vsa with Malcolm

Hey Mal, are you using the hourlies for an entry these days?

any trader who see this will still believe eu is inside historical range levels. we could see 1.37 again since that is where overall sellers are and 1.34 buyers.

still in the channel, forming a big flag which is nothing else than accumulation.

based on the time we spend flagging i expect the upcoming move to have much of steam. i noted my realistic target on the chart

http://img291.imageshack.us/img291/1...0217230932.png

Holy cow. The ....not so fat cats, will love that!!

using mixture of daily , 8hour , 2 hour ( my fav time frame long term for weekly trades) and 60

entries are typically in us session off a 30 min ,

I am looking for the sure moves , like when I posted the no demand on dx earlier in week on a daily chart for sure i could buy aud , sell usdchf buy gu and buy eu

although a mix bag the dollar index showed the usd weakness before it happened

daily vsa set ups do not come along as often but when they do they can be awesome

hope you all like my new avatar signature ...lol

Oh dear

SOo ..what did I learn from Magix Today ! Wait a sec , Let me figure it out ..

umm yeah, until you look a bit further back than today and see how price has been flying up and down straight through it completely ignoring it for the last 3 days. looking at today, it LOOKS like it was using it as some sort of support, to me thats nothing more than a coincidence given how its ignored that MA every other day.

of course thats the problem with most indicators, you can set it up to work great on any one occasion, then you look at it a bit closer and find it doesnt actually work very well the rest of the time. the difficulty is getting a combination of indicators which work most of the time, but still give you enough indications to trade with instead of one signal a month.

when it comes to MA's the only ones I see as being significant s/r are 100 and 200 day MA's. other than that, they are good for trend indication but any bounce near one is mere coincidence when you look how many times it DIDNT bounce from it.

thats not to say im a huge fan of vsa. i think on shorter term charts under 1h it can sometimes give clues when you see big spikes in volume, but anything more than that I just dont see it. i see sometimes people post a chart with virtually every other bar marked with a vsa name as if they are reading it like every line of a book, which to me just seems ridiculous for many reasons. yes it can give clues, on shorter timeframes, but i cant get my head around it being any more than that.

back to the old 'does it work in forex' debate, as i said above, i think it can give clues on shorter timeframes but not higher, say 4h and up, because of the way forex works. there isnt a limited supply of a currency which can be accumulated and manipulated at will, any manipulation is going to be very short lived, if you want an example, look at the SNB's attempts at intervention on the swissy, its cost them billions and failed miserably, if an entire country, known for its banking, cant even manipulate their OWN currency to any extent at all, i dont believe any group of people can significantly manipulate a currency for any significant length of time, very short term perhaps, but no one group these days is going to send eurusd from 3500 to 4000. Hell china are always at it with protecting various options etc but they cant usually hold the tide back for very long even with their enormous reserves. now stocks and shares are obviously completely different, you CAN accumulate a very large chunk of whats available, in which case you CAN then manipulate it. in forex you might soak up 500b sell orders and shortly after someone else comes along with another 500b, you soak that up and someone else comes along, if 'the market' decides its going down then you aint gonna be soaking up all the supply for very long no matter who you are, there is no finite limit to the supply or demand other than very short term.......hence in fx i think vsa can work but probably only on something like 5 or 15min timeframes.

now heres why I think it can mainly work but just for big vol spikes indicating sudden activity. Example, things like these 'tests', i dont see how there can be such a thing in forex. to 'test' something by the very nature of a test implies theres a single entity doing the 'testing'. again in stocks and shares this may be possible if one major player is fiddling things, but in forex how can any one entity decide to take price down by x pips to test for something? as far as i see, they cant, because the market isnt controlled by any one entity who would be able to perform this test AND determine whether it was successful or not AND then ramp the price up x pips afterwards, there are millions of other, completely unconnected organisations trading the same pair at the same time......so unless someone wants to imply that all of these groups have banded together like some sort of cartel (which i dont believe for a second), then i dont see how these vsa terms imply that it is being manipulated to that degree.

of course i may be completely wrong but thats the way i see it at the moment after thinking about things for quite some time, I can see how all these vsa principles and terms might work in a market with a finite number of items up for grabs, but in forex as far as i can work out, there is SOME use, its just far more limited. but im completely open to one of the vsa experts convincing me otherwise if i am missing something here....thats kinda the idea of the post, and i guess the point of the thread, convince me if you can

ok enough blabbering, ill sit back and wait for the flaming

You have to do that yourself.
But here is something.
What moves market? Money.
So money is markets gasoline.
There are 2 kinds of gasoline, one moves market up and other moves market down. You just have to learn to see what gasoline is in work.
Think about that.

Gorgeous chart !! Can I have your computer ? lol ..I kid ..

Did I ever tell you I had 2 sisters , one of them likes your HLC indicator ..

rofl ....

I'm with you on that. I am looking for the sure moves too. I'm gonna play around with the hourly chart for entries and see how that goes.

Nice post mate.

Well there are 2 avenues for this answer. Cos there are really 2 questions,

1. Does it really work in forex?
2. How can it work in forex?

For Q. 1, the answer is simple. Go through (I ask you to delve into it rather than me spouting off to you) some of my posts and HGs also (it might be easier to understand ours for the VSA newby) and look at the setups we show on our charts. You will see the same setups with respect to VSA time and time again. With the same outcome, time and time again. You could also point out the miriad of posts by other traders where the setup failed. For the most part, these trades failed not because of VSA but because of their lack of understanding of VSA. This is a learning thread after all! Then go to your charts and try to find similar setups and see if they work. If they don't (and most won't), post your chart and we will tell you where YOU WENT WRONG.

You will soon see that it DOES work, even if as yet, you don't understand why.

As for Q2., the answer is not so simple and will take much longer to explain. I dont have the time right now but I will do my best to provide an answer for you when I can.

I've noticed you in the thread quite often. Please post some charts, I'm sure you can add to the thread.

What have I told you about selling your.......showing your sisters!!!!!!!!!!!

Nice example of the two bar reversal we were talking about before. Second sister has increase in spread and volume!!!

P.S. and the two are in the right place so we can say VSA sucks

It amazes me how much time certain people have devoted to posting on FF. Am I the only one who finds themselves having to scroll through posts on this thread without reading them, much like the normal procedure for the EURUSD thread.
I marvel at how some of the braggers not traders in these forums can focus on the market so keenly all the while simultaneously posting large novels of complete cock measuring trash.

If you really want the joy of self promotional trader boosting, start a blog, just don't fill this thread with it.

QUIZ TIME

go to www.stockcharts.com and tell me why i picked up Nokkia (nok) april 9 calls today

Superb mate...superb!!

Do you mean you bought some options?