Trade Using VSA (Volume Spread Analysis)

Hello,
please, if You have time, give me some comments on my trade - How You would suggest to manage it.

Thank You.

Best,
Tom

p.s.

fx is kicking me....

Hii
Hiddengap what i was trying to say is .. that BIG down bar you market as S/R delta 2 zone is a down bar.. so if price move back up to zone you would look for short right? but yes ofcourse Pure VSA wise that bar indicator the strenght is in the market. thats what I'm asking...

A bullish Candle S/R zone is for bullish setup
A berish Candle S/R Zone is for berish setup

I may be wrong but is this the right way of using it?

thanks

U had two test of supply ( support ) based on your chart

http://clip2net.com/clip/m15756/1253...-clip-19kb.png

please reduce the size of your charts - they are way too big and completely screwing up this page.

Thank you.

Please reduce the size of your charts - they are way too big and completely screwing up this page.

At last, a new page.....I hope that others have noticed that the three highest volume 15 min candles in cable have all be shooting stars - i.e. they had long upside wicks above their bodies....thus plenty of suppy in the 6500 - 525 area.....it remains to be seen if this was profit taking / position squaring before the US data at 8:30 edit or if it was position building......Time Will Tell

Ibfx volumes are way off, so be very careful using them. Cheers

Hi all. I have just arrived at home and I have note it, it seems to be wrong.

Many times I have thought "Smart Money" boys don't like that we could know how they trade and using it in order to trade with VSA. A way they could use to avoid it will be to "fake" the volume information from we are getting it.

Maybe I am just a bit paranoic .....

1. trading against the trend
2. when trading against the trend expect small gains(10-20 pips)
3. confirmation should be 6 bars later (no demand(low volume up bar w/ narrow spread closing in the middle or lower)with weakness(high volume up bars in the background))
hopes this helps(i'm a newbie to VSA also)

There is a webinar this afternoon at 5:30 pm EST at online trader central on using the MACD with VSA .

Just passing along to those who are interested.

Excellent chart and explanation HG, thanks!

thankyou for briliant explanation HG.
thx,thx.thx
but i have q about shaking if you dont mind..
shouldnt it be to the oppsite side of the mkt??
thx

it does not matter much that the trend was up. i usually go against the trend. the main thing is that the supply was very limited. and by the way, this is not an up thrust...

I was afraid you would say this.

Expansion body analysis is about an understanding of the price action but generally speaking, it does not dictate trade direction. So a white candle (open<close) does not necessarily mean you look to take longs. And a dark candle (open>close) does not necessarily mean you look to take shorts.

Simply, the zones themselves are neither bullish nor bearish. A zone may be created after bullish price continuation price action, but the zone itself in not necessarily bullish.

Although expansion body analysis is independent of VSA, I have included VSA concepts into my definition of significant. Basically, the sub group I am talking about will be "effort" candles. This does allow for one to be predisposed to a particular direction at times.

Take a look at the chart below.

The effort to rise candle comes after strength AND the volume on the candle itself is not high nor climatic. This tells me that a long set up is more probable here. Yet, as this zone remains open, the next time price comes into it, either direction is possible.

Understanding the price/volume action is key. So in this case, the test candle up against the zone is an ideal place to go long if you are not long already. In this case, longs were favored. But the next time price enters this zone there is no real reason to be predisposed to the long side.

This is a key area of change in the supply/demand dynamic and thus we want to see trade set ups here. Direction is about what happens prior and inside the area itself.

Despite my disdain for indicators, I would love to see this. Please post a link if it was recorded.

Thanks hidden gap for your explanation.. btw how long would u hold the S/R Zone ... is there any specific time period ?

I keep them open until there is a close above , a close below and some price action thru the zone. Therefore if you get a close below and then an actual gap that closes above, the zone is still open.

However, some traders choose to keep them open longer.

There are some who will only take trades when the zone is open, but continue to use the closed zones as profit/price targets.

I think it starts to muddy up the charts if you do either of those things.

tfflyer:

my advice is if you are in learning phase of VSA and all trading.
DONT TRADE AGAIST TREND.
you have pretty channel draw why you entered short when channel is up ? and also your entry was bad.
Uptrust is weakness yes but if its counter trade you should wait for more confirmation, maye some nice No-Demand.
Not jump into trade quick as possible after uptrust when trend is up.
And also i guess your risk/reward was not good coz demand line is raising.

Are you using a channel indicator ?

Hi All,

today I started to learn this esignal. It is dear to me, at this stage and not later, but I got trial for a month.

I am very impressed! The V is, of course, the best but even the price is smoother and better. And, guys, do not believe that the beauty of the chart does not matter. You are looking at it often you know.

I set up my chart similar to Malcolmb's, funny, so the look of it is familiar.
I have read so many post of yours, Malcolm, that it is in my mind now-I mean the colors.

To the chart.

GJ is a monster and can be punishing. Looking at this chart for me it looks like the bigger down move is broken at the moment and we are in chip chop. We were at area of previous buying at 149, why not look for a long? This is a day trade, I have no idea whether it rockets to the sky or will go down again.

A: Now, this is serious Volume. This powerful push away from previous buying zone prevents me to go short right after, rather long depending on the following actions. This is high V up bar, the market does not like this, but when this is a topic we also mention that this is most dangerous in an up trend.

B: This is selling pressure but it was unable to close off the low and the V is way less then at bar A. Also, the next bar is up.

C: This is the previous buying where bar B attempted to go down to.

D: These bars are weak. Thew form part of bar C and they, with the V they are accompanied with show supply at the price level. The last of them is dip down to 149, where there is a stronger force resting at the moment.

E: Immediate response from Demand. This is a Srong bar and suggest that a long set up may be ready after some struggling.

F: Another attempt to go down, to a failure. This is a very good looking bar to us, who read this stuff/learning to read.

G: Really nice low V Test bars after bar E and F to indicate that there is no Supply left here.

H: A bar of potential entry. I entered at the close of this (eh what a big bid-ask spread). Now, that does not matter, I am way more interested in the reading so please disregard my position.

I: I expected a bit of struggling (weakness) on this bar for it is trying to go through some previous supply. The markets do this, so expecting hesitation is good, but we do not need to bail out right away. There is our big friends in the background. However, taking partial profit here and pull it to BE is not bad, is it?

J: This nice Test indicates that demand is still stronger and also gives as another entry opportunity.

K: This bar is also hesitating a bit, but the V is higher than of the Test's and we note higher high and higher low.

L: The low V Test of bar K, another entry opportunity.

M: A serious push to the up side. There is supply present at level of bars D, so there is a need to push through. This is Effort to rise.

N: Another effort. This is the second time of climactic bullish V and wide spreads. The markets do not like this and we have to be aware of that. There will be supply here soon. Also, this is a level of bullish commitment from proffessionals so may be a potential future Support if the price wants to go down.

O: Supply arrived. Good place to take some profit.

As I was monitoring this trade set up, I noticed the same beautiful action on EJ and UJ with several entry opportunities, as we were progressing, respectively. I certainly can not monitor more pairs yet as I am in a trade but I am sure that some of you got these nice moves. I can not put these here, would be on the whole page of the thread, so please have a look at those if you like.

I would be happy for some direction on anything I missed.