Trade Using VSA (Volume Spread Analysis)

I will wait for entry on GU asia , but most likely Frankfrut / london Sunday.

Looking for breakout 1.5380 , maybe not even on vsa set up due to the fact that I know strength is there in the back ground.

Low gu 1.5266 , high 1.5390 , 124 pip range on gu when atr on mt4 is showing 127 ... pretty cool.

So we have to wait for next sesssion for next 130 pip move. I may buy on a breakout of today high with a 30 pip stop , someting like that.

Thanks

It'll be really interesting to see what happens.

Off topic...

With your 'experimenting' with ATR, when you're in, do you look for an exit or do you wait till 80%, 90% 100% of ATR then exit?

good question .... that ultra wide up bar with ultra high volume on a 30 min charts in London last night was enough for me to get out with 98 pip in the bag ( about 1.5370). ATR is 127 , so I might have left a few on the table but who care 100 pip per day is 2000 per month ..... now who does not like that !!!

LOL Well I'd certainly settle for it

Last night..........what time zone are you?

west coast Canada ..PST

Could also be a reaction to Supply on the Left...Absorption maybe, cause
if we apply laws of proportionality--all that accumulation, to just now all of a sudden fall..
hmmm(not that it couldn't happen..hey this is FX..lol)

Nice weekend everybody--Nice hunting next week......


BTW, who forgot to hit the 3 pointer on the Dow..? lol

have a great weekend , regards - TOM

Hey come on guys................you know I'm workin all weekend!!!

Just before i hit the road for my weekend trip, i thought i just post some post mortem on GU & what is to come next...

GU is now trap in a Bullish ascending triangle pattern, with the recent upmoved, this pattern will have very high chance of following through.

Kindly correct me if i am wrong on the analysis. (chart is 1hr TF)



Here is the probable conservative TP estimate if GU were to propel upwards according fib cluster. (TP estimate is within GU's ADR)


Have a nice weekend!

I just made the switch from MT4 to NinjaTrader. Does anyone know where I can find an MML indicator for NinjaTrader that is similar to the one posted on the first post coded by Grath? All the ones I've found doesn't show MML on the 5min timeframe.

If not, can someone recommend a good coder for a reasonable price that will transfer the mql code to ninjascript?

Thanks you advance for any help.

Regards,

Kenneth

I have been studying this myself. I would like to get in early and go long but I don't think those Volumes can push through.

It worries me that the highest volume hour bar is a dojie(spinner) while all three markets were open. To me that means each buyer had a seller to match.

It only moved up to resistance under low volume after two Major markets closed on a Friday.

I might be wrong, if it is not a full blown reversal, I expect at least a fair retracement early and another try when London opens.

Since I have such mixed views, I think I will hold off and see what the Market does at the Franfurt open.

If it breaks, I see the next major consolidation at around 1.5729

I am using the _RANGE_TRADER_9.08 Labaise53 as found somewhere on this thread. I think it was posted by Polomine (thanks btw).

It works great except I can't get the 'Timeshift' to work. I want it to start at +7 hours but no matter what figure I enter in that field, the ATR remains the same (therefore, the start point hasn't changed).

Firstly, am I reading that field correctly......does it do what I think it does?

Secondly, can anyone help please.

close to my target 1.5625

off topic

Hi guys,

I have managed to get MT4 on my computer at work YAHOO however, it will not comunicate with the outside world (probably the firewall).

So what I need is the history file for GBP/USD so I can see the pair on a chart.

So if anyone wouldn't mind can you post the file so I can download it please. I will be forever in your debt

You will probably find the files here:

C:/Program Files/FXCM MT4 powered by BT/history/FXCM-Demo

Like I said its the GBP/USD files I want.

Many thanks.

please be aware of stopping volumes on higher time frames like 4hour, daily even wekkly can be misleading, i mean you may not see an immediate reverse action, and it could go against you hundreds of pips.

please check daily weekly gu charts. you ll see 2 consecutive stopping volumes, however a decrease has followed soon.

there is a dilemma here, if you look at it on higher time frame, everything can be seen so differently, something seem bullish can quickly change to bearish vs..

so, I am so confused because, every time frame tells different story..

please, could you tell me what should i do ?

thanks..

hi intell

doyou want it in excell form ? if so, in what time frame you want ?

i have to confess that, if you want it 1 hour, it really take time, because it brings from 1980's all one hour data

however, i can attach here 4 hour if you wish..and try i hour as well..

Here you go..

http://www.megaupload.com/?d=Y5UQXJ1N

I realize this thread could be entitled Malcolmb's minions, but I'd like to make a post anyway . The truth and the irony is that there are a million ways to make money in the markets, the hard part is finding one.

There's a lot I could talk about, but I think I will just focus on our Better Volume indicator (I hate that word). I know, Better Volume is not technically VSA. Skip to the next post if you are bothered by that fact. On the other hand, if you are about reading price & volume Better Volume is an invaluable tool totally consistent with the underlying principles of Volume Spread Analysis.

The value of climatic action candles. Climatic action candles are the place to begin any analysis. Our definition of climatic action according to Better Volume is the highest volume*range in the last 20 intervals. This differs slightly from straight VSA, as a climatic action bar in VSA would be defined purely by volume. Therefore, the Shake out shown on chart 3 is a climatic action bar from the VSA perspective as the volume is so high. Better volume does not paint it dark blue, so it is not climatic action. As a trader this distinction must be noted. One has to be able to see both. But I am getting a little ahead of myself.

Let's take a look at chart 1.

Again I think the best place to start looking for entries into the market, is going to be either a climatic action candle or an ultra high volume candle. Most of the time they will be the same candle.

One type of WRB I look at that may turn into key changes in supply/demand appear only on climatic volume, but that's not what is being discussed here. Look at the right side of the chart.

1. We see a very high volume candle with on a narrow range. An underlying principle of VSA is that volume = activity= effort. And effort should be seen in the size of the range of a candle. Simply put, there is a positive relationship between volume and range: they should be increasing together.

In this case, they are not. The question is, "Why is the range being kept narrow as the volume increases?". The answer is the range is narrow because supply is swamping demand. Those that can see both sides of the market are not bullish at the moment. If they were, the range would be wide. Why are they not bullish? Well, they can see both sides of the market and they can see the supply overhead.

"So by simple observation of the spread (range) of the bar, we can read the sentiment of the market-makers; the opinion of those who can see both sides of the market". Tom Williams, Master the Markets, p 28.

It would appear that the BBs are not bullish here but rather bearish. Okay great, but no reason to enter the market based just on one candle. I should note that this candle is an up candle. As we know, when weakness appears it appears on up candles.

2. Two candles later, we get a different picture. This time our climatic action candle is on a down candle with a wide spread. We also note that the next candle is up. A down climatic action candle on a wide spread closing slightly off the low with the next candle up is a sign of strength. This follows a sign of weakness only two interval prior. Again no real hint of what the market wants can be ferreted out at this point.

I would note that this candle is engulfing the previous two candles. This means it is engulfing candle #1. Not VSA in the least, but still telling and worthwhile.

Let's skip to chart 2.

This is where the action is. Take a look at the volume. Note that there are three (3) climatic action bar in a row. Clearly something is afoot here. A quick glance to the left reveals that these three candles have less volume than the previously discussed candles at 1 & 2. This is important. Pure VSA might miss this as the volume is not considered climatic or ultra high. However, Better Volume, using both volume and range to calculate climatic does.

A. Decreasing climatic volume on a wide spread candle that closes off its low with the next candle up. There is hidden buying going on in this candle. If this was a truly bearish candle then the close should be lower and the next bar should be down. Also as Tom says, " Bullish volume is increasing volume on up bars and decreasing volume on down bars". MTM, P. 19.

B. The volume increases on this candle. Note that the candle opens lower than the previous candle, makes a lower low, then closes up and off of its high. This is a Key Reversal Bar (KRB). This is obviously a bullish sign. An aggressive entry is a long just above the high of this bar. A less aggressive play is to wait for a low volume (volume less than the previous two) no supply or test candle and enter after that.

C. Are you paying attention to what the market is telling you? Or are you listening to the dogma? We see a wide spread down candle closing on its low with volume less than the previous two candles. This is No Selling pressure.

"For a market to drop, selling pressure needs to be evident, which normally shows itself as wide spread down on high volume." MTM, P. 166. Here the spread is wide but the volume is low. The BBs are not actively selling on this candle. If they are not actively selling, they must not be interested in lower prices. If they are not interested in lower prices, they must believe price is about to rise.

D. While the volume on this candle is not climatic, it is increasing. When you combine candle D and candle C, you get a bottom reversal on increasing volume. It's time to get long. Note that if you were aggressive, candle C does make a higher high than B and would bring you in. But the less aggressive waiting for the no demand, now see no selling pressure and a bottom reversal.

Normally we want to buy on down candles and sell on up candles, but the two candle pattern here completes with an up candle by definition.

Chart 3

This just shows what happens next. How one manages the trade dictates how many pips and how long a person is in the trade.

a. Note that we have increasing volume on a climatic action candle. The key here is that we are not always talking about reversal, but sometimes we're talking about continuation.

b. This is a Shake Out. Notice the volume is blue, but we know that this is a climatic action bar because we study VSA.

None of Gavin's dogma. No mutli timeframes, no bars changing colors, no diamonds. Just out of the book (MTM) reading of volume, spread, and price analysis coupled with Better Volume.

thanks a lot hidden gapppp

Many thanks bruceli but I had to do some actual work for a while so my need for this info has gone now (dont have the time....I can get my own data when I get home)

Thanks to you also cosmoras for posting.