Trade Using VSA (Volume Spread Analysis)

That's the beauty of VSA, i for one, don't do
targets. You leave the same way you entered.
if long, look for supply to come in and wait to see if
that supply is tested(or if it breaks a support(MML)
and if it passes, You get the
F** out........

There was a question about closed zones.

I consider a zone open until there is a close below, a close above and some price action thru the zone. Once a zone is closed, it is no longer a valid area to enter a trade. Some traders do continue to use closed zones for profit targets. And some very advanced traders do continue to use closed zones for signals.

Once a zone is closed, I remove the lines to help keep the chart clutter to a minimum.

The below chart just shows what happens in this particular zone AFTER it has had price action on both sides but no close above. Some traders close the zone at point A. But requiring a close above and not just price action above tells a different story. For whatever reason, this area is important to the market and continues to act as upside resistance.

Hi All..

Just started to read the thread and noticed that I don't see any higher time frame charts. Does any one use this methodology to trade like 4hr or daily charts and what has been your experience so far?

Thanks for the feedback.

450 pips? OMG!

guys, is tick volume really a substitute for real volume? has this debate been settled?

could you please elaborate on how one would scalp with vsa?

yes it does work on higher time frames

take a look gu weekly candles with vol from http://timingcharts.com/
its futures data but it should almost mirror spot its the most reliable futures source site malcomb said long time ago distrubution even when price was racing to 1.69 1.70

very clear signs

lovely day trading on Frdiay gj once more

wow, so tick volume is really a proxy for the real thing?

what an awesome video, thank you!!

I think
VSA + POC + VAH + VAL + VWAP .. is the best combination to trade..
i can see malcom is using POC / VAH / VAL from previous day to look for setup... thats very good combination....

Can you explain what you mean by "VSA + POC + VAH + VAL + VWAP"?

Malcolm if possible would you perhaps comment on the gj and gu weekly charts?

Both broke key levels and closed near weekly highs but on low-ish (fxpro) volume.

Hi Guys...

Is there any one on this thread that is actually trading VSA successfully on a longer term chart like 4hr or daily. I would like to hear from you.The reason is I have a day job during the London session and I would be away from my charts 8 hours during some of the high volume trading times.

I would appreciate some feedback.

Cheers...

If you have learnt and understand VSA, trading the 4h and daily timeframes are fantastic for clear setups with any instrument. Patience is a must though.

yes HG ,that was my question.thanks for the answer.

Hello everyone.

I want to replay - retrade market, but not sure on which platform to do it where i will get data feed.

I have Ninja trader also, where i have data feed, but it all time starts with new day and cant to get to see all data and just continue from old data..

Any comments and suggestings..
Thanks !


Best,
Tom

Hi,
Thanks for this great forum and the excellent sharing of knowledge. Some time ago someone compiled a pdf or word doc of HiddenGaps postings, but now I can't find it again. Can someone indicate where it is on the forum so I can read it again.
Thank you
Denis

"The market takes the stairs up and the elevator down"....

There is a reason for this and Tom explains it in MTM. This post is not so much about that, but the concept can be plainly seen in the chart below. I just wanted to highlight this in light of the fact that today is the anniversary of black Monday.

On to this really nice set up.

Like most of the truly best VSA set ups, this one starts with climatic action. Here we have a wide spread down candle closing near its high on ultra high volume. This candle is stopping volume. The market is plummeting down then the BBs step in and become buyers. Whilst the close is down from the previous close, it is in the upper 80% of its own range. Simply, if all the volume was selling the candle could not close so high.

The next candle is down. This, however, is not confirmation of selling on the previous candle. In fact, if you look at the volume on this candle you see that it is less than the previous two candles. This is No Supply.

We have to be careful here. The really aggressive might want to enter here. There is a better enter. Despite the fact that the volume on the stopping volume candle is bullish, we know that it MUST BE TESTED as all high volume is tested. Therefore, we are waiting for the test. Some might want to wait for a confirmed sign of a trend change as well. This is where Gavin would be saying look for a change in the color of the diamonds.

As expected the next candle is up. But we have not missed anything here. The market begins to meander sideways to slightly down for a bit. 5 intervals later, we get an interesting candle. It is a dark (open>close) candle on increasing volume closing on its low. For those using WRB Analysis, this sets up a "fading volatility opportunity". From a VSA perspective, this candle is not as bearish as it looks. Why? Well, the close is not lower than our No Supply candle. So while the volume is increasing on a down candle, the market is failing to make a lower low than an area that found no supply.

The next candle is what we have been looking for. This is a test. not an ordinary test, however, a hidden test. Why is it hidden? Well the close is up and the candle makes a lower low on volume less than the previous two candles. And we are not only within the Supply/Demand Delta Zone, we are also within the shadow of our stopping volume candle. Note how this candle does trade lower than the No Supply candle's low, but it gets rejected closing up and near its high. A breach of the high of this candle is the entry.

The next candle brings us into the market. This candle happens to close down, but the range is narrow with increasing volume. This candle is a squat. The narrowing range as price tries to fall, shows that there is support from the BBs in this candle.

Stops are personal. With that said, I think the ideal place to put the initial stop is a few ticks under the low of the Stopping Volume candle. If this candle was not lower than the low of the S/D Zone, I would place the stop just below the low of the Zone.

Another personal issue now comes into play: managing the trade. Some will look for a profit target. Some will take partials and some will trail a stop. Still others will use a combination of two or all three. There will also be those that will only look to exit upon the appearance of a signal in the opposite direction. No method is perfect but the choice is the traders to make.

I guess I will end this post as it began. Note how easily (quickly) the market seemed to fall on the left side and how much more time it took for the market to get back to the level of the lower Delta Zone. There are VSA reasons for this phenomenon and all VSAers should be aware of this. Keep reading MTM people. It's not a Holy Grail but it certainly is our Bible.

Hi VSA Pros,

I'd appreciate your help in identifying the bars on the following G/$ M5 chart.
I have started looking at VSA recently. Pretty cool how it supplements other strategies.

Just above D, is the big blue candle a "Reverse Upthrust" as it is:
An up bar
Close near high
Very high volume
Wide spread.
Not sure what NOP is (from VSA cheat sheet & VSA Bar definitionv2 XL file)

I'm unable to identify the No supply and test of supply candle.
I have marked a red candle with a red arrow.
I think it is a test of supply but not sure.

Thanks for your help.