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Trade Using VSA (Volume Spread Analysis)

  • #3,681
  • Oct 6, 2009 8:22am Oct 6, 2009 8:22am
Quoting tfflyer
Hello,
here is chart attached.

DR Gep., HiddenGap, Malcom and maybe some other PRO could take a look and say - what is the things, which would say - DO NOT GO LONG.

Because, as soon as i see such climatic bars - I am looking only longs..

EDITED: I am sure many are with me on this question.

Thank You.

Best,
Tom
So you are saying that as soon as you see an utlra wide high volume news candle you are going to trade against it - i.e. reverse.......IMO that's not a good way to trade. IF the pros are using the news to fake out the herd, then I would expect an immediate reversal - which does happen.

Here, price has stalled around the 5950 level going sideways for two hours with no attempt to rise - and thus working off its short term oversold condition - until finally continuing its move south - as hinted at by its earlier failure to rise on GOOD news......
Trading Levels with WRBs
  • #3,682
  • Oct 6, 2009 8:33am Oct 6, 2009 8:33am
Quoting Islander
First resell actually off the green MS1 level at 5915

Edit: Exited when it failed to break the red S1 level....

LOL.....wait about half an hour and repeat for another ~20 pips.....http://www.forexfactory.com/images/icons/icon12.gif
Trading Levels with WRBs
  • #3,683
  • Oct 6, 2009 9:05am Oct 6, 2009 9:05am
Quoting tfflyer
Hello,
here is chart attached.

DR Gep., HiddenGap, Malcom and maybe some other PRO could take a look and say - what is the things, which would say - DO NOT GO LONG.

Because, as soon as i see such climatic bars - I am looking only longs..
Tom,

Always look to the left. Did that higher volume bar break a swing high/low? Is it breaking through any type of support or resistance? If so, and the volume isn't ultra-high (smack your ass and call you sally high) then you should be looking for a pullback and continuation of the trend signals for entry. In this case no demands or up thrusts as its a downtrend.

Hope this helps.
  • #3,684
  • Oct 6, 2009 11:36am Oct 6, 2009 11:36am
To quote MB - always look to the left......a good idea here so that you can read the information given by the market profile indy.....the arrows are signals that I´ve used today for entries, the last one was closed in the drop into the London Close ~5900.

Plenty of pips pirated and I'm finished till Frankfurt......BFN
Attached Image (click to enlarge)
Click to Enlarge Name: oct 6 cable 5m 1250 lo close.gif Size: 27 KB
Trading Levels with WRBs
  • #3,685
  • Edited 12:30pm Oct 6, 2009 12:19pm | Edited 12:30pm
Quoting tfflyer
Hello,
here is chart attached.

DR Gep., HiddenGap, Malcom and maybe some other PRO could take a look and say - what is the things, which would say - DO NOT GO LONG.

Because, as soon as i see such climatic bars - I am looking only longs..

EDITED: Ofcourse, i am not looking to go long immediately after such climatic bar. Just trying to find some clues after that like Tests, etc. and then go long.

EDITED: I am sure many are with me on this question.

Thank You.

Best,
Tom

The first candle we see here is a climatic action candle indeed. It is ultra wide with ultra high volume closing off the low. The close off the low tells us that there is some demand (buying) within this candle.

VSA would say, if the next candle is up then there must have been demand (buying) in the climatic action candle.

Here we see that the next candle is down.

If the next candle had been down with a narrower range on increased volume, then that would be evidence of strength (buying) both on the second candle and on the first.

As the chart shows, the volume is decreasing on this next candle. While the close is higher than the middle of the range, the candle is not all that bullish.

Ultimately what the market does after that climatic action candle is consolidate/distribute. Notice all the up candles on volume less than the previous two candles. There are tests that fail, and tests that show no result. We see narrow range up candles on increased volume, which are sings of selling (squats).

But our big clue has to do with the candle that immediately follows the climatic action candle.
Attached Image (click to enlarge)
Click to Enlarge Name: Current4.png Size: 66 KB
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #3,686
  • Oct 6, 2009 12:31pm Oct 6, 2009 12:31pm
Quoting Islander
To quote MB - always look to the left......a good idea here so that you can read the information given by the market profile indy.....the arrows are signals that I´ve used today for entries, the last one was closed in the drop into the London Close ~5900.

Plenty of pips pirated and I'm finished till Frankfurt......BFN
Nice activity Islander. I got in to 3 of those myself and I consider myself lucky for that. Great to see how VSA works well with market profile.
Keep the great posts coming!!

And if we are here, could you perhaps detail a bit more your analysis on those entries? Why did you take them?
Kind Regards zol
  • #3,687
  • Oct 6, 2009 12:40pm Oct 6, 2009 12:40pm
Thank You HiddenGap for explanations !
Also, thanks to DR.Gep and others !

Best,
Tom

Quoting HiddenGap
The first candle we see here is a climatic action candle indeed. It is ultra wide with ultra high volume closing off the low. The close off the low tells us that there is some demand (buying) within this candle.

VSA would say, if the next candle is up then there must have been demand (buying) in the climatic action candle.

Here we see that the next candle is down.

If the next candle had been down with a narrower range on increased volume, then that would be evidence of strength (buying) both on the...
  • #3,688
  • Oct 6, 2009 12:43pm Oct 6, 2009 12:43pm
Quoting HiddenGap
The first candle we see here is a climatic action candle indeed. It is ultra wide with ultra high volume closing off the low. The close off the low tells us that there is some demand (buying) within this candle.

VSA would say, if the next candle is up then there must have been demand (buying) in the climatic action candle.

Here we see that the next candle is down.

If the next candle had been down with a narrower range on increased volume, then that would be evidence of strength (buying) both on the...

Thank you very much HG for your sapient words.
You make money by waiting, not by trading.
  • #3,689
  • Oct 6, 2009 1:38pm Oct 6, 2009 1:38pm
thx HiddenGap
  • #3,690
  • Edited 2:05pm Oct 6, 2009 2:03pm | Edited 2:05pm
Quoting zoli
Nice activity Islander. I got in to 3 of those myself and I consider myself lucky for that. Great to see how VSA works well with market profile.
Keep the great posts coming!!

And if we are here, could you perhaps detail a bit more your analysis on those entries? Why did you take them?
Hi Zoli - firstly let me repeat what I've said elsewhere and this is that I post what I see as potential entry areas / levels to try and help others see them - I dont always take every single one.

Secondly, I'm not as skilled in VSA as Dr G, Malcolmb, Hidden Gap, Shamus and other VSA afficionados - althought I first met Tom Williams more than fifteen years ago at his home in Brighton and purchased one of the first versions of his software - I think its now called TradeGuider.

I'm using VSA as an additional analysis tool for my day trading and you can best see how I trade by reading some of my posts in this thread:

http://www.forexfactory.com/showthread.php?t=98028

basically this thread is about trading off levels - physcological (aka sweet spots) pivots and highs / lows and fibos - all usually found close to one of those already mentioned levels!

After 12,000+ hours of screen time on forex alone I tend to react quite quickly to the Price Action around "a level" and so find it easy to trade within the time periods that I have selected ~3 hours from the Frankfurt Open and later ~3 hours from the New York Open and to pirate the pips that I'm looking for.

So if you look again at my chart taking into account the above, you'll have a good idea of why I took those trades and any further questions are probably better asked in the "other" thread.

Regards

Islander
Trading Levels with WRBs
  • #3,691
  • Oct 6, 2009 2:11pm Oct 6, 2009 2:11pm
Quoting Islander
Hi Zoli - firstly let me repeat what I've said elsewhere and this is that I post what I see as potential entry areas / levels to try and help others see them - I dont always take every single one.

Secondly, I'm not as skilled in VSA as Dr G, Malcolmb, Hidden Gap, Shamus and other VSA afficionados - althought I first met Tom Williams more than fifteen years ago at his home in Brighton and purchased one of the first versions of his software - I think its now called TradeGuider.

I'm using VSA as an additional analysis tool for my...
Thank you Islander for the link (le echaré un ojo yo tb).
You make money by waiting, not by trading.
  • #3,692
  • Oct 6, 2009 2:25pm Oct 6, 2009 2:25pm
Quoting fxspain
Thank you Islander for the link (le echaré un ojo yo tb).
lol - que aprovecheras algo....http://www.forexfactory.com/images/icons/icon7.gif
Trading Levels with WRBs
  • #3,693
  • Oct 6, 2009 2:34pm Oct 6, 2009 2:34pm
Nice post. I believe the top of this chart at the UT and subsequent large range down bar is called "the end of rising market" and is an immediate signal to short without further ado.

Quoting HiddenGap
The first candle we see here is a climatic action candle indeed. It is ultra wide with ultra high volume closing off the low. The close off the low tells us that there is some demand (buying) within this candle.

VSA would say, if the next candle is up then there must have been demand (buying) in the climatic action candle.

Here we see that the next candle is down.

If the next candle had been down with a narrower range on increased volume, then that would be evidence of strength (buying) both on the...
Charts never lie! (everyone else does) ... now where's that FF Adult lounge
  • #3,694
  • Oct 6, 2009 3:24pm Oct 6, 2009 3:24pm
HiddenGap,

here is 10 min chart of the same question about Wide spread climatic bars..

In this scenario next bar was up. But in 5 minutes example here next bar was down.

So, in 5 minutes i should look for shorts after climatic bar and on 10 min chart for longs ?

Yes, on 10 min chart next bar, which is up, is on volume less than previus 2, maybe this counts somewhow that says - NO no for longs !

Thank You for Your comments !

Best,
Tom
Attached Image (click to enlarge)
Click to Enlarge Name: q 2.gif Size: 9 KB
  • #3,695
  • Oct 6, 2009 7:16pm Oct 6, 2009 7:16pm
Quoting tfflyer
MykeFX,

please, post barchart's data picture for today, lets say - GBP/USD 5 min and 15 min, if You can.
I want to compare it with IBFX and someone could put esignal chart also for 5 and 15 tf.

Thanks.

Best,
Tom
Hi Tom,

Did you compare the charts I posted to IBFX?


Cheers, Mike.
  • #3,696
  • Oct 6, 2009 9:39pm Oct 6, 2009 9:39pm
Hello Tfflyer,

From my point of view if you were waiting to take a long after that big selling bar then yes, it's way to late. The signal to short was just after the very top. I'm posting a couple charts to make it clear.

TJ



Quoting tfflyer
HiddenGap,

here is 10 min chart of the same question about Wide spread climatic bars..

In this scenario next bar was up. But in 5 minutes example here next bar was down.

So, in 5 minutes i should look for shorts after climatic bar and on 10 min chart for longs ?

Yes, on 10 min chart next bar, which is up, is on volume less than previus 2, maybe this counts somewhow that says - NO no for longs !

Thank You for Your comments !

Best,
Tom...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GU10m.JPG Size: 234 KB
Click to Enlarge Name: GU5m.JPG Size: 246 KB
Charts never lie! (everyone else does) ... now where's that FF Adult lounge
  • #3,697
  • Oct 6, 2009 11:06pm Oct 6, 2009 11:06pm
Think I am getting the hang of it?

Tokyo setup went like this:

1. We have volume entering the market and the price rises but finishes off its highs.
2. Next bar is a down bar
3. Wait for rising bar on low volume to short.
4. Profit

PS: Thanks HiddenGap, I really love your volume indicator.
Attached Image (click to enlarge)
Click to Enlarge Name: uj.gif Size: 23 KB
  • #3,698
  • Oct 6, 2009 11:12pm Oct 6, 2009 11:12pm
By "rising bar" do you mean a UT ? thanks

Quoting sinner-
Think I am getting the hang of it?

Tokyo setup went like this:

1. We have volume entering the market and the price rises but finishes off its highs.
2. Next bar is a down bar
3. Wait for rising bar on low volume to short.
4. Profit

PS: Thanks HiddenGap, I really love your volume indicator.
Charts never lie! (everyone else does) ... now where's that FF Adult lounge
  • #3,699
  • Oct 6, 2009 11:21pm Oct 6, 2009 11:21pm
No, UT is the last bar of the brown rectangle IMO. Higher volume bars that close off their highs followed by a down bar.
  • #3,700
  • Oct 7, 2009 1:51am Oct 7, 2009 1:51am
GM all - my two market profile charts...I was short earlier and now short again from the bounce up towards the 5900 level, looking for a continuation down towards the 5800 area.....Time Will Tell
Attached Image(s) (click to enlarge)
Click to Enlarge Name: oct 7 cable 30m mkt profile at fo.gif Size: 34 KB
Click to Enlarge Name: oct 7 cable 5m mkt profile at fo.gif Size: 17 KB
Trading Levels with WRBs
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