vsa with Malcolm | Page 577 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

VSA-divergence trading 187 replies

How to Blow $200 account using VSA--- 594 replies

VSA Journal 57 replies

VSA broker history change datas 11 replies

Attachments: vsa with Malcolm
Exit Attachments

vsa with Malcolm

  • #11,521
  • Feb 6, 2011 11:28pm Feb 6, 2011 11:28pm
Quoting foxybunny
Hi Musashi,

I am curious on how you use range bars, and what are the advantages and disadvantages you have found in using range bars ?

Also for VSA, normally there is looking at narrow spread bars or wide spread bars.
In VSA terms, how would you look at this narrow spread and wide spreads when range bars only give you a constant width spread ?
1.Advantage of range bars : they represent price and all the bars are the same size.

2. Disadvantages of range bars : none that I'm aware of.

3. Narrow range bars on time based charts represent a price consolidation period based on "time"

4. Each bar in a range bar chart is a consolidation period based on the size of the bar.

5. Volume of each range bar is different it seems, price can consolidate on a range bar chart for a very long time... in that time many orders can be processed. Since the bar must be go from "x" low to "y" high before the bar is closed.

6. Volume Spread Analysis is not something I am aware of, with respect to how price and volume correlate to mean Bullish or Bearish Volume.

Bullish Price action to mean is indicated by price going up, bearish price action to me is indicated by price going down.

What is happening to the volume of orders in that period is something I have yet to consider in the currency market.

I would expect higher volume transfers to occur on breaks of resistance and support, I understand about distribution and accumulation and this is evident on a range bar chart via a range or consolidation period, one bar up, one bar down, one bar up, one bar down, then a break in one direction.

Which is why I like the patterns that exist on range bar/price bar charts.

Time is of no relevance. Price is of major relevance. As far as volume being relevant on a range bar chart that is something I have not considered.

Obviously there is more than one way to look at what price is doing, using wide range bars on high volume and narrow range bars on high volume not too sure what this would imply.

To me there is consolidation and then there is trending, distribution or accumulation will be evident by the direction of the break of the consolidation.

Well that is my view of the markets.

Like I've said I'm reading the book Master the Markets and I'm interested by the concept of volume analysis. I will continue reading and try to understand the concept as best I can.

Cheers
  • #11,522
  • Feb 6, 2011 11:31pm Feb 6, 2011 11:31pm
disadvanatge . If the range bars are all the same size .... then volume SPREAD analysis will not work for you ....

you need to understand if the volume created squat bar , or upthrust or wide range etc etc

Quoting Musashi
1.Advantage of range bars : they represent price and all the bars are the same size.

2. Disadvantages of range bars : none that I'm aware of.

3. Narrow range bars on time based charts represent a price consolidation period based on "time"

4. Each bar in a range bar chart is a consolidation period based on the size of the bar.

5. Volume of each range bar is different it seems, price can consolidate on a range bar chart for a very long time... in that time many orders can be processed. Since the bar must be go from "x" low to "y"...
Blogging daily now at www.volume.zone
  • #11,523
  • Feb 6, 2011 11:33pm Feb 6, 2011 11:33pm
look for shake out / testing 1.3590 ish

IF you see valid vsa buy set up in this area , long for 100 pip
Blogging daily now at www.volume.zone
  • #11,524
  • Feb 6, 2011 11:41pm Feb 6, 2011 11:41pm
Quoting malcolmb14
disadvanatge . If the range bars are all the same size .... then volume SPREAD analysis will not work for you ....

you need to understand if the volume created squat bar , or upthrust or wide range etc etc
I understand, I will continue to read and try to understand the concepts as explained in the book. I'm not trying to correlate VSA with range bars. I'm just looking at Volume on a Range Bar and trying to understand if there's any relevance to Volume on a Price Bar/Range Bar.

Identifying narrow range bars on a time based chart is one way to identify if consolidation is taking place. Identifying if this consolidation is Accumulation or Distribution, as I understand it is the way you look at the Volume?

Is this correct?
  • #11,525
  • Feb 6, 2011 11:46pm Feb 6, 2011 11:46pm
read mtm 20 times.... then you will know as much as anyone else.

Other than that read the 800 pages in the thread.

Range bars and volume may have some relationship but this thread is about VSA and in that system range bars have no place.

Sorry for being blunt , but only by reading and understanding and charting / trading will you become proficient in vsa , the best way to trade by far.

Quoting Musashi
I understand, I will continue to read and try to understand the concepts as explained in the book. I'm not trying to correlate VSA with range bars. I'm just looking at Volume on a Range Bar and trying to understand if there's any relevance to Volume on a Price Bar/Range Bar.

Identifying narrow range bars on a time based chart is one way to identify if consolidation is taking place. Identifying if this consolidation is Accumulation or Distribution, as I understand it is the way you look at the Volume?

Is this correct?
Blogging daily now at www.volume.zone
  • #11,526
  • Feb 6, 2011 11:49pm Feb 6, 2011 11:49pm
Quoting malcolmb14
read mtm 20 times.... then you will know as much as anyone else.

Other than that read the 800 pages in the thread.

Range bars and volume may have some relationship but this thread is about VSA and in that system range bars have no place.

Sorry for being blunt , but only by reading and understanding and charting / trading will you become proficient in vsa , the best way to trade by far.
Understood mate, I will continue reading.
  • #11,527
  • Feb 6, 2011 11:50pm Feb 6, 2011 11:50pm
after seeing decent move up in euro in asai we see a test that seems to have halted the retracement

I am thinking if there is a shake out no lower than 1.3590 may make for great entry for 100 pip

I am out till tomorrow 4am pst .... so good luck out there

Attached Image (click to enlarge)
Click to Enlarge Name: eu83.png Size: 166 KB
Blogging daily now at www.volume.zone
  • #11,528
  • Feb 6, 2011 11:52pm Feb 6, 2011 11:52pm
takes time to digest but works like a charm once you get the hang of it , sometimes the charts are not clear , but this is what the pros want , is to confuse you. This is when everyone will be saying pa is shit , using vsa you will see that nothing is clear , then the clouds part and everything becomes clear and wham easy money is made.





Quoting Musashi
Understood mate, I will continue reading.
Blogging daily now at www.volume.zone
  • #11,529
  • Edited Feb 7, 2011 12:06am Feb 6, 2011 11:55pm | Edited Feb 7, 2011 12:06am
Quoting malcolmb14
look for shake out / testing 1.3590 ish

IF you see valid vsa buy set up in this area , long for 100 pip
If that level is broken (1.3590. 14WMA .1 hr) donot look to buy till 1.3539-29.

Next level to Buy as you mentioned 1.3494 -84. If broken then last hope is 1.3333-23. IMO.

If 1.3333 is broken then we may see 1.2862 precisely.from there it can start all over again to HIt 1.50- 1.57 and higher. so lets see.

Your prdiction for 1.57 is very VALID long term.
Markets are not Random, they are designed!
  • #11,530
  • Feb 7, 2011 1:49am Feb 7, 2011 1:49am
Quoting Musashi
I suspect EU coming into a large supply area on the chart.
Appears that the supply area is too heavy on that region of the chart...
  • #11,531
  • Feb 7, 2011 1:59am Feb 7, 2011 1:59am
HEY Volume traders. Can anyone in here recommend a good place to read up on VSA? I've always only used moving averages and trend lines, but now i'm kind of interested in VSA. Any help would be greatly appreciated
  • #11,532
  • Feb 7, 2011 2:01am Feb 7, 2011 2:01am
Some very high volume kicking in this morning. Look at the last 30m bar, not a whole lot lower then the volume for NFP. Tells me buyers.
  • #11,533
  • Feb 7, 2011 2:24am Feb 7, 2011 2:24am
Quoting Musashi
1.Advantage of range bars : they represent price and all the bars are the same size.

2. Disadvantages of range bars : none that I'm aware of.

3. Narrow range bars on time based charts represent a price consolidation period based on "time"

4. Each bar in a range bar chart is a consolidation period based on the size of the bar.

5. Volume of each range bar is different it seems, price can consolidate on a range bar chart for a very long time... in that time many orders can be processed. Since the bar must be go from "x" low to "y" high...
Thanks Musashi.

Take note of what Mal said that VSA not intended for Range bars due to the need to understand like UpThrust, Test, etc.

That is why I was surprised you are using Range bars with VSA, but Range bars are of no use to identify UpThrust, Test, ND, NS, etc.
Range bars would still be useful for your own normal trading methodology and good for Support/Resistance.

Just that recently I seem to hear more about Range bars.

I prefer the Renko bricks due to the tails it still show.
But don't use much Renko now due to too much CPU processing taken up.
  • #11,534
  • Feb 7, 2011 2:39am Feb 7, 2011 2:39am
Quoting spivvster
HEY Volume traders. Can anyone in here recommend a good place to read up on VSA? I've always only used moving averages and trend lines, but now i'm kind of interested in VSA. Any help would be greatly appreciated
the start of this thread
Catching a falling knife, no, I'm just trading the Gartley!
  • #11,535
  • Feb 7, 2011 3:50am Feb 7, 2011 3:50am
Quoting Raza
If that level is broken (1.3590. 14WMA .1 hr) donot look to buy till 1.3539-29.

Next level to Buy as you mentioned 1.3494 -84. If broken then last hope is 1.3333-23. IMO.

If 1.3333 is broken then we may see 1.2862 precisely.from there it can start all over again to HIt 1.50- 1.57 and higher. so lets see.

Your prdiction for 1.57 is very VALID long term.
From my prediction, I think the price will test the high of the daily range at about 3400 area.. I think it will be limited around that price. IMHO.
  • #11,536
  • Feb 7, 2011 4:19am Feb 7, 2011 4:19am
There go cable..

Hopefully we can see price breakout the 1.6 today or tomorrow.
  • #11,537
  • Feb 7, 2011 4:30am Feb 7, 2011 4:30am
Quoting A-speculator
From my prediction, I think the price will test the high of the daily range at about 3400 area.. I think it will be limited around that price. IMHO.
Long at 1.3484 area is good for symmetry and Fib relation.IMO.

Last long I will take is going to be at 1.3454 if there.

Divergence on daily should be Bullish by then.

This will be a swing trade.WITH A STOPLOSS OF 20--30 PIPS.

Below those levels I will have to re-evaluate.

It needs to break 1.3538-28 for down.
Markets are not Random, they are designed!
  • #11,538
  • Feb 7, 2011 4:34am Feb 7, 2011 4:34am
Take Profit right here...
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 6.jpg Size: 101 KB
Click to Enlarge Name: 7.jpg Size: 110 KB
  • #11,539
  • Feb 7, 2011 5:10am Feb 7, 2011 5:10am
Quoting Raza
Long at 1.3484 area is good for symmetry and Fib relation.IMO.

Last long I will take is going to be at 1.3454 if there.

Divergence on daily should be Bullish by then.

This will be a swing trade.WITH A STOPLOSS OF 20--30 PIPS.

Below those levels I will have to re-evaluate.

It needs to break 1.3538-28 for down.
I think it will break 3538 area.. Have some patience..
  • #11,540
  • Feb 7, 2011 5:17am Feb 7, 2011 5:17am
Quoting A-speculator
I think it will break 3538 area.. Have some patience..
lets see.. there is Bullish divergence on smaller TFS that can take this who knows where.

I have one level in mind that is 1.3774 -85.. to go UP..which is very far from here.

I just took a scalp long from 1.3538. stop AT B.E WILL BE PLACED AFTER THIS 30min CANDLE

bUT THAT LEVEL 1.3538 IS BROKEN BY 1 PIP..so violation has occured. Down is almost confirmed..but from here as VOLUME gurus are seeing it has a potential up to 1.3922..given 1.3774 breaks..

THIS IS A VSA THREAD I SHOULD NOT MESS IT up..
Markets are not Random, they are designed!
24 traders viewing now