vsa with Malcolm

Ahh.....You'd think by now I'd learn wouldn't you

Still, +36 then -26.....should have been better!

EU M5 stopping volume.

Up bar closing near the high on low volume. Care should be taken as yet.

SO

I think your long bias is clouding your judgement.

looks like the 60 min we have seen sells building on for the last 24hrs is now starting to pay off.

Took sell 5900 for a few closed for now , looking for any up moves with no demands on a 15 , days range gu is 5830 low

Thanks for the advice.

I dont have a 'bias' long or otherwise, just saying what I see.

malcolmb,

i think the selling is done for gbp. Selling climax on previous support.

could i hear your views?

IMHO, good VSA set-up for long is forming. need to wait hull turns green.

I agree ...I was looking at long 5860 as well due to same reason .... damn missed it

mind to post a chart to further ilustrate the long position? actually i'm looking for further down move, please enlighten me. thx

We had three consecutive up bars on lower and lower volume prior to that dowm move that happened today. They aren't so obvious in fx, but are in a future chart. These low volume won't go away easily and may send the GU even lower. Down bar on high volume has also taken out previous lows.

large stopping vol on 5860 support sent market sideways for now

There are rooms for more retracement....

let the volumes tell us ..... seems that the down move this morning on eu and gu got bought hard ....

ES broke to a new high of day and above that 1120 level . We may see 1150 move before end of week

UJ has a really nice 4 hour reversal , taking gj / aj up

Hey Guys ive been following the GBPJPY, so ive missed the moves you lot have made!

Anyways after my comment (2 posts back) about the 60 min chart, after rising on decreasing volume, we didn't manage to push through resistance...However, after the retrace downwards we found support and have had a small rally!

If you look at the four hour, please draw a trend channel you will see we reversed of the TL to the letter! After we fail to break the top on the one hour chart we have a small retrace downwards where we found support at the LTL. Here we found buyers coming in at around 135.80.
after Trend reversed we see a great test and a low risk entry!

First chart shows Trend line and one hour chart! where we found support!
Second is 5 minute discussing reason for entry.

All comments welcome as always! Cheers Guys.

Hi everyone, new to this thread. Got absolutely blown away by Master the Markets, and trying to apply the info in the book. Took this trade during yesterdays' London, what do you guys think? Is my reasoning correct?

Chart:

Funny how things work sometimes. I got a couple of questions by pm and I found this chart example that answers both questions.

Question 1a: Why aren't we shorting the close of the No Demand?

Answer: Take a look at the chart. Ignore the fact that the No Demand is on the wrong side of the DBPL for now. Many times after a No Demand we will see either a Trap Up Move or an Up Thrust. Either of these types of bars/candles put immediate pressure on you and can get you stopped out prematurely. Therefore, it is recommended to place an order at the low and get in there.

Question 1b: You don't actually know if it is No Demand when you enter correct?

Answer: Correct. You know it is an up bar/candle on volume less than the previous two bars/candles. You also know its range relative to the previous few candles. If you are paying attention to the background, like you should be, then you know whether or not there is weakness in the background. An up bar/candle with strength in the background shows momentary inactivity of the Smart Money. Maybe a big deal maybe not. An up bar/candle with weakness in the background shows not only inactivity of the Smart Money, but also a disinterest in (or resistance to) higher prices. Price always trades in the path of least resistance. If the BBs are resistant to higher prices, then price will fall.

But if you want to wait for confirmation, there is no law that says you can't.

Question 2: Where do you place your stops?

Answer: I don't like to talk about stops because they are a personal issue. Every trader has to find his or her own comfort level in this area. But I will say a few things about them and show an example.

The market does not care about your Risk Reward Ratio. There is always an ideal place to put your stop and it is based on what the market is telling you, not the size of your account. Again, the ideal stop may not be prudent based on one's own account size and comfort levels, but it remains ideal nonetheless because it is MARKET GENERATED.

In the chart below the best place to put a stop is a tick or two above the Trap Up Move after entering on the close of that same bar/candle. Yes we are entering on a down bar/candle but this is one of the exceptions to the rule. At the close of this bar/candle we have no idea how far the market will move in our direction (let alone that it will). So I am not sure how one can truly figure out Risk/Reward ratios at this point.

What I do know is that if price moves back into that area were there was
a No Demand and a manipulated move to catch stops, it is not likely to be real. Yet as soon as price trades high enough to get me out, I know I am on the wrong side at the moment. Even if price reverses again and drops like a stone.

The next issue is to move your stop to break even as soon as possible. Stop 2 on the chart is that place. I would move to Stop 2 after Pt 1. Pt 1 is a dark WRB. Pt 2 is the next dark WRB that is LOWER than the previous Pt WRB.

We have talked about Tom's exit strategy in the previous thread. Basically he would look to get out after 2 or 3 consecutive up closes (if short). I think 3 works a bit better than 2. In this chart, the Up Squat comes as the second consecutive up close. But it is a sign of further weakness. No it doesn't always work this way, but it does seem 3 is a bit better. So the exit marked Tom's exit is after three (3) consecutive up close.

I am flat after three (3) consecutive up closes where 2 are above the DBPL and after I have reached Pt 2.

Personally I am interested in hearing Mal's and Intel's views on stops and profit targets.........

I think you understand what that candle means..... but it is not stopping vol.

More like buying climax ,.. check that out in master the markets then look at your chart again

VSA rocks ....

1st what is profit .. if I ever get any I will let you know about it ...lol

2nd stops

stops are something that are a tough one. One thing I really like about TG is that they have a tool built into the software that acts much like a chandelier stop. It is awesome and has helped me a lot. However for those without TG I have attached a chandelier stop for mt4

setting atr is 21 (the smaller the atr seting you use the tighter the stop will be) , it shows initial stop and how to trail your stop and keep you in the trade for as long as possible , for example say you had decided before that once aj hit 79 you were going to take a long , ie now , you would enter 78.06 , with stop at chandeilier stop level 77.80. Try messing with it on all time frames and see how she looks

3rd profits again lol

Profit taking is something that I struggle with all the time and is each traders own preference. Personaly when I am in a trade I will play it between s/r lines. For example today we saw selling hitting GU , BUT we kno0w that support was 1.5860 , sure enouggh when price hit that level we saw stopping vol coming in that sent market sideways.

Another way of doing it is saying ' I want to make 40 pip a day' enter tha trade and set tp to 40 pip and be happy even if the market rips 200 pip your way. 40 pip a day for the rest of your life would make you a billionaire if you compounded your account.

Another way is trial your stop using chandeleir stop and wait till your trailing stop gets hit.