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Trade Using VSA (Volume Spread Analysis)

Quoting tfflyer
Hey Den,

i marked the bar which i tough is strenght. ( its yesterday G/U )

But there was no real following - so we can assume that this is weakness ?

And if so, in which place we start to look for shorts when STRENGHT fails ?

Thanks.

Best,
Tom
I always wondered about this too
may a take a shot at this one... If the false strength turned out to be weakness to the left..Could the stop reverse be on one of those No demand Bars???
Quoting Ace
here you go
Thank you Ace . Do I need anything else to make this work?
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The Market pays you to be disciplined
Thanks mate, soon we will got some reply from some pro

Best,
Tom

Quoting Ace
I always wondered about this too
may a take a shot at this one... If the false strength turned out to be weakness to the left..Could the stop reverse be on one of those No demand Bars???
Quoting tfflyer
Hey Den,

i marked the bar which i tough is strenght. ( its yesterday G/U )

But there was no real following - so we can assume that this is weakness ?

And if so, in which place we start to look for shorts when STRENGHT fails ?

Thanks.

Best,
Tom
Tom,

Please understand that it is never certain until everything lines up perfectly and you see the picture until this happens you have to wait. And you have to know how to wait and what to wait for. You have to have a plan for every trade, even if someone wakes up you in the middle of the night you have to remember your plan

>i marked the bar which i tough is strength.
The bar by itself is a sign of potential buying. You have to remember that it is only potential. That leads to another question how much proof do you need to see the true buying. My answer is that you should create rules for selecting a potential trade and filtering bad trades. You yourself have to decide how much proof you need before taking a trade.

if you go to 1 min there will be lots of stopping volume bars...

The problem is that this bar is part of the bigger picture which is hard to read. You have to count that there was a distribution on higher time frames including Daily. So how this one bar can change the whole picture? If big players were selling and this selling effected Daily time frame, then how come they suddenly decided to buy and ruin distribution phase?

Back to 10 min time frame... another reason i would not buy the bar because it simply had no effect on the market that I would like to see to get myself involved. Yes, it got interested to see how the market reacts on this volume but it did not, so it never met my requirements. Stopping volume failed to break/stop down trend.

Even if I bought the market at this point and does not move anywhere I would get out because of time stop. that was failed accumulation at this point. Those who bought had to liquidate later.

Think in terms of market structure not just individual bars. Always ask yourself: who got in, who got out, and who stayed. That thinking should help to read the market structure.

This bar would look different if we had any support on the near background around the same level.


>But there was no real following - so we can assume that this is weakness ?
>And if so, in which place we start to look for shorts when STRENGHT fails ?
Sometime you can say that accumulation has failed and get ready to sell. And sometimes, if there is too much supply then it will simply can take more time to absorb everything and the market can go sideways. You never know until this happens.

After such a big move how far it can go further without having a correction? In this case selling is more risky.



I cant explain lots of market situations until I get more clues about market structure. it is all part of never ending process...

Den
Thank You Den for explanation!

WIll take some notes.

Best,
Tom


Quoting denbur
Tom,

Please understand that it is never certain until everything lines up perfectly and you see the picture until this happens you have to wait. And you have to know how to wait and what to wait for. You have to have a plan for every trade, even if someone wakes up you in the middle of the night you have to remember your plan

>i marked the bar which i tough is strength.
The bar by itself is a sign of potential buying. You have to remember that it is only potential. That leads to another question how much proof do you need to see...
Hi Den,

you said about time stop ,can you explain how long it takes to stop,
really appreciate your answer ,thanks.
Quoting hanindo2000
Hi Den,

you said about time stop ,can you explain how long it takes to stop,
really appreciate your answer ,thanks.
Hi hanindo,

this is based on how fast in average your trades are going into profit.

if average time of your winning trade is 30 min, and you are already 40 min in a trade that does not move, the risk of being wrong increases. When this happens i start reducing my stops. I reduce the risk as time goes and my trade does not move.
Quoting denbur
Tom,

Please understand that it is never certain until everything lines up perfectly and you see the picture until this happens you have to wait. And you have to know how to wait and what to wait for. You have to have a plan for every trade, even if someone wakes up you in the middle of the night you have to remember your plan

....I cant explain lots of market situations until I get more clues about market structure. it is all part of never ending process...

Den

I look for suply and demand...then everything else fits...
The Market pays you to be disciplined
Quoting mima
Thank you Ace . Do I need anything else to make this work?
try shutting your MT4 down then reloading it, if it doesnt work let me knoe i have another version
GBP.JPY
30 min & 5min

Is this Accumulation??
A) Tight consolidation on dry volumes(right) in previous high volume area to the (left) 30 min

B) multiple No supply bars on 30 min

C) Multi time frame cycle support (Confluence)
30 minute Cycle support in Daily S1 and previous Cycle support zone 142.38- 142.50
5 min cycle support bounce with high volume narrow spread bars appearing

C) Drifting upwards on low volume
VSA Basics (accumulation)
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 very less supply. The reactions happen much higher than the support line.

for TP Im looking for a retest of the trend line 143.00ish
I think this trade missing a climax down bar prior to congestion?

But im using the previous high volume area and its climax bars as background strength coming in.. Is this correct??

I know snaps shots suck, but im just starting out

Any way im in at 142.46
We will see
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58 pip gain out 143.05
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Quoting Ace
58 pip gain out 143.05
lol Ace .. nice trade BUT 0/10 for using vsa..I assume the red dotted bars are the sell entry ?

that is CLEAR accumulation gj ...you should be buying dips along wqith the pros

you were lucky this time
Blogging daily now at www.volume.zone
Quoting malcolmb14
lol Ace .. nice trade BUT 0/10 for using vsa..I assume the red dotted bars are the sell entry ?

that is CLEAR accumulation gj ...you should be buying dips along wqith the pros

you were lucky this time
No the dotted bars are the POC lines, my snap shots dont show everything i see but, and i dont know how to write on the screen (without it disappearing)

PLEASE SCHOOL ME! tell me what im doing wrong PLEASE!!!

Im just exited that you responded

LOLL
Quoting Ace
No the dotted bars are the POC lines, my snap shots dont show everything i see but, and i dont know how to write on the screen (without it disappearing)

PLEASE SCHOOL ME! tell me what im doing wrong PLEASE!!!

Im just exited that you responded

LOLL
on this trade I was Long on a no supply bar break inside that accumulation Zone...


did you mean waiting for the up trend to get stronger?? then take the pullbacks?

Here is better shot TP Hit at POC line(up move on low volume) is this false markup phase?

in this chart it was a counter trend move... The remaining trailer was to the POC line (red Dotted line) TP
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Quoting denbur
Hi hanindo,

this is based on how fast in average your trades are going into profit.

if average time of your winning trade is 30 min, and you are already 40 min in a trade that does not move, the risk of being wrong increases. When this happens i start reducing my stops. I reduce the risk as time goes and my trade does not move.
Is it your average time is 30 minutes ,what time frame you used ??
Thanks for explanation.
Quoting hanindo2000
Is it your average time is 30 minutes ,what time frame you used ??
Thanks for explanation.
Hi Hanindo,

Yes, time stop depends on the time frame you use. However, you have to go through your own trading records to find out the right time for you. Look back through your trades and see how fast your winning trades went into the profit after you executed them and how much time you spent in a losing trade. That also depends on how accurate you can plan you entry.

This may not work for you unless you know when to enter.

The idea behind it is the order flow. If you sold and supply does not show itself, stopped or there is no continuation, that means you are on the wrong side of the order flow, unless you read the bars that give you proof that supply is still coming in.

My time will be different from your or any one else. I use lots time frames. For day trading I use 10 min up to 60 min. Also my timing depends on how much supply I have if I am short or how much demand is coming in if I am long. The weaker order flow in my direction the faster I am tightening my stop loss.
Quoting Ace
on this trade I was Long on a no supply bar break inside that accumulation Zone...


did you mean waiting for the up trend to get stronger?? then take the pullbacks?

Here is better shot TP Hit at POC line(up move on low volume) is this false markup phase?

in this chart it was a counter trend move... The remaining trailer was to the POC line (red Dotted line) TP
i think You guys are saying the same thing.........( little confusion with the dotted lines..lol)
Malcomb,

How do you set your RSX?
(2) (14)??

Look for divergence, treat it like the RSI (70/50/30)
Accumulation GJ??

GY 15min
Seller climax
followed by multiple NO supply bars and lower low volume

30 min
same theme all occuring at daily open, daily pivot, cycle support, POC Bottom
Long again @ 143.33

Can anyone tell me how to write text and on my charts WITHOUT IT DISAPPEARING MT4
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Quoting Ace

Can anyone tell me how to write text and on my charts WITHOUT IT DISAPPEARING MT4
Not really sure what you mean by it disappearing, but what I do is the following if it will help:

1) Insert>>Text
2) Click on chart where I want to write
3) Write text I want in the "Text" entry in little box that comes up
4) Click OK
5) File>>Save as Picture

That's it; I then have the picture saved with the text I wrote. No expert at this, but just sharing what works for me; hope it helps...
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