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Trade Using VSA (Volume Spread Analysis)

  • #7,021
  • Apr 23, 2010 11:03am Apr 23, 2010 11:03am
Quoting polomine
Hello, Intel.

Thanks a lot for your comments. Yes, you do a better job than me.
these two days, full of opportunities, but I have been married to SHORT. What a pity!

Cheers,
polomine
You and I along with many others, are in the same boat, we're all trying to learn. We can learn from each other aswell as the masters.

BTW. a range is most likely now cos the markets are closed except NY
  • #7,022
  • Apr 23, 2010 12:03pm Apr 23, 2010 12:03pm
Hi all,

Regarding volume analysis, IMHO I don't like using moveing average to identify ultrahighvolume, veryhighvolume, highvolume bars and so on. I know somebody draws horizontal levels in the volume chart manually to do this thing. But it is too subjective, isn't it?

I have a idea which seems promising. we can develop a custom indi to collect volume data session by session, ie. europe session, and then design an algorithm and let indi tell us which bars belong to ultra-high volume bars, ...

The attached image is the sorted M15 volume data of europe sessions for 14 days. Maybe that is the starting point to realize my thoughts...

Hope I have expressed my thoughts clearly. Any feedback would be highly appreciated.

Have a nice weekend, everybody.

-- polomine
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd m15.gif Size: 9 KB
  • #7,023
  • Apr 24, 2010 5:46am Apr 24, 2010 5:46am
new TG vids

video1

video2

video3
  • #7,024
  • Apr 24, 2010 12:17pm Apr 24, 2010 12:17pm
not really sure what you are trying to do here.

d0 not forget vsa is about relative volume. It may not be volume even relative to last session , but relative to bars around it

Quoting polomine
Hi all,

Regarding volume analysis, IMHO I don't like using moveing average to identify ultrahighvolume, veryhighvolume, highvolume bars and so on....
Blogging daily now at www.volume.zone
  • #7,025
  • Apr 24, 2010 3:04pm Apr 24, 2010 3:04pm
Quoting Willowgal
Malcolm,

I just took at long USDJPY .... have I read this ok ?
http://www.forexfactory.com/showpost...&postcount=663

Hello fellow forex traders interested in vsa. After a hiatus, I'm back reading the thread and am currently on msg #663. Willowgal's chart shows an accumulation pattern intrinsic to a shallow bullish scallop continuation pattern. Thomas Bulkowski's Encyclopedia of Chart Patterns site

http://www.thepatternsite.com/ascscallop.html

says the throwback/pullback rate is 58% for bullish scallops. Of the remaining 42% there is a 58% frequentest probability of reaching the price target. This is a low probability trade with a high failure rate. Big traders will exploit those failures to separate suckers from their money.

Paraphrased from Dr Alexander Elder's book "Trading for a Living" is a truth I should always keep in mind. ~The market is not your mother. It is composed of very intelligent and competent men and women who excel at finding ways to separate you from your money.~ When a pattern that is strongly expected to yield a substantial move fails, the resultant counter move would seem to provide an excellent opportunity for adroit traders to make easy sucker money. I think VSA theory's point about effort versus result supports this view.

Many thanks to all post contributors. Good trading.

ps: follow me on twitter http://twitter.com/FX_Infidel
  • #7,026
  • Apr 24, 2010 4:54pm Apr 24, 2010 4:54pm
Quoting FOREXflash
My trading is not pure VSA, and Im perfectly happy with current outcome!
http://www.forexfactory.com/showpost...&postcount=689

Post 689 shows a GJ 15M chart featuring a No Demand bar located 3rd towards left from hard right edge. ForexFlash was gambling that rate would consolidate in an energy coil with her/his short positions. Malcomb's observation that GJ had been under accumulation for the previous 5 days was valid. I avoid counter trend trades because when I take a position counter to the trend I'm much more likely to lose.
  • #7,027
  • Apr 24, 2010 5:30pm Apr 24, 2010 5:30pm
Quoting malcolmb14
this is what you get if you try to trade vsa without considering background . I was trying to warn our friend this morning ,.. but could not post in his forum

Attachment
http://www.forexfactory.com/showpost...&postcount=707

In post 707 malcomb attached a chart showing the nyse guy's bogus short. Just to the left of that notation is what appears to be accumulation after a bullish move. There is an upthrust on this chart located over second magenta colored high volume bar that resulted in further bullish accumulation and movement. Rate rolled over on decreasing volume to retest the upthrust low and then gave way to several doji-indecision bars where there had to be yet more accumulation as the result was a nice up move. The pattern here resembles a Bulkowski Bump and Run Top Reversal.

http://www.thepatternsite.com/barrt.html

Bulkowski's findings indicate this pattern has a 62% pullback rate, and that 78% of the time the target is obtained. This pattern has prime head fake potential so background consideration of market context and effort versus result was essential to proper positioning. Nyse's stop paid for malcomb's lunch, and the suckers are food for the adroit.
  • #7,028
  • Apr 24, 2010 5:53pm Apr 24, 2010 5:53pm
Check out the chart on post #713

http://www.forexfactory.com/showpost...&postcount=713

Taomql4 did a nice stop sell entry after confirming continued weakness. I noticed the head fake in the 11th bar from the right just after the penultimate swing high upthrust-shooting star. I think that bar constitutes a No Supply bar as it's hanging man-hammer configuration would tend to indicate a dearth of stop sellers under the immediately preceding shooting star upthrust top. This resulted in 5 goodly down candles. Suckers would have got long at the open of the 10th bar in anticipation of a bullish reversal, but their stops were deposited into SM accounts.
  • #7,029
  • Edited 6:56pm Apr 24, 2010 6:26pm | Edited 6:56pm
Post #718 by Defcon has an interesting analysis.

http://www.forexfactory.com/showpost...&postcount=718

On chart http://www.postimage.org/image.php?v=Pq1ZSl3J region 7 is continuation uptrend on low volume that leads to region 8 where a buying climax occurs over several hours.

My question is about VSA nomenclature. What phase of the market cycle does region 7 best resemble in VSA terms?

Thanks and Best

follow me on twitter http://twitter.com/FX_Infidel
  • #7,030
  • Apr 24, 2010 7:43pm Apr 24, 2010 7:43pm
This chart is from post #721. http://www.forexfactory.com/attachme...0&d=1239742855

Please examine, analyze and comment upon the three right most bars. What was going on there in terms of VSA theory?
  • #7,031
  • Apr 24, 2010 8:09pm Apr 24, 2010 8:09pm
A trader on another VSA message board recommended "Techniques of Tape Reading" by Vadym Graifer
Vadym Graifer (Author)
› Visit Amazon's Vadym Graifer Page
Find all the books, read about the author, and more.
See search results for this author
Are you an author? Learn about Author Central


and Christopher Schumacher

http://books.google.com/books?id=3Fo...page&q&f=false

Amazon says

How to use trading's most time-honored technique to reap profits in today's fastmoving, point-and-click markets Tape reading is among the oldest and most successful methods of technical analysis.
Techniques of Tape Reading shows traders how to incorporate the best aspects of tape reading into a modern trading plan, by understanding the correlation between volume and price and simply trading off what a stock's price movement is telling them to do.
A practical, how-to guide for using tape reading to improve trading decisions in today's screen trading environment, Techniques of Tape Reading discusses:

 

  1. Profitable use of tape reading in both swing and day trading
  2. How the best traders condition their minds and mind-sets
  3. Tape reading techniques for up, down, and nontrending markets

  • #7,032
  • Apr 25, 2010 9:51am Apr 25, 2010 9:51am
or is it mother us too much!! : )))

good stuff though...

thanks.
  • #7,033
  • Edited 10:21pm Apr 25, 2010 10:05pm | Edited 10:21pm
Quoting Twiitch
or is it mother us too much!! : )))

good stuff though...

thanks.
Thank you my friend. I apologize if my tone or style seems to be condescending. I assure you I am not a know it all type. I am in awe of the great traders that abound on these message boards and throughout market history. I seek to learn and to help others to learn, for the dream of being able to trade for a living, if achieved, would mean freedom to live anywhere on the planet.

Richard D Wyckoff's Studies In Tape Reading is available as a free d/l at http://www.archive.org/details/studi...erea00wyckrich

This file is too large to attach to a message on this board. Wyckoff's method is said to be complimentary to VSA; although, I have yet to read Studies. Its on my list.

Best Wishes for Your Trading Success
  • #7,034
  • Apr 25, 2010 10:42pm Apr 25, 2010 10:42pm
Question on the Template for MT4 you use, with the MACD, STR, and EMA indicators. How do i use them?


Quoting Shamus
--------------------------------------------------[*] [*] [*]My MT4 Template (includes all indicators I use): Template Zip & Screenshot[/list]
  • #7,035
  • Apr 26, 2010 2:09am Apr 26, 2010 2:09am
I used the "Information" Indicator for the Clock and spread information only but I do not use anything from that template any longer. I am now using/testing our trainer templates for SMART.

I hope this helps.

PS Hi everyone, I hope you guys had a great weekend.
The trend always ends.
  • #7,036
  • Apr 26, 2010 3:32am Apr 26, 2010 3:32am
Hey guys been watching some vsa videos. And this is what they call a Tom Williams short. Upthrust then a no demand. And on the 15min. If the nd had less volume i woudve been in, foresure.

http://i865.photobucket.com/albums/a...te146/gjtw.jpg
  • #7,037
  • Apr 26, 2010 4:27am Apr 26, 2010 4:27am
Quoting pete148
Hey guys been watching some vsa videos. And this is what they call a Tom Williams short. Upthrust then a no demand. And on the 15min. If the nd had less volume i woudve been in, foresure.

Hi Pete,

Your ND isn't a ND. It's a down bar confirming the UT. A ND should close higher than the previous bars close (an up bar). Otherwise, everything else about it would be correct.

If it was a ND then an ideal entry might be when the bar after it breaks the low of the ND.
  • #7,038
  • Apr 26, 2010 4:29am Apr 26, 2010 4:29am
Oops, Beat me to it Sharpster!

At least we both saw the same thing
  • #7,039
  • Apr 26, 2010 4:31am Apr 26, 2010 4:31am
Quoting pete148
Hey guys been watching some vsa videos. And this is what they call a Tom Williams short. Upthrust then a no demand. And on the 15min. If the nd had less volume i woudve been in, foresure.

The bar you`ve marked is not an ND bar, an ND bar is an upbar with volume less than the previous 2 bars indicating no interest in higher prices...if the next bar is a down bar with increased volume this would support the ND bar and would be a great entry.

Regards
  • #7,040
  • Apr 26, 2010 4:33am Apr 26, 2010 4:33am
Quoting Intel
Oops, Beat me to it Sharpster!

At least we both saw the same thing

had to re-do my post, the chart was bigger than my house..lol
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