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Attachments: VSA learching
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VSA learching

Quoting Gesek
OOOOOH, what kind of nice charts with wonderful explanation. Im very glad, that you are here LASCAVEL!
Welcome! as long i have spare time. cheers!
ok, so here we will have another learching lesson, but before it takes place, please visit this thread and see what you have to see!

Pinbar thread

Good luck!
Here is a riddle for everyone:

Ok, this is pin bar:
http://i1008.photobucket.com/albums/...sek/doji-1.jpg


Then the question is, what is this?:
http://i1008.photobucket.com/albums/...ingpattern.jpg
Quoting Gesek
Here is a riddle for everyone:

Ok, this is pin bar:
http://i1008.photobucket.com/albums/...sek/doji-1.jpg


Then the question is, what is this?:
http://i1008.photobucket.com/albums/...ingpattern.jpg
Same chart different timeframe..
Wyckoff VSA: (1) Supply vs Demand (2) Effort vs Result (3) Cause vs Effect
Glad you did not answer yet, as I wanted to expand on my reply.

The second chart shows a Two bar "pinbar", using the concept of "BLENDING INTERVALS". That is, once the second interval closes, you combine it with the previous interval to create on larger interval bar. It is like moving up a timeframe. So if this was a 5 min chart, the two bars would be akin to one 10 minute bar (That's why I said lower timeframe in my first response).

The key of course is that a trader trading pinbars needs to recognise that the two bars in the second example create a blended pinbar and thus should still be traded as such. If a trader trades hammers, then he or she must understand that a long legged doji on the chart timeframe traded is always a Hammer on some other timeframe.

This has much more to do with price action and is most often refered to with candles, i.e. Blending candles.

Simply, it is as clear as night that both charts are showing a Pinbar....
Wyckoff VSA: (1) Supply vs Demand (2) Effort vs Result (3) Cause vs Effect
Quoting HiddenGap
Glad you did not answer yet, as I wanted to expand on my reply.

The second chart shows a Two bar "pinbar", using the concept of "BLENDING INTERVALS". That is, once the second interval closes, you combine it with the previous interval to create on larger interval bar. It is like moving up a timeframe. So if this was a 5 min chart, the two bars would be akin to one 10 minute bar (That's why I said lower timeframe in my first response).

The key of course is that a trader trading pinbars needs to recognise that the two bars in the second...

Guys, this is called experience and perfect explanation! Thank you HiddenGap!

These days I was(Im) really busy, because when I came home, two police cars were parking in front of my house...I think the rest you can imagine

But I will also try to do spend some time here to do the learching plan!

All the best
Quoting Gesek
Robdee, you can also post charts with your compression indicator, but please separate it somehow from VSA indicator.
This is Gesek's VSA Learching thread. I don't want to create confusion in this thread by posting my work on compression here, so I have started a new thread called Compression Project. If you're interested in this tangent to VSA come on over and see what's cooking.

New thread is here.
  • Post #68
  • Quote
  • Edited Sep 28, 2010 3:40am Sep 27, 2010 7:04pm | Edited Sep 28, 2010 3:40am
Pinbar vs. Upthrust bar(reverse upthrust)

So whats the difference between the upthust bar and pin bar?
Nothing important!!!!

What are we looking for?
There must be a downtrend if we would like to enter on uptrust bar, or if there is uptrend it indicates weakness, another time weakness in uptrend!

As we said before, its the same as blending candles, also engulfing pattern or dark cloud cover on lower timeframe!

If its (almost) perfect signal to trade what can be the problem?
small pin bar=not good
average pin bar=good
big pin bar=very good
huge pin bar=perfect
So, if you think a little bit(I really hope you think and not only read) then you know the problem. If you dont, here is the answer: the SL. Sometimes pin bars are 60pip sized and bigger 120pip, 300pip etc. It is really a problem for the r/r ratio.

How to solve the SL problem?
If you get good r/r ratio, TRADE! If not, you have two possibilities:
1- do not trade the perfect signal
2-wait for PA to get back to the high of the pin bar and do the trade, you have the odds in your favor!!!
(sometimes the PA will not go back and you have to leave the trade. or you can experiment with different SL-place it to the mid of pin bar, its on you I dont mind)

If you have read the pdf and you have read it, then you know whats the upthrust bar, so we can go on!

This is beautiful trade, I will not talk too much, the charts tell you more than 1000words!

Im wondering what can be the trend and if buy or sell?!hmmmm....
OOOh, yes, I know! I would like to SELL on retracement(or you can sell if you feel, thats the right point without retracement and get stopped out).
What kind of nice trend!-H4chart(we are before the red vertical line)
http://i1008.photobucket.com/albums/...ek/H4trend.jpg

So where to enter? Hmm, can some sort of signal tell me where is the end of retracement?!Or where are the odds more in my favour?
YES! Sure! So, I must find some good S/R, which was tested at least 3times! Its recommended to search on the TF where we would like to trade or on higher TF.
Go ahead!
http://i1008.photobucket.com/albums/...trendandSR.jpg

Yes, we have it! So we would like to:
1- sell, because there is downtrend(good odds)
2- sell on the retracement(better odds)
3- sell on the end of retracement(even better odds)
4- sell near S/R zone for the reason 3

Amazing S/R line! Youre wondering why Im so happy with this S/R line?!
I can tell you:
Because the PA is touching the S/R and bouncing off it. The PA do not break it(push through the line) and do not turn without touching it!
http://i1008.photobucket.com/albums/...Gesek/H1SR.jpg

And the action!-H1chart
http://i1008.photobucket.com/albums/...ek/H1macro.jpg
As the PA is going nearer and nearer the S/R line(supply zone) the strength is wanishing. There is engulfing patter(engulfs 2candles) and after the engulfing pattern is the pin bar on very high volume(higher than the previous 63bars before!!!).

And check this-30m chart:
http://i1008.photobucket.com/albums/af202/Gesek/30m.jpg
1- pinbar or doji or whatever you like, it indicates weakness and it is our primary resistance and PA will not likely close above it.
2- relative big bullish bar with very low volume. After this engulfing pattern with a little bit higher volume.
3- test of the bullish strength: huge bullish bar engulfs 2bearish candles, but the volume only above average. And because the market is not perfect it closed 8pips above the primary S/R line, but because we are smart we do not place SL right to the high, but a little bit above!
4- SHOW ME THE MONEY!


This was an upthrust bar the reverse upthrust is the same, but indicates bullish strength or bearish weakness.
Gesek, wow that is a brilliant post! Excellent clear charts, headings, checklists everything. I understand now how to use pinbars (upthrust bars) much better than before - thanks. I also needed to understand that pinbars appear on a lower timeframe as another pattern - I got it now!
Quoting robdee
Gesek, wow that is a brilliant post! Excellent clear charts, headings, checklists everything. I understand now how to use pinbars (upthrust bars) much better than before - thanks. I also needed to understand that pinbars appear on a lower timeframe as another pattern - I got it now!
Im very glad, that you like my post and could help you a little bit

I would like to congratulate you on your thread! It looks very promising, I will surely check it sometimes.

On the same chart we can find some other pin bars(hard to see here,but its GBPCHF H1 aug20-sept14):
http://i1008.photobucket.com/albums/.../pinpinbar.jpg
Quoting Gesek
As we said before, its the same as blending candles, also engulfing pattern or dark cloud cover on lower timeframe!
Gesek has shown us pinbars that appear on lower timeframes as a different type of pattern. The idea is that two candles blended together can make a very significant pattern.

Note: The two terms candles and bars mean the same thing to me. They look different on the screen but they show the same information, that is four prices, Open High Low and Close.

How to blend two candles.

 

  1. blendOpen = first candle open
  2. blendHigh = highest of both candles high
  3. blendLow = lowest of both candles low
  4. blendClose = second candle close
  5. blendRange = blendHigh - blendLow (size of candle)

The Blended Pinbars indicator monitors the blended prices as above.
When a wick covers more than half of the blended candle range then a pinbar (wick only) is painted over the top of the second candle.

Attached Image (click to enlarge)
Click to Enlarge Name: blendedpinbars-indicator.gif Size: 9 KB


For example I want to focus my attention on my 30 minute chart and I want to be warned about pinbars on the 1 hour chart. I don't want to keep switching back and forth, I want to see it all in one window.
Attached File(s)
File Type: mq4 BlendedPinBars.mq4   3 KB | 590 downloads
Quoting robdee
Gesek has shown us pinbars that appear on lower timeframes as a different type of pattern. The idea is that two candles blended together can make a very significant pattern.

Note: The two terms candles and bars mean the same thing to me. They look different on the screen but they show the same information, that is four prices, Open High Low and Close.

How to blend two candles.
[list][*]blendOpen = first candle open[*]blendHigh = highest of both candles high[*]blendLow...
What kind of nice surprise! Thank you robdee for adding another informations on the thread!

Another pin bar:
http://i1008.photobucket.com/albums/...ek/downpin.jpg

This pin bar occured during down move and represent bearishness, because the price tried to go up, but there wasnt strength in up move so it closed on the lower side of the candle with higher volume. This is good entry point or good for adding to the down position.
So, we went through 2pdf-s and this is the time for the main act. The king and the queen of VSA books and informations:

Tom Williams: Master the markets

If there will not be other request this will be the last part of VSA learching.
p.s.: if this is not legal to have here please PM me
Quoting Gesek
So, we went through 2pdf-s and this is the time for the main act. The king and the queen of VSA books and informations:

Tom Williams: Master the markets

If there will not be other request this will be the last part of VSA learching.
p.s.: if this is not legal to have here please PM me
Thanks Friend....

Arun...
Hi guys ...

Nice thread.

It's a very powerful signal which also clearly tells you when demand is swamping supply or supply is swamping demand. In fact it's one of my favorite.

Quoting robdee
HiddenGap's comments about 'something compressing the range' triggered my thinking about this as a concept or idea to describe market activity.



HiddenGap also used Bill Williams term 'squat' for a candle that has higher volume but that volume has been compressed into a narrower range. Bill Williams MFI indicator would show a squat as a small value. In other words very little price move gained for all the volume (effort) put into the market.

I am guessing that a squat is a period of high activity during which positions are being loaded...
Hello, can any body offer tips. The better volume indicator is not showing white bars on my platform. I use mt4 FXopen and Fxpro. other bar colors are available except the white bar. i have checked the input tab and the stting is correct, but white bar still not showing. is it a coding issue or an issue related to tick volume. appreciate help from any one thanks
Quoting Gesek
We will use only the regular better volume at the start, because its enough for us at the start. The indicator I attached has some plus futures, but as I said before it doesnt matter
Quoting pointstar
Hello, can any body offer tips. The better volume indicator is not showing white bars on my platform. I use mt4 FXopen and Fxpro. other bar colors are available except the white bar. i have checked the input tab and the stting is correct, but white bar still not showing. is it a coding issue or an issue related to tick volume. appreciate help from any one thanks
Better volume isn't VSA
Quoting Gesek
Behind the scenes

Looks to me like at 5 and 11, the consolidation areas to me are re accumulation. Or at least at point 11 with 5 being accumulation. Not really reaching distribution until just before the high price area.
Quoting Gesek
We will use only the regular better volume at the start, because its enough for us at the start. The indicator I attached has some plus futures, but as I said before it doesnt matter
Hi Gesek,

I was wondering if you had an indicator that repaints the bar charts removing the open tick. So, in a nutshell, what I'm looking for is a chart that only has the highs, lows and close. Any suggestions?

Thanks!
Quoting robdee
HiddenGap's comments about 'something compressing the range' triggered my thinking about this as a concept or idea to describe market activity.



HiddenGap also used Bill Williams term 'squat' for a candle that has higher volume but that volume has been compressed into a narrower range. Bill Williams MFI indicator would show a squat as a small value. In other words very little price move gained for all the volume (effort) put into the market.

I am guessing that a squat is a period of high activity during which positions are being loaded...
Hi there, on your first "trade now", technically speaking, maybe it is NOT a "no demand" bar as it closes very close to the previous close. Is this correct?Although, it worked pretty well
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