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Trading VSA the way NSK does

  • #1
  • First Post: Apr 10, 2011 3:45am Apr 10, 2011 3:45am
Hi All,
I am Karthik from India and in case anyone is wondering what NSK is, well, thats me. Anyway, to cut long things short, i wont be introducing myself too much.

Its pretty obvious to see that i have been around FF for about 5 years now and have made many posts and have started few threads (most famous being the one on Murray Maths) as well. In case anyone is interested, you can refer those to know about me.

All i can say is that i am a full time trader and am into fund management for individuals and prop trading for corporates.

This thread will be about VSA. You might think 'oh no, not another thread on VSA'. VSA is the buzzword in FF right now but Malcolm would know that i started studying VSA a few months after he became good at it. Anyway, this thread will be about trading VSA in a slightly different way. This will be different from the way that others trade it. This will be more about the background than about individual bars. So forget about what feed you have, NS,ND whatever. You just need volume thats all, irrespective of the feed.
  • #2
  • Apr 10, 2011 3:49am Apr 10, 2011 3:49am
I will not tolerate no nonsense in this thread. If you cannot post anything useful or anything related to the topic, then you are most welcome to leave the thread. I have no time. All i ask you guys is, forget about who i am or what i am. Just look at what is being presented in this thread and evaluate me or my thread based on that. Always start at zero when you learn or do something new. That way, you learn a lot more.

There will be no 'putting-down' of people nor will there be any 'chest-beating' that 'i said this, i told you before ' etc. Everyone is equal, as equal as me. So show respect to everyone.

Lets begin.
  • #3
  • Apr 10, 2011 4:02am Apr 10, 2011 4:02am
Here is my first chart showing the setup. Not a big deal in the setup. This is an intra-day way of trading. You just need one indicator, the better volume indicator. It works best on the GBPUSD 15M chart.

When you add the bettervolume indicator, change the properties so that the moving average is set to 5.

You can see 2 indicator windows. First is the normal bettervolume indicator with no changes in any property.

Next window is the bettervolume indicator with all the colors of all the bars set to black (so that it becomes invisible in the background) and only the MA bar being set to maroon.

So what you see in the second window is most important. It contains the MA of the last 5 bars of volume.

Now the question. To stir up minds and also to see how many of you are interested in this. What do you see in the chart at around 8.30/9:00 hrs and what is the reaction. What can you infer from this?
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  • #4
  • Apr 10, 2011 4:07am Apr 10, 2011 4:07am
Quoting ns_karthik
Here is my first chart showing the setup. Not a big deal in the setup. This is an intra-day way of trading. You just need one indicator, the better volume indicator. It works best on the GBPUSD 15M chart.

When you add the bettervolume indicator, change the properties so that the moving average is set to 5.

You can see 2 indicator windows. First is the normal bettervolume indicator with no changes in any property.

Next window is the bettervolume indicator with all the colors of all the bars set to black (so that it becomes invisible in the background)...
Well if it's 8.30-9.00 gmt then I would suggest that it's the usual volume increase that we see around London open time.

Interested to learn more about VSA. I've learnt the basics and they have helped my trading hugely but I know there is more I can learn which will help me improve further.
  • #5
  • Apr 10, 2011 4:13am Apr 10, 2011 4:13am
Quoting Trotty
Well if it's 8.30-9.00 gmt then I would suggest that it's the usual volume increase that we see around London open time.

Interested to learn more about VSA. I've learnt the basics and they have helped my trading hugely but I know there is more I can learn which will help me improve further.
yes the volume is increasing....and whats happening?
  • #6
  • Apr 10, 2011 4:32am Apr 10, 2011 4:32am
Hi NSK,

I'm guessing that big boys are shaking out the weak buy to go long at better price... I suppose that the gap down after means huge amount of liquidity flooding the market and this kind of movement need billions..


Regards
brax64
  • #7
  • Apr 10, 2011 4:40am Apr 10, 2011 4:40am
Quoting brax64
Hi NSK,

I'm guessing that big boys are shaking out the weak buy to go long at better price... I suppose that the gap down after means huge amount of liquidity flooding the market and this kind of movement need billions..


Regards
hey brax...good attempt...u r almost there...will wait for few more responses and see if anyone hits the nail on the head...
  • #8
  • Apr 10, 2011 5:18am Apr 10, 2011 5:18am
Karthik,
To me it looks like a candle that has closed higher than the open but on lower volume than previous and below the moving average, no interest to the upside
  • #9
  • Apr 10, 2011 8:14am Apr 10, 2011 8:14am
Quoting ns_karthik
You just need volume thats all, irrespective of the feed.
There is a divergence, between volume and PA. PA grow up, but the volume goes down.
  • #10
  • Apr 10, 2011 8:55am Apr 10, 2011 8:55am
Quoting ns_karthik
Here is my first chart showing the setup. Not a big deal in the setup. This is an intra-day way of trading. You just need one indicator, the better volume indicator. It works best on the GBPUSD 15M chart.

When you add the bettervolume indicator, change the properties so that the moving average is set to 5.

You can see 2 indicator windows. First is the normal bettervolume indicator with no changes in any property.

Next window is the bettervolume indicator with all the colors of all the bars set to black (so that it becomes invisible in the...
This is the BB's shortig to the retail trader, retail buying, losing there buy, BB's buying back at wholesale?

: BB's buy back after 11ish
  • #11
  • Apr 10, 2011 9:38am Apr 10, 2011 9:38am
Quoting ns_karthik
Hi All,
I am Karthik from India and in case anyone is wondering what NSK is, well, thats me. Anyway, to cut long things short, i wont be introducing myself too much.

Its pretty obvious to see that i have been around FF for about 5 years now and have made many posts and have started few threads (most famous being the one on Murray Maths) as well. In case anyone is interested, you can refer those to know about me.

All i can say is that i am a full time trader and am into fund management for individuals and prop trading for corporates.

This thread...
Hi Karthik,

I don't mean to be pedantic but what exactly is it you're doing differently? Perhaps I haven't let this thread develop enough yet but you say you're going to be looking more at the background than individual bars. By saying that, you've defined what VSA is. Taking bars in isolation isn't the VSA way by any means.

Maybe i've jumped the gun a little but I thought i'd ask the question. Looking forward to seeing your charts and contributing to this thread.

Liam
  • #12
  • Apr 10, 2011 9:56am Apr 10, 2011 9:56am
20.45gmt, the lack of volume is probably the US close.
Seek not to change the world; seek only to change your mind about the world
  • #13
  • Apr 10, 2011 10:49am Apr 10, 2011 10:49am
At around 8:30/9:00 I clearly see an increase of the Better Volume MA5. So some type of accumulation and then a distribution follows.
  • #14
  • Apr 10, 2011 11:41am Apr 10, 2011 11:41am
Quoting Ats
Karthik,
To me it looks like a candle that has closed higher than the open but on lower volume than previous and below the moving average, no interest to the upside
well ATS, good try but as i had said, this is not about single bars !!
  • #15
  • Apr 10, 2011 11:43am Apr 10, 2011 11:43am
Quoting vasi
There is a divergence, between volume and PA. PA grow up, but the volume goes down.
is the volume really going down when the price goes up?
  • #16
  • Apr 10, 2011 11:46am Apr 10, 2011 11:46am
Quoting KinsaleForex
Hi Karthik,

I don't mean to be pedantic but what exactly is it you're doing differently? Perhaps I haven't let this thread develop enough yet but you say you're going to be looking more at the background than individual bars. By saying that, you've defined what VSA is. Taking bars in isolation isn't the VSA way by any means.

Maybe i've jumped the gun a little but I thought i'd ask the question. Looking forward to seeing your charts and contributing to this thread.

Liam
Hi Kinsale,
glad to see you here....i guess u have indeed jumped the gun a little bit....just allow me a few more posts to explain what i am trying to and then maybe we can discuss whether we do it the same way or different...i do agree that the concepts are going to be the same, whoever trades it but the things that u look for varies from trader to trader. For eg., i do not see NS, ND etc...i just enter when i believe its the right time...what i do is pretty simple application of VSA....easy for newbies to grasp....for those who have indepth knowledge of VSA can perfect their entry within a few pips but what i will explain will be easy to follow for those who are new to VSA...and it can be traded without having to worry abt what feed we have....
  • #17
  • Apr 10, 2011 11:47am Apr 10, 2011 11:47am
Quoting gez40
20.45gmt, the lack of volume is probably the US close.
well i was more interested on what was happening at around 8-9 GMT...
  • #18
  • Apr 10, 2011 11:57am Apr 10, 2011 11:57am
Quoting ns_karthik
Here is my first chart showing the setup. Not a big deal in the setup. This is an intra-day way of trading. You just need one indicator, the better volume indicator. It works best on the GBPUSD 15M chart.

When you add the bettervolume indicator, change the properties so that the moving average is set to 5.

You can see 2 indicator windows. First is the normal bettervolume indicator with no changes in any property.

Next window is the bettervolume indicator with all the colors of all the bars set to black (so that it becomes invisible in the background)...
Now, here is the way it is traded and i will try and put it in as simple words as possible...everyday, during the frankfurt and beginning of London session, you will see that there would be a rise in volume...that can be noted using the MA....in case there is no increase in volume, then there is something wrong...it could be a ranging day or no one is sure what is going to happen and hence we might have a choppy day...so if you dont see a clear increase in volume (MA sloping upwards), its better you stay out..

When the volume increases, note which direction the price moves. When volume increases and price moves up, it means that lot of selling is happening as price moves up. So you can afford to short it with SL of 30-40 pips and TP of 30-40 pips...If the price goes down when volume is going up, then you start looking for longs...

If you are very good in VSA, you can observe each bar and enter your trades with a precision of few pips (you can have 30-40 pips trades with less than 10 pip DD) but for those with bad feed or are not yet proficient with VSA can still enter using above strategy..

The trade gets done within 2 hours of London open...you have 20 trading days and you can easily make 400-500 pips a mnth using this simple strategy....
  • #19
  • Apr 10, 2011 11:59am Apr 10, 2011 11:59am
i am sure i would have missed a few points and i am also sure that a lot of questions would be there...i will handle all these in further posts...

i will also explain how u can look for more pips on the same day even after having a successful trade using this strategy..
  • #20
  • Apr 10, 2011 12:16pm Apr 10, 2011 12:16pm
its 10:45 PM here and i am out on a biz trip early tomorrow....will be back only late night tmrw...so keep your comments/questions coming and i will make sure that i answer each and every comment/question once i am back on Tuesday morning...
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