Dislikedlol would not get on your high horse on this one.
Have you never in your life recorded something of the radio ? that is also copyright infringement.....Ignored
Take for what it's worth either way...no offense intended.
Trade Using VSA (Volume Spread Analysis)
- #3,922
- Nov 6, 2009 8:34am Nov 6, 2009 8:34am
- Joined Apr 2007 | Status: HARD SHYT SCUBA TRADER | 20,886 Posts
very nice of gj to announce this easy 40 pip so far , low vol test , then higher vol doji right on support
been bouncing in and out of gj all morning
been bouncing in and out of gj all morning
Blogging daily now at www.volume.zone
- #3,923
- Nov 6, 2009 10:00am Nov 6, 2009 10:00am
- Joined Aug 2009 | Status: Reading the TAPE | 2,389 Posts
Without VSA, you're playing checkers while the Smart Money plays chess.
- #3,925
- Nov 6, 2009 1:57pm Nov 6, 2009 1:57pm
- | Membership Revoked | Joined May 2008 | 3,395 Posts
The Market pays you to be disciplined
- #3,926
- Nov 6, 2009 2:20pm Nov 6, 2009 2:20pm
Tradeguider website has been changed....One could access their resourcess: videos and books in exchange for e-mail adress....I downloaded last year e-book of Master the market for free from tradeguider.com. Gavin was aloso encouraging people to download it for free for period of time....
I know I paid the $9.95 just recently, so that plus the fact that it's shown on the site currently for sale and not for free is what I was basing my comments on. It previously being available there for free is what others based their comments on I presume.
Thanks for pointing this out...I hope there's no offense anywhere, and hope this didn't detract too much from learning VSA on the thread
- #3,932
- Edited 6:19pm Nov 7, 2009 5:53pm | Edited 6:19pm
- Joined Dec 2008 | Status: Resident Psychiatrist!!! | 2,600 Posts
- #3,933
- Nov 7, 2009 7:34pm Nov 7, 2009 7:34pm
- Joined Aug 2009 | Status: Reading the TAPE | 2,389 Posts
HG, Malcom or other VSA experts:
Trying to find if/when there were any VSA entries on this E/$ M5 chart.
In the attached image, I've circled two areas that I was watching after the news release.
I'm wondering if VSA signaled any entry at those points. I'd appreciate if there was or if there wasn't.
Also, whenever we are looking for a low-volume test, are we looking for the "yellow" volume bar
or
is it just a relative low volume compared to, say, the last 4-5 bars?
Many times I find myself looking for that low volume test and waiting...
I have attached my chart. There is a lot to see here. Before we begin, let's remember that there was a news release. Not just any news release, but one of the more important ones: NFP.
VSA tells us that such news releases are used by the Smart Money to take positions against the herd, and usually in the opposite direction of the initial reaction. We always want to keep that in mind.
Now the chart:
A. NFP comes out at 0830 hrs. This is the candle that starts at 0830 and ends at 0835, thus this is our news candle. We can see that the previous candle has climatic volume as well, but is of little import to us. This candle, is an ultra wide spread down candle closing well off its low on ultra high climatic volume.
If all the volume here is negative, then the close should not be off the low and certainly not in the middle of the range. The long shadow represents support (buyers entering). This is a strong candle. We should note that the initial reaction of the news is a down candle.
B. This candle closes up from A. If A was truly weak, then B should not close up. This candle also has a long lower shadow showing support (demand entering) even as it makes a lower low than the previous candle. Volume decreases but is still high. This is a shake out type candle.
C. Skip ahead two candles to C. This is an ultra wide spread down candle closing on its low, but with volume less than the previous two candles. This is no selling pressure. The Smart Money is not selling on this candle. In other words, they are disinterested in lower prices at this time. If the SM is not interested in lower prices, they must expect prices to rise. That would be the path of least resistance, and price always moves in the path of least resistance.
D. A narrower range candle closing off its low and in the upper portion of its range on increased volume. This is a Squat. Note that while this candle makes the lowest low of all candle we've seen since 0835, it does not close lower than the previous lows.
If we step back for just one minute we see an interesting thing. The previous candle, C, closes within the long shadows of A and B, but had LESS volume than either candle. Candle D also closes within the shadows but the volume is higher than C yet still LESS than either A or B. But since the volume is increasing as the range decreases, we know that something must be supporting the market-demand.
From a non-vsa perspective, the next candle after the squat is engulfing and offers an entry signal to some.
E. High volume up candle that closes off its low with the next candle down. Markets do not like up candles on high to ultra high volume. While the volume is a bit high here, we must note that the market is pushing into an area of support. VSA tells us that volume needs to increase when price pushes thru support/resistance. So this in itself is not a signal to short. To know if this high volume is weakness or strength pushing thru support, the SM needs to test.
F. This is a narrow range up candle on volume less than the previous two candles. It does not make a higher high nor a lower low, it is an inside candle and a hidden test. Not easy to see. The previous candle had volume less than the previous two and a closed down but off its low. This candle showed no supply as it also closed in the middle of its range.
F has even less volume.
We know the market is strong. The background is littered with strength. Even E is not truly weak. So with strength all around and a hidden test, we can get long on the breach of the high of our hidden test.
Therefore there is an entry where you were looking. Low volume is defined as volume less than the previous two volume bars. It does not need to be yellow.
As for the second circled area on the right. The entry is a bit more suspect. However there is a good test at 1. We get no results from this test however. Just prior to the large dark candle, we get a No demand. Notice here that there is a series of yellow candles. The no demand has the least volume of all the yellow candles.
This side is much harder(subtle) to see, but you were already looking in this area so you might have been able to pick it up.
Without VSA, you're playing checkers while the Smart Money plays chess.
HG,
I have to thank you for your detailed explanation, though its a weekend.
I'm sure many like me, who are new to VSA, would immensely benefit from your explanations like this.
Having looked at the price action before/during/after the NFP release, now when I read your words, it makes a lot of sense.
Still some more chinks to be covered in my understanding of VSA.
As always, please do post your charts with your explanations. Real life examples are much better in enhancing VSA understanding.
I have to thank you for your detailed explanation, though its a weekend.
I'm sure many like me, who are new to VSA, would immensely benefit from your explanations like this.
Having looked at the price action before/during/after the NFP release, now when I read your words, it makes a lot of sense.
Still some more chinks to be covered in my understanding of VSA.
As always, please do post your charts with your explanations. Real life examples are much better in enhancing VSA understanding.
- #3,938
- Nov 8, 2009 9:56am Nov 8, 2009 9:56am
- Joined May 2008 | Status: has long shorts | 2,584 Posts