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VSA questions

  • #1
  • First Post: Nov 30, 2010 11:06am Nov 30, 2010 11:06am
Hi there,

Been lurking a bit in malcs VSA thread and asked a question, however, didn't get any respond so I thought what the hell, why not ask it (and several others) in my own little VSA noobie thread.

I've finished reading 'Master the markets' and now I have a couple of questions, actually there are alot of them but I'll shoot one right off and ask the other questions when I get home.

First question is:
Is there a difference between (in volume) between a trending market and a ranging market?
I use MT5's own Volume indicator (when volume is less than the prior candle it shows red bar and more than prior is green bar) and tried to look into it but didn't find anything of value to me.

Anyone that has read anything or maybe researched a little about this?
Thanks!
  • #2
  • Nov 30, 2010 11:35am Nov 30, 2010 11:35am
Quoting Carnegie
Hi there,

Been lurking a bit in malcs VSA thread and asked a question, however, didn't get any respond so I thought what the hell, why not ask it (and several others) in my own little VSA noobie thread.

I've finished reading 'Master the markets' and now I have a couple of questions, actually there are alot of them but I'll shoot one right off and ask the other questions when I get home.

First question is:
Is there a difference between (in volume) between a trending market and a ranging market?
I use MT5's own Volume indicator (when volume...
How do you mean "difference", what broker are you using?
Seek not to change the world; seek only to change your mind about the world
  • #3
  • Nov 30, 2010 11:41am Nov 30, 2010 11:41am
Quoting gez40
How do you mean "difference", what broker are you using?
Well by 'difference' I mean that maybe it's HIGHER volume in trending markets than ranging etc.

Alpari for my MT5 and OANDA.

Thank you.
  • #4
  • Nov 30, 2010 11:51am Nov 30, 2010 11:51am
Quoting Carnegie
Well by 'difference' I mean that maybe it's HIGHER volume in trending markets than ranging etc.

Alpari for my MT5 and OANDA.

Thank you.

Read MTM again, don`t think you`ve grasped what VSA is.
Seek not to change the world; seek only to change your mind about the world
  • #5
  • Nov 30, 2010 5:42pm Nov 30, 2010 5:42pm
Quoting Carnegie
Hi there,

Been lurking a bit in malcs VSA thread and asked a question, however, didn't get any respond so I thought what the hell, why not ask it (and several others) in my own little VSA noobie thread.

I've finished reading 'Master the markets' and now I have a couple of questions, actually there are alot of them but I'll shoot one right off and ask the other questions when I get home.

First question is:
Is there a difference between (in volume) between a trending market and a ranging market?
I use MT5's own Volume indicator (when volume...
The volume is not significantly different. How you use VSA differs tho. I would not try to learn the difference in trading ranges at your stage of learning VSA. I would stick with the educational stuff you have, frequent Mals thread when you can and read Shamus' thread start to finish......yes I did say start to finish(you really should be reading most of it twice). If you find it too long, you're probably not suited to VSA.
  • #6
  • Dec 1, 2010 12:48am Dec 1, 2010 12:48am
well waht you might see in volume regarding trending markets ,
is that it is unusually high on down trends (bearish) as for panicly selling ..


or it might get higher on up trends as for bulls running into the top...

but that two examples probably will show u the end of the trend.. as it is mostly a climactic action.. where strong holders offload or buying back.. from the weak holders....



but wyckoff said that the volume is lower on down trends then on up trends .. as people tend to stand on the sideway on down trends.. .. and are hooked up on up trends...
  • #7
  • Dec 1, 2010 11:00am Dec 1, 2010 11:00am
Thanks for the responds Intel and PrymeTyme.

I have saved both malcs and shamus' thread so will be reading both. Just have a couple of questions for my clarification before I start..

In Master the Markets it is written:

Quote
"

Remember, you are dealing with professional activity. Low volume is telling you that they are either:

•

not interested in buying on any up-move, or


• they...


But look at this chart I attached, it is in a consolidating market (if that helps anyway..)

The move up almost starts immediately after the big bear bar. The volume there is very low on the move up except on that big bear candle (marked) and the spinning top almost at the top of the move.
These two instances are the only ones where it is decent volume on this move up.
So how come the market still moved up that much? I really can't see it.. The volume IS low!

Thank you
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDH1.png Size: 82 KB
  • #8
  • Dec 1, 2010 11:41am Dec 1, 2010 11:41am
check picture .. hope this helps
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDH1.png Size: 85 KB
  • #9
  • Dec 1, 2010 1:59pm Dec 1, 2010 1:59pm
Quoting PrymeTyme
check picture .. hope this helps
Thanks pryme.. That's a good explanation!
Will look into it some more.

Thank you.
  • #10
  • Last Post: Dec 3, 2010 12:20am Dec 3, 2010 12:20am
I have not read anything on VSA, but volume is a integral part of my trading, so I'll reply anyway. Generally, during trends, volume tends to expand, as movement attracts more interest. As a range develops, people tend to back off and fall into a wait-and-see position as price rotates around its value area, so volume tends to tail off. If it doesn't tail off, then often times this is important information. Large volume with little movement alerts me that a powerful struggle is taking place or heavy orders are being absorbed. Further, a range where volume has died off but suddenly begins to increase in volume (interest), can often signal a change in its equilibrium even before price reflects this imbalance.
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