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vsa with Malcolm

  • #19,681
  • May 13, 2011 5:11pm May 13, 2011 5:11pm
Quoting dvarrin
I'm wondering if we are not using VSA the wrong way. If we look at the hourly chart, we can see that bars on very high volume happens almost always at the same time and it is the same for the bars with the lowest volume. I'm wondering if using true range would not be more accurate? The only problem is that some VSA signs such as end of a rising market are not possible using true range because if the spread is wide the true range will be too.
I think it's fair to say from the past few pages of posts that we're not using VSA the wrong way. There is a lot of charts and posts within this thread to support the fact it is being used very much how it was intended.

As for bars on high volume happening at the same time of day, i'd put this down to the London and NY crossover and both markets being active at the same time. What's more important is what is happening on those bars that have the high volume. Is there hidden buying/selling or are the smart money drying up supply/demand?
  • #19,682
  • May 13, 2011 5:19pm May 13, 2011 5:19pm
Quoting fontu
Things can be different next week having the wave end around 1.4048 to bull again or a retracement b wave towards 1.4423/39/74 or more before further down to 1.3862 or not at all .
Anything can happen though , let see what next week.
fontu
If your making blanket statements like anything can happen on a chart with no vsa principles I don't see why your posting in this thread?
  • #19,683
  • Edited 5:35pm May 13, 2011 5:21pm | Edited 5:35pm
Quoting KinsaleForex
I think it's fair to say from the past few pages of posts that we're not using VSA the wrong way. There is a lot of charts and posts within this thread to support the fact it is being used very much how it was intended.

As for bars on high volume happening at the same time of day, i'd put this down to the London and NY crossover and both markets being active at the same time. What's more important is what is happening on those bars that have the high volume. Is there hidden buying/selling or are the smart money drying up supply/demand?
I'm amazed how true range gives a picture easier to understand for me. If for example there is a break out of a trading range, true range will show the breakout bar to be the most important, but volume may show that the bar with the highest volume is in the middle of the trading range. That's what I don't understand yet. Should we look at many bars together and sum their volume to locate the area with a lot of volatility?
  • #19,684
  • May 13, 2011 5:44pm May 13, 2011 5:44pm
Here is an example of comparing volume and true range. I'm showing this, not to say that true range is better, but for you to explain me what I'm doing wrong when I'm reading the volume.

On the chart in attachement I've marked 2 grey areas. In the first one, if we look at true range, we can see some climactic action with two bars on very high volume closing off the low and next bar is an up bar. The next bar after the up bar is already NS, but the spread is a bit to big. In the second area, we can see two bars which could be testing supply before the price moves up.

But when I'm looking at the volume. I can see nothing. the volume is quite high and more or less flat, although the trend is reversing. Am I doing something wrong when I look at the volume?
Attached Image (click to enlarge)
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  • #19,685
  • May 13, 2011 5:51pm May 13, 2011 5:51pm
This is how my volume looks. I admit your volume does look very much like a level playing field and I would struggle to discern any meaning from it. Best I can suggest is trying some different volume feeds perhaps?
Attached Image (click to enlarge)
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  • #19,686
  • May 13, 2011 6:02pm May 13, 2011 6:02pm
Quoting KinsaleForex
This is how my volume looks. I admit your volume does look very much like a level playing field and I would struggle to discern any meaning from it. Best I can suggest is trying some different volume feeds perhaps?
Woowww! The difference is like day and night!! I really have to change my volume feed. I've IBFX and compared to esignal it was said that they are quite similar. I guess they are wrong :-((
  • #19,687
  • May 13, 2011 6:10pm May 13, 2011 6:10pm
Quoting dvarrin
Woowww! The difference is like day and night!! I really have to change my volume feed. I've IBFX and compared to esignal it was said that they are quite similar. I guess they are wrong :-((
Don't get me wrong, I think there are quite a few people on here using the basic MT4 feed and doing quite well with it! I guess it's subjective. Don't have much experience with MT4 so can't really comment. Have a hunt around and you'll come across something i'm sure.
  • #19,688
  • May 13, 2011 6:36pm May 13, 2011 6:36pm
dvarrin - I would see the three red bars coming into your gray box as potential climatic action. They are high volume down bars into fresh new low territory. And the price moves sideways after that. That is significant buying coming in at a potential low.

After that, look for tests, and you can see one as the first red bar after the first blue bar. It is a down bar on lower volume, but into the same area as the higher volume bars.

Then the next bar is up on higher volume. More interest in the long than the short.
  • #19,689
  • May 13, 2011 6:37pm May 13, 2011 6:37pm
Then your second gray box has a squat down bar on low volume. No interest by SM to the down side. Time to go long.
  • #19,690
  • May 13, 2011 6:45pm May 13, 2011 6:45pm
And you have strength in the background. The 10th (or so) bar in is a mini-shakeout on high volume relative to anything before it. 6 bars later, you have another mini-shakeout on even higher volume. Both result in higher prices for the time being. There are no significant high volume sell bars after that for quite some time, so we know the SM is buying through here.

So there's the strength in the background that you can interpret the later bars against.

Ye may all feel free to correct me if I'm wrong. I'm here to learn.
  • #19,691
  • May 13, 2011 10:10pm May 13, 2011 10:10pm
Hi exp traders:

Im trying to learn VSA on FXCM with Marketscope Charts. They have a decent volume feed with several indicators:
AD Accumulation Distribution (measures supply and demand by determining whether investors are generaly buying or selling by indentifying divergences between the instrument price and volume flow)
AEFI Force Index (measures strength of bulls and bears)
CHO Chaikin Oscilator (Measures the flow of money into and out of the market)
CMF Chaikin Money Flow (determines whether the instrument is under accumulation or distribution by comparing closing price to the high low range in the trading session)
OBV On Balance Volume
and the one displayed here Tick Volume

So my question to you guys is do you think the chart I have displayed is adequate for me to learn and excell via VSA principals.

Regards in Advance
A
Attached Image (click to enlarge)
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  • #19,692
  • May 13, 2011 11:54pm May 13, 2011 11:54pm
although this is a valid point, i can assure you that vsa is not used in the wrong way. i asked myself the same question when i started studying volumes, and from my point of view i think there are a couple of things that must be taken into account before using vsa -

- the background
- the time of the day, i.e. the ongoing major session
- the timeframe

the more variables you bring into discussion, the less clear your analysis will be. forget about atr, it's just an average... instead focus on the REAL things in front of you - price action, volumes and current bias.

Quoting dvarrin
I'm wondering if we are not using VSA the wrong way. If we look at the hourly chart, we can see that bars on very high volume happens almost always at the same time and it is the same for the bars with the lowest volume. I'm wondering if using true range would not be more accurate? The only problem is that some VSA signs such as end of a rising market are not possible using true range because if the spread is wide the true range will be too.
Nihil Sine Deo.
  • #19,693
  • May 14, 2011 1:55am May 14, 2011 1:55am
Quoting dvarrin
Woowww! The difference is like day and night!! I really have to change my volume feed. I've IBFX and compared to esignal it was said that they are quite similar. I guess they are wrong :-((
Thank you dvarrin, Liam & MarcusFire for the chart examples.

I am learning a lot from your posts - and dvarrin, this just shows how valuable your posts are, much better than right/wrong predictions.

Good weekend to you all.


_____________
michael
Attached Image (click to enlarge)
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Be like water.
  • #19,694
  • May 14, 2011 3:10am May 14, 2011 3:10am
Quoting msmarple
Thank you dvarrin, Liam & MarcusFire for the chart examples.

I am learning a lot from your posts - and dvarrin, this just shows how valuable your posts are, much better than right/wrong predictions.

Good weekend to you all.


_____________
michael
The bars That you marked with NS, arent NS. But the second bar is a test.
Greetings, BeLikewater
  • #19,695
  • May 14, 2011 3:32am May 14, 2011 3:32am
Quoting malcolmb14

Account has doubled this month .... 1st time i have ever done that in a month .


That is something.

It has been good month, or first 2 weeks.
  • #19,696
  • May 14, 2011 6:28am May 14, 2011 6:28am
Quoting ady_babe
Hi exp traders:

Im trying to learn VSA on FXCM with Marketscope Charts. They have a decent volume feed with several indicators:
AD Accumulation Distribution (measures supply and demand by determining whether investors are generaly buying or selling by indentifying divergences between the instrument price and volume flow)
AEFI Force Index (measures strength of bulls and bears)
CHO Chaikin Oscilator (Measures the flow of money into and out of the market)
CMF Chaikin Money Flow (determines whether the instrument is under accumulation or distribution...
Volume is all you really need as that is the basis of VSA, volume and spread of the bars. You may want to get an ADR indicator helping to keep track quickly of what we have used for daily range compared to the average. Also the MA's can be left on as a trend indentifer but don't get caught up in their cross. Even just leave one on there for easy trend spotting.
Today's zone = Tomorrow's opportunity!
  • #19,697
  • May 14, 2011 6:30am May 14, 2011 6:30am
Quoting msmarple
Thank you dvarrin, Liam & MarcusFire for the chart examples.

I am learning a lot from your posts - and dvarrin, this just shows how valuable your posts are, much better than right/wrong predictions.

Good weekend to you all.


_____________
michael
The second bar you marked as NS is a squat bar and a nice SOS as any selling was met order for order and then some with buying. Increased volume with no spread to match and a close on the trigger.
Today's zone = Tomorrow's opportunity!
  • #19,698
  • May 14, 2011 10:23am May 14, 2011 10:23am
I use 60 and 120 min bars all the time . I am not looking at the London bars relative to the Asia bars . I am comparing today's bars against yesterday's bars at the same time . I just subconsciously filter out the Asia sessions . In esignal there us a way I can make a daily chart start and end any time I want . I will play around with this tomorrow and are how it looks .

So range bars not really required
Quoting dvarrin
I'm wondering if we are not using VSA the wrong way. If we look at the hourly chart, we can see that bars on very high volume happens almost always at the same time and it is the same for the bars with the lowest volume. I'm wondering if using true range would not be more accurate? The only problem is that some VSA signs such as end of a rising market are not possible using true range because if the spread is wide the true range will be too.
Blogging daily now at www.volume.zone
  • #19,699
  • May 14, 2011 11:38am May 14, 2011 11:38am
You missed one of the most important bars showing move to 1.4300

See after you put mini sign if weAkness on the charts with the next bar as a high volume ( one of the highest vol of session ) on a test like bar closing in highs , that indicates and confirms strength

Quoting msmarple
Thank you dvarrin, Liam & MarcusFire for the chart examples.

I am learning a lot from your posts - and dvarrin, this just shows how valuable your posts are, much better than right/wrong predictions.

Good weekend to you all.


_____________
michael
Blogging daily now at www.volume.zone
  • #19,700
  • May 14, 2011 11:47am May 14, 2011 11:47am
Fontu ... One comment for you

Ew ... Really ... May as well throw darts at a chart for entries.

Or flip a Coin .

Ew is bullshit . Sorry but it is. Even high powered computer algos cannot get it right so how can a normal human ? Laws of supply and demand run the market and vsa shows us what prod are up to .

I am only predicting where Es is going as there is supply hitting market at 1356 but so far demand is there at 1330 . If 1330 breaks them entry is in any no demand or ut on a 10 min with target support 1300
Blogging daily now at www.volume.zone
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