vsa with Malcolm

From post 20130:

"now if you add a little vsa to that divergence technique .... then powerful set up. you can see which ones are strong and which ones are not"

Gbp/usd was good yesterday

I'm very disapointed about the book from Gavin Holmes. I find nothing more than what is in the book of Tom Williams and all what he writes is covered in the webinars already. At least it's not worth at all the price :-(((

That`s what I thought, and thanks for confirmation.

Last bar on EURUSD H1 shows a lot of weakness. Possible entry if ND appears at its close level.

Hi mal / guys this is something I wanted to ask all week... how can I tell if a ranging PA is accumulation or distribution ???
do I need to wait for the mark up or down or can I tell before?

remember the PA from 28/4 to 5/5 also looked to me like accumulation but the been marked down 800 pips ...

thanks

enigma4x

D has usually mushroom shape and A has saucer shape.
That last D was difficult (EU-H1), like no shape at all, but in the end there was 2 x ND and after them price shoots up, so something that should not happen, and there was some upside wicks 2 at the end.

???

Edit: Ah, supply, sorry I didnt know what I was looking at but do now

A long answer to a short question:

To my understanding,
Accumulation:
You take all available at a given price. If you want to accumulate for a long position: You will buy all what is available at a given price. Stop buying when price reach your upper target, Buy when price reach your lower target.
What does it result on the chart? A flat market, No trend.


By having bough all position available, market become unstable. Meaning if you really want to have a position, you will need to put a higher price to get it. Putting a higher price on an object of desire, cause an inflation and a higher value. Now the price as started to rise, it is time to start the distribution

Distribution :
You distribute what you already got. Market participant interesting to get a position will put an higher price to make sure they got it. The distribution guy could say: I got it, you want it, give me a good price I will sell it to you

Price will raise as far as market participant want to put the price. At a certain level, there will be nobody left to buy at an upper level. The smart guy who had accumulate and distribute is position will stop is intervention on the market. The market may act like a chicken with no head. No direction

The expert guy is now ready to accumulate is short position by taking all short position available at a certain level. ..... And the wheel start to roll on the other side

To facilitate the analogy, Think like a fresh fruit distribution companies. You control the market by buying from the farm guy all is production at a given price. You are so big that you control the market and you dictate the price. Doing so, the fruit market price is flat. This is the accumulation.

After you got your fruits, you will stock them until the demand for it is rising. Now, come the distribute time. Since there is none on the market because you have the control. You will distribute them slowly to the one who is ready to pay your price. You won't offer to many fruits at the same time to make sure that the demand is higher than the offer. Since the demand is greater than the offer, price will increase. You will be able to distribute all your fruit unless, there is a bigger player that came in to play in your field. If so, you will rapidly decreased your price to make sure that you don't get stuck with it at the start of the new season.

Hope it is clearer for you now

P.S. Excuse my English, I'm more fluent in French

arjfca - I do understand Why and How the acc and dis are happaning but I wanted to know if they leave signes volume-wise... thanks for the time to answer anyway !

juhaimi - helpfull, Thanks !

If anybody else has a point of view on the volume pattern they leave , I'll be happy to hear/ read

http://www.forexfactory.com/showthre...20#post4626820

Stopped out; nasty trading last two days as opposed to the perfect volatility on the first two days of the week.

Was I right on this or was this just a coincidence? Need your comments please?

Just looking for a bit of help. Did this portray what happened today? Got to know if I am looking for the right stuff...LOL

This was nice but I think I got out to soon. Out at 4195

hehe, finaly got it right too

1 short @ 1339.40 closed already at 1335
1 short @ 1341.60 still running

H1:

tornado..dont know enough to answer your question but i did apply the trigger technique pres78 posted yesterday and this is what i found...EU 4h..drew a line(red) from the close of the highest vol. bar in recent past and price stopped to within .5 of a pip...very interesting...very helpful pres78...appreciate your work...best regards, TX

although the first level i posted definately got a reaction , it didnt hold...so i went to look for another..eu h4 next highest volume bar close (red line) and again we get another reaction(to within a pip), lets see if this one holds....really cool stuff !!! regards, TX

triggers can be used for not only enteries but exits and even stop loss levels as well...is that correct? best regards, TX

Stupidly high volume...

juhanimi and I were debating that 4h volume a few days ago, didnt really come to a conclusion about if the 4h was enough to start an accumulation phase. Till it just now hit me.. again. Been concentrating too much on bettering my day trading, I still like the larger TFs better.

Daily chart, green line is nov 30, this started the accumulation phase we saw last dec and jan. You have a bar that is making a new low and with stupidly high volume.. Some call that ultra high lol.

Now take a look at the red line, that was the start of this week, ok we made a new low, but no stupidly high volume. So this week is nothing more than a retrace and not accumulation.

Im sure someone will say it was a no demand for selling which it def was, but that only caused a retrace, I would then say take a look at the accumulation phase before last, oen during last august. Once again, stupidly high volume starting the phase, 8/24 if your courious..

All of this of course is how I see things, Im always open to corrections.