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Trade Using VSA (Volume Spread Analysis)

  • #7,561
  • Jun 3, 2010 9:40am Jun 3, 2010 9:40am
Quoting bandung
Hi Samus, I saw you using Hidden Gap Volume Indicator on one of your post, so I googled for it and download it.

I read its description on the mq4 code, and I think I liked how it work.
What do you think about this vol indicator?

I do a little a modification to a style of average line and its deviation to be big fat histograph, and you know what... its look like skyscraper picture with mountain background
and its look like on those tradeguider too
what indi are you using on the right to display the other timeframes like that?
  • #7,562
  • Jun 3, 2010 1:43pm Jun 3, 2010 1:43pm
I have upload a document about break trading how to trade them and what to look for according to VSA and candle sticks. I think it will help some of you.

If you wondering on the document i use 8 ema, 21 ema, 34 sma and 200sma with volume. And that is it....keeping it simple.

Tradinge style:
My trading style is breakout trading and within the trend.
When price breaks the 34 sma the trend is over or it is a false break out.
During trending times prices will move back to the 8 in fast market and to the 21 in medium or slower markets.
Attached File(s)
File Type: doc VSA Notes 2.doc   156 KB | 2,504 downloads
  • #7,563
  • Jun 3, 2010 5:46pm Jun 3, 2010 5:46pm
[quote=polomine;3774537]Thank you!

If I am not wrong, you get it from the following link:
http://www.forexfactory.com/showpost.php?p=3007106

actually, at this link if you open up the indi. it says version 5 on the first couple of links (which was posted in 2009). on the other link you provided, though he posted it on march 19, 2010, says version 4 in it.

can anyone please throw us a bone here?
  • #7,564
  • Edited 8:54pm Jun 3, 2010 5:55pm | Edited 8:54pm
[quote=samk090905;3775706]
Quoting polomine
Thank you!

If I am not wrong, you get it from the following link:
http://www.forexfactory.com/showpost.php?p=3007106

actually, at this link if you open up the indi. it says version 5 on the first couple of links (which was posted in 2009). on the other link you provided, though he posted it on march 19, 2010, says version 4 in it.

can anyone please throw us a bone here?

samk,

the indi posted on March 19, 2010 is the most recent. Had some bug fixes in it, but forgot to change the indicator 'shortname', that is why it says V4.

Will be posting an update to it soon...

Oh what the hell... Bandung really started something here..LOL...

I really like what Bandung did, and spoke with him about it so I am going to take the liberty of posting an update to the Hidden Gap indi with his changes incorporated.

I also added the ability to choose either an MA line or MA histogram, and a Standard Dev line or Standard Dev histogram, and you can select the color for each as well.

There is a problem with the indi when you restart MT after being offline for some time period, like overnight. MT will not update the histograms properly, so when you restart MT in the morning, bring up the HG Indi properties and click OK which will force MT to repaint the indicator window, or toggle back and forth between another timeframe.. which is actually the easiest.

I need to look at a couple of little things that I have noticed, but busy writing a VSA Basics Study Course, will get to the updates as soon as I can.

Chief
Attached File(s)
File Type: ex4 Hidden Gap Volume Indicator V5[b].ex4   20 KB | 3,429 downloads
  • #7,565
  • Jun 3, 2010 6:21pm Jun 3, 2010 6:21pm
oh wow...the man himself. thank you for the clarification...it was a bit confusing.

do you have posts or description oh how to use this indi? it looks really sophisticated and fancy but i really dont know much. i looked inside and it gave a description of what the colors represent but not actually how to use them. for example, albeit a silly one, if two bars above 300 then sell.

thank you very much,

[quote=chief1oar;3775720]
Quoting samk090905


samk,

the indi posted on March 19, 2010 is the most recent. Had some bug fixes in it, but forgot to change the indicator 'shortname', that is why it says V4.

Will be posting an update to it soon...

Chief
  • #7,566
  • Edited 8:44pm Jun 3, 2010 6:59pm | Edited 8:44pm
Quoting samk090905
do you have posts or description oh how to use this indi? it looks really sophisticated and fancy but i really dont know much. i looked inside and it gave a description of what the colors represent but not actually how to use them. for example, albeit a silly one, if two bars above 300 then sell.

thank you very much,
samk,

Another one of those things I need to get to... thanks for the reminder.

This is the information HG provided to me when I wrote it for him...

Basic outline:
1. Blue = volume greater than the previous bar.
2. Red bars= volume less than or equal to the previous bar.
3. Fuchia bars= volume less than the two previous bars.
4. Dark Blue bars= volume is climatic (highest volume x range for the last 20 bars) and greater than the previous bar.
5. Dark Red bars= volume is climatic and less than or equal to the previous bar.
6. Dark Fuchia bars= volume is climatic and less than the previous two bars.
7. Yellow bars= volume is extremely low (lowest volume bar in last 20 bars).

*** Ultra high volume additon*****
If any volume bar is greater than or equal to Mov (V,30,S)+2.75 *Standard deviation of volume for the last 30 bars,
it is painted with the appropriate climax volume color. So a bar with greater volume than the previous bar and a greater
than the moving average plus 2.75 the standard deviation of volume over 30, would be Dark Blue.

This should get you started, also if you mouse over each bar, it will show you what that bar is.. 'Climax', 'Vol > Prev' etc.

There are some other paramers that can be set as well. Probably the most important one is the Std Deviation Factor, which is the standard deviation you wish to use. If you want to follow HG, you will need to change this to 2.75 as the default is 2 standard deviations. This seemed to provide the best signals when we were testing it. I also use 1 standard deviation on low volume periods like Asia, find it spots some bars I would miss otherwise. This number is totally flexible, so you can enter whatever you want if you feel like getting really crazy with it.

The lookback period is set to 20 default, although HG liked a 30 bar lookback for comparisons. Again, your choice.

The MA.Display must be set to true to display any moving average, line or histo. The same with the StdDeviation.Display.

The 'label' display parameters are the values displayed on the right for the MA, StdDev and Volume.

All of the Bar.xxxxx parameters are the different histo bar colors.

The 'Chart.Symbol' parameters will place the chart currency symbol on your chart in the upper right corner.

The 'Clock.xxx' parameters will place a countdown clock on your chart in the upper right corner as well.

Hope this helps
Chief
Attached Image (click to enlarge)
Click to Enlarge Name: 2010-06-03_1938.png Size: 112 KB
  • #7,567
  • Jun 3, 2010 7:53pm Jun 3, 2010 7:53pm
chief1oar,
thank you for the reply.

yes i have that description...my apologies for not understanding it. do you not have by chance have anything, simple, that explains, for example: if 2 blue bars with volume at x then buy. or something similar?

thank you,
  • #7,568
  • Jun 3, 2010 8:50pm Jun 3, 2010 8:50pm
Quoting samk090905
chief1oar,
thank you for the reply.

yes i have that description...my apologies for not understanding it. do you not have by chance have anything, simple, that explains, for example: if 2 blue bars with volume at x then buy. or something similar?

thank you,
samk,

Neither Hidden Gap nor Better Volume give any type of buy or sell signals.. their only purpose is to help breakdown & display volume in different ways... VSA provides all the signals necessary so... Study, study, study!

Chief
  • #7,569
  • Jun 3, 2010 10:28pm Jun 3, 2010 10:28pm
Quoting chief1oar
samk,

Another one of those things I need to get to... thanks for the reminder.

This is the information HG provided to me when I wrote it for him...

Basic outline:
1. Blue = volume greater than the previous bar.
2. Red bars= volume less than or equal to the previous bar.
3. Fuchia bars= volume less than the two previous bars.
4. Dark Blue bars= volume is climatic (highest volume x range for the last 20 bars) and greater than the previous bar.
5. Dark Red bars= volume is climatic and less than or equal to the previous bar.
6. Dark Fuchia bars=...
thank you chief,
that's awesome

bandung
...
  • #7,570
  • Jun 4, 2010 2:33am Jun 4, 2010 2:33am
Quoting chief1oar
samk,

Neither Hidden Gap nor Better Volume give any type of buy or sell signals.. their only purpose is to help breakdown & display volume in different ways... VSA provides all the signals necessary so... Study, study, study!

Chief
chief;

actually i just didnt articulate very well what it is that i was trying to say. the "signal" part was just an example. what i was trying to is how do we use the volume bar that you've created? i know that it doesnt give signals; but how do we "read" this volume bar? meaning, for example, if it is 2 dark blue bars, does that "mean" we buy? i wanted to read about it.

sorry about that.

thank you,
  • #7,571
  • Jun 4, 2010 4:19am Jun 4, 2010 4:19am
Quoting samk090905
chief;

actually i just didnt articulate very well what it is that i was trying to say. the "signal" part was just an example. what i was trying to is how do we use the volume bar that you've created? i know that it doesnt give signals; but how do we "read" this volume bar? meaning, for example, if it is 2 dark blue bars, does that "mean" we buy? i wanted to read about it.

sorry about that.

thank you,
If I may Chief...

Hi SamK,

The various colours and descriptions of the volume bars are fairly meaningless when viewed in isolation. Volume is only half the information we need in order to formulate an opinion about the market behavour.

We need bar(or candle) information also. It is only when we analyse BOTH the volume and the spread that we can make a decision about entry/exit.

Chiefs HG vol indi, was designed to help us recognise some of the information which the volume bars are presenting to us, nothing more.....nothing less!

How we interpret the information we gather from volume and spread, and use it for entry/exit (which is what I think your asking) is a vast subject and cannot be answered in 1 post. In fact, this whole thread is about doing exactly that. If this is indeed what you're asking, I would suggest a re-read of this thread and the information listed on the first page.
  • #7,572
  • Jun 4, 2010 6:00am Jun 4, 2010 6:00am
Quoting Shamus
----------------------------------------------------------------------------------------

Hello all....
Thx,I do believe it does make some sense. It at least has some referenced suggestion for excellent trading point.
  • #7,573
  • Jun 4, 2010 6:22am Jun 4, 2010 6:22am
[quote=chief1oar;3775720]
Quoting samk090905


samk,

the indi posted on March 19, 2010 is the most recent. Had some bug fixes in it, but forgot to change the indicator 'shortname', that is why it says V4.


Chief

Hello Chief

Would you happen to have the mq4 version of V5 ?

Cheers, Dutchy
  • #7,574
  • Jun 4, 2010 10:14am Jun 4, 2010 10:14am
No SMART? :-(:-(:-(
  • #7,575
  • Jun 4, 2010 11:17am Jun 4, 2010 11:17am
Hello everyone,

Hope you have many pips gained today. Please see the chart, if you had short eur/usd, would you exit or long when you see the low vol test after climax bar?

Thanks
polomine
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd-m15.gif Size: 24 KB
  • #7,576
  • Jun 4, 2010 11:26am Jun 4, 2010 11:26am
Quoting polomine
Hello everyone,

Hope you have many pips gained today. Please see the chart, if you had short eur/usd, would you exit or long when you see the low vol test after climax bar?

Thanks
polomine
Why it is a test?! May be it is a no demand bar? What difference between no demand and a test?
  • #7,577
  • Jun 4, 2010 11:32am Jun 4, 2010 11:32am
IMHO, ND should appear at the top of an up trend. Since the trend is down, we should not expect a ND. The low vol bar close high, it seems to test supply.

Any feedback would be appreciated.

Quoting V_2008
Why it is a test?! May be it is a no demand bar? What difference between no demand and a test?
  • #7,578
  • Jun 4, 2010 11:39am Jun 4, 2010 11:39am
Quoting polomine
IMHO, ND should appear at the top of an up trend. Since the trend is down, we should not expect a ND. The low vol bar close high, it seems to test supply.

Any feedback would be appreciated.
Also IMHO, we can expect a ND bar in a down trend, as a confirmation of no interest from SM to go up.
  • #7,579
  • Jun 4, 2010 12:08pm Jun 4, 2010 12:08pm
in this case, what does it confirm? IMHO, ND acts as a confirmation of weak background, ie. buying climax, upthrust. Maybe I should not have ignored the impact of non farm data and kept away from the market.

Quoting V_2008
Also IMHO, we can expect a ND bar in a down trend, as a confirmation of no interest from SM to go up.
  • #7,580
  • Jun 4, 2010 12:36pm Jun 4, 2010 12:36pm
Quoting polomine
in this case, what does it confirm? IMHO, ND acts as a confirmation of weak background, ie. buying climax, upthrust. Maybe I should not have ignored the impact of non farm data and kept away from the market.
I think that in this case market tells us, that it didn't find some support... that SM don't wish the prices to go up.

In some case It doesn't confirm selling climax, but it give us a sign that market may be weak.

So, anyway, It's my opinion and It may be not real true!
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