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Trade Using VSA (Volume Spread Analysis)

Quoting polomine
Hello, ShowT!

It seems that you are a testing expert on trading stragegy. Would you please tell me your testing method? I am interested in a combo strategy of VSA, ATR and Marekt Profile. But I don't know how is its effectiveness and how to play with it.
My testing is very simple, I take a pair and manually test it day by day for a previous year) It's hard but with automatic testing you never see what you need to see!
VSA efficiency depends only on your skills to interpret it. Here is VSA efficiency curve As you see from it in the beginning you spend a lot time with charts but it doesn't help much but after some point you master skills start growing faster....and it looks like that break point far enough to prevent 90% of people of crossing it.

ATR and MP are much more simple, I use them mainly to determine direction of trend, s/r lines and stop/profit targets. Just play with them little bit and you will find how and when they useful.

From testing I can tell you that method really gives you high probability trades! Once you have a plan and enter the trade it should be no more doubt! Close the trade only if your PLANNED sl is hit or you achieve your profit.

One of the main points of this strategy that helping your VSA to make profits was mentioned here by Malcolmb and in DIBS thread by PC and in hundred other places by hundred other people:
TRADE WITH THE TREND!(only buy if higher then previous close and vise versa) All the tools you use serving just one purpose - to determine if the trend exist and where its going and if its going to revers.
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“buy the rumor, sell the news”
ShowT, I can learn a lot from your high-quality post. Thank you very much!

I'd like to summarize what we are talking about to the following key points. Correct me if needed, please.

1. Regard London or EU open as a new daily session, so prior close is the last bar's close before London Open.
2. Use prior close or pivot as the criteria to identify the trend direction and decide the interday trading plan, buy dips or sell rally using VSA.
3. Only try to trade counter the trend when there is good VSA setup (tf >= M15) AND daily range based on ATR has been satisfiled.
4. The SL/TP can be drawn from prior HLC, pivot and S/R, and MP POC, PVP, VWAP, etc.

I think we have a similar trading strategy, hope I can get your kindly help along the journey.

And many thanks for Malcolmb14. It is his living VSA trading journal that make me come up with my trading system and my two indicators, pivot and MP, posted here earlier.

Quoting ShowT
My testing is very simple, I take a pair and manually test it day by day for a previous year) It's hard but with automatic testing you never see what you need to see!
VSA efficiency depends only on your skills to interpret it. Here is VSA efficiency curve As you see from it in the beginning you spend a lot time with charts but it doesn't help much but after some point you master skills start growing faster....and it looks like that break point far enough to prevent 90% of people of crossing it.

ATR and MP are much more simple, I use them mainly...
Quoting wh1zz0
In addition, looking at yesterday's daily chart, GU closed on a down bar with relatively lower volume. The other thing is today most traders and banks are off on holiday.
Excellent point.. good day for taking the family somewhere.

Quoting supremeChaos
Hello Chief ,
just curious.. what's the significance of the red vertical lines?
Thanks!
Those are option expiry dates..


Quoting bruceli
hi Chief,

I am sorry, i feel myself so bit directionless, acc. to the chart, and heavy buying at previous dip, do we have increase in the long term after double bottom ?

in the meantime, the chart seems better than I use for futures, please could you also tell me which one it is.. .

This is Think or Swim platform... great platform. As to the future, I am waiting for it to break 1.5400, with good volume. Otherwise, it's beginning to look a lot like Acc/Dist.... only time will tell.

Cheers

Chief
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thanks a lot Chief...

i am using cts t4 simulator for futures which is advised by my friend. but sometimes it breaks down and not happy with it.

thanks again

but unfortunately, there is no demo
Quoting ShowT
My testing is very simple, I take a pair and manually test it day by day for a previous year) It's hard but with automatic testing you never see what you need to see!
VSA efficiency depends only on your skills to interpret it. Here is VSA efficiency curve As you see from it in the beginning you spend a lot time with charts but it doesn't help much but after some point you master skills start growing faster....and it looks like that break point far enough to prevent 90% of people of crossing it.

ATR and MP are much more simple, I use them mainly...
awesome note. I have been taking the attitude see the trade set up , set stop , tp and walkway go do something else.

This morning just on bs movements and 30 min buying climax GU i snagged 30 pip in a tough US session doing just this
Blogging daily now at www.volume.zone
Not seeing many settups this morning. Anyone else?
Quoting Intel
Not seeing many settups this morning. Anyone else?
go study 4 hour gu charts from last thursday ..... then say no new set ups this morning
Blogging daily now at www.volume.zone
Well, it looks like the oil speculators are back at it--$90/100 oil, what a Joke.
Emerging Markets , my arse..I guess to them, everything is back to Normal.
Talk about extremely overbought DOW--its funny though,
Folks are afraid to sell..lol-this is what happens , when the Government messes
with your Head.
Quoting Intel
Not seeing many settups this morning. Anyone else?

Even GU M15 showed nice no demand bars in early Asia.
Quoting wh1zz0
Even GU M15 showed nice no demand bars in early Asia.
also another one in London off the close of last month 1.5190
Blogging daily now at www.volume.zone
Quoting wh1zz0
Even GU M15 showed nice no demand bars in early Asia.
Quoting malcolmb14
also another one in London off the close of last month 1.5190
can post charts and share?
Quoting hwsv07
can post charts and share?
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Quoting malcolmb14
go study 4 hour gu charts from last thursday ..... then say no new set ups this morning
Cheers for that but, I don't see what you see.

Can you advise please.
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Quoting wh1zz0
Even GU M15 showed nice no demand bars in early Asia.
You're right I see them but, I was fast asleep then .

Didn't know how to take advantage at the time I was trading.
Quoting malcolmb14
also another one in London off the close of last month 1.5190
Got that one but didn't trade it.
what do you see? I can not tell where it will go? Maybe, I should just do nothing.
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Quoting polomine
what do you see? I can not tell where it will go? Maybe, I should just do nothing.
GU is running up !

in my opinion it is not stopping volume, cause, tail is not long enough, it shows rather selling, and that could be bearish trap, but volumes are quite high relative to previous ones.

i am not sure, and i am already -70 pip , at gu.
Do you guys ever consider the fact that these pairs have since reached and passed their daily ranges for the day?? Why place trades?

Sorry about your draw down but don't forget that you must try as much as possible to see reasons not to take a trade. And the moment you're in a trade (and you decided not to set TP/SL and walk away), start looking for signs of what would be capable of making the trade not work out.
Quoting bruceli
GU is running up !

in my opinion it is not stopping volume, cause, tail is not long enough, it shows rather selling, and that could be bearish trap, but volumes are quite high relative to previous ones.

i am not sure, and i am already -70 pip , at gu.
You are short then yes?
This is a 5 min Eur Futures chart. To me it looks like the dips in the current range after the drop are being bought up. I wont think about placing a trade untill after the FOMC but we may be accumulating. If 1.3350 is taken out again its a different story.
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