DislikedHow do we apply VSA? If on the chart I see a special bar, for example a stopping volume bar. What should I do? What gives me then the confirmation that I should enter the trade?
In Tradeguider they are drawing channels. Do we have to to that? Price is not always moving nicely in a channel and if it did for sometime, then right when I enter the price could go in the wrong direction.
For example I see no-supply bars all along the chart. and sometime price is moving up and other times it is moving down?
DanielIgnored
If after the stopping volume that you see, you see (one or several) tests of that area, then I would see if the tests are on low vol (if there are multiple tests, then vol has to be lower on each test to show the supply is drying up) and finally a no supply bar would be the confirmation (or even a shakeout).
I also take into consideration the time it is and what session we are in. Beacuase as I'm sure you know, vol is pretty low a couple of hours after London closes and picks up during Frankfurt. So if I see a setup when vol starts to dry up due to the time, I usually dont trade, and if I do, it's for a smaller gain than if it were during high vol hours.
You also have to take into consideration the background. At least that is how I trade and understand VSA to work.
On a journey to consistency.