vsa with Malcolm

Hello,

I would refer you to eminiwatch.com. The definition for climax bar is the same. It's the highest volume*range in the last 20 intervals. At least that is what it is supposed to be. I can not confirm the coding as I do not know how to code for metatrader.

Thank you HG. I was unaware of eminiwatch.com and many thanks to Intel for correctly advising to move message to the coding thread. The FF forum code won't allow me to edit the recent messages I've posted with the code question, so I request readers disregard them. Best Wishes to you both.

The volume indi in MT4 will suffice. Fancy indi's don't help, Tom Williams addresses this repeatedly. He frequently hammers home the point that with volume you're looking to see if it is markedly above/below average, or average.

Knowing where you want to see professional activity (or lack thereof) will help you more than focusing on definitions and coding.

If you're having a hard time with volume, chances are it's because you're putting your focus on the wrong things.

There are lots of details that you can focus on, and everyone's different. Here's how I incorporate volume into my trading.

A couple of bars into NY and we run the Euro stops, the volume spikes. The question, "Are large traders using these stops for liquidity for shorts or are we using them to accelerate north?"

The first place to look to answer this is a squawk/wire, next is price action, and then volume.

Sentiment was bullish, we pulled back to the level and tested it with low volume. Based on this I entered with a small TP/SL.

My style is to consistently grab small swings at the open, which is much easier than grabbing big moves consistently. When I started trading I'd see that if I'd have stayed in I'd have gotten mad pips, but this wasn't helping my account grow, so I tried consistent small pips.

Hi Rolland -

Where do you get yours squawk/wire?

Thanks in advance!

Oanda provides multiple wonderful free wires, providing rumors/stops/options expiry/implied vol and session wrap-ups, summaries of what traders are waiting for and then real time data/rumors. Their new version of their ap even streams this to your phone.

For squawk I like talking forex, you can usually find free versions on various websites. These free ones say they're 5m delayed but I've found that much of the time they are real-time.

Here's my EU weekly chart. If good news on latest Greek bail out aid, then price should zoom the median line. When the big banks get paid, the Euro is happy.

Have always been curious about this. Will definitely look into them this week. Thanks!!!

EU M5

Did you guys catch it?

Not so much a sell signal, you still need to understand the core VSA principles, here we had a buying climax followed by an upthrust then a no demand back in to that area, smart coloured all the bars accordingly then produced weakness signals (pink dots) to confirm. I guess there similar to the yellow squares you get on TG.

Like i said earlier, I don`t have any literature on smart so it`s a bit of guess work at the moment.

You don't know how much joy it brings me to see you post.

How do you see the following:

Okay the GuideTrader chart shows the sequence of your post. By the way, that is the best looking No Demand I have seen. A narrow range (actually a NR7) up interval that closes in the middle on volume less than the previous two intervals.

Now, the GuideTrader rules say to trade in the direction of the trend. Therefore to get short the trend must first be down. For the trend to be considered down, the Balance Point Line must be red, price must be below the Trend Bias Line and we need to have Tone (AKA Chart Mode).

We don't want to trade these indicators, but we don't want to trade against them either.

With VSA, we ideally want to be entering a short on an Up bar. An up bar is a bar that closes higher than the previous bar. GuideTrader paints up bars blue.

Okay, now the stage has been set. How do you handle these?:

1. A narrow range up bar on volume less than the previous two intervals. This is No Demand. So here's the rub. If you place your stop limit on pip below the low of this bar, the next interval does not bring you in. The next interval is down. Thus confirming the previous interval as No Demand. Yet you are not brought into the market.

2. This is a down interval, so not traditional VSA entry bar. We note that this interval confirms the No Demand, but this interval itself is a fuzzy No Supply. I call it fuzzy because it makes a higher high and not a lower low before closing lower than the previous interval.
So your limit order was not hit on this interval. Do you take it off or keep it in place? If you keep it on, then the next interval would bring you in. However, do you really want to keep it on when this interval is a possible No Supply?

3. This is a wide range up bar in volume less than the previous two intervals. This is No Buying Pressure. Again, the next interval is down confirming the weakness. But if you are placing your limit order at the low of this increasing range bar, you do not get in.

4. Another increasing range up interval. This one, however comes on increasing volume. If you take a look at the range of this interval and compare it to the volume, you must conclude that the range is small for the volume. In other words, the activity (volume) is disproportionate to the effort (range). This is a Squat. Although we normally focus on narrow range bars with increasing volume as squats, the actual definition of a squat dictates that all intervals with increasing volume are either greens or squats.

But are we going to put our limit order down below the low of an interval that is increasing in range? Thus making it harder for the market to bring us in. Are
we even willing to enter after seeing increasing volume?

5. Here we have a narrow range up bar on decreasing volume. Volume is decreasing but not less than the previous two. Therefore we would not immediately consider this No Demand. Do we catch on to the fact that we are making a high on decreasing volume?
After the fact, it is clear that this is the ideal entry bar. But could you have seen this at the time? By the time you see the "gotcha'" bar it's too late.

Nice one was such a wonderful ride.

Super post HG, as always.
There's so much I'd like to say about it but don't really have the time so, here's the abridged version;

12 months ago, I would have been long after bar 3 breaks the high of bar 2!! But I'd have been stopped out on your 'Gotcha' bar.
I no longer trade this setup under these conditions for exactly that reason.

The SO setup is so strong here that I would not be trading against it. However, for those who are ok to trade south here, the convention is to enter at the close of either the first or second ND depending on your personal preference. Ironicly, the end of the retrace is very often initiated by your bars 4&5 (increasing volume and even a squat). If I was to trade it, I would trade on the break of the low of the 1st ND but, if the ND low hasn't been broken within 3 bars, I would wait till the next ND and so on.

For my style, my sell entry would be on the break of the low of the SO minus 2 pips. When a SO setup this strong fails(price falls below the SO), it is a solid sell trigger. So, your 'Gotcha' bar would get me in the trade. With this type of setup, the SL should go at the SO high + 3 pips for M5 and use a 1:1 TP value. So just by eye, I think TP would have been hit by 'Gotcha' +5 bars.

To eveyone else, these are the sort of questions you should be answering yourself HONESTLY. It will help you develope a trading strategy that works for you.

HG, do you have ay solid conclusions about interchanging NDs and NSs?

intel & hiddengap, thank you sharing your knowledge!

i'm struggling with what kind of brooker is best used for vsa, better volume indi is different on many brookers. so which one could be used with the best tick volume?

... thnks

EU M5

Is there a setup forming? If so, which way?

It's like December 2010 - March 2011 all over again, when I joined this forum and thread. The interchange of posts between Intel and HG is excellent to see again. I've had my head in some Point and Figure charts and books the last few days and was struggling to get a read on the bar/volume charts when I looked at them today. These few posts have helped me greatly!

Thanks!

I think I see what you're saying, but it's not the clearest to me, i'll see if anyone else bites first!

We've had this discussion a million times, and the outcome is always the same.
Just pick a reputable broker and go with it.

Hi Liam, Hows things?

We've just had our low volume bars.
What do we want next?