Trade Using VSA (Volume Spread Analysis)

Hi -

Has anyone got the code for the e-signal version of better volume indicator?

Thnx

I see a short here, to 6600. see attached 2 bars that show weakness to me.

still watching, .6690 could be a rough spot.
new session and
GU is still trading above my boundaries...

No problem, we look different to market.
Some time You will win, some time not.

Best,
Tom

I have longs in this zone.. Am i right or not.. Time will tell.

EDIT:
Sorry, not only time, but VSA should show am i right or not

EDIT 2:
When price is yet in zone for longer time - i start to think SM will do a move and i will be out of trade before it will go UP

Best,
Tom

Tom, notice the higher average volume starting on the futures at 14:30GMT.

This is US open.

Something to bear in mind when using futures volume.


Magnus

Thanks Yuppie, will look at it.

Best,
Tom

Now i feel all my analys is wrong ha ha


B,
Tom

Nah, it's not a big effect.

Just something to keep in mind.

Sh***t, got SL

My SL was 1.6614

Ok, next time will come


Best,
Tom

Check this post out for a different perspective on Cable.


Magnus

I checked it, but what to look there ?

Thanks.

B,
Tom

Just another perspective... that's all...

Dont know how it will end up, but just wanted to post this chart and let me know what you think. We´ll see how the market will react in few hours.

Everybody is going short at this moment on G/U

where are the vsa teachers? they leave us here all alone and in doubt...
i have 2 questions:

 

1. after a climax haw i interpret the the view? i'm asking you this because usually the volume it's low and i have a problem to interpret this the climax show me a change in trend but haw do i know it's not just a retracement because it's filling perfectly in this area. k, i have to whait for a test and just after, but sometimes i don't see a test and the volume it's growing showing me the trend reversal when it's too late to enter...
2. a congestion area could be a distribution or accumulation area but what are the main signs to make the difference bettwen distribution and reaccumulation area...?

i hope i'm not bothering you to much, but i really need to clear this in my head and for that i need your help. thank you, sorin...

eur/usd
from the last couple of hour i see lower lows on descending volume
from the last days every higher low it's followed by higher volume
so, the conclusion it's bullish on somewhere next week, but because of bearish divergence from 1h i think it's gonna touch around 1.52 and after that it's gonna fall somewhere around 1.48

This can be a tough one for me as well, but these are my notes.. it helps to have these in front of you prior to entering when VSA setups in NOT obvious to you



Accumulation bases (Background Strength)
This can Occur after an up trend or at the base of a Downtrend where SM begins to absorb Supply at lower prices.
The most common recognizable one is the one where the stock moves sideways in a narrow range and the volume has dried up.. However we will also find rectangular bases where the stock moves up and down but restricted within a wider range. You will find weakness coming in at the top of the range and strength at the bottom of the range.

WHAT TO LOOK IN ACCUMULATION PHASE (Buying prior to Markup)
Has the stock gone through a cycle of accumulation, markup, distribution and markdown previously?
Were there signs of a selling climax just prior to the congestion? If so, the SM are really looking out for making another round.
Was the stock enjoying an uptrend prior to the congestion? If so, this could be a re- accumulation going on here.

Look for a series of No Supply Bars, No demand bar, High Churn bars, Low churn bars, Supply Test, (around low of the range) watch for shakeouts on LOW volume ( Reverse Upthrust, Stopping volume pprior to congestion)
Typically you will see the lows are getting higher. The closes are slowly getting nearer to the high. The prices are getting higher on lower volumes as there is less supply. The reactions happen much higher than the support line.

Distribution
Distribution is the process where the SM is offloading their accumulated stock at a much higher price. It is not very easy to spot distribution. Many a times you will not see any congestion areas.
The most common recognizable one is the one where the stock moves sideways in a narrow range and the volume has dried up.. However we will also find rectangular bases where the stock moves up and down but restricted within a wider range. You will find weakness coming in at the top of the range and strength at the bottom of the range.
In mark up phase after the stock has run up for some time you will see the volume diminishing and the spreads narrowing. The angle of ascent becomes lesser and lesser. The stock trend may even flatten. This would mean that the demand is drying up.
Here take note of the volume price pattern and angle of ascent. Too steep an ascent is also a problem and can lead to a steeper fall.
It is at the top you will see patterns like Head & Sholders and double Tops which are distribution patterns.
Look for a series No Supply Bars, No demand bar, High Churn bars, Low churn bars, Demand Test, (around the high of range) watch for Upthrust shakeouts on High volume (Upthrust)

RE-Distribution
WHAT TO LOOK IN DISTRIBUTION PHASE (SELLING prior to MarkDOWN)
-Was the stock undergoing a minor down trend (after an up move) prior to the congestion?
Was there a downtrend without selling climax? Then this could mean there is re-distribution in progress and it may be advisable to look out for sign of distribution.


Hope this helps
Feel free to correct or expand this info

thanx

Seems too much like speculation.

based on quick look based on bullish view of vsa and combined this with the bearish divergence maked me saying that. it's my opinion and because i took the risk to analyze in long time and not just to resume at perfect entry based on vsa, yes it's a speculation. but, what do i know...i'm here to learn.
thanks ace, for your response.

according to my 15 minute and the way that volume knocked price sideways there are buyers at 1.5060 on the euro . I doubt we will see much lower than that unless uk markets drop drastically.