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Learn to Trade using VSA (Volume Spread Analysis)

  • #1,441
  • Nov 7, 2010 6:33am Nov 7, 2010 6:33am
Quoting taomql4
oh everything.......
Far as I understand Pivots is not part of VSA. Don't say you shouldn't use them but VSA is about understanding the relationship between volume and price spread. Most use specific entry trade setups, but the most successful try and understand the background or 'context' - so a setup has limited value unless its in sync with the background.
  • #1,442
  • Nov 7, 2010 7:40pm Nov 7, 2010 7:40pm
Quoting crabbydog
Far as I understand Pivots is not part of VSA. Don't say you shouldn't use them but VSA is about understanding the relationship between volume and price spread. Most use specific entry trade setups, but the most successful try and understand the background or 'context' - so a setup has limited value unless its in sync with the background.
well, Galvin and the Good folks at TradeGuider ,inc. have a fancy word for it--

it's called clusters...lol, i prefer to call it the old fashion name-Mr pivot.

Areas of previous Buying Or selling...BTW , best places to look for "High probability setups"..
  • #1,443
  • Nov 8, 2010 1:35pm Nov 8, 2010 1:35pm
Quoting crabbydog
Far as I understand Pivots is not part of VSA. Don't say you shouldn't use them but VSA is about understanding the relationship between volume and price spread. Most use specific entry trade setups, but the most successful try and understand the background or 'context' - so a setup has limited value unless its in sync with the background.
Perfect example -- Looking for Setups at the Pivot--
Attached Image (click to enlarge)
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  • #1,444
  • Nov 9, 2010 1:26am Nov 9, 2010 1:26am
Quoting taomql4
Perfect example -- Looking for Setups at the Pivot--
Cracker of example ..Thanks.. Murrey mths and fibo points.. standard and extended 2..weight of evidence in my opnion..
  • #1,445
  • Jan 6, 2011 2:33am Jan 6, 2011 2:33am
i have been reading but still abit confused when is it testing or when there is no demand or supply. Although i have been trying to figure out myself with the times with low volume
  • #1,446
  • Jan 15, 2011 3:23pm Jan 15, 2011 3:23pm
daemonw,
this isnt a genuine thread.

it pays to read & re--read..
go to the "VSA with malcolm" thread
  • #1,447
  • Jan 24, 2011 8:12am Jan 24, 2011 8:12am
Alert added.

Quoting thatwasme
This is a indicator I wrote for myself.

It has 4 states.
I believe that a price volume bar can have one of 4 states.

1. It can have increasing spread and decreasing volume. This means that price is moving without strong participation and can not be sustained. Due to the lack of participation, the price is ripe for a reversal.
This is displayed as a Magenta Diamond on that bar.

2. It can have increasing spread and increasing volume. This means there is wide participation and price should continue in this direction.
A red arrow shows the...
Attached File(s)
File Type: mq4 CDRW with alert.mq4   5 KB | 707 downloads
  • #1,448
  • Jan 25, 2011 1:42am Jan 25, 2011 1:42am
Thanks i will give it a go.I liked his indicators and this thred..
  • #1,449
  • Jan 25, 2011 4:12pm Jan 25, 2011 4:12pm
Quoting taomql4
Nice videos "82, i think you are no longer limited to 10:00 min videos, right?

Did i just see 4:54 am(pC timeclock) on one of your videos? boy, you are
making me feel like a slacker.am thinking of moving to england, i hear
its has best trading session(the european into the US)..00or maybe Hawwaii..lol,
Im always awake 24x7
  • #1,450
  • Jan 25, 2011 4:14pm Jan 25, 2011 4:14pm
I'm glad that my thread continues to strive and teach the methods of VSA. I've been absent for months, and quite honestly I've shifted my talents towards developing social games. I've made a pretty penny trading. I've also been investing alot in private companies to the likes of facebook. I will always have a soft spot for forex in my heart and if anyone has questions feel free to shoot me a message.
  • #1,451
  • Feb 9, 2011 2:08pm Feb 9, 2011 2:08pm
Quoting nyse1982
I'm glad that my thread continues to strive and teach the methods of VSA. I've been absent for months, and quite honestly I've shifted my talents towards developing social games. I've made a pretty penny trading. I've also been investing alot in private companies to the likes of facebook. I will always have a soft spot for forex in my heart and if anyone has questions feel free to shoot me a message.
Social Games ? You don't trade anymore ?
  • #1,452
  • Feb 11, 2011 10:04am Feb 11, 2011 10:04am
To anyone who trades equities,Ford ticker symbol:F has become an excellent trade candidate.The F 17.00 MAY 11 C which are the call options has unusally extreme volume around 76k. Plus from review of the yearly chart you can see heavy accumulation took place in the back in early February,you can tell from that massive wide spread down bar with huge volume.The high volume indicates selling and buying.Over the next couple of days the volume began to subside until you get an upthrust bar which is a reaction to the smart money absorbing the immediate selling in the background.Once all the selling has subsided smart money now can move from the process of accumulation to marking up.Please be aware of news going forward as smart money will use this as a cataylst to shake weak holders out the market.
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  • #1,453
  • Feb 11, 2011 10:05am Feb 11, 2011 10:05am
Quoting taomql4
Social Games ? You don't trade anymore ?
Only occassionally as I've spent alot of time developing my first social game.However, when I do see profitable opportunities, Ill post them here.
  • #1,454
  • Feb 11, 2011 10:59am Feb 11, 2011 10:59am
Quoting taomql4
Perfect example -- Looking for Setups at the Pivot--
great chart tao..are you on stocktwits or twitter so we can keep in touch?
  • #1,455
  • Feb 11, 2011 11:04am Feb 11, 2011 11:04am
Quoting bruncha
Just entered this forum to expand my knowledge with VSA.

I've been catching up with all the PMs. I got a question for NYSE, and I was wondering why nobody challenged this issue, I guess everyone was only focused with tick volumes at the time.

1)
NYSE, in an earlier post from you, post #42 dating back to February 2009, you gave a breakdown of VSA trading to learn to think like a Smart Money guy. In that breakdown, I see that you refer to the spread as being the difference of H/L - H/C. In Tom Williams book the spread is only the difference from...
Tradeguider calls it the spread which refers to high or low points for a OHLC bar.Spreads show the bullishness or bearishness of a particular bar or a series of bars,this also is related to the direction of the bar,With VSA weakness appears on up bars via smart money selling into the buying or open market and down bars represent buying by smart money which depends on certain price levels they anticipate based on previous market actions
  • #1,456
  • Feb 11, 2011 12:20pm Feb 11, 2011 12:20pm
Quoting nyse1982
Tradeguider calls it the spread which refers to high or low points for a OHLC bar.Spreads show the bullishness or bearishness of a particular bar or a series of bars,this also is related to the direction of the bar,With VSA weakness appears on up bars via smart money selling into the buying or open market and down bars represent buying by smart money which depends on certain price levels they anticipate based on previous market actions
The markets can be traded and mastered with two main principles for traders or investors to grasp.The first one being physchology which again by far is the most important and being able to understand a chart.

MARKET PHYSCHOLOGY
deals with discpline of oneself and knowing when to hold onto a losing position and when to sell.A good majority of traders really miss out on major returns in the market because they sell at the first sign of a decline.
  • #1,457
  • Feb 11, 2011 12:24pm Feb 11, 2011 12:24pm
Smart money or market makers have greater capital base to trade from then the average trader.They also are experts at reading market sentiment and news interpretation.For example you may be long AAPL premarket and say apple comes out with bad earnings.The market makers or smart money already are prevy to the information that Apple will report bad earnings,however they can't hide that information on the chart.Most traders who are long a position will automatically sell on the bad news,but again thats what the smart money want you to do.All the while in the background they realize the news is a catalyst that will coherse traders and uninformed investors to sell there shares in a panic because of the bad earnings report.Meanwhile, in the background the smart money is accumulating or absorbing those sell positions.
  • #1,458
  • Feb 11, 2011 12:32pm Feb 11, 2011 12:32pm
In order for smart money to profit they also have to accumulate at lower prices.Whenever you have a wide spread down bar,on high volume thats your first indication of major selling and buying.Smart money and retail traders exchange shares or currency at a dizzing pace causing the volume to spike massively.The fact is though that smart money realizes that like all news it's just a temporary situation,that doesn't usually require negative recourse.Also realize that for all that supply being dumped in the market there will be an equal amount of demand hidden in the background.Notice back in August you have quite a few down bars which in hindsight gave smart money ample opportunity to accumulate the stock and then markup the prices and the stock rose as more demand was absorbing the selling.This happened for 4 straight months.However,two days of selling in february pushed the stock back down all on high volume.So what does this mean.
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  • #1,459
  • Feb 11, 2011 12:50pm Feb 11, 2011 12:50pm
It means that because such supply was repidly dumped on the market that you can expect the stock to push much higher over a period of time.
  • #1,460
  • Feb 11, 2011 12:52pm Feb 11, 2011 12:52pm
I mean forget the charts for a minute an learn to understand the principles behine VSA and why certain actions occur and how smart money uses news in all markets to better there positions.
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