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vsa with Malcolm

  • #1,161
  • Jul 9, 2010 2:49am Jul 9, 2010 2:49am
Quoting Mr J
Locking out, not locking in. I've seen it referred to a few times in VSA material. E.g., in MtM is says:

Page 29, talking about marking up rapidly above the left. If the idea is to punch above resistance into new highs (to prevent weak holders from selling), surely drawing other buyers into the market would be beneficial, unless they're being kept on the sidelines for later. Why?


1) MtM has a psychological emphasis, so possibly the would-be buyers are being kept on the sidelines to encourage emotional buying at higher prices.
2) Preventing...
If SM are moving price to a new higher level (and not artificially marking up), they will want to do it with as little selling to NEW buyers as possible. They will also want to keep in the traders who sold at an earlier level as long as possible but, when they hit stops and these weak holders HAVE to buy, it will be at a profit to the SM. Do you see the difference?

Weak holders (people who sold at an lower level and are now locked in) will lose money when they buy.

NEW buyers entering the market will MAKE money when they buy because they will sell at the new higher prices.

So the move is designed to lock in thye weak holders and lock out the new traders.

FYI a trap up move is designed to 'suck in' new traders and get weak holders to add to their position. (weak holders in this instance will be buyrs).

Hope this helps
  • #1,162
  • Jul 9, 2010 3:12am Jul 9, 2010 3:12am
So is the idea that new buyers looking at a profit will start to sell too soon so that price either won't go as high as SM wants or that price will start to fall too quickly when they start distribution?
  • #1,163
  • Jul 9, 2010 4:12am Jul 9, 2010 4:12am
Quoting Intel
If SM are moving price to a new higher level (and not artificially marking up), they will want to do it with as little selling to NEW buyers as possible....
very nice explanation, thanks intel...

i am sorry, what is FYI ? i dont know it..

cheers..
  • #1,164
  • Jul 9, 2010 4:42am Jul 9, 2010 4:42am
FYI = for your information
  • #1,165
  • Jul 9, 2010 4:57am Jul 9, 2010 4:57am
Quoting Ronlizard
So is the idea that new buyers looking at a profit will start to sell too soon
I thought the same after reading it, especially since Intel made a point to mention why we lock in weak longs - so they don't sell. So it's consistent to lock out new buyers for the same reason. I might just be seeing what I want to see though, because I had that in one of the posts and no-one confirmed it.
  • #1,166
  • Jul 9, 2010 5:43am Jul 9, 2010 5:43am
Quoting Mr J
If it's a shorterm move:
-...

the way i've always interpreted this is that SM basically has to corner the market. once they own as much of the floating supply as possible they are the boss and can mark prices up at will as more buyers come thru the door. hope this little bit helps.
  • #1,167
  • Jul 9, 2010 6:04am Jul 9, 2010 6:04am
Quoting comapip
FYI = for your information
hehehehe, great , i felt myself not good
  • #1,168
  • Jul 9, 2010 6:30am Jul 9, 2010 6:30am
seems like it, for me... lots of up wicks on this down move (obviously the up wicks are on the pullbacks )

green pips to u
dreams do come true.
  • #1,169
  • Jul 9, 2010 6:31am Jul 9, 2010 6:31am
Dear senior traders, malc, hg, intel, f451 and all,

i hope you will help me here because im confused over my bias for short or long at times....many times...and sometimes i wonder if its only me having such an issue.

Just trading 1 tf alone n ignoring al other tfs, i am able to understand UT, RUT, weakness in background as uptrend is seen etc.. but that is definitely unwise because multiple TFs are always encouraged.

This is one of my many problems as i trade. Which side do i take? short or long

When i turn up to daily, 4hrly, 1 hrly, all maybe in uptrend but weakness seen (as usual) , so do i take a short or long bias as i turn down to 30/15?

When i turn up to daily -uptrend, with no sign of weakness yet
4hrly and 1 hrly showing weakness signals in an uptrend, so short or long in the smaller tf?

and the story goes on.... thank you for reading...

Bethel
  • #1,170
  • Jul 9, 2010 6:53am Jul 9, 2010 6:53am
Only idea...
Its GU ready for 1.4780 and next 1.4280 ?.According daily chart the volume last weeks is low (no interest to buy at current levels).Last week we have seen ranging market on 1H-4H TF (to me like distribution, exchanging GBP into others currencies).

Comment for free
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  • #1,171
  • Jul 9, 2010 7:07am Jul 9, 2010 7:07am
here is my today setup on GU (ranging market today so I wait for this one for all day).
Feel free to comment.
Its Friday so be aware....
Cheers..
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  • #1,172
  • Jul 9, 2010 7:51am Jul 9, 2010 7:51am
Quoting lower
here is my today setup on GU (ranging market today so I wait for this one for all day).
Feel free to comment.
Its Friday so be aware....
Cheers..
That looks like a really nice set-up to me. I've just got back in so I missed the action. GU is at a critical level now. It's bounced off this support twice but if it gets through, there's plenty of room for a drop underneath. Have to wait and see.
  • #1,173
  • Jul 9, 2010 8:42am Jul 9, 2010 8:42am
Sorry but what is s/r delta zone =)

yay, learning something new again

thanks!!!!

Quoting kamise
hull 34 seems better..

1 effort to move down bar created s/r delta zone

2 high churn bar followed by stopping volune at the support line of mml=1.4893
strength in the back ground comfirmed

3 price went back to s/r delta zone

4 high churn bar in the s/r delta zone.some says that this is a very good signal for future big move

5 hull changed green on the same bar

6 then entered long
  • #1,174
  • Jul 9, 2010 8:46am Jul 9, 2010 8:46am
Draw a horizontal line at 1.2315 and look back 4 or 5 days to see how many times that price area has been influencial. You might be surprised!

oh my god how did you know this? which TF did u see this support?


Quoting Intel
The strength you see is actually absorbtion by SM at a previously respected Support area. Once the absorbtion had finished, SM set about raising the price to make it look attractive for the herd to enter long.

Then when they felt the time was right they flooded the marked with supply to drop the price rapidly in order to lock in all those weak holders.

Draw a horizontal line at 1.2315 and look back 4 or 5 days to see how many times that price area has been influencial. You might be surprised!

If you look back you can also see that the current...
  • #1,175
  • Jul 9, 2010 9:08am Jul 9, 2010 9:08am
Quoting Ronlizard
So is the idea that new buyers looking at a profit will start to sell too soon so that price either won't go as high as SM wants or that price will start to fall too quickly when they start distribution?
Some will undoubtedly buy into the rise in price and sell early with a small profit.

The SM dont want ANY new buyers at all because when the herd buy, it is the SM who sells to them. When the herd sell later on, it is SM who buy it back therefore the SM lose money to the herd.

As stated in MTM, SM rely on the psycological barrier for new entrants. People dont want to pay a higher price for something they could have got cheaper a little while ago. And this works.

It is only when the price nears its top that SM are happy to let the herd buy. In fact, when they are ready, SM will force the price up further to attract new traders going long. Then SM will force the price down as quickly as they can and the cycle starts all over again..............
  • #1,176
  • Jul 9, 2010 9:12am Jul 9, 2010 9:12am
google "vsa symposium" and torrent/rapidshare it.

Quoting forexben
Just started reading about VSA. Any recommended You Tube vids on the topic?
  • #1,177
  • Jul 9, 2010 9:13am Jul 9, 2010 9:13am
Quoting Bethel
Draw a horizontal line at 1.2315 and look back 4 or 5 days to see how many times that price area has been influencial. You might be surprised!

oh my god how did you know this? which TF did u see this support?
I use D1, H4 and H1 to lookf for S/R areas. They are visible in ALL time frames, just easier to see in some.

You should be keeping tabs on where the relevent S/R levels are for the trading day. It will help you to identify potential good quality setups.
  • #1,178
  • Jul 9, 2010 9:24am Jul 9, 2010 9:24am
mind elaborating? so we put on a trae n aim for tt no. of pips? we may be in the middle of tt range right?

Cheers
Bethel

Quoting f451
80% of day's range, 80% of day's range - I will say this over and over until I remember... It's true and you have mentioned it quite a number of times....

I think a big deal for me was realising that the POCs, or lines where price has reacted will still have buyers and sellers at those areas, so if a move is happening then price will likely holdup around them, test them a few times, retreat a bit, until finally they push through...

if you're new to the game watching price retrace around these areas without understanding why tends to make you...
  • #1,179
  • Jul 9, 2010 9:55am Jul 9, 2010 9:55am
thanks for the insights!

cheers
bethel

Quoting Intel
I use D1, H4 and H1 to lookf for S/R areas. They are visible in ALL time frames, just easier to see in some.

You should be keeping tabs on where the relevent S/R levels are for the trading day. It will help you to identify potential good quality setups.
  • #1,180
  • Jul 9, 2010 9:58am Jul 9, 2010 9:58am
Looks like the issue is sorted.

Quoting Intel
People dont want to pay a higher price for something they could have got cheaper a little while ago. And this works.
Yet they do just that at the upper end of a bull market. We know greed triumphs fear, so that'd support the desire to get into it and not miss out over the hesitation after missing lower prices.

Quote
It is only when the price nears its top that SM are happy to let the herd buy.

I wonder how much of the herd could buy sooner anyway.
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