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Trade Using VSA (Volume Spread Analysis)

  • #6,281
  • Edited 2:16am Mar 31, 2010 2:05am | Edited 2:16am
I can't believe I missed this trade.. LOL

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  • #6,282
  • Mar 31, 2010 2:22am Mar 31, 2010 2:22am
8 bars prior to ND, high volume, close high, it is a shake-out bar, isn't it? So your entry is with high risk.

This is totally afterthought. I am still a greenhorn of VSA.

Quoting wh1zz0
I can't believe I missed this trade.. LOL

Attachment
  • #6,283
  • Mar 31, 2010 2:35am Mar 31, 2010 2:35am
Quoting polomine
8 bars prior to ND, high volume, close high, it is a shake-out bar, isn't it? So your entry is with high risk.

This is totally afterthought. I am still a greenhorn of VSA.
Don't think so at all, daily pivot 5055 became a line in the sand. From Asian session only broken once and that was very quickly rejected.
  • #6,284
  • Mar 31, 2010 2:36am Mar 31, 2010 2:36am
Quoting polomine
8 bars prior to ND, high volume, close high, it is a shake-out bar, isn't it? So your entry is with high risk.

This is totally afterthought. I am still a greenhorn of VSA.
Yes, that was a shake-out.

Not necessarily high risk. Just missed the background picture because to be honest.. I did not look properly before going short initially. When I got stopped out, I noticed what a bad trade by me.
  • #6,285
  • Edited 2:41am Mar 31, 2010 2:39am | Edited 2:41am
Quoting Vantage
Don't think so at all, daily pivot 5055 became a line in the sand. From Asian session only broken once and that was very quickly rejected.
I think polomine is right....

A shake-out can be defined as is a sudden wide spread down, usually on bad news. It is engineered to create panic selling, thus helping the transfer of stock back to the professional traders. This is usually seen after a bull move has been running for some time. You would expect higher prices after this event. A true selling climax looks the same as this shake-out does; the big difference is that on a selling climax you will have a Bear Market behind you.

It was a nice little shake-out.

  • #6,286
  • Edited 1:51pm Mar 31, 2010 2:49am | Edited 1:51pm
Quoting polomine
8 bars prior to ND, high volume, close high, it is a shake-out bar, isn't it? So your entry is with high risk.

This is totally afterthought. I am still a greenhorn of VSA.
I may not use VSA but 5 candles prior to the No Supply is a Shake Out. The previous candle is a wide spread churn (better volume-which is not VSA) bar that closes off its lows with the next candle up. Then we see the No Supply in the range of our high volume Shake Out candle. That's a pretty basic set up.

The 5 min Euro looks had similar price action. Note that at the time the Shake Out (KRB) had Yao Ming volume. The candle prior to the Shake Out is high volume climatic action candle closing off the low with the next candle down. Looking at the three candles prior to that, we see note that the price action is bullish. Note that the bodies are smaller than the lower shadow of the Shake Out. I know, not VSA so I will stop. But anybody that uses the word engulfing is not using VSA seeing how engulfing emplies an open price which VSA does not look at.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #6,287
  • Edited 6:41am Mar 31, 2010 6:09am | Edited 6:41am
Posted elsewhere....

This chart has my usual fast and slow EMAs - 8 & 30 - plus Market Profile running from FO, pivots, sweet spots, volume and a wide candle indy - this has placed a blue arrow on any candle with a body > 15 pips - it also has alerts.

We can see how after each WR candle - all with high volume - there was negligible follow thru' AND price stalled before the next push up.....IMO a laboured rally.

The last WR candle - induced by slightly better than anticipated ADP report - has just managed a HH in a small red high vol doji.....

Whilst the trend remains up, VSA implies that there has been profit taking / distribution since the mid morning high......will this confirm the potential shampoo that I'm seeing on the 4 hour chart......TWT.....

PS FO line should be an hour earlier....
Attached Thumbnailshttp://cdn.forexfactory.com/attachme...1&d=1270040400

__________________
Trading Levels with WRBs
  • #6,288
  • Mar 31, 2010 6:16am Mar 31, 2010 6:16am
Quoting wh1zz0
I can't believe I missed this trade.. LOL

Attachment
I have just come back from hospital so I missed this one but for what its worth I think the key to this trade is (as always Malcolmb ) is in the background:

A - We start to get more interest from the SM in the lower prices.

B - If you can recognise these 3 bars and thier corresponding volumes there's a nice 20 - 30 pips going free! However the main point is less interest(volume) in the higher prices.

C - These 2 bars are a classic 2 bar shake out. Always better if the second bar has increased volume. If you're not familiar with 2 bar shake outs, just look at those bars on the M30 chart (you'll be looking for 1 bar obviously).

D - This is a ND which tests deep into the heart of the shakeout. Volume not only less than the previous 2 bars but also much less than the shakeout volume.

E - This bar is quite important, as are the 2 up bars before it. We see that the price has increased right into the 2 resistance areas and faltered, only to rise into them again on very high volumes. This is SM absorbing the herds selling at the resistance areas. It is now that bar E comes into its own. This is a NS in the form of a test to see if the selling is over. The volume confirms that it is. SM can now raise the price unhindered.

Good entries would be close of bars D or E

This is all in hind sight of course!

PS. Whilst writing this I see we now have an ultra high volume wide spread up bar in to new recent high area, closing of the highs followed by a down bar.

Sound familiar?
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  • #6,289
  • Mar 31, 2010 6:55am Mar 31, 2010 6:55am
Did anyone decide to trade that ultra high volume wide spread up bar in to new recent high area, closing of the highs followed by a down bar, which I mentioned in my last post?
  • #6,290
  • Mar 31, 2010 6:58am Mar 31, 2010 6:58am
I'm out at 5130 for 35 pips
  • #6,291
  • Mar 31, 2010 7:00am Mar 31, 2010 7:00am
Quoting wh1zz0
I think polomine is right....

A shake-out can be defined as is a sudden wide spread down, usually on bad news. It is engineered to create panic selling, thus helping the transfer of stock back to the professional traders. This is usually seen after a bull move has been running for some time. You would expect higher prices after this event. A true selling climax looks the same as this shake-out does; the big difference is that on a selling climax you will have a Bear Market behind you.


It was a nice little shake-out.

...
Sorry I was not disputing the shake out, it was the high risk aspect of buy trade. As we are now on the discussion I cannot in any description of the term see that move as a bad news, wide spread down designed to create panic selling.
  • #6,292
  • Mar 31, 2010 7:01am Mar 31, 2010 7:01am
Could have been a mistake but, I got cold feet at the resistance area without much volume.

I'll have to wait and see.
  • #6,293
  • Mar 31, 2010 7:05am Mar 31, 2010 7:05am
Quoting Vantage
Sorry I was not disputing the shake out, it was the high risk aspect of buy trade. As we are now on the discussion I cannot in any description of the term see that move as a bad news, wide spread down designed to create panic selling.
Hi Vantage,

I see you have a +7 rating so you're obviously a reasonably experienced trader. Do you mind if I ask, are you a VSA trader or do you use another method?

Thanks
  • #6,294
  • Mar 31, 2010 7:06am Mar 31, 2010 7:06am
Quoting Intel
Did anyone decide to trade that ultra high volume wide spread up bar in to new recent high area, closing of the highs followed by a down bar, which I mentioned in my last post?

Yes, as I posted elsewhere, I sold after the high vol doji on my chart posted above.....I traded off my 5 min chart....
Trading Levels with WRBs
  • #6,295
  • Mar 31, 2010 7:12am Mar 31, 2010 7:12am
Quoting Islander
Yes, as I posted elsewhere, I sold after the high vol doji on my chart posted above.....I traded off my 5 min chart....
I must really be 'on the ball' today........I missed your entire post completely

Very sorry!

Are you still in or out?

Do you know where I can get that indi for the FO etc please?

Many thanks
  • #6,296
  • Mar 31, 2010 7:20am Mar 31, 2010 7:20am
Quoting Intel
I must really be 'on the ball' today........I missed your entire post completely

Very sorry!

Are you still in or out?

Do you know where I can get that indi for the FO etc please?

Many thanks

I banked when the 5125 area first held and resold at the 5150 area / slow ema and still holding short.

Do you mean the time lines indy?
Trading Levels with WRBs
  • #6,297
  • Mar 31, 2010 7:20am Mar 31, 2010 7:20am
Quoting Islander
Yes, as I posted elsewhere, I sold after the high vol doji on my chart posted above.....I traded off my 5 min chart....
Re- entered at 5126 with a tight sl
  • #6,298
  • Mar 31, 2010 7:22am Mar 31, 2010 7:22am
Quoting Islander
I banked when the 5125 area first held and resold at the 5150 area / slow ema and still holding short.

Do you mean the time lines indy?
The one for Franfurt Open and New York open etc
  • #6,299
  • Mar 31, 2010 7:24am Mar 31, 2010 7:24am
Quoting Vantage
Sorry I was not disputing the shake out, it was the high risk aspect of buy trade. As we are now on the discussion I cannot in any description of the term see that move as a bad news, wide spread down designed to create panic selling.

Okay, I was just giving the definition. Not saying there was actually any bad news.


Anyone long UY??? I went long UY after no supply bar on M15. Moved SL to BE... Test on high volume, we might see a re-test

Not good.
  • #6,300
  • Mar 31, 2010 7:25am Mar 31, 2010 7:25am
Quoting Intel
The one for Franfurt Open and New York open etc

Here it is.....you can find all of the indys that I use in my thread - and how I'm using them....http://cdn.forexfactory.com/images/icons/icon12.gif
Attached File(s)
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Trading Levels with WRBs
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