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Trade Using VSA (Volume Spread Analysis)

  • #5,421
  • Feb 27, 2010 3:17am Feb 27, 2010 3:17am
Shamus, Mal or anyone else..

Can you help with a couple of things?

1: Does anyone use or have used the COT report in their trading? if so how reliable is it?

2: Liquidity Providers, are they SM, MM or something else, what impact if any do they have on FX?

Gez.
Attached File(s)
File Type: pdf Using_COT_Report_To_Forecast_FX_Movements[1].pdf   163 KB | 1,254 downloads
Seek not to change the world; seek only to change your mind about the world
  • #5,422
  • Feb 27, 2010 5:45am Feb 27, 2010 5:45am
Quoting gez40
Shamus, Mal or anyone else..

Can you help with a couple of things?

1: Does anyone use or have used the COT report in their trading? if so how reliable is it?

2: Liquidity Providers, are they SM, MM or something else, what impact if any do they have on FX?

Gez.

If this can be of use....

http://www.forexrazor.com/Analysis/c...f-traders.aspx
The Market pays you to be disciplined
  • #5,423
  • Feb 27, 2010 6:27am Feb 27, 2010 6:27am
Quoting mima
If this can be of use....

http://www.forexrazor.com/Analysis/c...f-traders.aspx


Thanks Mima, checking it now.

Gez
Seek not to change the world; seek only to change your mind about the world
  • #5,424
  • Feb 27, 2010 6:40am Feb 27, 2010 6:40am
youtube channel some nice vids on volume "SPVTrading".

Gez
Seek not to change the world; seek only to change your mind about the world
  • #5,425
  • Feb 27, 2010 9:04am Feb 27, 2010 9:04am
Thanks TC

Some interesting points there for consideration.

Entries:

I intend to use H1 to find a confirmed entry pattern. Once I have this, I will go to M5 to try and find the best price to actually enter at.

Confimation:

By this I mean, waiting for tests, no demands etc and not just entering on UHVUBs and such (there are traders who do this but they are much more experienced than me and will have better intuitive skills).

Losing trades:

As you pointed out, we never KNOW what will happen after entry. Sometimes, the setup will be there for a trade but, after entry, the price goes the other way and doesnt come back(we have done nothing wrong, it just happens). Once I've decided that the entry is wrong I mean to never add to the trade 'hoping' that the setup was good.

Adding to a good trade is definately an option in my opinion, provided it's done correctly.


Hope this clears up those points. Again, many thanks for help.
  • #5,426
  • Edited 10:13am Feb 27, 2010 9:55am | Edited 10:13am
Quoting Dutchy
Cool

Back to bussiness: DOW hardly hangs on.. looks weak: is that weakness on the background?
How does VSA assess the situation ?

Cheers, Dutchy
That was the point of the music, Dutchy.

"on the left hand side" ...

we have our high volume bar--doesn't mean am going to start selling--
might just be "pushing through supply"..we have the upthrust, we have
the massive down bar--and the test to see , who won,,i mean its a fight...
its a waiting game for me , if the tests fails, i bail..
and if it passes , we go up, and might add some more..

Heading out--wil check DOQW later..
Attached Image (click to enlarge)
Click to Enlarge Name: testing for supply.gif Size: 65 KB
Attached Image
  • #5,427
  • Feb 27, 2010 10:24am Feb 27, 2010 10:24am
Quoting taomql4
That was the point of the music, Dutchy.

"on the left hand side" ...

we have our high volume bar--doesn't mean am going to start selling--
might just be "pushing through supply"..we have the upthrust, we have
the massive down bar--and the test to see , who won,,i mean its a fight...
its a waiting game for me , if the tests fails, i bail..
and if it passes , we go up, and might add some more..

Heading out--wil check DOQW later..

Like the explaination tao, more more more please
  • #5,428
  • Feb 28, 2010 4:53am Feb 28, 2010 4:53am
In electronic media, I dont believe any supply & demand theory. Especially for the major currencies. Now, I am more confused. ..

On the other side, regarding accumulation&distribution written in the book, it's all about bullish move . If there is accumulation, then there will be bullish market soon. So, what about the bearish market ? Would be some phase like accumulation in the beginning of a bearish market ? Then, during a bearish days and weeks, can we talk about these phases ?


And, accumulation distribution is something like the tools of market makers to fool the public , not real price determination. Over these 4 phases, price almost arrives the same level, so it is not real deal.

These are the questions and things I cant find the answers actually and see the fact.

Should I forget all about these confusing, useless ideas ?

Any comments will be highly appreciated.

Regards,
  • #5,429
  • Feb 28, 2010 6:01am Feb 28, 2010 6:01am
When you accumulate one currency you distribute the other one of the pair. That's all you need to know.



Quoting bruceli
In electronic media, I dont believe any supply & demand theory. Especially for the major currencies. Now, I am more confused. ..

On the other side, regarding accumulation&distribution written in the book, it's all about bullish move . If there is accumulation, then there will be bullish market soon. So, what about the bearish market ? Would be some phase like accumulation in the beginning of a bearish market ? Then, during a bearish days and weeks, can we talk about these phases ?


And, accumulation distribution is something like the tools...
You make money by waiting, not by trading.
  • #5,430
  • Feb 28, 2010 7:06am Feb 28, 2010 7:06am
Quoting bruceli
In electronic media, I dont believe any supply & demand theory. Especially for the major currencies. Now, I am more confused. ..

On the other side, regarding accumulation&distribution written in the book, it's all about bullish move . If there is accumulation, then there will be bullish market soon. So, what about the bearish market ? Would be some phase like accumulation in the beginning of a bearish market ? Then, during a bearish days and weeks, can we talk about these phases ?


And, accumulation distribution is something like the tools...

It goes something like this:-

I have a shop in your town selling bananas.
There are several other shops in your town which also sell bananas.
We all try to undercut eachother on the price.

Because you dont have a car you have to buy bananas in your town.
You can buy bananas at the lowest price you find.
Because my bananas are not the cheapest, you dont buy mine. I dont like this!

But I have a plan!
I go to every banana shop in town and buy all the bananas.
There are no more bananas left for sale except mine.
I have raised my prices by 50%.
If you want to buy bananas, you HAVE to pay my higher price.

But I have to be careful that there are no bananas left for sale elsewhere BEFORE I can raise my prices.
To do this, every now and again I will raise my prices by a small amount.
If they dont sell, it means you are buying bananas cheaper elsewhere.
So I have to go find and buy them.
If they do sell at that price it means that there are no bananas for sale cheaper than mine so I can go ahead and raise prices some more.....HAPPY DAYS!

This is basically how accumilation works. In my example:-

I am the Smart Money
Bananas are the pair(GBP/USD)
You are the Herd


You're probably more confused than ever now
  • #5,431
  • Feb 28, 2010 9:19am Feb 28, 2010 9:19am
Intel, great explanation! Pure economy! That's why companies try to get rid of the competition and rule the market. Monopoly, good for company (SM), bad for consumers (herd).


Regards
  • #5,432
  • Feb 28, 2010 10:23am Feb 28, 2010 10:23am
Nice explanation of accumulation!. I like bananas ... ;-)


Quoting Intel
It goes something like this:-

I have a shop in your town selling bananas.
There are several other shops in your town which also sell bananas.
We all try to undercut eachother on the price.

Because you dont have a car you have to buy bananas in your town.
You can buy bananas at the lowest price you find.
Because my bananas are not the cheapest, you dont buy mine. I dont like this!

But I have a plan!
I go to every banana shop in town and buy all the bananas.
There are no more bananas left for sale except mine.
I have raised my prices by 50%.
If...
You make money by waiting, not by trading.
  • #5,433
  • Feb 28, 2010 11:00am Feb 28, 2010 11:00am
I always buy the banana at the highest level, thats why I dont like bananas
  • #5,434
  • Feb 28, 2010 12:06pm Feb 28, 2010 12:06pm
Quoting MykeFX
I converted the VSA Cheat sheet found on page 1 to a PDF file, makes it a little easier to read. I have it in Excel also if anyone is interested. I plan to add more to it soon and try to add illustrations if I can.
Thank you very much MykeFX for this sheet! But two questions;

1) How do you exactly define when Close is Low or Middle, or when Volume is Average, High or Very High? Is there any exact way to define all these terms, for example from average values? Something like; "Average Volume" is 80% - 120% from 20 bars average volume, High is 120% - 200%, Very High is over 200%. And "Middle Close" is between 40% and 60% of bar's range, or whatever. Without defining exactly what these terms mean, it is quite impossible to follow them precisely.

2) What does that Change stand for? I don't recall that there was anything about "Change" in Master the Markets book, was there?
  • #5,435
  • Feb 28, 2010 12:24pm Feb 28, 2010 12:24pm
Bananas get me more chicks than my Wolf T-Shirt.
The trend always ends.
  • #5,436
  • Feb 28, 2010 1:04pm Feb 28, 2010 1:04pm
Quoting Shamus
Bananas get me more chicks than my Wolf T-Shirt.
yes I see...
Attached Image
  • #5,437
  • Feb 28, 2010 1:07pm Feb 28, 2010 1:07pm
Quoting Porkpie
yes I see...

WOW..........

She's gonna be 'quids in'

Ermmm.....He's gonna.....uhhhh......oh I don't know

Suddenly gone off bananas
  • #5,438
  • Feb 28, 2010 2:12pm Feb 28, 2010 2:12pm
Boy I was going to have a banana split but some how have lost my appetite!
Thanks Porkpie.

And a big thanks to Shamus, Malcolm and the other contributors for your unselfish help regarding VSA. Over the course of this thread I have come to understand price action a little better though still learning.

Just a small question for Malcolm, I have noticed you refer to 10 min / 2 hr charts to find buyers/sellers since these are not the norm for charting packages is this because the SM is trying to hide their intentions? Would we not see these build off the 5 min or 1 hr charts?

And one last question for Mal, what's up with that Curling sport? I have got sucked into it so much strategy / skill (I can't believe it). Anyways congrats for Canada's win.

Thanks
  • #5,439
  • Feb 28, 2010 3:30pm Feb 28, 2010 3:30pm
Hi all,

I'd like just inform you about COT based system on MT4 I across two months ago, and there is some setup about it, however I couldnt understan nothing about it that time, and I left it. I dont know whether it is a usefull setup or not.
There were some indicators based on it, and I remember that I have also download some COT excel files from CFTC i think. however, some indicators didnt work, then I gave up.

Unfortunately, I dont remember the link right now, but you could easily find it hopefully.

I'd just inform you for interested in.

For whom interested in, I could check it as well, in the meantime I am just reading about what is open interest, how lagged datas if we can use or not.

Regards,
  • #5,440
  • Edited 3:36pm Feb 28, 2010 3:34pm | Edited 3:36pm
suddenly I remembered where I saw it.

here is the link,

http://articles.mql4.com/867

It seemed to me very interesting in the beginning of my fx journey.

In the meantime, plase read also comments pages at bottom of the article, because there is a guy who tells how this could be set up with MT4 platform. it should be at third or fourth page. even he shows in media player.
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