congratulations! now stay calm and don't give it back to market by a itchy trigger finger
I hope some more liquidity comes into the market soon, these ranges even though fun are not the way I like to trade. Something got to pop.
- #9,641
- Jan 12, 2011 9:17am Jan 12, 2011 9:17am
- | Joined Jan 2009 | Status: Fading the specs | 1,374 Posts
- #9,642
- Jan 12, 2011 9:21am Jan 12, 2011 9:21am
- Joined May 2008 | Status: has long shorts | 2,584 Posts
- #9,644
- Jan 12, 2011 9:26am Jan 12, 2011 9:26am
- | Joined Jan 2009 | Status: Fading the specs | 1,374 Posts
- #9,646
- Jan 12, 2011 9:41am Jan 12, 2011 9:41am
- | Joined Jan 2009 | Status: Fading the specs | 1,374 Posts
- #9,648
- Jan 12, 2011 10:06am Jan 12, 2011 10:06am
- | Joined Jan 2009 | Status: Fading the specs | 1,374 Posts
- #9,649
- Jan 12, 2011 10:18am Jan 12, 2011 10:18am
- Joined Aug 2009 | Status: Reading the TAPE | 2,389 Posts
My recent discussions with a trader friend coupled with my answers to some PM's has got me re-evaluating things.
There are many reasons that people are drawn to Volume Spread Analysis. One of the biggest is probably a reaction to the failings of various other methods and indicators in particular. The "dirty little secret" or irony that I was trying to point out is that a newbie doesn't actually have to reject the Indies and squiggly lines and start trading naked. He or she can actually continue to use those things but look for a few simple VSA bars (principles is a better term).
I used to have a big problem with TG. With its bars changing colors and diamonds and "H stops", it was clear that they used indicators. Well, Kwik*pop uses indicators too and I found that lacking (although kind of pretty). I wanted to trade PRICE/VOLUME ACTION like the pros. And the pros certainly don't have Indies on their charts. I don't know if that is true or not, but I do know that the two best traders on this thread use them (like I have to add this: Mal and the DR.)
The chart below is more of an evolution. It is not where the newbies should start. And it is not necessarily where they need end up.
This is a duel chart method. Mal has spoken poetically about the need to use more than one time frame. Well, it may not be multiple but it is more than one. We are going to look left to trade right.
We start out by looking at the 15 minute chart on the left. At 0600 hrs there is a wide spread down candle that closes off its low on Ultra High Volume. The next candle is down, but with that much volume on the candle and to close off its low, we can assume some demand entered. Let's jump to the 5 min. We see that the 15 minute candle is made up of a very nice Shake out. Okay, we are not going to jump in long but we are much more hesitant to take a short.
Back to the 15. At 0630 hrs we see a wide spread down candle on volume less than the previous two. Whilst we are still making lower lows, we are doing it on decreasing volume. The next interval, 0645 is a KRB. In VSA terms, it is a Hidden Test.
Jumping back to the 5, we see a No Supply candle form at 0645 hrs. This is the first aggressive entry. The market has not yet built a cause for an up move, but some would test the waters here nevertheless. I should note that ideally I prefer the KRB to close higher in its range.
Looking left again, we see that the test does not confirm on the next candle as it is down. However, this candle has volume less than the previous two so it is No Supply (0700 hrs). In fact, the volume is now less than average. At this same time on the 5, we see a No Supply followed by another KRB (Hidden Test). Entry option #2. As previously stated, I would rather the close of the test bar be in the middle or higher in the range. Yet the market has begun to build a cause and this is therefore a less aggressive entry. Intel is probably in here already
.
At 0730 hrs on the 15 we see another No Supply candle. Here again, the volume is not only less than the previous two but less than average also. Our trading chart is gives us a nice No Selling Pressure candle at this same time. Like its 15 minute counterpart, this too has volume less than average.
The very next 5 candle is the best entry. Finally we get a KRB candle where the close is in the upper portion of the range. The volume here is increasing and an obvious sign of strength. We enter on the 5 min at 0735 hrs. On the 15 min at 0745 we see the same exact bullish KRB candle, but we are already in.
By the way, there was a good number of thread members that saw this in real time. Kudos. That's just a testament to the quality of the members we have here. I am honored and it is my pleasure to be a part of this community. Nice work ladies and gents.
There are many reasons that people are drawn to Volume Spread Analysis. One of the biggest is probably a reaction to the failings of various other methods and indicators in particular. The "dirty little secret" or irony that I was trying to point out is that a newbie doesn't actually have to reject the Indies and squiggly lines and start trading naked. He or she can actually continue to use those things but look for a few simple VSA bars (principles is a better term).
I used to have a big problem with TG. With its bars changing colors and diamonds and "H stops", it was clear that they used indicators. Well, Kwik*pop uses indicators too and I found that lacking (although kind of pretty). I wanted to trade PRICE/VOLUME ACTION like the pros. And the pros certainly don't have Indies on their charts. I don't know if that is true or not, but I do know that the two best traders on this thread use them (like I have to add this: Mal and the DR.)
The chart below is more of an evolution. It is not where the newbies should start. And it is not necessarily where they need end up.
This is a duel chart method. Mal has spoken poetically about the need to use more than one time frame. Well, it may not be multiple but it is more than one. We are going to look left to trade right.
We start out by looking at the 15 minute chart on the left. At 0600 hrs there is a wide spread down candle that closes off its low on Ultra High Volume. The next candle is down, but with that much volume on the candle and to close off its low, we can assume some demand entered. Let's jump to the 5 min. We see that the 15 minute candle is made up of a very nice Shake out. Okay, we are not going to jump in long but we are much more hesitant to take a short.
Back to the 15. At 0630 hrs we see a wide spread down candle on volume less than the previous two. Whilst we are still making lower lows, we are doing it on decreasing volume. The next interval, 0645 is a KRB. In VSA terms, it is a Hidden Test.
Jumping back to the 5, we see a No Supply candle form at 0645 hrs. This is the first aggressive entry. The market has not yet built a cause for an up move, but some would test the waters here nevertheless. I should note that ideally I prefer the KRB to close higher in its range.
Looking left again, we see that the test does not confirm on the next candle as it is down. However, this candle has volume less than the previous two so it is No Supply (0700 hrs). In fact, the volume is now less than average. At this same time on the 5, we see a No Supply followed by another KRB (Hidden Test). Entry option #2. As previously stated, I would rather the close of the test bar be in the middle or higher in the range. Yet the market has begun to build a cause and this is therefore a less aggressive entry. Intel is probably in here already
.At 0730 hrs on the 15 we see another No Supply candle. Here again, the volume is not only less than the previous two but less than average also. Our trading chart is gives us a nice No Selling Pressure candle at this same time. Like its 15 minute counterpart, this too has volume less than average.
The very next 5 candle is the best entry. Finally we get a KRB candle where the close is in the upper portion of the range. The volume here is increasing and an obvious sign of strength. We enter on the 5 min at 0735 hrs. On the 15 min at 0745 we see the same exact bullish KRB candle, but we are already in.
By the way, there was a good number of thread members that saw this in real time. Kudos. That's just a testament to the quality of the members we have here. I am honored and it is my pleasure to be a part of this community. Nice work ladies and gents.
Without VSA, you're playing checkers while the Smart Money plays chess.
- #9,650
- Jan 12, 2011 10:38am Jan 12, 2011 10:38am
- | Joined Jan 2009 | Status: Fading the specs | 1,374 Posts
- #9,651
- Jan 12, 2011 10:38am Jan 12, 2011 10:38am
- Joined Aug 2010 | Status: Trader | 1,282 Posts
My recent discussions with a trader friend coupled with my answers to some PM's has got me re-evaluating things.
There are many reasons that people are drawn to Volume Spread Analysis. One of the biggest is probably a reaction to the failings of various other methods and indicators in particular. The "dirty little secret" or irony that I was trying to point out is that a newbie doesn't actually have to reject the Indies and squiggly lines and start trading naked. He or she can actually continue to use those things but look for a few simple VSA...
- #9,652
- Jan 12, 2011 10:48am Jan 12, 2011 10:48am
- Joined Oct 2010 | Status: Looking at a few more charts... | 1,195 Posts
- #9,654
- Jan 12, 2011 11:30am Jan 12, 2011 11:30am
- Joined May 2008 | Status: has long shorts | 2,584 Posts
just to remind you over and over again, that channels are the absolute best tool for projecting boundaries.
gu i took a long of the 10m bar, did not post it since it was straight under the top and there is the risk of lurkers from here just jumping into those trades
i closed my gu long when i saw price movement accelerating after tackling the channel high where we are pretty vulnerable to selling and profittaking, since outside the boundaries of the established channels we are in an overbought/ oversold condition not when any f*ck*n indicator says so
http://img843.imageshack.us/img843/3007/1201111823h.png
http://img403.imageshack.us/img403/3977/1201111830h.png
gu i took a long of the 10m bar, did not post it since it was straight under the top and there is the risk of lurkers from here just jumping into those trades
i closed my gu long when i saw price movement accelerating after tackling the channel high where we are pretty vulnerable to selling and profittaking, since outside the boundaries of the established channels we are in an overbought/ oversold condition not when any f*ck*n indicator says so
http://img843.imageshack.us/img843/3007/1201111823h.png
http://img403.imageshack.us/img403/3977/1201111830h.png
- #9,655
- Jan 12, 2011 11:32am Jan 12, 2011 11:32am
- Joined May 2008 | Status: has long shorts | 2,584 Posts
- #9,656
- Jan 12, 2011 11:35am Jan 12, 2011 11:35am
- Joined Apr 2007 | Status: HARD SHYT SCUBA TRADER | 20,886 Posts
Blogging daily now at www.volume.zone
- #9,657
- Jan 12, 2011 11:50am Jan 12, 2011 11:50am
- Joined Sep 2010 | Status: I'm not here... or am I? | 4,000 Posts
Today's zone = Tomorrow's opportunity!
- #9,658
- Jan 12, 2011 11:57am Jan 12, 2011 11:57am
just to remind you over and over again, that channels are the absolute best tool for projecting boundaries.
gu i took a long of the 10m bar, did not post it since it was straight under the top and there is the risk of lurkers from here just jumping into those trades
i closed my gu long when i saw price movement accelerating after tackling the channel high where we are pretty vulnerable to selling and profittaking, since outside the boundaries of the established channels we are in an overbought/ oversold condition not when any f*ck*n...
- #9,659
- Jan 12, 2011 12:03pm Jan 12, 2011 12:03pm
- | Joined Jan 2009 | Status: Fading the specs | 1,374 Posts
- #9,660
- Jan 12, 2011 12:09pm Jan 12, 2011 12:09pm
- Joined May 2009 | Status: Trading, Not Posting | 2,130 Posts
