Trade Using VSA (Volume Spread Analysis)

Does anyone else get overviews from their broker? i get 2 a day 8.30am and around 4pm, interesting how they tell you where the buys, stops and offers are.

todays...

Market expectation

The euro extended a rebound, rising against the pound, dollar and yen Wednesday as fears eased that Greece's debt crisis will spread to the rest of the euro zone, dealers said.
Pound extended recovery highs to USD1.5808 but reported stops above USD1.5810 remain intact. If these stops get triggered see opening a move toward USD1.5830/35 ahead of USD1.5850. Rate currently trades around USD1.5800.
EURUSD gets a lift back toward earlier highs at USD1.3782 on reported Asian sovereign buys. Rate currently trades around USD1.3777. Offers noted between USD1.3780/85 ahead of USD1.3800/10.
Traders said the single currency could recover further in the days ahead as speculators appeared eager to cut the large bets against the euro sitting in their portfolios.
European stocks are expected to open in positive territory Wednesday, buoyed by a strong session on Wall Street and a triple-digit gain for the Dow Jones Industrial Average, while the euro continues its recovery as investors' fears regarding Greece subside a tad.


A bit from mondays report..

"
Pound finding support around USD1.5655, with traders noting that the 61.8% retrace of the day's recovery from USD1.5611 to USD1.5723 comes in at USD1.5654. Bids have been reported in place to USD1.5650, a break to allow for a deeper move toward USD1.5637 (76.4%) ahead of USD1.5610/00. Resistance seen placed at USD1.5670/75 ahead of USD1.5700."


Any thoughts?....

Gez

Is their a indicator that plots the 123 pattern for trading in the buff ?

I'm not sure what you mean by "attaching" the server file... as far as I know, the server is chosen in the act of opening an account, and can't be changed after that - if I'm wrong, it's because I haven't figured out how to do it.

When I opened this demo, I've chosen the "IBFX-MT4 Demo-2_4 decimal" server, which gave me the 4 digit price + correct volume... but when I noticed volume problems in the beginning of the month, I went to the login window and noticed the server was changed - it was now "IBFX-Demo", and couldn't be changed (if I tried the previous one, which was still in the drop down list, the login was made correctly, but the server was automatically changed, assuming this last one).
Anyway, 2 days later, the volumes returned to normal, though it kept this last server - so what I have is the 4 digit demo, with "IBFX-Demo" server.

Quoting nico28

Disliked

I posted 2 difference time frame chart on GBPUSD. D1 show SM has push through the supply with wide spread bar A and high vol.

Ignored

May I just ask what broker is this demo from?
The reason I ask is because my daily (IBFX 4 digit) doesn't look anything like that, and FXCM doesn't too...
In both cases, this push up is in lower volume than the previous weeks' average, though higher than the previous day - this seems logical to me, because of the holiday week in asia, and usa holiday last monday. In your chart, it looks average volume in line (or even higher) with the previous days.
It is, however, a considerable push up with volume, having the previous facts in mind.
Just wanted to alert you it might not be the best demo to follow.

Quoting nico28

Disliked

... Now market went into sideway with low volume, I am confused, is market now in distribution phase ?

Ignored

You can't make those assumptions based on that volume... because it's only a normal drop in volume, due to the close of European session, and later the close of US session - volume will always look like that at these hours, except maybe if there's news involved at that time.

For that reasons, I avoid analysing H4 chart, and in the H1 charts, I only look at the middle of sessions, meaning I don't look too much to volume at the beginning of Euro session (because of low volume pre-euro), neither at the end of it (I might compare it to the session itself, but not to the volume post close of session) - at best case, I compare it to the volume of the previous sessions in the previous days.

For those reasons, I prefer analysing D1 volumes, and then under M30 (M30, M15 and M5).
Just keep in mind the different sessions' start and end, when doing your analysis.

Quoting bruceli

Disliked

actually, I couldnt understand whats hapenning on 1 hour GU chart. high volumes with increasing & decreasing prices :S

Ignored

Once again, if you look at the previous session at the same hour in your chart, you'll come to the conclusion this was regular volume for that time of the day (except maybe a bit higher in the last bar);
(But in my charts, the previous session has very lower volumes, due to the holidays.)


Attached are charts of daily and hourly GU, where you can see what I meant by lower volume on monday.

What on earth is all that stuff on your chart??????

Are you using some 'other' method of trading aswell as vsa?

Can I make a request of you all please.

If you have time can you post some of your LOSING trades along with charts and reasons you believe it failed.

Of course, I hope you have non to post but if you do..........

It will help most of us greatly if we can see why trades have failed aswell as why they won. I'm guessing that most of the failed trades will be because of our incorrect interpretation of the charts.


Cheers

That is right

Intel,

I might as well step up here. This one didnt lose, but ........................


After checking it out, I decided to take this one as my nephew works for Oracle and I wanted to be a hero. So I sent my nephew an email telling him Oracle was going to drop.

Dec 28. - 1st day after Christmas... I was bored to tears and ......
a. NEEDED some action...
b. fooled myself into thinking Santa really loved me and gave me a true No Demand on Xmas Eve ...
c. Entered the trade strictly on the strength of Dec 18. HighVol UpBar
d. in very thin markets.....

Jan 4. - Monday after New Years...justified NOT bailing on the weak upthrust thinking the MARKET was slow to catch on to the obvious..

Jan 5-7. gloated over my success for the next 3 days...I outsmarted the Smart Money...(they were all still in Davos, skiing and laughing at me.)

Jan 8. - back to B.E. no problem, smart money just wasnt ready to let it drop yet...spent the weekend in a mild depression

Jan 11. - No Demand... Back to B.E. again...smart money must be ready to let it drop now...why did I worry all weekend?

Jan 12. - Narrow spread downbar, closing on highs...increased vol...small profit..Why didnt it drop... convinced it is a conspiracy, they're all out to get me.

Jan 13. - Narrow spread upbar, closing on highs...volume same as day before... that's ok, smart money soaking up final demand...

Jan 14. Second upthrust on high volume..recieved an email from my nephew telling me how much money he was losing and threatening legal action and severe bodily harm. Seriously comtemplated suicide.

Jan 15. Downbar, closing off lows on High Volume... must be a sign.. visited my priest Promised to avoid the sin of pride....sacrificed a chicken.

Jan 18. No Demand on low volume after High vol upthrust... wrote Santa a letter apologizing for being bad ....sacrificed another chicken just in case..

Jan 19. Should bail at B.E. again and wait for a test.. but it's going down so I stayed in...

Jan 20. Test of Demand...closed near B.E...why bailout now, it's going my way.. I knew from beginning this would be a good trade..

Jan 21. Downbar, closing on lows.. YES... this is the big one... I knew it

Jan 25. After reevaluating over the weekend, I checked into the hospital for more shock therapy and promised the doctors I wouldn't listen to the voices in my head anymore.

Feb 8. closed the trade with a 56% ROI..on my meds again...decided I neede to read MTM and watch the bootcamp videos one more time...

Cheers
Chief

Hi!

I've posted my chart.

On the first arrow on the top, I went short on the open of that candle. Why? There was increasing volume supporting the up move, but then decreasing volume and the price was still going up. So, weakness in the market. To be sure I waited for conformation. I think it's called lack of demand. There was an up bar (doji) on lower volume than the previous two bars, so I went short on the close of the doji (the open of a bar with arrow showing). I took about 150 pips. Nice one!

The second arrow is a mysterious to me. There was higher volume and the price was going down, and then lower volume and the price was still kinda going down. So, weakness on the market, right? And there was a big pin-down up-bar on high volume and then down bar on very low volume. I entered long. I thought this was the lack of supply. But no! Took about 50 pips of loss!

Does anyone know, what happend here on the second arrow showing? Why was I wrong? Or maybe I can't win'em all?


Regards

Cheers guys this is fantastic, just what i wanted.

Great entertaining post Chief.......but I do think you need help.........proffessional help..........from a doctor of sorts

To answer your question toob, not sure I'm the best person to answer it but here goes anyway

We have 2 wide spread down bars on very high volume finishing on the lows no attempt to raise prices so weakness still looms.

Then we have a wide spread down bar finishing in the middle ish on much reduced volume, we have to be careful here because of the much reduced volume. SM are not really interested in the higher prices. The market is sent sideways for a few bars while the SM have to absorb the herd closing out and going long at the support level.

Second bar to the left of your second entry, here the SM seem to have caught most of the herd and with little demand afterwards, the price simply falls away until the 'trap down' 3 bars to your right.

I'm not really sure why prices drift back up again, maybe there is another support in this area which we cannot see on your chart.

If the next wide spread down bar is strong enough (or the support weak enough) we should go down from here. If it's not, we may get a similar retrace to the previous one.

If we were short, I think I woulod consider exiting in the next couple of bars if price goes above about the high of our wide spread down bar. I think we are still weak tho.

Hope this helps, maybe one of the better guys could put us right on this.

Hey, just found the real time chart for above and put my money where my mouth is

Gone short at 1.3570

Thanks Intel for explanation! Looks like SM outsmarted meI could have closed my position earlier but I was asleep.

I would go short too, because of falling volume on higher prices, but I'll wait for conformation.

Wish you luck!

Regards

Or...maybe it's going up...

I think there's a no supply and volume and price are going up?

Someone correct me if I'm wrong.


Regards

closed this one today +200

odd move up on 60 min today got hit with sellers ....1.5680 . I am now looking for some form of testing on 30 min for entry after seeing accumulation overnight in LOndon .

1.5600 maybe zone I am looking for test

Hello Mal
Could you tell what VSA Say about DX in daily or 4h?
Thanks

Hi Malcomb,

Great work on the +200!

I'm new to VSA and I've found many of your posts really helpful. If you have some time could you post a chart / give an explanation of how you've come to the conclusion of accumulation.

Thanks for any advice!

Exited at 1.3550 for a modest 20 pip profit.

Didn't like the way price was stalling. At the time I closed, I thought I was probably missing out on a larger swing.

Good job I got out

Could we have gone long on the bar before the wide spread up bar?

Yes, at 1.3560, after no supply and take profit at buying climax 1.3630.

Regards

Some nice VSA set ups today, looks like i`ve found a broker with some decent volume.

Gez

Down move on a huge volume and then retracement on decreasing volume. Small spread, low volume, good for shorting.

Regards

which broker is that?