vsa with Malcolm

My comments about the "doomed test" was terrible! sorry for that!
But, the spring worked out nicely!



IEB will have a nice sleep night!

Hello fellow VSA traders,

I was wondering how many pips on average do you make using this method and also what timeframes do you choose for bias of the day?

Currently, i'm basing my bias off the 1 hour charts and trading using either the 5 or 15 min timeframe.

Also wondering how do you guys enter the trade?

I'm using fibs at the moment which is pretty accurate when using it with VSA.

Thanks.

Pip Singh

In my case, I use mostly the 1hr and 15min chart to get information to plan my trades. Then, I go to the daily and 4hr charts to have a better view of the "bigger picture". And I execute from the 5 or 1min charts.

About the amount of pips, it really depends on how you define yourself as a trader. Are you a scalper, short term, medium term, swing, long term trader? Or are you an investor?
Depending on your answer, it can vary from 10 pips to 300 pips or more.
In my particular case, my goal is to make 15 to 20 pips a day, consistently. Some days I get more, some days I close with a loss.

If you trade for income(or for a living), I think the "less pips but consistent" approach is quite good, because I prefer to make some money every day.
But, again, there are traders that don't mind staying 24 days in the month without a trade and then, make 400 pips in one only trade, at the very last day of the month. Or take one trade per week for 50 pips.

Another consideration is the time frame from which you trade off. If you trade off of the 5min or 1min, I think it is quite difficult to make more than 50 pips per trade or per day. That's because you see much more information(resistance and support areas) in these lower time frames and, with this information in front of you, you will fell better closing your trades near these areas, what limits a lot the profit potential, compared to trades that you take off of higher time frames, because there are less information there to bother you.

So, to sum up, it really depends on what type of trader you are.

Hope it helps a bit.

By the way, is VSA your main approach to trade?

Cheers!

Thanks Joaoborras,

My main approach is VSA. Currently, I only daytrade but I have had really good results in the past couple of months using this method.

I find using Daily and 4 hour charts as background info is good but not critical unless you are trading longer term which I am not.

But as an example of how I use VSA, with the EUR/JPY long at 3:00 am GMT, I checked the background on the daily and the 1 hour to see if there's any climax. None on the daily that I found (unless i missed something), but the 1hour chart showed a selling climax on 15-5 at 14:00 pm GMT. I entered on the a fib retrace into the demand area. See below picture.

First image is the hourly demand and supply levels market out with fib retrace.


Second image is the entry on the 5min with all probabilities in my favour.


For exits, I don't use the supply or demand levels for exits because I feel either demand or supply can overcome one or the other. Therefore, I use a fib extension, but now any fib extension. I've replaced all the fib numbers with 100, 200, 300...etc. I then trail my stop by 200 fib extensions below or above price. This allows me to catch as much of the move as I can rather than getting out too early.



I hope i haven't confused you.

Pip Singh

hello everyone.

i've found an indicator that displays the futures contracts volume. Only problem is, it slightly slows down mt4.

Thanks.

Pip Singh

Do you know where it takes the data from?
I ask it because, generally, futures data is charged because the exchange charges it.

Not sure where the data comes from. Check out the company's website. Use google translator because its in russian.

Use the futures volume with the normal mt4 volume to better verify where 'smart money' has positioned itself.

Thanks.

Pip Singh

HEHE. Looks like you were right about the spring and Mima was correct about the H4 supply zone. You guys were right on! Kudos, kudos!

Glad it worked out for you.

Hello guys,

Since it's so quiet, I decided to post.

I made the switch over to a different broker. ^^ I should have the same volume as everything now ;D

1.) Selling climax? Close @ mid.
2.) Upthrust [sort of?] or absorption? Volume was incredibly high. Long wick up, up bar, high volume.
3.) Hidden test of supply zone to the left? [red lines]
4.) Price continued up without much resistance.
5.) Coast is clear! Charge! :] with close near the top.

I'm not sure about the hidden test though.. Never knew what a hidden test was. :O

With such a move, would I be bias long or short?

Looks like we're being squeezed on EURJPY 15m

About futures volume, I just found this one too: http://www.futuresdelta.com/
The software is free and connected real time with a maximum delay of 3secs(you can choose from a couple of options).

Just following PipSingh's post about ClusterDelta, made some google on the theme and found this.

Interesting.

Interesting. The volume diminishes in both sides of the wedge.
Best is to wait the breakout and see a test with low volume. Or a false breakout. Let's them show their hands!

I color coded a volume indicator version for MT4 that follows Gail Mercer's one, as in an article I posted some days ago.
The source code is also here so you can have a look, change it if you want, etc. Very simple.

Cheers!

Well after rouhgly 11.5 weeks since I walked away from trading for personal reasons on my 35th B-Day (Feb 26th) I have taken my first trade again. It was a short on EU. I wasn't going to bother posting about it but I figured why not...

The last two daily bars have been effort to fall into the high of a daily zone (yellow fib) from Nov 7, 2012 (yes that date is not a typo) with yesterday being somewhat of an indecision pin bar. What I liked the most about this trade is that the low of yesterday's 1 hour zone (green fib) was right on the high of that daily zone (2875ish) so I was ready and waiting for a set-up into that level.

By LO we have moved below this level and in fact LO itself have a nice effort to rise into the level with the next bar down... so 2 hours after LO it appears they may be selling. Next hour was another upbar again on increased volume that closed above 2875 but not above the LO bar... HMM? The very next bar was my signal bar and it completed a pres78 2BR. It made a HH, closed on the low, had reduced but not no selling pressure volume and closed below 50% of the bar before. Actually it closed below the low of the previous bar fully englufing the body... so this was a 2BR, engulfing, outside bar with weakness in the BG and right into a key VZA (volume zone analysis for those that aren't familiar with how I traded) level... well that was enough for me. Placed a pending below the low at 2855 with loads of room down to the daily 50%...

The next bar did not take me in (within 0.3 pips) but I was brought in the very next bar... actually that next upbar was a nice continued SOW and further inforced my planned short side trade. Had I not already had a trade planned I would have placed a pending after that bar closed.

Ignore the MA's they are for somehting else I have been playing with and also to make Tom (Beljevina) proud wherever he may be ...

I have actually been testing some pretty neat things to develop a higher TF system because my goal to trade nothing but the daily charts so I can focus on work during the day and trading once a night after supper. Looking promising and someday I may share but for now my lab is sealed...

Edit - Entry was 2855, SL was 2890, TP was 2805 for 1.4:1 R:R

Could have gotten in higher up trading 5 min chart which gave two nice entry choices getting you in at 2870 or 2865 respectively but I am trying not to kill myself spending hours satring at smaller TF charts. That entry today was great I would look at the end of each hour found something I liked and pulled the trigger. Now I have to figure out how to make less trades and less screen time as if not more profitable than what I was doing before I stopped trading...

That is the key to my life balance and path to full time trader.

What is LO and BG?

London Open and Background.

London Open and Background

You beat me to it, lol. :[

Hello Press78, I don't know what is used MA but I can see that is HLC of MA...Raghee Horner use EMA34 and she call it waves...

mima,

They are a LWMA 50, H,L and C (yellow MA) and a SMA 50 (red MA) and a EMA 200 (white ma). Again they had nothing to do with this trade this was all about price action into that key 2875 shared volume level (reasons why I was watching this level was in the post). I trade a method I created for myself that I call VZA. I apply a fib with the high, low and 50% level normally on 1hr ultra high volume bars and then trade VSA entries into these levels as PA moves between them or away from them. I used to trade 5 and 15 min entries into 1hr zones but am currently working on tweaking some higher TF stuff to reduce the time requirements of trading where I do work fulltime.

Hope this answers your questions.