vsa with Malcolm

Hey guys

Hope some of you caught the short.

However on this chart ive wrote on the 6th of December, it looks like a real good test.
Also when price went back into that level it found strength, also if you go along this chart all the high volume bars looks like buying.

With the market ticking higher in Asia last night, and a resulting drop. Will have to wait and see if the strength comes in again.

So I see alot of strength in this chart, and will see what happens. One more thing lately its been easier to trade longer term charts, must be all traders are to busy browsing the web for Xmas gifts.

http://i865.photobucket.com/albums/a...te146/gu2h.jpg

mtm dances a little dance to welcome HG
http://www.earthlingenterprises.ca/e...tick%20man.gif
lol
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supremeChaos: yup i am a still "vsa baby", only 8 posts old. hahaa

sounds like that Occam guy wields a sharp razor.

looks like a baby with a big head

....taking this opportunity to greet all 'Happy Holidays'

Right, so we didn't get the UT confirmation since the last 3 days of the week were all up days on S&P and volume isn't drying up on up move. looks like it may still be moving up from here. Thoughts/alternate analysis?

Looks like weakness is there but it seems that the computers have been left to push es to 1257 weekly resistance. There is NO volume in the market last few days .

Watch the monthly supply, smaller weekly and daily levels just beneath too

been trading a bit of gold recently

here was fridays set up

10 min 1375 , stopping then shake out ... classic. Did not trade it as brain was still swimming in gin and tonic from Thursday night !!!

Gin and tonic?...mal, your reputation.

mal,

how about some vsa analysis for the majors like eur and gbp.

Been sitting back watching and learning. We have some truly great VSA aficionados here now. Thank you all for your time and efforts.

I just finished watching some of the Tradeguider master class. I was struck by a bolt of lightning when Gavin said, "If it is there in hindsight, then it was there in foresight". I have always known this to be true, but hearing it from some of the VSA masters was great. This post is in hindsight, which is not what the people here like. But if it is there in hindsight, it was there at the right edge. Moreover, If you learn the concepts of this hindsight chart, they will appear time and time again at the right edge.

Okay, let's take a look at the chart below. This is a beautiful example of many of the principles that Mal, and Gavin, talk about.

A: It all starts here. Notice that we have a gap up on Ultra high (Yao Ming) volume with a close in the middle of its range. The close is key. Markets do not like ultra high volume up bars. If all that volume represents buying (demand), then the close should not be in the middle of the range. There must be some selling in this bar. This is not the time to make a hero's call and get short, but we have seen the beginning of our background weakness.

At this point, we take a page out of Gavin's book and draw a line at the close. This is our "trigger number" and will become important at some point in the future.

Take a quick look at the bar after A. Notice that while it is up, the volume drops off considerably. This is another clue that there was selling on A. Prices continues to rise on inertia (a body in motion tends to stay in motion).

B: Whilst price moves sideways to slightly up on momentum, we see a bar that closes up with a narrow range on volume less than the previous two bars. This is No Demand. If you can make the hero's call here, more power to you. From my perspective, the trend is still up-the hull moving average is blue and price is above it. We do have a weak background, however.

C: A Hidden Up Thrust in the form of No Demand. This is the reason you place your entry below the low of the No Demand. Often times the No Demand is followed by an Up Thrust or Hidden Up Thrust. This Hidden Up Thrust has volume that is less then the previous two, but what makes it hidden is the fact that the close is down rather than up.

We have closed at the low of the range and lower than the Hull average. This is the second time this happened. The first time (2 bars after A) price actually moved back up. This time price falls.

D: BINGO. This is the best place to get short.
1. Price has fallen below the Hull average.
2. The Hull average has turned red.
3. Price has fallen below the close of our Yao Ming bar and is now moving up back towards that level, but on decreasing volume (no demand).

E: Again, the No Demand is immediately followed by a Hidden Up Thrust. Notice that the High of this bar does not breach the trigger number. We know that increasing volume on down bars always means selling as long as the volume is not too excessive. This is therefore a very bearish bar.

F: A new Yao Ming volume bar appears. This time it is on a down bar that closes off its low. Some demand (buying) is entering the market. Price remains below the Hull Average and it remains red. The trend is therefore still down. This is potential stopping volume but the operative word is potential.

G: Price does rise for three bars, but the third bar is a narrow range up bar that closes in the middle of its range on volume less than the previous two bars. This is No Demand. Note also that the three bars never make a higher high than F. We are certainly not in an up trend if we are not making higher highs.

This is a second opportunity to get short.

H: This bar is No Selling Pressure and the first bar of what turns out to be a 2 Bar Reversal. From a purely VSA perspective, this is the ideal place to exit the short. Exits are personal. Some will use price targets or WRBs or Tom's "trending system rule". But when you see H after seeing F you need to be careful. Notice that price has continued to move down but on lower volume than F. So while we are making lower lows, there is not a lot of fuel (volume) as we do it.

This post wont tell you what to do tomorrow in the Euro, but if you understand the principles, you will know what to do always in the Euro or any free traded market.

I bet 99.999% people here love your post, whatever hindersight or foresight analysis. Thank you very much!

In addition to HG's great post (7831)

Take a look at the 15 minute chart on Gbp/Usd for last Friday 10 December. A nice 50 pip trade down. All there to be seen and acted upon in real time, a nice end to the week.

Bookmarked

Very nice.

Well presented and well explained as always.

Thank you!

I can fully understand why it is that you have that many vouches with little posts.

Hello everybody This is my first post I have a very good teacher, took me into the VSA tutorial. Thank you for your selfless sharing of experiences, from now on I will join you. This is my first deputy chart represents my point of view.

A. We have a background of buyers into the market of buyers
B .high vol and up bar =buyer
C. if the market here, I have a LONG test

Oh yes, without doubt, I LOVE it!. I have learnt a lot from the posts of Mr. HiddenGap in this and the "initial" Shamus thread.

Please HG, keep posting frequently. Thanks.

Good pips to all.

It's either upcoming holidays or something else but I'm so lazy today. Turned on EU 15min. and was like ugh... breakout... high volume... ugh... maybe a test of breakout after... and decided to stick to 4 hour charts Won't be trading anyways (Monday) but here's a chart of what I'm looking for.

Also very happy that HiddenGap is back!

Update: a big upthrust type bar formed on 1h chart. Not looking good so far but support holding.

Edit: argh, I was looking at Friday's open when writing. So yeah, I want price above Friday's open.

[quote=HiddenGap;4237816]Been sitting back watching and learning. We have some truly great VSA aficionados here now. Thank you all for your time and efforts.


Thanks for this great post again HG, I love it!
Mel

Thanks for the excellent post HG. If I may just add & comment on point F; personally I prefer to refer that particular VSA bar as "preliminary support", after which market could still tend to hit a "ND" & go below the PS "preliminary support" to meet a climax. (FYI: Part of Wyckoff principles)

Just an observation on my part that newer learners of VSA always get too excited when they see a "yaoming" but fail to see market price structure, & too the operative word "potential" have to be bear in mind.

Have a nice day all!
Las