Trade Using VSA (Volume Spread Analysis)

Wishing love peace and happiness to all the free-dom seekers who have contributed your wisdom so selflessly..

Thank you malcomb, dr.g, chief and anyone who didnt ignore my questions and took the time to pm me back..


Thanks again and have a blessed new year!!!

Gavin Holmes VSA webinar at PFG Futures

An Introduction to Volume Spread Analysis and How to Trade and Invest in Harmony with 'Smart Money' in the futures market


https://pfgbest.webex.com/ec0600l/ev...b&format=short

If Tom W. Or Seb would be there - then i am interested, otherwise, that seminar no no ;]
But! It doesnt mean its bad seminar !


B,
Tom

Thanks, nice vid.

Coul°d someone please tell me what means if someone says:
"Dollar is going to rally."

That means - Dollar is going to be strong and , for example, GBP/USD is going to go down ?


Thanks.

Best,
Tom

yes.

tom think eu parity by 2011 and gu not far off

i agree with you.

even tough gavin has a sound vsa analysis, i really prefer tom and seb.

from my experience and others, gavin really is on a heavy sales mission. lack of customer & potential customer support on more than just one single occasion. might be due to the fact, that he wants to handle too many too fast.

thats why i unsubscribe from his newsletters - i think i got more emails from him than from some regular scamers ;]]]

I know that Gavin You are reading this thread, so You can see - too much emails, buut, if that works for sales - that ok, that Your business :}

Best,
Tom

Malcolmb,

On the attached chart (assuming the weekly data I am looking at is correct) the first pink volume bar as shown in the red box begins weeks of extreme volume which when looked at a whole. is not having the impact on price that one "typically" expects. While price initially moved up, on a relative basis, to me it shows a massive transfer.

So I look at this somewhat confused as I can see 2 possible events taking place.

I see smart money buying from scared money a massive position. or I see smart money unloading a massive position to the retail world.

What troubles me or makes difficult for me to understand is that I can't see there being enough of a retail presence to adsorb this extreme volume being poured week after week.

Its almost as though there was a transfer involving major institutions. But how would that show up in bid tick form on a MT4 platform?
or
Is it likely that there was such a huge battle that within this range that it churned its way up and down with retail generating such an increase in the number of ticks?
or
my data is crazy

In the recent couple of weeks (although in holiday season and therefore most likely not an accurate picture) I see the volume dropping off along with price dropping (yellow bars in green box) which to me mean I need to look for a high volume low spread bar, showing smart money putting in a floor and willing to buy everything at that point.

Looking at a monthly, there are months of sideways action and in the last 5 huge volume. If SM were the ones unloading in this 700 pip range, it would
point to possible price corrections hard to imagine or compute. I say that because the position unloaded is so massive it took months.

The high price in 2007 in the 2.100 range to low in 2008 of 1.3500 shows only a fraction of the volume of the current 5 months.

Am I making any sense or maybe I had to many holiday cookies!!

Thanks for any input.
BR

Big1Red9,

I have even thought that it could be a modification in the way volume are measured by the software because it's very strange this HUGE volume in that short period of a few weeks.

I agree it's very strange that retail traders could be the only ones participating week after week in so HUGE volume. I have your same doubts on this.

Anyway, in my opinion (I would like confirmation from the PROs: Malcolm, Dr G, ...) the SM is buying dollars (shorting EUR) and accumulating them at price levels of those high volume weeks. Now I suppose they will be forcing down the price for a long time in order to take profit for all this accumulation and will be closing trades at different price levels.

My own doubt: How can we be sure that it's a dollar accumulation and not an euro accumulation???.

I would like to hear the sapient opinion of the PROs.

Greetings:

(This message is not intended as and should not be interpreted as any sort of personal ad hominem attack on the reader or any other person.)

Thank you, Tom, for your reply and by implication noting that I failed to qualify the statement of information in my post. The following is a correction and disclaimer applicable to all my posts.

*The content, information, techniques, methods and data contained in "Robert Bumbalough's Forex Factory Posts" or any part of this forum, are for informational purposes only and is provided without warranty of any kind.

The content, information, techniques methods and data contained in "Robert Bumbalough's Forex Factory Posts" and any part of this web site, should not be interpreted as investment advice, or as a recommendation to buy or sell futures contracts, forex currency contracts, or any other type of security or investment.

The content, information, techniques, methods and data provided are obtained from sources deemed reliable but not guaranteed as to accuracy or completeness.

The user releases Robert Bumbalough from liability due to the use of the content, information, techniques, methods and data contained in "Robert Bumbalough's Forex Factory Posts" or any part of this Forex Factory forum and web site.

Testimonials on this forum are individual experiences and they do not mean that any other including the reader will or can emulate their performance. Other people including the reader should be cautious of claims of large profits from day trading. Active futures or forex trading and day trading will generate substantial commissions even if the per trade cost is low. Capital exposure to loss can be extreme and persons including the reader can lose more than they initially deposit with their broker, always use stop loss orders and or hedges to limit potential loss.

Individual results may vary. Past performance does not guarantee future results.

CFTC Rule 4.41 - Hypothetical or simulated performance results have certain limitations. Past performance is not necessarily indicative of future results. No futures or commodity trading system can guarantee profits. The risk of loss exists in futures and Foreign Exchange trading. *

Furthermore, any posting by Robert Bumbalough of links to online articles, webinars, charts and graphs or references to published or copyrighted materials is for informational purposes only and is not intended to suggest or imply that a reader should view, read, use, or integrate into their consciousness or in any way cognitively consider any information content of any sort that may be somehow related to Forex Factory postings made by Robert Bumbalough.

I hold the philosophical position that my own life and benefit are the highest and most noble values. Therefore, I operate under an assumption of moral desirability (but not obligation) of reciprocity. Because I have received value from this VSA thread, I desire to reciprocate by posting something of value to the other users of this VSA thread. However, as I mentioned previously no suggestion of a moral prescription is intended by any information content in my postings; therefore, as always, the reader is free to use any information I post or not. I am not like most people who give and take tips on trades or investments because I do not take tips on trades nor do I give tips on trades. This I do to avoid confusion of moral obligations assumed by those who subscribe to false philosophical notions of altruism. The tipster thinks that those who use her information are indebted to her. I reject that silly notion because I realize that my own life is the highest and most noble value I can have. Thus I seek neither to use my brothers and sisters nor to be used by them. This is in part my philosophical foundation. My goal is to learn to how to use VSA to filter potential high probability trades identified by Andrews Pitchfork's median trend lines or harmonic Gartley, Butterfly, AB=CD, Bat, or 5.0 patterns. This thread is a tool employed in my endeavor to educate myself.

*This message is not intened to be and should not be interpreted as any sort of personal ad hominem attack on the reader or any other person.*

In conclusion, I wish for the reader and myself to experience health, wealth, benefits, joy and happiness in proportion to their properly and rationally moral actions.

to be truthful i have always doubted the accuracy fx volume on anything higher then a 4 hour chart . I will post a futures chart on Monday showing how the weakness in the background was well shown and the drop in gu

the volume on my half arsed broco platform shows the weekly weakness very well and on Monday when esignal comes back on line i will subsribe to futures for one month as i need them any way right now for a project i am undertaking.

here is futrues for dec ...

1st yeallow line low volume up bar = no selling pressure showed top at 1.6700

2nd chart is march contract ote the 2 x high volume bars as price pushded thru 6200 and noiw 1.6000 , since then we have had low volume barso n daily but mean nothing due to all volume disappearing from market at start of xmas weak

the fact that the down bars were on high volume and price could not get back above 1.6200 OR yet 1..6000 mean s that prpos are expecting lower prices as they rapidly mark down price.

do not over think the order flow .... I try not to other wise i get really confused

all I know is what I see in the relationship between volume and candles seems to work well

futrues are the way to go for daily and weekly volumes in fx

esignal has something called 6b cont .... that shows all the contracts rolled into one

Could someone look at the attached chart please, am i right in thinking this is a test bar (A)? low vol low spread closing down, no demand left?

Many thanks.

Gez.

some times we see things that do not mean much ... the area where that bar showed up was not a significant s/r level , how ever the top where we saw a reversal after effort to rise was right on resistance

so my response to this is that that bar could hev been a flag to make sure you moved stop down but really did not mean a whole bunch

May be Dr G can comment on this.

Thanks for the reply. Have a great weekend.

Gez

poor guy was whining his stock took a beating....

do you really think this guy should have been in this stock anyway ? based on price action on left hand side chart

seems obvious to me .. what you guys think


http://seekingalpha.com/article/1798...cle_sb_popular

seems pretty interesting.
i'll try it.

hello , sir
sorry , i cant see what is going on in the left side
but it seems the stock is traded in a straight channel and it was broken and now there is a retest for the upper line..
of course i have a little knowledge about VSA but the massive volume on the last candle is confusing me it could be some news or so..

This:

http://research.scottrade.com/public...asp?symbol=GSI