vsa with Malcolm

Phase 2 complete ...

Phase 3 1.4 ?

I will do a detailed posting on this by the weekend of how i tracked this trade on multiple time frames and how i waited for the right entry and how i added to the trade at 3090 ,

Whats funny is that the disappearing volume happened on a real account.

Anyway i wanted to post this chart with my analysis. Is it correct or was i extremely lucky? The MA was smoothed 7 ma w shift 4 and applied to H+L+C/3! I dont have any indicators as i only started reading about vsa 2 days ago. Also i have no idea when to exit...i already did by accident from this because i was looking at m30 and saw a no supply bar that worried me. I read somewhere in this thread that Tom Williams uses a 3 consecutive closes type of rule. What if you dont get 3 consecutive closes in a row? Do you just stay in the trade? Thank you!

I was actually looking to get in on this earlier on but i missed it looking at and doing other things. In fact i posted a chart a couple of pages back.

Which bar was it you got out on?

a little off topic but i just made this video and wanted to share it with you guys.... enjoy

Detailed I hope. Good man.

I exited right at the bottom by mistake. Look at pic. The exit was made on the M30 chart. I found your chart, srry didnt see it before. Whats funny is if i had your feed i would have missed the trade!

In my opinion, irrespective of the volume changing on your charts the spread/range of that bar is far too wide to be a no supply bar. Plus the amount of volume coming in around that time could indicate buying so that was as good a place as any to get out of the trade to be honest.

Hope that helps a bit.

Very nice

One more set of questions, last one for the day i promise, because i dont want to go on a posting frenzy just yet. How do we differentiate between tests and squats? From what i understand the tests can also be on high volume. And was my analysis good or was the entry too aggresive in the pic above? How many weakness signs do we need to enter a sell? What about signs of strength?

Please check the eurusd pic! I have a lot of questions there...

Alexone,

I'm not at my computer at the moment, so I will do a more detailed post later.

Very well done. The PAL is a stop close only line. As long as price remains below that line, you should stay in the trade. The exception would be if you saw very high or ultra high volume on a down bar. Especially if the next bar was up.

I was looking for some clarification from the many VSA gurus on here. An effort to rise with no result bar is desribed as being "any down bar, with a high that is higher than the previous bar, and the price closing on the lows". They say this indicates weakness and to watch how the next bars react to see if it is in fact weakness or if strength returns...

1. Does this bar also have to close lower than the previous bar or just close on the lows?

Also a couple of quick questions not directly related to the above;

1. I see many of you trade 5min or 10min charts while checking some higher TF's. What constitutes as low and high spread bars on these charts? Can this be looked at from a pip count or is it relative to other recent bars?

2. What constitutes as closing on the highs or lows? How close does it need to be and how is this mesured with respect to the spread of the bar in question?

Thanks so much in advance and sorry if these are dumb or VSA rookie type questions.

This was the better entry.

1. It does not have to close lower than the previous bar. If it did, it would be a stronger indication of weakness.

1. We are always comparing to the recent few bars.

2. Closing in the top 10% is fine for a 'closing near the high'. Top 5% for a 'closing on the high'. It is always compared to the spread of its own bar. These are not strict rules, after a while you'll develope a 'feel' for what you think is right (and it might be different to what I 'feel').

easy one

1) asia
2) background is strength since Friday last week

my eu post i will do on the weekend on why i got into the long will repsond to your higher itme frame question. i will have about 6 charts and a passage of waffle..lol

Looking forward to it sensei

'......a passage.....'

Oooooohhhhhh you little tease you cant wait

Looking forward to it...

Thanks so much for the reply... I didn't see it anywhere (may have missed it) but does volume or spread matter when it comes to be an effort to rise bar?

I started out with the intention of showing a few things to Alexone, but I have gone another way. To Alexone, I would say don't get too caught up in the name game. I have used different names on some of the same bar/candles, but nomenclature matters less than the concept.

With that said, the first one was a squat. A test should either close on or near the high or in the middle. On my chart, the close is too low for a test so I see it as a squat. There is another test that fails that you do not have marked. Then we get the big one. This is a test as it makes a lower low than the previous candle/bar. In fact, it makes a lower low than the previous two candles (bars). It fails because the market does not make a higher close on the next interval. That next interval is actually engulfing the body of the test bar (not VSA) and that is a clear sign that the test has failed.

Now the really cool stuff is on the 5 min.

I don't trade the Swiss franc but it offered some beautiful entries on the 5 min. chart using the 15 min. for background support.

It all starts of with that ultra high volume up squat which some would call "end of a rising market". Check out that volume. An up candle closing off its highs on a narrow range with so much volume cannot be buying. Especially when the next candle is down. Also note that the previous wide spread up candle came on volume less than the previous two candles-No Demand. Just added evidence that the Smart Money is not interested in the upside.

Okay, let's get this out of the way now. The Trigger number/level can be in any of three points: the close, the high, the low. When a trader should use one versus the others is not yet fully explained. The best way may in fact be to let the market dictate as we shall see.

Aggressive entry: The very aggressive might notice that we have an Up Thrust in the form of No Demand that appears at 0430 hrs (all times EST). Notice that the close of this candle fails to get higher than the close of our Up Squat (trigger number at the close). I think it is aggressive because we haven't yet seen enough weakness on the 15.

Short entry 1: As I have said before, I like the No Demand after the Up Thrust after the signs of weakness as an entry. This No Demand fits that bill. Notice also that it fails to close higher than the low of our "end of a rising market" candle. So, one could say that the market is telegraphing that the trigger level to use is the low. Let's back up 6 intervals. We have a test that fails. The key thing to pick up is that this test comes just below the low of the Trigger level. Hey, I'm not making this stuff up . It's all right there. Since the market has turned this test is the first interval that has its complete range below the low of the trigger bar. You think that means something?

Well the test fails as the next two intervals are both down. And the next time the market attempts to move into this level, we see the No Demand which is our entry.

Short entry 2: Here again we have our old friend No Demand. What makes this entry so "powerful" is that it happens @ 0615 hrs. But before I say more on that, note that this No Demand is again moving up to but not closing higher than the low of our Trigger Level (L). Nor is it as high as the first No Demand.

If we look left to the 15 min. chart, we can see that at this same time there is a Squat that forms. This squat appears after the failed test and does not trade higher than the high of the Hidden Up Thrust. Now we have some good evidence of weakness on the 15 minute and coincidental signs of weakness on the two charts.

Short entry 3: This entry is more advanced. This entry uses VSA and non VSA concepts. It starts out with a Test. The Test is good as the next candle is up. This is normally a sign of strength. But there is another VSA principle known as "Effort versus Result". After we get 4 up candles we get a WRB that engulfs the bodies of not only the 4 up candles but of the test candle as well. While this observation is not VSA, the conclusion is: this is No Result from a Test.

Again let's jump over to the 15 minute. At the same time we see an engulfing candle coming right after a Test candle. This means the test has failed. So on the big time frame we have a failed test at the exact moment we have No Result from a Test on the 5. It's poison's nature to kill, if we choose to swallow. And it's a chart's nature to speak, if we choose to listen.