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vsa with Malcolm

  • #1,741
  • Jul 29, 2010 7:21am Jul 29, 2010 7:21am
Quoting Intel
Oops forgot to add chart.

Well thats easy Intel, I was sleeping lol. Throwing salt in my wounds now haha.

That high volume at 1.3100 on the 15 min is keeping things capped at the moment, love to see a push through it.
  • #1,742
  • Jul 29, 2010 8:37am Jul 29, 2010 8:37am
Quoting Sonofsin5
Well thats easy Intel, I was sleeping lol. Throwing salt in my wounds now haha.

That high volume at 1.3100 on the 15 min is keeping things capped at the moment, love to see a push through it.


Cant see it cos i'm at work at the mo and don't have charts to look at.
  • #1,743
  • Jul 29, 2010 10:57am Jul 29, 2010 10:57am
Quoting Intel
LOL

Rambling to you, nuggets of wisdom to the rest of us.

With a valid test in the correct place, are you concerned about the volume or, are you happy as long as it isn't very high - ultra high?
Is this a trick question .

If it is a pure test then I like low volume (less than the previous two). But a test on increasing volume that has a small range like NR4 is still good. Especially if it is a selling bar/candle. Which means it is making a lower low and not a lower high. And then if it is also lower than the candle before the previous candle/bar-the candle/bar two candles back.

If it is a KRB (not VSA since VSA does not look at the open) I don't mind if the volume is a bit higher. The strength of the bar/candle is still evident because of the close being in the upper portion of the range after the candle dips into lower ground. "good" or "bullish" volume is increasing volume on up bars/candles. Not to complicate it a bit, but then the range of the KRB matters. If it is narrow like on increased volume it is also a squat. A sign of stregnth in its own right.

And of course, high volume is always a concern.
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #1,744
  • Jul 29, 2010 11:57am Jul 29, 2010 11:57am
Quoting HiddenGap
Is this a trick question .

If it is a pure test then I like low volume (less than the previous two). But a test on increasing volume that has a small range like NR4 is still good. Especially if it is a selling bar/candle. Which means it is making a lower low and not a lower high. And then if it is also lower than the candle before the previous candle/bar-the candle/bar two candles back.

If it is a KRB (not VSA since VSA does not look at the open) I don't mind if the volume is a bit higher. The strength of the bar/candle is still evident because...
Thanks for that.

It wasn't a trick question. My interest was 'pricked' when you said that 'it was a high volume test' and you didn't mind. I normally associate you with technically correct, high quality setups. You don't normally 'make do' with stuff!

Just curious as to your thoughts.
  • #1,745
  • Jul 29, 2010 12:30pm Jul 29, 2010 12:30pm
Quoting Intel
Goto go now I'll post a chart of what I see on EU H1 Later.
Just got home from work, checking the charts and was quite pleased about getting the EU direction right when I realised I hadn't posted the chart last night. Sorry guys.

Of course it's much easier to post it now I KNOW I'm right

I see higher volumes at the lower end of the range which indicates buying to me. However MTM says that during Accumulation, we should see lower volumes at the bottom of the range and higher volumes at the top. He qualifies this by saying that the volume is due to SM selling into the herd in order to stop the price from increasing against their own buying.

I'd be interested to know what you guys think about accumulation in a forex market.

EDIT :- Not sure why the volumes were low during the magenta boxes.
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  • #1,746
  • Jul 29, 2010 12:59pm Jul 29, 2010 12:59pm
Quoting Intel
Just got home from work, checking the charts and was quite pleased about getting the EU direction right when I realised I hadn't posted the chart last night. Sorry guys.

Of course it's much easier to post it now I KNOW I'm right

I see higher volumes at the lower end of the range which indicates buying to me. However MTM says that during Accumulation, we should see lower volumes at the bottom of the range and higher volumes at the top. He qualifies this by saying that the volume is due to SM selling into the herd in order to stop the price...
This was confusing to me for a while as there are different things said about identifying accumulation or distribution. All I can say is that I've basically found what you have, that when higher volumes appear at the lows in a range (or a trend for that matter), it's being bought, and vice versa.

One of my "pre-trade" activities at the start of the day is to look at where the high volume is. Usually can determine a direction by seeing if there's more volume coming in at the peaks (selling) or at the valleys (buying). Not sure if this is the "right" way or not, but I can say it has yielded good results re. calling the bias long or short for the day/session...my 2 cents
  • #1,747
  • Jul 29, 2010 1:23pm Jul 29, 2010 1:23pm
Quoting TC East
This was confusing to me for a while as there are different things said about identifying accumulation or distribution. All I can say is that I've basically found what you have, that when higher volumes appear at the lows in a range (or a trend for that matter), it's being bought, and vice versa.

One of my "pre-trade" activities at the start of the day is to look at where the high volume is. Usually can determine a direction by seeing if there's more volume coming in at the peaks (selling) or at the valleys (buying). Not sure if this is the...
Thanks TC....interesting.

I'm not confused about what I find. But I am confused about why it differs from what Tom says.

In the past I have found Tom to be wrong on some things in his teaching. However, as my understanding of VSA increases, I have realised that Tom was indeed correct and it was me who had it wrong. But with accumulation, the evidence is right there in front of us. I appear to be correct.

I find myself in the rather odd situation of wanting to be wrong. Because if I'm right Tom must be wrong. If he is wrong about this, he could be wrong about other things also, and I dont want to believe this.

I would like it very much if any of you could put me right on this.
  • #1,748
  • Jul 29, 2010 4:09pm Jul 29, 2010 4:09pm
Quoting Sonofsin5
Nice posts HG. Well I have to say that this week has been the most frustrating to trade that I can recently remember. Horrible price action on the majors that I watch. This week is usually the peak of the summer holiday season and I hope that this factored in.

The Eur is creeping up to that 1.3100 level, I missed an reverse upthrust on the 5 and the 15min chart that I cant believe. o well, the markets will be here tommorrow.
not just the majors ..es to ... drop 20 points then almost close where it opened .. nice ganes being played this week for sure.

I may be out of the markets till back end of August till it all settles down... why burn your self out to make 50 % profitable trades at best with this whipsaw bs action ? even vsa on a 15 min does not work this week
Blogging daily now at www.volume.zone
  • #1,749
  • Jul 29, 2010 4:15pm Jul 29, 2010 4:15pm
general thoughts on gu and eu this week is supplyt is being absorbed .. usd is going to be killed .. eu 1.3500 gu 1.5800 to 1.6000 ....

just taking time . note how this week all dips have been bought

Quoting Intel
Just got home from work, checking the charts and was quite pleased about getting the EU direction right when I realised I hadn't posted the chart last night. Sorry guys.

Of course it's much easier to post it now I KNOW I'm right

I see higher volumes at the lower end of the range which indicates buying to me. However MTM says that during Accumulation, we should see lower volumes at the bottom of the range and higher volumes at the top. He qualifies this by saying that the volume is due to SM selling into the herd in order to stop the price...
Blogging daily now at www.volume.zone
  • #1,750
  • Jul 29, 2010 4:49pm Jul 29, 2010 4:49pm
Just because I don't post much does not mean I am not watching the thread a lot. Some very, very valid stuff being discussed here.

My background is the junior market. Owning public companies and owning 80% of the shares outstanding. And believe you me, accumulation was a significant part of our strategy when we trying to elevate our stock price or try to get to a better exchange, which required a much higher stock price.

And I too, noticed today, the interesting buying dips of the US related currencies.

But the missing maraschino cherry on the top for me, that would indicate for sure that the US dollar is going to go down the drain, is the lack of media pandering about how strong the US dollar is.

What made me a small fortune was the media telling everyone how the Euro was going to hell. That was a sure fire sign that the EURO was the buy of the year.

For all the indicators out there and sentiment readings the mainstream media is there for one thing, distribution.

And where are they for my final assessment?

Honestly, it would be a great indicator to add for you guys. It is invaluable for me. Probably because my family is huge in it and I saw at a young age how despicable that sector is.
  • #1,751
  • Edited 5:53pm Jul 29, 2010 4:53pm | Edited 5:53pm
Quoting HiddenGap
I....

The best place to take your trade is shown on the chart below. The candle marked entry #2 is ideal because:

1. It is a test (a high volume test, but a test none the less).
2. Price makes a lower low than the previous bar and dips below the Balance Point Line but closes above it. The movement down and then the rejection back up is a sign of bullishness.
3. In this case the Balance Point Line is essentially acting as a support line.

I put in Entry #1 because some traders would take it. I do not like it however and I will tell you why....
HG, I'm a big fan of your posts, but I have to say this one has really confused me. I read your chart completely differently to you, based on what I thought were the bar definitions *you* are using for testing. I personal would have entered after the first test that I marked on your chart (despite the next bar being down perhaps invalidating the test - but you don't see that until after the fact), with stop loss below the low of the stopping volume for a profitable trade, but I'm very curious about your reads on the tests here as I respect your judgement and explanations.

I've marked your chart up with my reading, and a couple of questions and queries around the bars. The first two bars I've circled seem liked valid tests and therefore confirmation to enter after evidence of strength in the background. Could you take the time to answer these and list your bar/volume definitions for no supply, test of supply and hidden test indicating if and how they are different from those outlined in master the markets? It seems that you are refining your definitions to include NR4 and recent low of the last 3 candles, which are also factors I've been considering recently, so I'd be keen to hear how they fit into your bar identification.

cheers
f451
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  • #1,752
  • Jul 29, 2010 4:59pm Jul 29, 2010 4:59pm
And in our area, LOW volume was a big indicator of accumulation, quiet time, where we would instruct the brokers or market makers to buy everything at .65 cents that comes their way. Eventually the selling would dry up with that tactic. Sometimes you had to "kick" the tree to get some apples to fall off.

Same tactics are applied here I would imagine. A sudden BIG sell of a currency pairing that is in profit to elicit a panic of selling to get MORE.
  • #1,753
  • Jul 29, 2010 5:26pm Jul 29, 2010 5:26pm
thse 2 x nasty upthrust on euro should drop it . what an odd market this week !!!

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Blogging daily now at www.volume.zone
  • #1,754
  • Jul 29, 2010 6:08pm Jul 29, 2010 6:08pm
Just a quick question here.

What period a you guys using for the hull MA ?

Thanks
  • #1,755
  • Jul 29, 2010 6:44pm Jul 29, 2010 6:44pm
Quoting tonycashflow
Just a quick question here.

What period a you guys using for the hull MA ?

Thanks
generally 21
some are also using 34
  • #1,756
  • Jul 29, 2010 6:45pm Jul 29, 2010 6:45pm
Quoting tonycashflow
Just a quick question here.

What period a you guys using for the hull MA ?

Thanks
21 for a larger time frame ie 15 and up

34 for a 5 min been working well for aj etc
Blogging daily now at www.volume.zone
  • #1,757
  • Jul 29, 2010 7:08pm Jul 29, 2010 7:08pm
a little bit of cheating

I have used rsx alot in the past and with these choppy market conditions wanted to add it back in as a tool on a 5 min chart

here was a trade I took on aj earlier ... been selling all up moves and playing the 78.,25 to 77.75 area alot on a 5

I am not a big fan of indies .. but the rsx is one of THE BEST for seeing divergences...

Those who have followed me for a while know that I have used this in the past

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  • #1,758
  • Jul 29, 2010 7:43pm Jul 29, 2010 7:43pm
thank you so much for your insights again and again and again!

cheers,
Bethel

Quoting HiddenGap
Just a follow up to the previous post.

The volume on the KRB in this case is less than the previous two candles and less than average. In VSA terms it is a Hidden Test. Again note the action is around the Dynamic Balance Point Line, which is acting as support.

Now check out the Test. While it does not have a low lower than the last two candles, its range is at least less than the previous three candles. Making it at least a NR4.

Now look at the No Supply after the low volume shake out. Certainly not a narrow range. But not that it does have...
  • #1,759
  • Jul 29, 2010 7:49pm Jul 29, 2010 7:49pm
Good Morning to you sir, you mentioned squat here, isn't a downbar squat sign of strength and upbar squat sign of weakness? Whereas for KRB, we see a upbar (not buying bar) for strength ? Hope i remember them correctly, been working hard at reading the posts! haha.

cheers,
Bethel

Quoting HiddenGap
Is this a trick question .

If it is a pure test then I like low volume (less than the previous two). But a test on increasing volume that has a small range like NR4 is still good. Especially if it is a selling bar/candle. Which means it is making a lower low and not a lower high. And then if it is also lower than the candle before the previous candle/bar-the candle/bar two candles back.

If it is a KRB (not VSA since VSA does not look at the open) I don't mind if the volume is a bit higher. The strength of the bar/candle is still evident because...
  • #1,760
  • Jul 29, 2010 7:55pm Jul 29, 2010 7:55pm
Hi malc,

whats RSX for? hmmm can't seem to google a gd explanation and how to use, will you be elaborating on it? I know you used to use it, i tested it out but was lost....is it like macd?

cheers,
Bethel

Quoting malcolmb14
a little bit of cheating

I have used rsx alot in the past and with these choppy market conditions wanted to add it back in as a tool on a 5 min chart

here was a trade I took on aj earlier ... been selling all up moves and playing the 78.,25 to 77.75 area alot on a 5

I am not a big fan of indies .. but the rsx is one of THE BEST for seeing divergences...

Those who have followed me for a while know that I have used this in the past

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