Trade Using VSA (Volume Spread Analysis) | Page 290 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Volume Spread Analysis (VSA) and background 5 replies

Trading With VSA - Volatile Volume and Spread Analysis 9 replies

What is the best VSA (Volume Spread Analysis) system/indicator? 1 reply

Volume Spread Analysis (VSA) and the EURUSD 3 replies

VSA Volume Spread Analysis: No demand and accumlation 2 replies

Attachments: Trade Using VSA (Volume Spread Analysis)
Exit Attachments

Trade Using VSA (Volume Spread Analysis)

  • #5,781
  • Mar 16, 2010 10:26am Mar 16, 2010 10:26am
Quoting Intel
Got a ND. Wait to see if its confirmed or failed.

Failed. Wait and see.
  • #5,782
  • Mar 16, 2010 10:29am Mar 16, 2010 10:29am
Quoting Intel
UJ M30 finding it difficult to break the 90.53 resistance area.

Waiting for a high volume push thru or a lower volume bounce off. See what the next few bars tell us.
Got a weak but confirmed UT mmmmm I wonder.
  • #5,783
  • Mar 16, 2010 10:32am Mar 16, 2010 10:32am
EU M5 down bar closing on the low has taken out the previous ND and the low of the retrace.

Could be on way down.
  • #5,784
  • Mar 16, 2010 10:35am Mar 16, 2010 10:35am
Quoting Intel
EU M5 down bar closing on the low has taken out the previous ND and the low of the retrace.

Could be on way down.

See if it can break the 3724 support area.
  • #5,785
  • Mar 16, 2010 10:49am Mar 16, 2010 10:49am
Nice Eur setup. This is 10 min globex chart (esignal) Took this exact trade last week.
Attached Image (click to enlarge)
Click to Enlarge Name: Eur10minlong.jpg Size: 127 KB
  • #5,786
  • Mar 16, 2010 10:58am Mar 16, 2010 10:58am
Quoting Intel
See if it can break the 3724 support area.
Only hit 3734

Not sure what its doing now. Got to go now anyway.

Happy trading
  • #5,787
  • Mar 16, 2010 11:32am Mar 16, 2010 11:32am
what I meant yesterda is at the graph. 30 min TF, and relative lenghts of last two volume bars is so distinctive.
Attached Image (click to enlarge)
Click to Enlarge Name: vol.difference.futures.dukas.JPG Size: 186 KB
  • #5,788
  • Mar 16, 2010 11:44am Mar 16, 2010 11:44am
Hi VSAers,

would appreciate your feedback on this:

2 charts.

First is a sell i got in that turned bad. setup looks of for me for a short we were bellow daily pivot but gone bad. we all know no system is perfect. is this an exception for a good system or did i read it wrong?

Second is where we are right now. i am long. could have taken out some pips and is going down now. sl at be. seems like a short entry too. should i have closed my long and gone short?

thanks for your feedback.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Forex.jpg Size: 126 KB
Click to Enlarge Name: Forex2.jpg Size: 144 KB
dreams do come true.
  • #5,789
  • Mar 16, 2010 12:20pm Mar 16, 2010 12:20pm
Quote
Did I understand something wrong; in MtM page 22 it says:
[i]
"- The Buying Climax
Brief Definition: An imbalance of supply and demand causing a bull market to transform into a bear
market.
Explanation: If the volume is seen to be exceptionally high, accompanied by narrow spreads into new
high ground, you can be assured that this is a ‘buying climax’. It is called a buying climax because to create this phenomenon there has to be a huge demand for buying from the public, fund managers, banks and so on. It is into this buying...

How about this; should buying climax have wide spread, or a narrow one as it says in MtM- book??
  • #5,790
  • Mar 16, 2010 12:28pm Mar 16, 2010 12:28pm
Quoting AlliumPorrum
How about this; should buying climax have wide spread, or a narrow one as it says in MtM- book??
sorry no idea, i am also so confused still all about vsa..
  • #5,791
  • Mar 16, 2010 1:11pm Mar 16, 2010 1:11pm
Quoting AlliumPorrum
Did I understand something wrong; in MtM page 22 it says:

"- The Buying Climax
Brief Definition: An imbalance of supply and demand causing a bull market to transform into a bear
market.
Explanation: If the volume is seen to be exceptionally high, accompanied by narrow spreads into new
[i]high ground, you can be assured that this is a ‘buying climax’. It is called a buying climax because to create this phenomenon there has to be a huge demand for buying from the public, fund managers, banks and...

According to his earlier book "The undeclared secrets that drive the stock market" TW states a buying climax can have both narrow and wide spread bars.....

"

There are two types of buying climactic action seen with only one major
distinction. After a substantial bull move has already taken place, the market moves
even higher on wide spreads up. Good news, excitement, elation abounding. You
observe the volume is Ultra-high. This indicates that you may have seen a buying
climax.
If at this point there are old trading areas to the left of the chart and at the same price
levels [which may be months or even years old], this action may not be a true buying
climax. At this stage you cannot be totally sure that the Ultra-high volume is mainly
professional selling and not absorption of the supply [selling] from locked in traders
sitting in the old trading area to the left. You have to wait for confirmation at a later
stage. If there are no trading areas to the left, it will certainly be a buying climax and the
end to a rising market. If there are old trading areas to the left of the chart and the
market moves sideways for some time and then starts to test [see testing], this would
then be a strong indication that you had not seen a buying climax but absorption
volume and that the professional traders were looking for still higher prices.
What do we mean by saying waiting for confirmation?
Markets do not like very high volume on up bars because something big is happening.
Either you have seen a Buying Climax which will mark the end of a rising market. Or
professional money is prepared to buy stock from old locked in traders from the last
previous high. This is not charity work by the money men but absorption because they
are still bullish and are anticipating even higher prices."...


I prefer this one to MTM



Gez
Seek not to change the world; seek only to change your mind about the world
  • #5,792
  • Mar 16, 2010 3:10pm Mar 16, 2010 3:10pm
Euro you need to look at the higher time frames and trade with that, The 4 hour yesterday was bought on the dip to 1.3650. That buying on a retracement is rarely designed for a 50 pip move.

Yes on a 5 min there was selling and an upthrust but in all honesty I trade a 15 min chart on eu and look for 5 min for entries with what the 15 is doing. Also when you saw that test shwon on chart below after seeng a double top that should have been your point to get out of the short. Double tops are not met with test so quickly.

Also , and I have said this to you before , NEVER take a sell when price is above prior days close.... no matter how good it looks. This very simple rule has kept me out of a lot of bad situations. On days when price is above yesterdays close look for buy dips , even if you miss a trade no big deal. If price is under yesterdays close look to sell rallies.

Attached Image (click to enlarge)
Click to Enlarge Name: chart04b.jpg Size: 166 KB






Quoting wannaberich
Hi VSAers,

would appreciate your feedback on this:

2 charts.

First is a sell i got in that turned bad. setup looks of for me for a short we were bellow daily pivot but gone bad. we all know no system is perfect. is this an exception for a good system or did i read it wrong?

Second is where we are right now. i am long. could have taken out some pips and is going down now. sl at be. seems like a short entry too. should i have closed my long and gone short?

thanks for your feedback.
Blogging daily now at www.volume.zone
  • #5,793
  • Mar 16, 2010 3:16pm Mar 16, 2010 3:16pm
no sell above daily close, no sell above daily close, no sell above daily close, no sell above daily close, no sell above daily close, no sell above daily close, no sel above daily close, no sell above daily close,...

(hope the 2 neurons got it this time!)



Quoting malcolmb14
Euro you need to look at the higher time frames and trade with that, The 4 hour yesterday was bought on the dip to 1.3650. That buying on a retracement is rarely designed for a 50 pip move.

Yes on a 5 min there was selling and an upthrust but in all honesty I trade a 15 min chart on eu and look for 5 min for entries with what the 15 is doing. Also when you saw that test shwon on chart below after seeng a double top that should have been your point to get out of the short. Double tops are not met with test so quickly.

Also , and I have...
dreams do come true.
  • #5,794
  • Mar 16, 2010 4:01pm Mar 16, 2010 4:01pm
Quoting malcolmb14
Euro you need to look at the higher time frames and trade with that, The 4 hour yesterday was bought on the dip to 1.3650. That buying on a retracement is rarely designed for a 50 pip move.

Yes on a 5 min there was selling and an upthrust but in all honesty I trade a 15 min chart on eu and look for 5 min for entries with what the 15 is doing. Also when you saw that test shwon on chart below after seeng a double top that should have been your point to get out of the short. Double tops are not met with test so quickly.

Also , and I have said...

NEVER take a sell when price is above prior days close

Do you give this advice just for eu or others also?
  • #5,795
  • Mar 16, 2010 4:17pm Mar 16, 2010 4:17pm
Quoting Intel
NEVER take a sell when price is above prior days close

Do you give this advice just for eu or others also?
all pairs of course....

what do you think smart money ius doing when they bust it thru prior days close ? sometime if huge volume comes in on a 60 min could be trap up move , but 80 % of the time it is not.

If you fancy your self as a day trader ALWAYS look where price is realtive to prior days high / low close. I use value area , which is slightly different , but not everyone has this

I mean here is EU . solid red lines are prior days low , close and high . Look where we ended day ... surprised ....now anyone tryingm to buy near there in the end of the US session is looking for draw down . It will take volume and professional money to move it higher. This may not happen till London if pros are expecting higher prices.

Attached Image (click to enlarge)
Click to Enlarge Name: chart04b.jpg Size: 179 KB
Blogging daily now at www.volume.zone
  • #5,796
  • Mar 16, 2010 4:25pm Mar 16, 2010 4:25pm
this is how to play a reversal day,

always make sure that once you enter a trade to have enough room to allow price to move to close of prior day if selling at high of prior day. On this trade your stop would have been above high of prior day

Attached Image (click to enlarge)
Click to Enlarge Name: chart04b.jpg Size: 131 KB
Blogging daily now at www.volume.zone
  • #5,797
  • Mar 16, 2010 4:58pm Mar 16, 2010 4:58pm
Quoting malcolmb14
this is how to play a reversal day,

always make sure that once you enter a trade to have enough room to allow price to move to close of prior day if selling at high of prior day. On this trade your stop would have been above high of prior day

Attachment

I see where your coming from with this. It s very interesting.

I will give it some consideration.

How rigidly do you believe in this? For instance, If price pushed thru(up) the previous days close on high volume. Would you automaticaly enter long right there and then?
  • #5,798
  • Mar 16, 2010 6:10pm Mar 16, 2010 6:10pm
Dear Master,

taking into consideration the relevance you give to prior day's close by that i can imply that:

1-we are currently below prior days close.
2-since it take a lot of money to break then
3- i should close my long!



Quoting malcolmb14
all pairs of course....

what do you think smart money ius doing when they bust it thru prior days close ? sometime if huge volume comes in on a 60 min could be trap up move , but 80 % of the time it is not.

If you fancy your self as a day trader...
dreams do come true.
  • #5,799
  • Mar 16, 2010 6:14pm Mar 16, 2010 6:14pm
Quoting wannaberich
Dear Master,

taking into consideration the relevance you give to prior day's close by that i can imply that:

1-we are currently below prior days close.
2-since it take a lot of money to break then
3- i should close my long!

depends .... we are above prior days close.

I take my day form London open to London open . Why? There is no volume in asia so there really is not significance to it.

I am thinking , based on effort to push down yesterday and then today we are close to close of last week , that in London tomorrow we will break higher. I think if you can get a little draw down (50 pip or so) that you will be happy if you hold your long for now. Where did you buy from ?

my targets is 1.3795 breaks out 1.3850 but more likely 1.4050 by end of week
Blogging daily now at www.volume.zone
  • #5,800
  • Mar 16, 2010 6:24pm Mar 16, 2010 6:24pm
just saw your post on the EU thread about that.

i have SL at BE 15 pips away...

am considering lowering it to bellow 3737 (daily pivot) looking at those 20 pips as "another entry".

very doubtfull. my plan (that i keep desrepecting) is to trade what i see and right now i see red candles so i should close and get 15 pips or so. but i really think that tomorrow could be the lift off of the eu breaking clearly out of the range/rounded bottom.

and also i am tired. not good for decisions...

Quoting malcolmb14
depends .... we are above prior days close.

I take my day form London open to London open . Why? There is no volume in asia so there really is not significance to it.

I am thinking , based on effort to push down yesterday and then today we are close to close of last week , that in London tomorrow we will break higher. I think if you can get a little draw down (50 pip or so) that you will be happy if you hold your long for now. Where did you buy from ?

my targets is 1.3795 breaks out 1.3850 but more likely 1.4050 by end of week
dreams do come true.
2 traders viewing now