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vsa with Malcolm

  • #8,521
  • Dec 30, 2010 4:41pm Dec 30, 2010 4:41pm
Quoting KinsaleForex
For the record you do get the occasional gap, at least i've seen a few with Tradeguider. Fairly uncommon but they can be found.

Also, how many posts do i need before they aren't moderated? My earlier reply to 1pipperhour got lost in the fog whilst waiting to be acknowledged. This probably will to
nope ... I see you
Blogging daily now at www.volume.zone
  • #8,522
  • Dec 30, 2010 4:46pm Dec 30, 2010 4:46pm
Quoting malcolmb14
nope ... I see you
That took about 20mins to appear, so not too bad!

Couldn't quite make out the name of the stock on that TG screenshot that you posted earlier, was it Amazon?
  • #8,523
  • Dec 30, 2010 6:16pm Dec 30, 2010 6:16pm
Quoting Intel
Answer time!!!!!!

We had quite a few trying this one. Supprisingly, a lot got it wrong. This is a basic VSA bar and we should all know it.

A. This is a 'No Buying Pressure' bar.
It's best used as another sign of possible weakness in the market, to add to the background weakness which you may see in a build up to a trade. Also, it might help you to decide that the long trade you've been eyeing up isn't quite ready yet. It's a matter of personnal judgement.


It is catagorized as a medium/wide spread up bar closing on the high with low volume....
Nice explanation!
  • #8,524
  • Dec 30, 2010 7:45pm Dec 30, 2010 7:45pm
Quoting KinsaleForex
That took about 20mins to appear, so not too bad!

Couldn't quite make out the name of the stock on that TG screenshot that you posted earlier, was it Amazon?
yes it was
Blogging daily now at www.volume.zone
  • #8,525
  • Dec 30, 2010 9:00pm Dec 30, 2010 9:00pm
Current 1hr candle formed a double top with it's high matching yesterday's high (from 12hrs ago)... looks like some sellers came in on this candle?
Today's zone = Tomorrow's opportunity!
  • #8,526
  • Dec 30, 2010 11:14pm Dec 30, 2010 11:14pm
Quoting HiddenGap
I got the answer right out of Master The Markets.

*Edit*
I did not look it up, I just know it from my reads of the book. So I'm not sure of the page number.
The term "No buying pressure" couldn't find in MTM...However there is a term " No selling pressure"...
The Market pays you to be disciplined
  • #8,527
  • Dec 31, 2010 12:06am Dec 31, 2010 12:06am
Sorry if this has been asked before but how on earth does VSA work with FX when you don't have any proper volume ?
You simply cannot take the volume from one little broker as being representative.
VSA was never intended as being a trading technique for FX but for liquid stocks and futures where MMs had a definite influence on trading.
I appreciate Tradeguider now use VSA with FX but imo this was just a marketing strategy to appeal to a wider audience.
I've been a follower of VSA for many years and can understand the reasoning behind it, however it was designed by Tom, who I do know btw, in the days of open outcry markets when volume meant something different from today.
I have many doubts about the methodology since the markets have become fully electronic and with the rise of black box and high frequency trading systems.
I still have an open mind but I do think VSA cannot be used with any confidence in FX eventhough I'm sure there will be some people who use it successfully. However, that does not mean their success is related to their system as any normal distribution will be testament to.
He was looking for the card so high and wild hed never need to deal another
  • #8,528
  • Dec 31, 2010 1:24am Dec 31, 2010 1:24am
Quoting dr_who
Sorry if this has been asked before but how on earth does VSA work with FX when you don't have any proper volume ?
You simply cannot take the volume from one little broker as being representative.
...
I wonder who is going to answer your questions?!!
The Market pays you to be disciplined
  • #8,529
  • Dec 31, 2010 1:52am Dec 31, 2010 1:52am
Quoting dr_who
Sorry if this has been asked before but how on earth does VSA work with FX when you don't have any proper volume ?
You simply cannot take the volume from one little broker as being representative.
I've been a follower of VSA for many years and can understand the reasoning behind it, however it was designed by Tom, who I do know btw, in the days of open outcry markets when volume meant something different from today.
Well, if you know Tom Williams, I'm sure he can answer your question. Why do ask it here? And Gavin from TG has also answered to this question in his videos. Those can even be found in youtube if I'm not mistaken.
  • #8,530
  • Dec 31, 2010 2:06am Dec 31, 2010 2:06am
Quoting Intel

For those who didn't PM an answer, how did you do?

Here is the rest of the posted chart. Please bare in mind that this is a cherry picked example.
Would this bar be no buying pressure? . . . . Anyone?
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  • #8,531
  • Dec 31, 2010 3:30am Dec 31, 2010 3:30am
Quoting dr_who
Sorry if this has been asked before but how on earth does VSA work with FX when you don't have any proper volume ?
You simply cannot take the volume from one little broker as being representative.
Tick volume and actual volume is closely related in concept. Ticks will be little lots and big lots and for the peaks and valleys of each bar or timeframe being looked at, represent a cross sectional amount of sellers or buyers. But, the actual volume (tick or centralized) isn't even all that relevant for VSA, as 1) the relational differences from bar to bar and 2) the actual volume that has produced price bars that close at their low, high, and each having a span.

So, regardless if your broker is echoing back to you miniscule or huge volume, each is displaying (more or less) the same price. For example, if you have 15 up and down 5-10 pip bars in a row, but then a 40 pip bar in the middle which opens on it's low and closes on it's high, you're not looking at the volume behind it but rather interpreting that there is some form of strength or movement causing it to close as such. (let's put aside what smart money is doing at that time). When you string together all these bar movements, and apply the actual volume, it is that telling and interpreting of the background story that VSA is all about.

Your 'one little broker' should also be echoing back your liquidity providers volume, and if you know that's dbfx, Citibank, HotSpot, etc, it helps to know that you're seeing the breadth & depth of a wide variety of players. The fact that brokers (MT4 or otherwise) are altering their volume feed they display back to you is a matter of buyer beware. (And many 'respectable' brokerages with proprietary platforms actually don't even display or offer any volume as part of their package, which I regard as criminal, far beyond the games that crooked MT4 brokers can play - CMC Markets is one of these, Questrade in Canada, etc.)

Quoting dr_who
VSA was never intended as being a trading technique for FX but for liquid stocks and futures where MMs had a definite influence on trading.
I appreciate Tradeguider now use VSA with FX but imo this was just a marketing strategy to appeal to a wider audience.
Don't know the exact history, but what works works. Like I said, it has actually more to do with what the bar price action is telling you than actual volume itself. Tradeguider wouldn't be able to 'peddle' their SW if it didn't produce results in fx. There is BTW a plethora of other SW and tool providers who are using it with success in fx and other non-centralized markets. 'Marketing strategies' only work for so long without results or backlash, so there's something there.

Quoting dr_who
...in the days of open outcry markets when volume meant something different from today.
I have many doubts about the methodology since the markets have become fully electronic and with the rise of black box and high frequency trading systems.
If you have a decent fx tick volume feed or some centralized market volume feed, smart money can't hide the volume and what it is doing. Even with tick volume, hundreds of millions of dollars don't simply come across as one tick buy or sell - it is distributed across a range, and prices will react accordingly. 'Fully electronic' or algo trading doesn't change VSA interpretation, as a buy or sell from a machine or human pressing a button will more or less have the same potential impact on price, along with chalking up a volume tick.

Quoting dr_who
I still have an open mind but I do think VSA cannot be used with any confidence in FX eventhough I'm sure there will be some people who use it successfully. However, that does not mean their success is related to their system as any normal distribution will be testament to.
Hopefully my explanation helps a little. Please don't subject things down to and those who are able to use a tool/technique properly to 'some people'. Your very last sentence doesn't really mean anything IMO - to use an analogy, just because some people are severing and destroying limbs with hammers, saws and pliers doesn't mean the tools are problematic or inapplicable to what they're trying to do with them. It just means a tool in the hands of an idiot can have results that go either way.
  • #8,532
  • Dec 31, 2010 3:31am Dec 31, 2010 3:31am
morning guys.

i shorted gu 5481. valid as long as we are in the supply zone of the 120m ut.

see reasons below, pay attentions to the different timeframes, also 5m which cofirmed the 10m weakness.
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  • #8,533
  • Dec 31, 2010 3:44am Dec 31, 2010 3:44am
Quoting Dr.Geppynius
morning guys.

i shorted gu 5481. valid as long as we are in the supply zone of the 120m ut.

see reasons below, pay attentions to the different timeframes, also 5m which cofirmed the 10m weakness.
NS & SO in M15 in uptrend.
  • #8,534
  • Dec 31, 2010 3:46am Dec 31, 2010 3:46am
i know, stops in place, 120m in mind. this is not a 5m trade. worst that can happen is stopout.

Quoting juhanimi
NS & SO in M15 in uptrend.
  • #8,535
  • Dec 31, 2010 3:48am Dec 31, 2010 3:48am
Quoting Dr.Geppynius
i know, stops in place, 120m in mind. this is not a 5m trade. worst that can happen is stopout.
Okey. H1 looks like there is still buying power?
  • #8,536
  • Dec 31, 2010 3:51am Dec 31, 2010 3:51am
waiting for close above 5510

yet it really seems that the weakness was immediately reversed and so the trade might fail.
  • #8,537
  • Dec 31, 2010 4:19am Dec 31, 2010 4:19am
Overstayed a nap and missed taking this classic setup bounce at 1.54575/1.546 for 40 pips. I find I'm sometimes looking for those conniving moves and missing out on the simple trades!

Looks like the lack of news and any real business focus of the last days is seeing sterling and euro drift up. Happens quite often during the holidays, I'd assert partially because we're closing the month. I think we're seeing some accumulation that will continue into the 1st week of January, where we're potentially getting to a point for further drops. A 1.35 & 1.357 euro re-challenge would not be surprising.
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  • #8,538
  • Dec 31, 2010 4:21am Dec 31, 2010 4:21am
indeed..crazyness. out of this trade which immediately failed.

calling it a year

Quoting juhanimi
Okey. H1 looks like there is still buying power?
  • #8,539
  • Dec 31, 2010 4:25am Dec 31, 2010 4:25am
I might take a short if I see some reversal signs near .5535.
  • #8,540
  • Dec 31, 2010 4:32am Dec 31, 2010 4:32am
Quoting 1pipperhour
I might take a short if I see some reversal signs near .5535.
Watch that USD though - close to yearly low, so hard to determine where she'll close. NY markets will also be horribly thin and I don't think are on all day ...
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