Trade Using VSA (Volume Spread Analysis)

What do you mean by VSA indicator? VSA is about price (close), volume and spread. You don't need any indicators.

Shamus is working on an EA that will help read the bars, and everyone is waiting with bated breath. I am sure it will be great, but it is not exactly needed.

There are about 80 pages of VSA-like indicators in this thread if you just read it. Since VSA works in all markets and all pairs, the vsa-like indicators in this thread should work in all markets as well.

Hi all.
I'm new to the thread, but have read most all of it. I particularly like Malcolmb14's posts.
As I am not a huge fan of indicators. I do however, like information and would like to
make a contribution with my first post. It's a mt4 indi. that shows the number of buyers and sellers on each bar. I found it on another forum and have not done anything with it but put it on a chart. So I have no idea how well it works or whether it will be helpful.
I will be following along to improve my VSA knowledge.

Hi All,

A quick chart for discussion right after my super time in Spain with basque people and perfect gastronomy.

I did not find it easy to read this and was looking daily charts the most of the day but I would have missed it most likely. Missing it does not matter, the reading matters to me and the chart. The trades will come, wont they?

On these charts a great deal of clue to me is the 4 consecutive higher lows or lower highs respectively. On the EU chart this choppy consolidation took place at the level where lower prices were rejected on 10th September - a previous high Volume area important to monitor. So as that area likely to be signifficiant again, it happened that the price could not go any lower today (at time of posting this).

I highlighted the bars I would comment on - 11:00 and 12:30.

EU, AU 11:00 - down bar with increased V and the low is pushed back with the next bar up. The low of this bar creates a higher low in the price action, the third higher low actually, which is a bullish feature. VSA-wise buyers were operating on this bar to have the newt bar up. I would note that we do not have a higher high in the price action so this may not be a safe entry. Also, the market is quite choppy prior to this action so this whole set up is quite slow to unfold to a high probability trade for some. I appreciate that some of you made good pips on this set up.

UC 11:00 - almost the opposite, except that the bar is really nice from candle perspective, a doji. Some may combine bar formations with VSA. I like when a bar with potentially high importance to me turns out important from a different point of view too.

EU, AU 12:30 - another higher low in price action. These are Tests. On EU it has really nice confirming shape, on AU confirming Volume. If one had been monitoring these pairs for some time, these could have been good action signals.

US 12:30 - ND creating a lower high as a mirror to EU and AU to a smaller degree.

The bar at 11:00 is before New York Open, so I would not trade that by all means but the second indicates that there is no contrary action from the USA institutes and big boys and girls (let us be realistic and credit the ladies too).

Also an example how price action and Volume with VSA analysis of correlating pairs can help identifying potential trade opportunities. For good readers only one of these pairs is enough to know what is going on. I purely pointing out that one can confirm what is read at some other place.

This brings us to the question: If one reads the same thing out from correlated pairs and it turns out to be wrong reading, then what? Well, that does not mean that this technique can not be used to study set ups in different intensities improving chart reading skills - the purpose I started to look at them actually.

Critics, comments are appreciated.

Wonder if someone could tell me what I've done wrong here?
I loaded the bettervolumechartbars 1 & 2 in the indicators folder then dragged
then to my chart and clicked OK. This is what it looks like below.
Is this correct?

Thanks in advance
Tubguy

i dont know , i have the same problem. i hope someone in this forum can guid us. also i downloaded the RSX indicator used by malcolm in his beautiful charts. but when i opend my charts the window of the indicator was black, nothing in it.i hope someone guide me to this also.
thx

Tubguy - looks like BV 1.4 to me, don't see anything wrong from your pic, if you are having difficulty with it PM me and I will try to help.


Rockk - I dont use RSX but if you will PM me, I will try to help.


Chief

Hi Tubguy,

I think the better Volume 2 and 3 are highlighted bars on your chart.

Maybe what I've got is right. I was under the impression that the bars on the chart were
to look like this.

for some reason the pic won't show. Trying again.

Well the ES is quite a different market than FOREX so the indications are coming in different intensity perhaps.

Could anyone with good knowledge about Better Volume comment on this?

Hii
Based on the S/R Zone i did take short that didn't work out.. can u tell what mistake i'v made?

thanks

http://clip2net.com/clip/m15756/1253...-clip-41kb.png

Hi all,

just a chart of todays's gu killing for some.

Prior to this sudden down move there was weakness in the background in the form of not so obvious selling pressure, down move, then small up move. In the further back we have a big up trend and the last swing could not continue up at the time of this post. The S/R area indicated green, where the UT penetrates into, is actually the 61.8% fib level of the down move after the last up swing - if you like to use fib at all.

What I like on this chart is the sudden UT before the down move, that is a good looking SOW, actually happened on news I think. Right after it, there is a down bar, then a Gap Down. Aggressive and experienced traders might have taken a short position here to a potentially big profit.

After the big and fast down move there are two ND bars for additional positions. Well, these may not be very safe entry points for the down move is all behind.

And why to sell if it should have been sold already - some ask? That is a valid argument and sounds logical. I did actually a quick scalp, however, and got stopped out on the first arrow at BE too (with the second half of my position). But if we look at it, the down moves are still stronger. True, the momentum is gone at this stage, but the true sign in the change of S/D dynamics is at the highest V bar soon after - highlighted as climactic.

At this stage I am waiting if the market is setting up for a high probability long position. May not at all (go short later then), but for braver guys there is already a 30 pip move on the potential long entry I indicated, the up move of the market is just not enough for me yet (30 pips are 30 pips regardless )

Hope you did catch these trades!

These eu and au are just so adorable like this together!
At the selling pressure indicated there was actually a news event. The two markets look a bit different, certainly, but still similar enough to confirm indications if away from disturbing news event. Look at the Test/NS in the rising market!

There is a missing file for this indicator which must be present for it to run.

I have attached both indicators here for those who want the Rsx indi. This indicator requires both MA_of_RSX... and RSX to run.


Both files ,MA_of_RSX... and RSX, must be downloaded and placed in the experts/indicators folder to work.

Only the MA_of_RSX... file needs to be attached to your chart. The RSX file must be compiled and in the experts/indicator folder as it provides data to the MA_of_RSX... program.

The .ex4 files are compiled ready to run, the .mq4 files are the source code and must be compiled before running.

If you want only to run the indicator and aren't interested in the program code just download the .ex4 files and place them in the directory and start your platform then attach the MA_of_RSX.... indicator to your chart.

Best of trades all,

Chief

P.S. any questions feel free to PM me and I will try to help.

thankyou very much for your effort. i will download it
oh; I HAVE MT4, can I use the exe form of the file as its the one ready to use now.

yes its nice zoli, well done.

Yes,

all that is necessary to run an indicator is the .ex4 files. Make sure that you have both .ex4 files in the terminal-directory/experts/indicators folder.

There is really no need save and compile the .mq4 files if you aren't interested in reading the program code. Metatrader will create the .ex4 files when the .mq4 files are compiled.

sincerely,

Chief

Please post where you took the short. I have attached a chart with what I see. Remember volumes may vary here and it is possible that your trade was a valid entry that just didn't go your way. That happens sometimes.

It appears that you understand something about expansion bodies. All expansion bodies that have something true with respect to the prior interval and the immediately following interval represent some type of change in the supply/demand dynamics in the market. Individual traders can define which of this sub set they want to define as significant.

On to the chart:

A: Wide spread down candle on climatic (high) volume closing off its low. The close off the low tells us some buying (demand) entered here. This is a strong candle therefore.

B: This candle is down slightly form the previous candle. The spread remains wide and volume is a bit lower. However, the close is in the middle of the range or above. The lower shadow tells us that buyers stepped in this candle. This is effort. The close is our result. A down bar closing in the middle or upper portion of the range is strength.
First to candles we see are strong. Why would you want to be looking to take a short?

C: A narrower range on a up candle with volume less than the previous two candles. Looks like no demand. Problems here though. While the range is smaller than the previous candle, it is still wide. And we have just seen strength in the background.

If you interpret this as no demand, then you would want to enter when the next candle brakes the low. (More on this).

D: A narrow range up candle on volume less than the previous two candles. Here again, we have seen strength in the recent back ground, so it is not the correct place to see no demand.

If you do interpret this as no demand, then you would want to enter when the next candle brakes the low.

Notice that the next candle does not make a lower low, not close down. So D does not confirm nor bring you into the market. If you were looking to enter at the low of C, you are again not brought in.

E: This is a strong candle. The range is increasing as the volume increases and the close is in the upper 1/3 of the range.

F: This candle shows some weakness as volume is increasing on a down candle. However, the initial strength still remains.

G: No Selling Pressure (NSP). The market falls on a wide spread down candle with volume less than the previous two candles that closes near its low. If this was a bearish candle, then the volume should be increasing not decreasing. Volume is activity. Activity is therefore decreasing. Hence, the BBs are not participating in this down candle. They can't be bearish then.

H: This is a shake out. Increasing volume on a wide spread candle that makes a lower low and closes near its high. Kudos if you catch this candle and get long. We know this is a bullish candle once we see that the next candle is up.

I: Skip a few candles to I. A narrow range down candle closing in the middle of its range on volume less than the previous two candles. This is a test. Notice that the low of this candle trades down into the area of our shake out. We know markets don't like up candles on high volume. Even though it was a shake out, it needs to be tested because of the high volume. A breach of the high of our test candle brings us into the market.

J: The market can be kind at times. This is a very nice second chance entry. The range is narrow and the close is down. But look at the volume. It is extremely low (lowest in 20 intervals) and of course less than the previous two candles.

One more thing about D. It takes us until the appearance of G for there to be a lower low. This is three candles later. Many traders would not wait more than two before re-analyzing the desire to go short. Simply, if the market makes two consecutive higher lows after the would-be no demand, the market is strong not weak.

thanks ,and when the mq4 files will be ready?

Hi guys I hope you are all fine.

Yet again we have an interesting set up on AU. I like to focus on EU and sometimes look at AU and the UC to check the set ups, if any. This time I found that AU is way better to trade than EU; the path of least resistance is way easier to notice. We have an up trend but EU is really choppy. Look the NS bar in a rising market on AU! True, there is some immediate weakness in the form of a narrow range high V bar prior to the NS but the V of the NS is relatively lower.
Similar observation is more difficult to justify on EU - up and down rather.