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VSA/Wyckoff Simplified

  • #101
  • Sep 4, 2012 3:50am Sep 4, 2012 3:50am
Quoting slipshod
I can see fake/SV moves in each direction. Combined with the start of the Frankfurt session & London imminent I'd prefer to wait for the market to make up its mind.
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Yes, it might seem a little aggressive. But if you look at the 1 hour chart. Price today had entered to a Supply Zone where weakness was shown last friday due to the volume climax/stopping volume.

And by looking at the Volume Spread of the past few hours, you'd notice that volume is decreasing on Up moves and increasing on down moves.

And in my previous post, the price action on the 15 min and 5 min was just too tempting for me to take this entry.

SL was 10 pips from my entry @ 1.2617 and I've taken some profits out at 10pips ITM.
  • #102
  • Sep 4, 2012 6:18am Sep 4, 2012 6:18am
Looks like your short's turned out ok maxim
  • #103
  • Sep 4, 2012 7:20am Sep 4, 2012 7:20am
Quoting slipshod
Looks like your short's turned out ok maxim
  • #104
  • Sep 4, 2012 7:41am Sep 4, 2012 7:41am
Alright everyone, September is finally here and I'm back from vacation. Looking forward to hitting the charts hard this month. Big thanks to nicoacademia and a few others for keeping the thread going while I was away! I've only skimmed through what has been going on in the last couple of thread pages but I plan to look more closely at the posts today and come up with some replies, correction, praise, ect later on today. I will see if I have time to squeeze in an analysis post with some charts to go with it today also but if not I'll have one up tomorrow.
  • #105
  • Sep 4, 2012 7:48am Sep 4, 2012 7:48am
Tradeguider themselves, the original VSA software which was designed with Tom Williams' help, uses Forex tick volume. Tick volume is as good as any for Forex, depending on the broker. There is no way to accurately compile all forex transactions worldwide.... the kiosk at your airport doesn't report its volume, but thats a spot forex transaction when you exchange your bills there.

For those wanting to trade volume in forex, there's nothing wrong with tick volume. I would prefer IBFX or FXCM data over Oanda for sure as its typically 6-10 times higher due to volume through those brokers, and I'm sure there are others with even more.

Please read this: http://www.tradeguider.com/emailshot/fxvolume.pdf
Perhaps it is all lies, but perhaps not. They show that tick volume has over 90% correlation to the 4 currencies pairs listed.

I actually use 6E futures volume because I find it to show peaks and lulls in activity much clearer than tick volume (incredibly clearly), and this of course will work as well despite that futures forex transactions are really only a fraction of the overall currency related activity.

Quoting Davit
Just so everyone here understand about volume.

Forex has no single clearing house, so there is no way to account for all volume. Only the brokerages get true volume reports 2 days later! There is no volume in Forex. Every book by every author teaching Forex repeats this over and over.

Hence basing an entire trading style on information which does not exist live in forex is detrimental to your account!
I am rather perplexed how starter of this thread actually using MQ4 indi which only shows brokers ticks and nothing more.

[b]Please...
Small disciplines repeated with consistency lead to great achievements.
  • #106
  • Sep 4, 2012 8:03am Sep 4, 2012 8:03am
Quoting carramch
Alright everyone, September is finally here and I'm back from vacation. Looking forward to hitting the charts hard this month. Big thanks to nicoacademia and a few others for keeping the thread going while I was away! I've only skimmed through what has been going on in the last couple of thread pages but I plan to look more closely at the posts today and come up with some replies, correction, praise, ect later on today. I will see if I have time to squeeze in an analysis post with some charts to go with it today also but if not I'll have one up...
welcome back! feel free to whip me into shape where i have err-ed.

to quote benny benassi.
"push me and then just hurt me, till i can get my satisfaction"
  • #107
  • Sep 4, 2012 8:13am Sep 4, 2012 8:13am
Quoting jmflukeiii
Tradeguider themselves, the original VSA software which was designed with Tom Williams' help, uses Forex tick volume. Tick volume is as good as any for Forex, depending on the broker. There is no way to accurately compile all forex transactions worldwide.... the kiosk at your airport doesn't report its volume, but thats a spot forex transaction when you exchange your bills there.

For those wanting to trade volume in forex, there's nothing wrong with tick volume. I would prefer IBFX or FXCM data over Oanda for sure as its typically 6-10 times...
that's a good source jmflukeii. i was just too lazy to bother to reply something that the main vsa threads would tackle.

tradeguider themselves spent alot of time tackling this issue too.

as for me. i just post a chart.

dark pools. undeclared trades. blablabla. so? smart money tested and found no demand today.

they were patient though. maximteo got the idea.
they were building this for nearly 42 hours.

i posted it to see if anyone would latch on real time.

real time. gotta train real time.
  • #108
  • Sep 4, 2012 8:38am Sep 4, 2012 8:38am
Just so everyone knows...tick volume that we are using in fx is a measument of activity. Seeing when the market is more or less active can tell us where the smart money is postioning, or not interested.
  • #109
  • Sep 4, 2012 11:33am Sep 4, 2012 11:33am
Been following EU today. The 1h showed a high volume buy rejection on the 31st followed by a down move and high price rejections with the high volumes of the day yesterday. All of this means weakness in the background.
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Checking the 15m, the up move at the start of the day was stopped by medium volume. Then the highest volume of the day at that point at 6:45GMT showed high selling coming in and squashed price back and price went into a mark down phase. Buying starts coming in at 12:15GMT but gets squashed again at 14:00GMT. News at 14:30 sent price wildly up and down.
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Not really anything clean going on today. Smart money doesn’t seem to be heavily positioning one way or the other, it looks pretty back and forth with down bars being reversed with buying and up bars being squashed with selling.
  • #110
  • Sep 5, 2012 11:33pm Sep 5, 2012 11:33pm
Quoting carramch
Not really anything clean going on today. Smart money doesn’t seem to be heavily positioning one way or the other, it looks pretty back and forth with down bars being reversed with buying and up bars being squashed with selling.
Welcome back carramch! I think you've pretty much summed it up there. I've found the markets very hard to read lately due to the lack of direction & big money pushing it around at their whim.

EU had a nice example of a "Judas Swing" yesterday on the Frankfurt/London open, a phenomenon explained in the video below...

Inserted Video
  • #111
  • Sep 6, 2012 12:51am Sep 6, 2012 12:51am
Quoting slipshod
Welcome back carramch! I think you've pretty much summed it up there. I've found the markets very hard to read lately due to the lack of direction & big money pushing it around at their whim.

EU had a nice example of a "Judas Swing" yesterday on the Frankfurt/London open, a phenomenon explained in the video below...

http://www.youtube.com/watch?v=mxCNOjquf0k
The guy in that video has no idea what he is talking about. Those are stop runs during thin market periods, no new revelation there.
  • #112
  • Sep 6, 2012 12:56am Sep 6, 2012 12:56am
Quoting slipshod
Welcome back carramch! I think you've pretty much summed it up there. I've found the markets very hard to read lately due to the lack of direction & big money pushing it around at their whim.

EU had a nice example of a "Judas Swing" yesterday on the Frankfurt/London open, a phenomenon explained in the video below...

http://www.youtube.com/watch?v=mxCNOjquf0k
Large traders are waiting for the ECB and Fed decisions on their countries monetary policies. Institutions will front run their order prior to these releases taking positions in the market. Sentiment is pointing to a continued rise in the Eur unless something drastic changes this.

The retail world is short the Eur and getting squeezed.
  • #113
  • Sep 6, 2012 2:28am Sep 6, 2012 2:28am
good morning. i would like to learn to trade with vsa. is it possibile to join in your skype group?
  • #114
  • Sep 6, 2012 8:23am Sep 6, 2012 8:23am
Got onto a nice short today on USDCAD, thought I'd share my analysis/thought process that led me into the trade.

Please bear in mind that I have a lot to learn re VSA techniques, and would appreciate correction if I've made mistakes or missed something...
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  • #115
  • Sep 6, 2012 4:30pm Sep 6, 2012 4:30pm
Hi all, I've been working on a personal VSA type indicator for the last 2-3 weeks. It's been a slog but I should have something to share next week. I've stuck to the basic principles of Wyckoff/VSA and then applied my knowledge and experience of the markets to make sense of the data. For example, I make use of statistical methods such as standard deviation to dissect the data. This is a key initial step in the overrall analysis. All the number crunching is done in C++. I will post on here again when I'm ready to share.

I've read the comments on here re: volume data. Obviously volume data is based on your brokers feeds so it's important to use a broker that has good feeds. By good feed I mean tier 1 providers that are representative of the overal markets for the times you trade. For what it's worth I have a Pro account with Alpari (UK), which gives me access to a number of tier 1 institutional providers.

Cheers, Chris.
  • #116
  • Sep 6, 2012 9:00pm Sep 6, 2012 9:00pm
Hi Chris, your indicator sounds promising indeed & its obvious you've put a ton of work into it. Thanks for offering to share
  • #117
  • Sep 6, 2012 10:13pm Sep 6, 2012 10:13pm
Quoting jmflukeiii
Tradeguider themselves, the original VSA software which was designed with Tom Williams' help, uses Forex tick volume. Tick volume is as good as any for Forex, depending on the broker. There is no way to accurately compile all forex transactions worldwide.... the kiosk at your airport doesn't report its volume, but thats a spot forex transaction when you exchange your bills there.

For those wanting to trade volume in forex, there's nothing wrong with tick volume. I would prefer IBFX or FXCM data over Oanda for sure as its typically 6-10 times...

Hi ,

can you please tell me how can I get the futures data in mt4
is it in a demo a/c?

Thanks in advance.
  • #118
  • Sep 7, 2012 3:16pm Sep 7, 2012 3:16pm
My intent was to do a much more detailed look, but I am feeling a bit lazy now.

The first chart is a EURO/USD 3 min chart with data from FXCM.

The second chart is the 6E futures contract 3 min.

Notice the similarites.

Take a look at the Test on the first chart (Euro/USD) that says Long(?). Note that the volume is grey. This means it is not only less than the previous two intervals, but also the lowest volume in the last 20 intervals.

Now take a look at the 6E chart. That very same interval appears as a test and the volume is also grey.

There are a lot of signs of strength and weakness on both charts that come on the same interval. Take a look at the red arrow pointing down to volume on the 6E chart. While there is no indication of strength on the interval, we can see that volume is less then the previous two intervals. The close is slightly up so it will not registar as a NS in this case (although it does make a lower low and not a lower high).

If we look at that same interval on the Euro/USD chart, we again see volume less than the previous two and we see an indication of strength.

These indications of strength and weakness are not designed to show up on every interval (one would still need to know how to read a chart). One would also have to understand where and when they are appearing. But take a look at the area in the yellow circles on both charts. They both have the same exact pattern.

Hopefully this helps put an end to the "There is no Volume in forex" debate. Or the "Tick volume doesn't work because it only comes from your broker" argument.
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Without VSA, you're playing checkers while the Smart Money plays chess.
  • #119
  • Sep 9, 2012 6:03am Sep 9, 2012 6:03am
Thanks Hiddengap, interesting to see analysis of lower TFs too - please keep posting
  • #120
  • Sep 10, 2012 3:30pm Sep 10, 2012 3:30pm
Quoting slipshod
Hi Chris, your indicator sounds promising indeed & its obvious you've put a ton of work into it. Thanks for offering to share
@slipshod:

What kind of Indi is the one from your attachment:
"EMZ".mq4 or ex.4 don't know ?
Thanks for a short info.
Greeds Zack
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