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vsa with Malcolm

  • #6,321
  • Nov 8, 2010 9:18am Nov 8, 2010 9:18am
mal,

how about the yen crosses? seems like it is only going up if the majors(eur, gbp) are going up too..
  • #6,322
  • Nov 8, 2010 9:31am Nov 8, 2010 9:31am
Quoting comapip
What I would suggest is try not to worry about the terms. Just understand the reasoning that the narrower the bar's spread and the higher the volume on that bar (again, whether volume is high or low is relative to previous bars) the more likely there's a change in price direction coming. And always look to the left side. See what the trend is for your time frame. Look for an entry with the current trend.
thank you very much .

thank you very much also for re-assuring me that the terms are less important (phew ! the terms and jargons are what killing me when i read the posts ! ) ... but nevertheless i will imbibe them into my vocabulary as i go along

in short , what u are saying above is :

look for divergence between volume and price ... i am quite comfortable with divergence ....

price rises while volume decreases indicates divergence and imminent drop in price .... similarly , volume increases while price is flat indicates potential breakout ... of course, this is the broader picture .. need to read up for finer details of volume analysis

pls , confirm this .

thank you.
  • #6,323
  • Nov 8, 2010 10:08am Nov 8, 2010 10:08am
Quoting hwsv07
mal,

how about the yen crosses? seems like it is only going up if the majors(eur, gbp) are going up too..
i do not even touch jpy crosses any more only eu and gu

mostly eu as daily range is about 160 pip a day right now
Blogging daily now at www.volume.zone
  • #6,324
  • Nov 8, 2010 10:26am Nov 8, 2010 10:26am
skyscraper,

Not much has been said about high volume test in master the markets. At one point it's said they're shake-outs. And there's this bit:
However, you can expect high volume testing in a non-cash market, such as a future, to show strength. The high volume in this context represents the activity of professional traders who are taking positions for a move.

Archer,

Yes, divergence is good for judging if pros are participating. I just want to stress that you look at a chart and ask yourself what has price done on that volume. If there is a lot of activity (volume) on a very narrow up bar (means price could not move up with everyone being very active (means pros are selling)), expect a change in direction.
  • #6,325
  • Nov 8, 2010 10:27am Nov 8, 2010 10:27am
shake out 15 min eu again at 3900

mmm....
Blogging daily now at www.volume.zone
  • #6,326
  • Nov 8, 2010 11:04am Nov 8, 2010 11:04am
The Current Trade:

Alot of buying in the background on the bottom of the range

1st arrow is a test

2nd arrow a hidden test: price goes down then goes backup on low volume showing there are no more sellers. When this happen price can go up with little effort because there are no more sellers pushing price down.

Current pattern a possible double bottom in a range.
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  • #6,327
  • Nov 8, 2010 11:28am Nov 8, 2010 11:28am
Oh my goood...

I see from time to time BAD information given by some users...

But now i couldn't resist to post, that where people is saying too BIG MISTAKES... - TO SAY THAT LOW VOL TEST IS THE SAME AS HIGH VOL TEST !

One of the main things for entries are tests..

And comapip - You said very wrong information about tests... !!!
In such way You give people very BAD information... Its great that You help people.. BUT Be cautius with wrong things


People, read Tom Williams book The Undeclared Secrets That drive the stock markets ( what is very the same as master the markets, i just like it better.. )
and there is written about high vol tests and low vol tests...

You can find it by Yourself in there - just take search box in PDF reader and find.


Best,
Tom
  • #6,328
  • Nov 8, 2010 11:40am Nov 8, 2010 11:40am
Quoting malcolmb14
shake out 15 min eu again at 3900

mmm....
of grabbed a 35 pip trade .. seem no buyers above 3940

range trading 3950 to 3940

30 min gave a no demand....

I am out for today BUT that 3920 area sure seems like it has been bought off for last few hours
Blogging daily now at www.volume.zone
  • #6,329
  • Nov 8, 2010 1:44pm Nov 8, 2010 1:44pm
Quoting comapip
That seems about right. The rules aren't that strict. Try to see the interpretation of volume and bars/candles. If there is a very high (relative to previous) volume high spread (distance from high to low) bar and the next bar is up on let's say normal or high-ish volume that means buyers have absorbed the sellers at that point. We cannot know whether all sellers are gone. You might see price go up just to be slammed down again.

The best way is to wait for another down bar that would be on low or very low volume narrow spread (like no demand/supply)...

Wow comapip, where did this come from?

Your posts of late have been quite helpful to some but this post doesn't belong with them.


If there is a very high (relative to previous) volume high spread (distance from high to low) bar and the next bar is up on let's say normal or high-ish volume that means buyers have absorbed the sellers at that point


As a statement of fact, this simply isn't true. Sometimes this is correct, sometimes it isn't it depends on the market sentiment/dynamics at the time.


The best way is to wait for another down bar that would be on low or very low volume narrow spread (like no demand/supply) with the next bar being up. That would be a proper low volume test of supply.


1. A down bar on low volume is NEVER a 'No Demand'.
2. A down bar on low volume is SOMETIMES a 'No Supply'.
3. NEITHER a ND nor a NS is a 'proper low volume test of supply'.


You can also see a high volume test. That would be the same except volume is high.

????? Just not true.


A test can also fail. What that means is pros are still interested in selling and you will see another down bar but on usually higher volume and wide spread.


A failed test does not mean you will see another down bar.


the narrower the bar's spread and the higher the volume on that bar (again, whether volume is high or low is relative to previous bars) the more likely there's a change in price direction coming.


Again as a statement of fact, this is not true. Think about absorbtion volume at S&R level, absorbtion volume in a trend and pre breakout volume in EITHER direction.


What I would suggest is try not to worry about the terms.


It is EXTREMELY difficult to understand what the charts are saying, without firstly learning the language they speak. You will note that I said extremely difficult not impossible. The alternative is to learn by your mistakes during the thousands of screen hours you'll have to put in while learing VSA. To my knowledge there is only 1 successful trader who managed to make it this way.....our very own Malcolm. Also, if you paid more attention to this particular point, you probably wouldn't have made the above mistakes.


I think it would pay you to go back to basics and look at the bar definitions and match them with the chart sentiments which you can see from your own experience.
  • #6,330
  • Nov 8, 2010 2:03pm Nov 8, 2010 2:03pm
Quoting TheArcher
cheat sheet :

just a quick one ,

can someone give an idea/notes how to look out for these conditions (definitions) :

1) shakeout

2) stopping volume

3) no supply

(appeared in the last few posts )

Read MTM twice and you'll never ask that question again.
  • #6,331
  • Nov 8, 2010 4:22pm Nov 8, 2010 4:22pm
Quoting Intel
Wow comapip, where did this come from?

Your posts of late have been quite helpful to some but this post doesn't belong with them.
You're right. Archer said he didn't have much free time so I tried to make a very short explanation of everything and SOME things did come out wrong. And some you may have misread or just poor wording on my part. Especially on no supply/demand and failed test. Verbatim from MtM next time. Sorry for that!
  • #6,332
  • Nov 8, 2010 5:05pm Nov 8, 2010 5:05pm
Quoting Intel
Read MTM twice and you'll never ask that question again.
Is MTM available online?
  • #6,333
  • Nov 8, 2010 5:18pm Nov 8, 2010 5:18pm
Quoting sidhujag
Is MTM available online?
Its free search for pdf version.
making green pips large and red pips small this is my goal.
  • #6,334
  • Nov 8, 2010 5:23pm Nov 8, 2010 5:23pm
Thx dude...
  • #6,335
  • Nov 8, 2010 6:44pm Nov 8, 2010 6:44pm
Well i'm not going to lie, that drop hurt my account a bit. Today looked like strong support at 3890. Guess that wasn't the case.
  • #6,336
  • Nov 8, 2010 6:55pm Nov 8, 2010 6:55pm
Quoting taomql4
Been lying in wait..

GU looks Better--

Quoting Sonofsin5
Well i'm not going to lie, that drop hurt my account a bit. Today looked like strong support at 3890. Guess that wasn't the case.
Tom likes to say " it was littered with weakness" ..
Attached Image (click to enlarge)
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  • #6,337
  • Nov 8, 2010 7:34pm Nov 8, 2010 7:34pm
One of the best ways to learn is to go candle by candle. You see the set up unfold and decide if would take a trade or not with out know what is going to happen next.

ALso you can analysis the background and the candles. I have learned alot from doing this.

Press F12 on metatrader (I'm not sure on the other trading platforms)

You can really advance you skills by doing this.

Hope this helps some one!
  • #6,338
  • Nov 8, 2010 8:13pm Nov 8, 2010 8:13pm
Quoting sidhujag
Is MTM available online?
http://vsa.pipbuilders.com/mtmv3.pdf
Doing what you like is Freedom. Liking what you do is Happiness.
  • #6,339
  • Edited 10:32pm Nov 8, 2010 8:54pm | Edited 10:32pm
intel

thank you very much for coming down to set records straight .

comapip

truly appreciate ur help . u might say , in a way, u have lightened my anxiety of VSA . yes, u are right : i am pressed for time , and hence looking around if there could be a short-cut or leverage/build up on with my previous understanding of chart reading .

in a way, these clarifications by intel could have been beneficial to u too, and to many others , which wouldn't have come up otherwise .

-----

... now , that leaves me with me ' memorising my multiplication table ' , looks like there is no other way . i suppose i need to give myself about 6 months of reading on and off ... hope by then i have at least got to the 8 times table ... cheeky


------

i am reflecting on the well-meaning, helpful people in here , and feel grateful to them

thank you
  • #6,340
  • Nov 9, 2010 1:53am Nov 9, 2010 1:53am
EU this morning almost the same as yesterday. 1.385-6 seems to be supported for now and attempts at 1.388-9 get slammed. I'm just scalping so far.
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