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Volume Spread Analysis (VSA) Discussion 2 replies

Volume Spread Analysis (VSA) and background 5 replies

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Learn to Trade using VSA (Volume Spread Analysis)

  • #1,501
  • Feb 15, 2011 2:06pm Feb 15, 2011 2:06pm
Im anticipating due to the drop off in volume that whichever way the direction the pair could move it wouldn't be a truly genuine move because of the signifcant volume decline.However,keep in mind that during any accumulation after a bearish move you need sideways movement.I kind of equate accumulation to the energy a pair needs to retain before forward progress.Now I'm speaking aside from news.When news comes to the market you get exagerrated movements in the pair which often are short lived.
  • #1,502
  • Feb 15, 2011 10:54pm Feb 15, 2011 10:54pm
Quoting nyse1982
I'm still looking for that test on the 5m chart but check out the progress.For this to become a true accumulation, I need to see a test on the higher timeframes
Nice call on AUDUSD ..Practically called the Bottom on that one ,wish I was there ..

On the EJ , I Get really nervous when i don't see significant volume and was unable to short it ..

Some volume coming in on EU - Wide spread down bar with the next bar closing up ( Potential Buyers ) and another High volume bar closing off it's low with immediate test , Will like to see another one in a rising market.
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  • #1,503
  • Edited 10:07pm Feb 20, 2011 9:47pm | Edited 10:07pm
Quoting taomql4
Nice call on AUDUSD ..Practically called the Bottom on that one ,wish I was there ..

On the EJ , I Get really nervous when i don't see significant volume and was unable to short it ..

Some volume coming in on EU - Wide spread down bar with the next bar closing up ( Potential Buyers ) and another High volume bar closing off it's low with immediate test , Will like to see another one in a rising market.
Update :The sell is Just scalping , trend is UP ..
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  • #1,504
  • Feb 21, 2011 3:30am Feb 21, 2011 3:30am
Quoting taomql4
Update :The sell is Just scalping , trend is UP ..
Great analisys from both of You.. an education.. VERY clear,,..
  • #1,505
  • Feb 21, 2011 7:49am Feb 21, 2011 7:49am
Quoting danc
Great analisys from both of You.. an education.. VERY clear,,..
Just waiting on the buyers sitting @ 3645 to be tested , before I buy more ...Very close now, but if they dont get
there , I 'll just wait for the 2nd down bar (on relatively High voloume) to be tested again to go Long ..
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  • #1,506
  • Feb 24, 2011 7:27pm Feb 24, 2011 7:27pm
Any opinion on VSA with regard to UDCHF.. on 1 hr looks like accumilation on 1 hr and especialy the 15 minuite at current lows.. I have been buying.. been a long grind down..on the futures 30 and 15 charts with regard to Swiss futures look to be some selling at last.. and UD looks to be some buying over last 3 days.. any opnion fron either of U..
  • #1,507
  • Mar 24, 2011 4:13am Mar 24, 2011 4:13am
Quoting nyse1982
Im anticipating due to the drop off in volume that whichever way the direction the pair could move it wouldn't be a truly genuine move because of the signifcant volume decline.However,keep in mind that during any accumulation after a bearish move you need sideways movement.I kind of equate accumulation to the energy a pair needs to retain before forward progress.Now I'm speaking aside from news.When news comes to the market you get exagerrated movements in the pair which often are short lived.
hi sir is it possible to put all the information u hav on vsa in a pdf ?
  • #1,508
  • Mar 24, 2011 7:19am Mar 24, 2011 7:19am
First,

Just want to give a huge thanks to all the contributors to this thread and esp. thank nyse1982 for creating this great journey through VSA trading.

Thank you also for the great indicators as well.

As i was looking at the indicators is there an indicator that has an alarm when the spread is "1"? Effectively when smart money enters into the market. I think this would be very helpful for those who may not have many hours to sit in front of the computer but wanted to be alerted of this high potential time.

If there is one can you provide it or direct us to where we can find it.

Once again thanks again to everyone!

Theo
  • #1,509
  • Mar 24, 2011 12:35pm Mar 24, 2011 12:35pm
I have not read through this whole thread, so my comment may be immaterial, but I thought it should be said anyway.

You guys all know that the 'volume' reported by FX brokers is not really volume right? It is just the number of times that either the bid or ask changed during the bar. So that makes it more like a measure of volatility, but not really even that directly.

I suspect that this has been discussed earlier in the thread, and dismissed for some reason. If so, please disregard, and don't beat me up too harshly.
  • #1,510
  • Mar 25, 2011 1:05am Mar 25, 2011 1:05am
Quoting MadCow
I have not read through this whole thread, so my comment may be immaterial, but I thought it should be said anyway.

You guys all know that the 'volume' reported by FX brokers is not really volume right? It is just the number of times that either the bid or ask changed during the bar. So that makes it more like a measure of volatility, but not really even that directly.

I suspect that this has been discussed earlier in the thread, and dismissed for some reason. If so, please disregard, and don't beat me up too harshly.
Yes most people who have been on this journey.. understand this.. BUT it still works very well any way..In my opinion is worth running 2 or three chart systems and checking the varience.. also check the Futures were the vol is real and u will see similar .. bars..All just my opn of course and seems to work for me..
  • #1,511
  • Mar 28, 2011 9:43am Mar 28, 2011 9:43am
Quoting MadCow
I have not read through this whole thread, so my comment may be immaterial, but I thought it should be said anyway.

You guys all know that the 'volume' reported by FX brokers is not really volume right? It is just the number of times that either the bid or ask changed during the bar. So that makes it more like a measure of volatility, but not really even that directly.

I suspect that this has been discussed earlier in the thread, and dismissed for some reason. If so, please disregard, and don't beat me up too harshly.
Volume has been quantified by third party software in the form of tick volume which is an accurate measurement.Atleast the software that I trade using Esignal
  • #1,512
  • Mar 28, 2011 9:48am Mar 28, 2011 9:48am
Quoting pippimp
First,

Just want to give a huge thanks to all the contributors to this thread and esp. thank nyse1982 for creating this great journey through VSA trading.

Thank you also for the great indicators as well.

As i was looking at the indicators is there an indicator that has an alarm when the spread is "1"? Effectively when smart money enters into the market. I think this would be very helpful for those who may not have many hours to sit in front of the computer but wanted to be alerted of this high potential time.

If there is one can you provide...
The best advice I can provide is for people to gain a more through understanding of how to understand market movements.The fundamentals of VSA are based on understanding how volume relates to price spread and price action on a chart.If one can become more aware of how to read a chart there trading will be greatly enhanced.Most people don't realize this but most indicators are really necessary to understand how the market works.
  • #1,513
  • Mar 28, 2011 9:53am Mar 28, 2011 9:53am
Quoting fxrambo
hi sir is it possible to put all the information u hav on vsa in a pdf ?
if you go to this website you can download the master the markets pdf for free
vsa.pipbuilders.com/mtmv3.pdf
  • #1,514
  • Mar 28, 2011 10:01am Mar 28, 2011 10:01am
If you look at this stock BKS which is an obvious bearish trend,notice the massive wide spread down bar on extremely high volume.When you relate this to VSA you can understand two things.That buying occurs on down bars, professionals are in the business of accumulating stock in there own accounts and they most often

To

accumulate means to buy as much of the stock as possible, without significantly putting the price up against your own buying, until there are few, or no more shares available at the price level you havebeen buying at. This buying usually happens after a bear move has taken place in the stock market.

On this chart a massive imbalance has occurred and the stock has been transfered from weak holders to strong holders.The corresponding bar which is a reverse upthrust is a sure sign of strength.
Attached Image (click to enlarge)
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  • #1,515
  • Apr 1, 2011 4:47am Apr 1, 2011 4:47am
Nyse1982,

I am in total agreement that if a person learns to read the chart, indicators would be used solely for additional confirmation.

One point of the volume spread indicator, is that you stated earlier in this thread that SM accumulates when the spread is essentially at "1" which denotes "low" prices, hence the accumulation. You stated that you trade on the 15 minute chart primarily. This may seem like a silly question, but does this signal of spread of "1" work on the higher time frame bars like 1Hr or 4 Hr. or is the buying so instantenous that the "1" spread somehow gets lost by the with the summing of smaller time bars by the time the larger time frame bars close.

I hope the question makes sense.

Thanks again for your help as well as all the other members who have contributed to this thread.

Theo
  • #1,516
  • Apr 4, 2011 3:54am Apr 4, 2011 3:54am
Hi all,
may be someone knows how to get Equivolume Bar with MT4, so it will help to see virtually the Bullvolume vs bearvolume in one bar, with virtual color.

thank you

regards
  • #1,517
  • Apr 5, 2011 6:17am Apr 5, 2011 6:17am
Hi,

Is it possible to trade using VSA on a FOREX 5M chart? It looks like each time I identify a signal and enter after confirmation, that's right when the trend is reversing.

Are you using multi timeframes?
Is 5M too noisy for VSA?
  • #1,518
  • Apr 5, 2011 6:31am Apr 5, 2011 6:31am
Quoting dvarrin
Hi,

Is it possible to trade using VSA on a FOREX 5M chart? It looks like each time I identify a signal and enter after confirmation, that's right when the trend is reversing.

Are you using multi timeframes?
Is 5M too noisy for VSA?
Hi dvarrin,

If you go to Malcolm's VSA thread there is a lot of people trading 5min charts, myself included. Go back and read the last few pages (40 - 50 ish) and you should find some detailed 5min charts to look at it.

Cheers,

Liam
  • #1,519
  • Apr 5, 2011 7:27am Apr 5, 2011 7:27am
Really nice thread! Thank you very much! I'll give a look
  • #1,520
  • Apr 5, 2011 8:12am Apr 5, 2011 8:12am
Quoting dvarrin
Really nice thread! Thank you very much! I'll give a look
No problems, feel free to post and ask questions, it's a pretty active thread so someone will answer!
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