Trade Using VSA (Volume Spread Analysis)

Ok, i will post some chart, otherwise noone is talking with me here LOL

I would like to hear some expierence trader opinion.

What caused this up move from VSA principles ?

What i see from VSA is there is weakness in background which is seen on last biggest downbars, because there was downbar after climatic action
- so it tells me there is weakness.

I assume that maybe there wasnt weakness on those downbars.. but
if You look closer to all folowing upbars - also mainly every up bar is absorbed with downbar..

Will wait for any comments.


Best,
Tom

Tom,

here they are.
GBP/USD Daily and 10 min

Been slow around here of late. All the VSAers must be making too much money to post.

Here's a trade from a couple days ago.

There are some interesting things here. Let's take a look at the chart.

A. I know I have said it many times before, but it bars repeating. The best place to start with is an ultra high/ high volume climatic action candle. This is what we have here. Note that it closes off the high but the next candle is up. VSA tells us that markets don't like high volume up candles. Because they may contain "hidden" professional selling. This one did. Our first clue is the close. If volume represents effort, then the result is the close and in this case it doesn't match what we would expect with respect to the effort involved.

B. The next candle is up and making a higher high. Yet the range narrows and the close this time is in the lower half of the candle's range. Volume is decreasing here as well. The low close here shows supply swamping demand in the upper region of the range. This candle is an Up Thrust, although it is not an ideal example. We would prefer a lower close but the location (after an uptrend and after a climatic action candle are enough to signal that this is an UpThrust).

C. Here the range narrow further and the close remains in the lower portion of this candle, but this time the volume is less than the previous two candles. This is No Demand.

Since we have seen climatic action (effort to rise) we have seen two up candles both on decreasing volume. The market can't be strong as the BBs are withdrawing from the upside. We know they are withdrawing because volume is decreasing.

An aggressive trader might enter here on the breach of the low of the No Demand candle.

There is another, "Safer", entry still to come.

1. After seeing three straight dark (open>close) candles closing lower, see this narrow range up candle closing on its high with volume less than the previous two candles. This is No Demand. We do not get confirmation as the next candle is up.

2. As stated this candle is up. The range is narrow and the volume continues to decrease. This is another No Demand candle. Like the previous candle, it too does not confirm.

3. Three is the No Demand of consequence. Unlike the previous two it does confirm with the next candle down. From my perspective this is the better short, because not only is this candle within the supply/demand delta zone, it is also within the body of A-our high volume climatic action candle that started it all off. And we have seen the turn in trend.

1a.-3a. Show the first series of three (3) consecutive higher closes with lower lows and higher highs. Even though 3a has volume less than the previous two candles and is the lowest volume in 20 (yellow), this is the place to get flat. Especially since profit has already been taken on at least two (2) EB7s.

tfflyer;

Remember, No Demand occurs on up closes, not down closes as your pic displays. Alternatively, the close can be equal (especially if the candle makes a higher high) but it does not happen on a down close.

Down closes on volume less than the previous two will be either No Supply or Tests.

Hi Den, thanks for posting pictures, but can You please repost GBP/USD daily chart with volume ?


Thank You.

Best,
Tom

If I remember correctly, I heard esignal doesn't provide end of day data for spot forex.

HiddenGap,

thank You for Your comments.

Please, take a look on my picture - Did i understood You ?

EDITED:
After few hours i understood what You were saying. Thanks.

On my picture i was trieng to show that after 2 downbars weakness ws present, but price moved up.. Why ?

If not, please, let me know.

Thank You.

Best,
Tom

which I were there

This video inspires me.

If You have hard period .. Just look at it.

Hope who havent seen this video will like it.



Best,
Tom

slow! No, the only thing is that i did not find any volume indicator could be relied on for the higher TF,4h or daily which i like to trade. but it is very clear and profitable on 5 and 15 m, sometimes the hourly.
thankyou HG for your posts and explanations.you are really a big teacher.

here is dx daily ... think today was a surprise ?

2nd chart indu (dj) think the 300 point drop was not seen a mile off

long obvious

From another "old Guy", this is the best advice I have ever heard, and all so true.

Thanks Tom

thankyou our Dean for 3 charts and illustration.as I am trading fx only for years i was concentrating on this third chart. my 4h chart is totaly different.(for example,most of the hummers are not there)
what is the daily close of your chart?
(i know we can use any chart with any daily close, but i am asking just to compare).
thx.

Dear all,
Thanks for this thread. I am very interested in VSA and here I am learning a lot of.
I have a big question: My broker is xtb here en Spain. I trade in Forex. From MT4 platform I can only see the volume my broker. Then VSA indicator is not very useful. Perhaps is only other tool to use with others indicators.
Do all brokers show us their own volume? Is there other possibility?
Thanks,

Miguel

esignal

broco not bad
fxcm not bad

esignal is best though if you want to trade vsa

Plenty more where that came from---

touchdown for me, can't figure out what gbpusd is doing--
will figure it out next week--lol

Nice weekend folks.......

Hello everybody, i am new about trading with VSA. Im starting with the basics... so reading the pdf VSA basics. The page 18, the last paragraph i got stuck. --- The trend boundary line seems to offer resistance in both directions. Having penetrated the resistance in one direction and passed through the line, there now seems to be resistance to passing back through the line, back into the old trading range ---.

The part talking about "the resistance in one the direction and the passed through the line".
- Which is the resistance?, because in the picture there are 2, the red one and the blue one???

The part "there now seems to be resistance to passing back through the line"...
- What is that "resistance to passing back" really means??? I have included the pic.

Thanks Partners

hi guys, i'm using VSA to trade from 2 weeks almost, i have read'it the book's and the first quarter from this thread and i appreciate very much your contribution at least from the start of this trend...i keep seeing unanswered questions from guy's like me willing to learn, it's this thread hit the top and now is in a free fall? so back to my problem i have 2 questions: 1- what the best broker for using vsa? my logic says are ECN broker's like MBtrading(right now i'm using thinkorswim and rely mostly on volume from futures), etc
2- ca you please take a look at eur/usd pair ?look's like we are in a congestion area but on high volume, i'm realy gonna apreciate some help, thank's