vsa with Malcolm

Mal is EU done for today?

i use b vas 1.4 is really in my chart that is why i ask i m confuse som much now ----alpari uk

intel would u attach the vas teacher indi here coz i down from shrums to my pl is not working thanks

i think it was just attached like 2 pages back. just click on the paperclip on the top of the thread, and click 'hide images' you'll find it.

Thats right thanks Tim.

thank you mates is the same now it working after i re-install the mt4

Closed at 754. very nice

would this have been valid? or would we have waited for a retrace back down and another test?

believe someone made a Request :

Its not an ideal test but tradeable with care. If we're going to see a good up move, it will probably come to test again and then go.

No.

Hull has not changed color, so the trend is still down. There is no supply on that candle but it is not the place a trend follower would look to enter. Ideally, you want price to move above the hull and for the hull to turn green than any down candles on low volume (less than the previous two) would be screaming long entries.

Thanks!

examples of what hg is talking about and a trade I did

Hello Friends: I hope all are well and feeling good. It is my hope to post an example of demand absorption of supply. The EU 15M chart below shows action on 2 July 2010. I think the marked candles constitute demand absorbing supply. This range happened after June's two week rally and subsequent consolidation and corrective reaction.

If you are using Hulls, you wouldn't take that trade. If you're not using Hulls, there is no reason you cant take it with care. Using Hulls is a personal choice.

You got the idea though but just in case you're confronted again next time.

A valid test or no supply bar should:

1) Make a lower low than the previous bar

2) Close off its lows

3) Have volume lower than the previous two bars

I did take that trade ... got in at 1.2840 for a 50 pipper

I mentioned the Law of Effort vs. Results a few post back because I was reading MTM and saw a nice real world example. Well, another very nice one happened here (these patterns repeat).

Before we get to the chart, I am showing this as a "first" time entry but it is suitable for a contingency plan if you wanted to use one. Contingency plans were discussed in the previous thread, but we can revisit the topic if there is any interest.

On to the chart:

A. This is a Test. Price is marked down then closes near the high of the range. The volume is a bit high as it is not less than the previous two candles, but it is less than average. We know that some tests come on high volume and this is one of those tests.

A test is confirmed if the next candle/bar is up. Or if not the next one the one after that. The next candle is indeed up confirming a successful test. Successful test bring expectations of higher prices. The BBs can see a test and know that SELLING IS RESISTANCE TO HIGHER PRICES. That is why they test in the fist place-to bring out sellers. A successful test, therefore, should be meet by a desire to push prices higher. Simply, higher prices are the result of the effort of a test.

B. Narrow range up candle on volume less than the previous two candles. This is No Demand. The fact that it is up confirms our test, but the low volume is worrisome. Yet, it is not uncommon for there to be low volume up candles at the beginning portion of an up-move. Note that the volume is lower than average and lower than our test candle and it is yellow. Something is not quite right.

C. Tricky candle here. The volume is less than the previous two candles and the close is down. At first glance one might think No Supply. But let's look closer. First off, we next candle is down so this candle is not confirmed as No Supply. But wait there's more. lol. This is not VSA, but since candles are being used, let's use them. Notice that this candle is engulfing the No Demand. From a candlestick standpoint that means weakness.

And now we are closing below the DBPL. This is a clue of the trend in the market. We only want to take shorts if price is below the DBPL. Going back to the test candle, the fact that the market moves below the DBPL and closes above it was on of its strong points.

D. Bingo. This is our candle of consequence. A dark (Open>Close) WRB closing lower than the low of the test candle and appearing within 2-5 intervals after the test candle means we have NO RESULTS FROM A TEST. We are not getting the expected results from the effort put in. Higher prices are what we expect after a test. But we are moving lower. That can only mean the market is weak.

If you are long, contingency plan time. Get out of your long position and get short.

But we are not long, So we don't necessarily enter here. We are looking for an up candle, preferably on low volume.......

E. We get an up candle with a narrower range than the previous candle on increasing volume that is above average. But the close is in the lower third of the candle's range. The close tells us that the candle can not be strength. If it was strong the close would be higher in the range. If it was strong, the range would not be shrinking as the volume was increasing. Something is keeping the range narrow-supply. Supply is swamping demand.

Time to enter this market.

Now If you viewed the test as a low volume shake out rather than a test, the conclusion does not change. We are still ultimately looking at Effort with no Result.

LOL

I quoted the wrong post, sorry Mal. I should have quoted Tims original post with his question!

No result from a test, classic.

This is another post for the HG archive.

Been missing these posts HG, hope you can find time to make some more.