #2 we move our stop to #1. After #3 is formed, we move our stop to #2. and so on.

The key is that each successive expansion body must be making a higher high.

At #6, therefore, we have moved our stop to #5. But no more expansion bodies close higher than #6. Price meanders sideways and then moves down enough to take us out at #5.

If my last two posts are removed again, you might as well remove every post I have made. And I will NOT be posting again.

I don't follow VSA, but I like to lurk here from time to time. I just wanted to say this is a really outstanding post. Very clear and easy to understand even for someone like me that hasn't read up on VSA.

The part I like best is how you were able to identify buyers coming into the market bar by bar into the support area.

Nice work.

I imagine it was server error and not done on purpose - at least that is what I hope ....

Hello Hidden Gap,
i can see one of Your posts with image. Was there 2 such posts with image?

Is someone really deleting posts ??? Why ????

EDITED: Ok, i just read LasVahGoose post and now understand why here isnt HiddenGaps post.

Best,
Tom

I found your posts here

http://www.forexfactory.com/showthre...=195277&page=3

Just want to mention I find your bar by bar analysis very illuminating. pLease continue

Mike

I am the only one that can ban a poster (not remove posts) from this thread. There ia no way I would remove your posts (they are some of the best on here as I have mentioned to you in PM) and obviously you're not banned since you can still post.

I am guessing it was a server glitch of some sort because I cannot imagine anyone reporting your posts of all people to a mod for removal. To be sure I will ask Twee since he helps me out quite a bit with monitoring this thread.

I'll get to the bottom of it either way.


I have been away visiting a sick Grandmother so haven't be here for a couple of days do you have a post# or something else that may help twee find the problem?

The posts are back up now shamus...

One other thing...did you happen to post on traderslab a while back? I thought I recognised those kind of charts and informative annotations from somewhere...

@Shamus --theorem above found them in the recyle bin...
http://www.forexfactory.com/showthread.php?t=195277

It looks like HiddenGap accidentally got caught in the post move when Cellar Door got suspended.

Hope your Grandmother feels better.


@HiddenGap - please keep posting. great stuff

Shamus, I hope your Grandmother is doing better.

Thanks everyone for the kind words.

I got a bit upset last night because I had just written the second of two posts and they suddenly disappeared. I managed to find them and noticed a heading that said "padded or padding posts".

While my posts may be on the long side, I don't "pad" posts .

I was not going to rewrite the second post, which was the one I cared most about. I was able to copy the text and then repost them both. I was not sure if they would remain. They have. Now I understand they were removed in error when certain posts were removed from a banned poster.

I love it here and it's all good.