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Trade Using VSA (Volume Spread Analysis)

  • #7,621
  • Jun 7, 2010 3:45pm Jun 7, 2010 3:45pm
i think that is great advice, not trying to analyse every individual candle. it does your head in if you do and its hard to make sense of alot of things, thanks
  • #7,622
  • Jun 7, 2010 4:05pm Jun 7, 2010 4:05pm
Quoting supermatt
i think that is great advice, not trying to analyse every individual candle. it does your head in if you do and its hard to make sense of alot of things, thanks
nor r u supposed to in vsa ... only when you see something that looks odd ... like a no demand bar

most think there is something in every candle...wrong
Blogging daily now at www.volume.zone
  • #7,623
  • Jun 7, 2010 8:35pm Jun 7, 2010 8:35pm
Quoting malcolmb14
nor r u supposed to in vsa ... only when you see something that looks odd ... like a no demand bar

most think there is something in every candle...wrong
I do that at first ... but not anymore...
Thanks to you Malc and all contributor here..
...
  • #7,624
  • Jun 7, 2010 10:51pm Jun 7, 2010 10:51pm
Fellas,

I've been following this thread for a while and getting my head around it. After going through TA, breakouts etc, VSA seems the only way to properly analyze the market.

I'm sick of giving my account back to these Market Makers , so could anyone direct me to the VSA club signup?

Speacial thanks to Shamus, Malc and co for the insight
  • #7,625
  • Jun 7, 2010 11:29pm Jun 7, 2010 11:29pm
Quoting Sonny1
so could anyone direct me to the VSA club signup?

Speacial thanks to Shamus, Malc and co for the insight
You're already here. Everything you need to get started is in the first post of this thread (Under the resource sections)

PS Welcome.
The trend always ends.
  • #7,626
  • Jun 8, 2010 12:19am Jun 8, 2010 12:19am
Quoting Intel
Not sure where you're coming from Dan. A ND is an up bar and a NS is a down bar.

Don't forget that polar bears don't live in hawaii. If you have weakness in the background and are seeing reversal signs then, you'll be looking for a ND. If you see what looks like a NS just ignore it.
Hey Intel I'm not sick! ;-) No seriously, I've been watching the VSA Symposium Course and they are saying that sometime there are such kind of bars. Also they start to put a lot of importance at the low or high of a bar. For example the trade should be better if we enter long after a no-supply bar with a low higher than the previous bar.

I just hoped that somebody had seen those videos to explain a bit better how to recognize them. It look quite important if you see no-demand and in fact it is no-supply ;-))
  • #7,627
  • Jun 8, 2010 12:50am Jun 8, 2010 12:50am
Quoting dvarrin
Hey Intel I'm not sick! ;-) No seriously, I've been watching the VSA Symposium Course and they are saying that sometime there are such kind of bars. Also they start to put a lot of importance at the low or high of a bar. For example the trade should be better if we enter long after a no-supply bar with a low higher than the previous bar.

I just hoped that somebody had seen those videos to explain a bit better how to recognize them. It look quite important if you see no-demand and in fact it is no-supply ;-))
I havn't seen those videos so I can't comment on their content but, if the NS has a low which is higher than the previous bars low, then it is a poor example of NS. If the NS has a low which is higher than the previous bars high.....it is definately not a NS.

The ideal No Supply/test will have the following properties:

1. Narrow (NR4 or NR7) range candle
2. The close will be down from the previous candle
3. The close will be in the middle or upper portion of the candle's range
4. The candle will make a lower low than the previous candle
5. Volume will be less than the previous two candles
6. There will be signs of strength in the background. If it is a "NS/test in a rising market", then the fact that the market is rising is all the strength needed.
7. The NS/test will appear within the range of a high volume candle. In other words, where there once was an abundance of selling, now there are few sellers. That's the whole purpose of a test-to find this out.
8.*A successful test must have either the next candle closing higher than the close of the test candle or the candle after that. So one of the next two candles should be up and higher than the close of the test to validate it.*

If we drill down into the mechanics of a NS, I think it is only possible to have an up bar as a NS if there is a gap down between the NS and the previous bar. I personally havn't seen many of these.

If you can post these videos it might help.
  • #7,628
  • Edited 9:46am Jun 8, 2010 9:27am | Edited 9:46am
]Here is a trade from last night.

I waited for breakout.

Background: Desending triangle with lower highs
Minimum pullback from the breakout line
buyer were absorbed

1.If you look at the minimum pull back you will see buyers entering with a large green candle (with average volume)
2. A squat candle an increase volume candle with very small spread (sellers pushing price down)

  1. This candle is inverted which means selling is happening here

3. There are some buyers still remaining as the candle has moved down and pulled back up but not all the way to the top. Meaning there is more sellers than buyers here

4. Buyer have been completely absorbed as there is no more movement up, just an engulfing candle

Then we have a no demand at the trend line. A beauty trading oportunity

Attached Image (click to enlarge)
Click to Enlarge Name: Euro.jpg Size: 136 KB
  • #7,629
  • Jun 8, 2010 3:01pm Jun 8, 2010 3:01pm
err nice post but not really a vsa set up

the candle you noted is not really a true no demand , these should be into new higher ground or testing resistance.



Quoting Seepiprun
]Here is a trade from last night.

I waited for breakout.

Background: Desending triangle with lower highs
Minimum pullback from the breakout line
buyer were absorbed

1.If you look at the minimum pull back you will see buyers entering with a large green candle (with average volume)

2. A squat candle an increase volume candle with very small spread (sellers pushing price down)

  1. This candle is inverted which means selling is happening here

3. There are some buyers still remaining as the candle has moved down and pulled back up...

Blogging daily now at www.volume.zone
  • #7,630
  • Jun 8, 2010 3:08pm Jun 8, 2010 3:08pm
In actual fact and correct me if i am wrong but you were selling into the potential massive shake out on the 15 min and a big no no in VSA

highlighted the bar on attached chart

Attached Image (click to enlarge)
Click to Enlarge Name: chart02 au.jpg Size: 132 KB






Quoting Seepiprun
]Here is a trade from last night.

I waited for breakout.

Background: Desending triangle with lower highs
Minimum pullback from the breakout line
buyer were absorbed

1.If you look at the minimum pull back you will see buyers entering with a large green candle (with average volume)

2. A squat candle an increase volume candle with very small spread (sellers pushing price down)

  1. This candle is inverted which means selling is happening here

3. There are some buyers still remaining as the candle has moved down and pulled back up...

Blogging daily now at www.volume.zone
  • #7,631
  • Jun 8, 2010 9:15pm Jun 8, 2010 9:15pm
Malcomb you are right about the no demand i need to relook at my notes again.

But i entered after the shakeout passed and most of the buyer were absorbed. I guess it is not truely vsa but i mix in my own strategy. But do you VSA principals to help me identify trading oppotunities.
Attached Image (click to enlarge)
Click to Enlarge Name: Euro 2.png Size: 24 KB
  • #7,632
  • Jun 9, 2010 12:01am Jun 9, 2010 12:01am
Activity starts to pick up about an hour before the Frankfurt Open.....today was no exception......
Attached Image (click to enlarge)
Click to Enlarge Name: jne 9 cable 5m fh.gif Size: 27 KB
Trading Levels with WRBs
  • #7,633
  • Jun 9, 2010 12:07am Jun 9, 2010 12:07am
Hello, Do you mean the professional intend to find a good position to sell?

Quoting Islander
Activity starts to pick up about an hour before the Frankfurt Open.....today was no exception......
  • #7,634
  • Jun 9, 2010 12:18am Jun 9, 2010 12:18am
Quoting polomine
Hello, Do you mean the professional intend to find a good position to sell?
My comment is that after the Tokio traders come back from lunch and the early European traders start looking at their screens, activity increases - just look back over a few weeks for yourself.....

This morning, there was a a push down to a slightly lower low than the earlier Asian low. The volume increased in the small doji that made the low.....two candles later, there was a Higher Low giving a great Buy for a ~65 pip rally into mid Frankies Hour....
Trading Levels with WRBs
  • #7,635
  • Jun 9, 2010 12:21am Jun 9, 2010 12:21am
Thank you. I missed the long opportunity and now waiting for short.

Quoting Islander
My comment is that after the Tokio traders come back from lunch and the early European traders start looking at their screens, activity increases - just look back over a few weeks for yourself.....

This morning, there was a a push down to a slightly lower low than the earlier Asian low. The volume increased in the small doji that made the low.....two candles later, there was a Higher Low giving a great Buy for a ~65 pip rally into mid Frankies Hour....
  • #7,636
  • Jun 9, 2010 12:34am Jun 9, 2010 12:34am
Quoting polomine
Thank you. I missed the long opportunity and now waiting for short.
You may get an opportunity around the second high volume area ~the 4500 level.....let's see IF we get a signal.....
Attached Image (click to enlarge)
Click to Enlarge Name: jne 9 cable 15m lo.gif Size: 45 KB
Trading Levels with WRBs
  • #7,637
  • Jun 9, 2010 12:50am Jun 9, 2010 12:50am
Digging the yen.

PS Hi guys.
The trend always ends.
  • #7,638
  • Jun 9, 2010 12:56am Jun 9, 2010 12:56am
Chart: Yen Globex


http://content.screencast.com/users/...06-09_0351.png

I am off to bed. Have a great day/evening guys.
The trend always ends.
  • #7,639
  • Jun 9, 2010 1:05am Jun 9, 2010 1:05am
Quoting Islander
You may get an opportunity around the second high volume area ~the 4500 level.....let's see IF we get a signal.....
and we did - a Lower High on the 15 min chart near the descending trend line and LHs on the 5 min after the high volume harami that made the high - the Euro was even clearer .....now I need price to break under the 30 ema and that to roll over to confirm that a larger fall is probable, as it already has on €....
Attached Image (click to enlarge)
Click to Enlarge Name: jne 9 cable 5m lo plus55m.gif Size: 25 KB
Trading Levels with WRBs
  • #7,640
  • Jun 9, 2010 2:09am Jun 9, 2010 2:09am
I am using IBFX volume and I was wondering if you guys could kindly tell mw how close it is to eSignal feed on higher TF like 1H and 4H. I really apprecaite you guys taking the time.
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