vsa with Malcolm

Think there is a very good time to buy Risk and hold for 2 weeks +

VERY GOOD oportunity this could be a shakout.

Use Stop always

could you explain a bit more?

Those was the time..

Hi,
I'm new to VSA and I'm reading Master of Market, but it makes me confuse that:
+ P.19 It says : Footnotes: Down-bars: ....if spreads are narrow with the price closing in the middle or high of the bar.... Up-bars:...This show that there is " nodemand" ..... But on P.33 it says : ...down-bars (i.e the present bar closes lower than previous bar)....up-bars (i.e the present bar closes higher than previous bar).
+ P.22 : The Buying climax :...accompanied by narrow spread into new high.....But on P.77 it says : It's hallmarked by a very wide spread.... The Selling climax :....accompanied by narrow spread....P.81 says:...indicated by ultra-wide spread down...
I'd like to know why there are that differences?.
+ and what's different among : selling climax, stopping vol ang absorsion vol?
this will be very good with some pictures.Sory for my english and thanks a lot for reply.

Up bar - close must be higher then on previous bar.
Down bar - close must be lower then on previous bar.
No demand bar - up bar with narrow spread and on low volume (lower then previous two bars) pic 2

Selling and Buying climax.

For selling climax we must have wide range bar closing in the middle or on the high with VERY HIGH volume. This would mean that we see panic on the market. Everybody are scared to be not in this move, to miss this move. This creates Selling climax. We also can see narrow range bars on very high vol within this area, this means some kind of absorption from SM, not to let price go down. For a good Selling climax we must have strong area of support. Some important level. pic 1

The same for Buying climax.

Thk for youe guide .
BTW Can anyone plz give me the name of ind on bottom window?

Hi Malcolm and all, thanks for starting and maintaining this thread. It's very helpful for a newbie like me to learn VSA and experience from expert like you.

I have just read the MTM book and will keep reading it but i think it’s also good to try applying it, of course in hindsight. I hope one day I can apply it in real live as well.

Below is ES's 15min and 5min charts for 13 June. Below is my observation:

From the 15min chart, ES is moving sideways between 1300 and 1320. So when ES approaches these 2 areas of potential support/resistance, we have to be careful.

A : the first 15min after market open and is a down bar closing slightly above the middle of the bar. Volume is high, does it represent selling? Sorry I can’t tell from this chart due to my limited experience in VSA. However, from the 5min chart, we can see that A1 is a down bar but the 2 bars after(i term it A2 and A3) are up bars with volume just a bit less than A1. That makes me skeptical of the selling pressure.

B: another down bar with high volume but closing just a bit below the middle. From the 5min chart, we can see that B2 is the down bar with highest volume and it looks like an effort to sell. But look at B3, it’s an up bar(a doji as well) closing above the middle of the bar. So if B2 is the effort to go down, why would B3 be an up bar then? Perhaps B2 actually contains some buying, but we need confirmation.

C : widespread up bar closing at the high.

D : a test with volume below previous bars(of course after US market open). From the 5min chart, it seems that D3 is a good point to go long as it’s a no supply.

E : (the bar after D) a WRB with high volume. It looks like an effort to rise but it’s also close to the resistance of 1320. Be careful.

F : ((the bar after E) a tight bar with low volume. Is it an upthrust? Again, if E is an effort to rise, why would F be a tight bar closing similar to E? That’s skeptical.

Afterwards, ES falls but look at the volume, it also falls. So it implies professionals are not yet interested in selling. ES then rebounds with a WRB and tries 1320 again, but with even less volume! Then we see upthrusts and no buying pressure. Perhaps good time to take profit. Can we short?

All comment is appreciated.

2nd attempt, any feedback is appreciated.

G : WRB with high volume(relatively to previous bars) closing at high. It looks like an effort to rise but next bar is a down bar. Euro also moves sideways for 4 bars and we see No Demand and Upthrusts which are weakness instead of strengths.

A : another WRB with high volume but closing in the middle and next bar(B) is a down bar with even higher volume. Smart money is not yet ready to push up the price.

C : high volume down bar closing at low. Maybe it’s an effort to fall. Looking at 5min, most of the volume comes from C3 which is the 4th consecutive down bar with ultra high volume. However, for this kind of volume, should we expect some WRB instead? This may give us some clue on that perhaps Smart Money is actually buying rather selling. But for now, we are not that sure and hence needs more confirmation.

D : but look, next bar is an up bar again! What’s wrong? It should go down. Anyway, the volume is low compared with C, so Euro is still not yet to rise. From 5min chart we can see that the up move is not supported by volume. The bar after D is a down bar with higher volume but closing near the high of the bar. From 5min chart, we can see that half of volume comes from the last up bar and the volume of this bar is second largest. Does it represent buying?

E : another down bar but closing at the high but volume is a bit lower. This time, half of the volume comes from E1. E2 we see a test of the low 3 bars back but this time with less volume.
From C to E, is it in fact a kind of accumulation? We expect to see Euro falling further after C as it seems to be effort to fall. But in next few bars, although Euro fall a bit further, the bars close at high. So it looks as if Smart Money is trying to keep Euro in tight range to accumulate.

After E, we see 2 small up bars with falling volume. One thing I don’t understand is if C to E represent strength in the background, should we see increasing volume when the price is moving upwards approaching some potential resistance area?
If we look at 5min chart, there seems to be a good entry point which is the doji closing at low. The volume is ultra low and that is No Supply(?).

F : pushing though supply with high volume. In particular, F2 and F3. H2 is a No Supply after Pushing through Supply and is a good point to go long.(?)
After F, although Euro keeps on rising but volume keeps on falling until I. After I, Euro is moving sideways with decreasing volume. We see No Demand, No Supply(?), etc.

Usually, we will find that the volume of both ES and Euro will be highest during the first 1 hour after US market open. After that, volume usually keeps on falling. For ES, there may be some volume pick up in the last 2 hours but for Euro, it will become inactive after noon time. My question is does it mean Smart Money is not active after first 1 or 2 hours of market open? If that’s the case, any upward/downward move after first 2 hours will be vulnerable to reverse, right?

A1 Down bar Wide spread.
A2 AND A2 are going up with less volume = lack of demand so if the buying is there because A1 has a great volume a wide range but the market can't go down A1 we will see a retest if there will be a retest.
B1 Attemped to go higher went down and closed in the middle so if demand was there we had must to make e new high and go above A1 is anothere lack of demand
B2 the range doesn't match with the volume doing a comparison with bar A1. How can a bar have a small range with a so huge volume ?We want to see a market break down.But if the market want's to break this is the key bar closes on the low with increased volume what do you want to see on the next bar follow trought on the down side. Did you get it ? NO B2 alot of effort (volume) was spent by the sellers to break but the result is a bar with a small range vs A1.
B3 is your test made a new low with less volume has found the sellers on that low ? No because if the market makes a new low wa wants to to go down but the bar closed above the low of bar B2 with less volume = lack of selling (no selling (form tom's book))
C1 C2 C3 C4 are closing all on near the high or in the midlle of their range = lack of selling.The market is lifting up with low volume (is not lack of demand but lack of selling because your back gound has changed on the test bar and no follow throught down by the wide range bars.)
D2 and D3 are a market correction and a test of the resistance on the left side of your chart D3 is a shakeout with low volume. The market went down and found the buyers the bar closes on its high.
At resistance look the range of that bars are narrowing and there are two up thrust After the first Ut there is selling the two down bars in red at the test of the down bar with the wide range there is a key reversal The market makes a new low and start to test the resistance 3 up bars marked in green but at resistance it can't break because the volume on that bars is low. The market attempted to go higher and formed a second UT after moved sideways with narrow ranges bars at the test of the second Ut there is a narrow range bar that is lack of demand followed by selling.
Well done.

Thanks for the feedback. Will keep trying and learning!

You are welcome.
The famous Volume U shape in the Sp mini. The most funny is they were selling during lunch time.

Oh! I though the professionals are less active after first 2 hours and before last 2 hours. So is there any time period that they are more active? I used to hear that first 2 hours are most active for them.

:nerd:

I found that the VSA/Wyckoff forum has become less active in relation to market analysis. The same situation happens in other forums such as TradersLab as well. Any reason? Forums like this is very good indeed.

By the way, is Malcolm still following this thread?

Hi dvarrin,
Could you help me using your quarterchannel indicator. Nothing happens when applying it. I put it in indicator folder and the other one (the script) in the script folder. So what did I do wrong? Thank you

You need to draw the channel first, i use the equidistant one, then add the indicator to your chart, it will then draw over the channel you just added.

Just tried, it works fine.

Thank you very much for you help, it works for me too now. I changed background color from black to grey just like you otherwise the channels (which are black) are invisible...

hello guys

for me the difference between vsa and wyckoff are as follows

1. vsa does not tell you how to tell a phase is a accumulation or a distribution but wyckoff does

2.vsa analys market bar by bar but wyckoff is wave by wave.

3.vsa's uptrust is not the same as wyckoff , for me wyckoff's upthrust and spring is well .

4.vsa's test is a pinbar but wyckoff test a wave price action.


over all vsa is 10% of wyckoff .

critic welcome!

The first speaking about supports and resistances was wychoff 1920 I think wychoff original course M7 or M8 i've forgot. The others books are only a copy of the original course. Magee and so on.

for me the difference between vsa and wyckoff are as follows

1. vsa does not tell you how to tell a phase is a accumulation or a distribution but wyckoff does Yes you have also reaccumulation and redistribution ranges.The rest is similar SC BC But they must to have all the phases. Preliminary support automatic rally selling climax and test of the selling climax (or lack of selling The range of the bars and how are closing) Or it not will be a SC and BC. They accur at market top and bottom. or wide ranges at top and wide ranges at bottom (battlefield if you want)

2.vsa analys market bar by bar but wyckoff is wave by wave. Well also in wyckoff you can do bar by bar analysis i mean key bars at the limits of the range creek and ice.Trying to read the middle of a range will kill your brain
Up down down up up retrace attempt to break go up test the support go down because it can't find demand form the support and so on.

3.vsa's uptrust is not the same as wyckoff , for me wyckoff's upthrust and spring is well . Spring is when a market "test" a low you will have two agressors one are the sellers and on the other hand there are the buyers who will give up ? If the sellers are more agressive than the buyers we will go down a new low momentum traders place market sell orders and sell stop orders (where the mms go) who fill them are limit buy oders more big are and more you will have a spring(sitting ducks if you want) Limit sell orders filled by market buy orders.A spring with volume is never tested. The opposite is an UT. Springs and Ut have more shapes.

4.vsa's test is a pinbar but wyckoff test a wave price action.Adam weiss i think ? Elliot doesn't reivented the wheel.


over all vsa is 10% of wyckoff .
Strenght appears on down bars yes and no depends where the market is: It's in a range or it's forming a range (cause) what it will produce that range is the effect. If they are in liquidation or increase in volume on the down bars well how can strenght appears in a market being in liquidation?
The same about a shake out if the market doens't make a new high how can be a shake out ?Who filled the buyers ?why they are allowing you to buy at lower prices ?
Effort is the volume result is what the price is doing with all that volume.Markets range 80% of the time.
critic welcome![/quote]

The first speaking about supports and resistances was wychoff 1920 I think wychoff original course M7 or M8 i've forgot. The others books are only a copy of the original course. Magee and so on.

Bar 1 chart 4H Shake out yes and no. It's no because if that was a shake out we had must to make new highs.
Bar 1 close in the middle bar 2 close on the high bar 3 has a small range and the volume is reduced close on the high. Lack of demand
Bar 4 UT Why ? because the market attempted to go up but failed
Bar 5 Increase of the volume but the buyers were able only to reach the close of bar 4.
Chart 30 M a beautiful spring
Bar 1 is a spring Or key reversal ( Two bars 15 M TF)the bar before is a wide range bar with volume but the spring has huge volume also bar 2 lack of selling immediately tested next bar up.
So the range in the 30 m chart is distribution without a test of the broken ice or support if you want where there is the trade line.