Trade Using VSA (Volume Spread Analysis)
- #3,801
- Oct 19, 2009 7:11am Oct 19, 2009 7:11am
- Joined May 2008 | Status: has long shorts | 2,584 Posts
- #3,802
- Oct 19, 2009 11:39am Oct 19, 2009 11:39am
- Joined Dec 2008 | Status: Resident Psychiatrist!!! | 2,600 Posts
this guy is a total muppet and after failing now on a heavy sales mission
time or feel the need to make books and DVd's, i just don't get it.
if you are gonna sell me something, i want it short,precise and
expensive like tradeguider..
- #3,803
- Oct 19, 2009 4:59pm Oct 19, 2009 4:59pm
- Joined Dec 2008 | Status: Resident Psychiatrist!!! | 2,600 Posts
- #3,805
- Oct 19, 2009 11:02pm Oct 19, 2009 11:02pm
Hi folks,
I have a question about test bars. I know that a supply test happens at the bottom of a down move, where, after showing demand, the pros mark down price rapidly to see how much supply volume is left in the market. A successful supply test is when price closes back up towards the bar's high with low volume, indicating that supply has dried up and the market is ready to be marked up. (Even if the bar closes low with low volume, that should just mean no real supply also, right?? Or will this not even qualify as a test by the pros??) ... An unsuccessful supply test is when price fails to recover and closes low on the bar with high volume. Or even if the bar recovers to close near its high, but with high volume present, this should mean that supply is still present, and the pros will likely want to test supply again before marking up. Do I have a correct understanding about all this?
Second part of my question is the flip side of this. At the top of an up move, if the pros want to reverse the market, they'll have to do the same thing, which is test for any remaining demand in the market before marking down, right? So logically, they would use the same method - marking up price rapidly to see if there's any follow through. If the demand test bar drops back to close near its low with low volume, that's a good test that says there's no demand left and market is ready to be marked down. If the demand test bar closes high with low volume, this should also mean that there's no demand left to push price up much further. (Or, again, is this also not considered a test by the pros, but just the market in idle mode showing no interest from any participants??)
I would appreciate some confirmation or other insight into this. I think the concept of test bars works a bit differently in stocks than in forex, since stocks are more buy-bias and test bars usually happen mostly at the lows.And what happens at the highs are simply considered as no demand. On the other hand, forex is bi-directional and therefore test bars are used in both directions. Do I understand this correctly?
Thank you much in advance.
I have a question about test bars. I know that a supply test happens at the bottom of a down move, where, after showing demand, the pros mark down price rapidly to see how much supply volume is left in the market. A successful supply test is when price closes back up towards the bar's high with low volume, indicating that supply has dried up and the market is ready to be marked up. (Even if the bar closes low with low volume, that should just mean no real supply also, right?? Or will this not even qualify as a test by the pros??) ... An unsuccessful supply test is when price fails to recover and closes low on the bar with high volume. Or even if the bar recovers to close near its high, but with high volume present, this should mean that supply is still present, and the pros will likely want to test supply again before marking up. Do I have a correct understanding about all this?
Second part of my question is the flip side of this. At the top of an up move, if the pros want to reverse the market, they'll have to do the same thing, which is test for any remaining demand in the market before marking down, right? So logically, they would use the same method - marking up price rapidly to see if there's any follow through. If the demand test bar drops back to close near its low with low volume, that's a good test that says there's no demand left and market is ready to be marked down. If the demand test bar closes high with low volume, this should also mean that there's no demand left to push price up much further. (Or, again, is this also not considered a test by the pros, but just the market in idle mode showing no interest from any participants??)
I would appreciate some confirmation or other insight into this. I think the concept of test bars works a bit differently in stocks than in forex, since stocks are more buy-bias and test bars usually happen mostly at the lows.And what happens at the highs are simply considered as no demand. On the other hand, forex is bi-directional and therefore test bars are used in both directions. Do I understand this correctly?
Thank you much in advance.
On G$ M5:
Wondering if this would be a good example for "effort to rise without result"
From VSA Basics.pdf
These Efforts without result are good indications of weakness. Most of the times you will find the stock moving down or side ways after this failure. This is because the SM would rather wait for the supply to vanish before repeating the effort. The SM will then test the market for supply before trying to move up further. The repeat move could be good entry points.
Looking for this to occur.
Wondering if this would be a good example for "effort to rise without result"
From VSA Basics.pdf
These Efforts without result are good indications of weakness. Most of the times you will find the stock moving down or side ways after this failure. This is because the SM would rather wait for the supply to vanish before repeating the effort. The SM will then test the market for supply before trying to move up further. The repeat move could be good entry points.
Looking for this to occur.
- #3,807
- Oct 20, 2009 2:33am Oct 20, 2009 2:33am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
On G$ M5:
Wondering if this would be a good example for "effort to rise without result"
From VSA Basics.pdf
These Efforts without result are good indications of weakness. Most of the times you will find the stock moving down or side ways after this failure. This is because the SM would rather wait for the supply to vanish before repeating the effort. The SM will then test the market for supply before trying to move up further. The repeat move could be good entry points.
Looking for this to occur.
Trading Levels with WRBs
- #3,808
- Oct 20, 2009 2:35am Oct 20, 2009 2:35am
- Joined Jan 2007 | Status: Trader | 11,838 Posts
Trading Levels with WRBs
- #3,810
- Oct 21, 2009 6:07pm Oct 21, 2009 6:07pm
- | Commercial User | Joined Jan 2009 | 1,815 Posts
The trend always ends.
- #3,811
- Oct 22, 2009 3:35am Oct 22, 2009 3:35am
- Joined Aug 2009 | Status: Reading the TAPE | 2,389 Posts
Without VSA, you're playing checkers while the Smart Money plays chess.
- #3,813
- Edited 1:38pm Oct 22, 2009 1:25pm | Edited 1:38pm
- Joined Dec 2008 | Status: Resident Psychiatrist!!! | 2,600 Posts
Was thinking , what if helicopter Ben decides to hike interest
rates.What a catalyst that would be(they are all waiting ben-lol)
Just look at all the interest and believe in this BULL
market(weekly charts)--
--something better change or
else..
God help us all and hold on to your 401k's..lol-
Well, maybe DOW will decide to go it's own way
but i doubt it
rates.What a catalyst that would be(they are all waiting ben-lol)
Just look at all the interest and believe in this BULL
market(weekly charts)--
--something better change orelse..
God help us all and hold on to your 401k's..lol-
Well, maybe DOW will decide to go it's own way
but i doubt it
- #3,814
- Oct 22, 2009 1:30pm Oct 22, 2009 1:30pm
- Joined Dec 2008 | Status: Resident Psychiatrist!!! | 2,600 Posts
- #3,815
- Edited 3:52pm Oct 22, 2009 3:25pm | Edited 3:52pm
- Joined Dec 2008 | Status: Resident Psychiatrist!!! | 2,600 Posts
what an awesome video, thank you!!
think they are bidding for it--hope one picks it up
Inserted Video
- #3,817
- Edited 8:14pm Oct 22, 2009 7:55pm | Edited 8:14pm
- Joined Dec 2008 | Status: Resident Psychiatrist!!! | 2,600 Posts
- #3,818
- Edited 10:32pm Oct 22, 2009 10:08pm | Edited 10:32pm
- Joined Dec 2008 | Status: Resident Psychiatrist!!! | 2,600 Posts
I have some sad news to report. As most of you know TwoBuckChuck and I were working on the VSA trainer together and have become good friends over these many months. A few weeks ago as we were finishing up some stuff Chuck essentially disappeared and I hadn't heard anything from him for some time. I was concerned something may have happened to him, and online friendships being the way they are I had no real contact info other than some email address, and instant messenger nicks for him.
I kept emailing him hoping that he would pop up eventually...
indy's are truly a waste of time,
Now am down to my pivot points and loving it .........
all they do is to manipulate PRICE and VOLUME when that's
exactly what am trying to get at(RAW data)..
Learn to read tape and you are home free....
Been slapping aussie around all day..lol
