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vsa with Malcolm

  • #24,921
  • Nov 25, 2013 6:10am Nov 25, 2013 6:10am
Quoting Intel
{quote} All in for me also. .......you might be frightened by the % risk I use
i know this was back on page 100 (around post 4000)....but it's been gnawing my brain since.
i've just gotta ask.
how much?
  • #24,922
  • Nov 25, 2013 6:30am Nov 25, 2013 6:30am
Quoting kumaramy
{quote} Volume of bull candle C is greater than previous Volume of bear candle B is smaller than C Volume of bull candle A is greater than B This represents market is bullish. {image}
I don't think it's as simple as adding up the bull & bear candles and comparing their inequality.
As the smartMoney tries to out-maneuver the retail traders, they leave clues behind in the form of volume & spread.
Yes candle C has more volume than the previous 2 candles, but it also has twice the spread (price movement).
Yes candle A has greater volume than B & C, but it has made less progress to rise than C, why is this so ? Was it because the smart money was selling into the candle (retail traders) and it it was "swamped" with supply and therefore couldn't rise?
Also, will the prices retest the bottom? How does the smart money know that if they try to take prices up they won't get swamped with supply, have they tested ?
If there is still plenty of sellers, they will have to bring prices back down so they don't get swamped.
Just a few things I'm learning to think about.
It's all in the book (MTM)
I'm no expert, but there are some here that know this stuff inside & out.
regards.
  • #24,923
  • Nov 25, 2013 8:02am Nov 25, 2013 8:02am
If EJ Closes below 137.50, can see very nice shooting star.
Attached Image (click to enlarge)
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-milkeyway
  • #24,924
  • Nov 25, 2013 8:56am Nov 25, 2013 8:56am
Hopefully have internet by the end of the week. Good to see some new faces around here, looking forward to contributing.


  • #24,925
  • Nov 25, 2013 9:09am Nov 25, 2013 9:09am
Quoting KinsaleForex
Hopefully have internet by the end of the week. Good to see some new faces around here, looking forward to contributing.
Since how many years are you using VSA?
-milkeyway
  • #24,926
  • Nov 25, 2013 10:18am Nov 25, 2013 10:18am
2nd last candle volume of AU and NZDUSD represents selling pressure.
-milkeyway
  • #24,927
  • Edited 10:54am Nov 25, 2013 10:42am | Edited 10:54am
Quoting kumaramy
2nd last candle volume of AU and NZDUSD represents selling pressure.
What TF is this comment based on so others can try and see what you are referring to? Out of curiosity for you what has changed on NZDUSD? 4hrs ago you said the market was bullish on this pair.
Today's zone = Tomorrow's opportunity!
  • #24,928
  • Nov 25, 2013 11:31am Nov 25, 2013 11:31am
Just dropping by to say that there's no volume in forex
  • #24,929
  • Nov 25, 2013 11:49am Nov 25, 2013 11:49am
Quoting pres78
{quote} What TF is this comment based on so others can try and see what you are referring to? Out of curiosity for you what has changed on NZDUSD? 4hrs ago you said the market was bullish on this pair.
Any Candle can change the trend.
-milkeyway
  • #24,930
  • Nov 25, 2013 11:52am Nov 25, 2013 11:52am
Quoting 1pipperhour
Just dropping by to say that there's no volume in forex
http://forums.babypips.com/newbie-is...tml#post246891
-milkeyway
  • #24,931
  • Nov 25, 2013 11:59am Nov 25, 2013 11:59am
Quoting kumaramy
{quote} Any Candle can change the trend.
Wonderful.
Today's zone = Tomorrow's opportunity!
  • #24,932
  • Nov 25, 2013 2:22pm Nov 25, 2013 2:22pm
Quoting KinsaleForex
Hopefully have internet by the end of the week. Good to see some new faces around here, looking forward to contributing.
Wow Liam getting internet in Ireland is like getting a kidney transplant here in Canada... Is there a waiting list for those who need it the most ?
Today's zone = Tomorrow's opportunity!
  • #24,933
  • Nov 25, 2013 2:39pm Nov 25, 2013 2:39pm
Quoting pres78
{quote} Wow Liam getting internet in Ireland is like getting a kidney transplant here in Canada... Is there a waiting list for those who need it the most ?
Hahahaaa, thought almost the same

We got internet even in the deepest swamp and can get it up there in seconds. So Liam, time to move ...
  • #24,934
  • Nov 25, 2013 4:39pm Nov 25, 2013 4:39pm
Quoting pres78
{quote} Wow Liam getting internet in Ireland is like getting a kidney transplant here in Canada... Is there a waiting list for those who need it the most ?

please can anybody explain to me what a squat is........thanks in advance...........
  • #24,935
  • Edited 6:23pm Nov 25, 2013 6:12pm | Edited 6:23pm
Quoting carbonado
{quote} please can anybody explain to me what a squat is........thanks in advance...........
This is a squat...

Attached Image (click to enlarge)
Click to Enlarge Name: DB%20Squat%201.jpg Size: 45 KB


On a more serious note a squat is a non true blue VSA term (though some have apoted it) that relates to a UHV (or at least high by comparison) bar on reduced spread. It's looked at as being major effort without matching result. We normally are used to seeing UHV bars with really wide spreads so the question is posed...

What caused a bar with such high volume to print such a narrow spread?

Normally it is caused by the opposing power swamping the power that is said to be in control... For example we see an upbar which most likely even closed quite close to the high however when comparing result to effort something is off. We will normally see the result of the swamping on the next bar so in the case of the upbar squat from my example we will see the hidden sellers on the next bar as the buyers are overtaken and the weak longs most likely stopped out.

We can see these (again let's use an upbar squat example) in a weakening uptrend but are just as likely in a downtrend weak market. We see that upbar which gives the bottom pickers some hope that their buys are good only the bar really goes nowhere as the sellers are really still in charge and use the marked up prices to sell back in and to fill more of their waiting sell orders.

Squats will normally signal some sort of power switch.

For more responses to your questions please also use the thread search function at the top left. You can search the whole thread for the word squat or upthrust or whatever and find all the posts that contain that word. The more effort put in by one self in the early days will lead to better results down the road. We are here to help but are more open with those who show the effort to help themselves.
Today's zone = Tomorrow's opportunity!
  • #24,936
  • Edited 6:36pm Nov 25, 2013 6:19pm | Edited 6:36pm
Quoting carbonado
{quote} please can anybody explain to me what a squat is........thanks in advance...........
a "squat" is a narrow range bar on higher volume (coined by Bill Williams in his book "Trading Chaos" pg93).

At the end of a downtrend, it could signify that the smartMoney is absorbing any further selling (by "bagholding" which is a SOS), and at the end of an uptrend it could signify that they are capping prices by matching all buying with sell order (a SOW).

there are upsquats & downsquats. few examples from other members (HiddenGap for one):
Attached Image(s) (click to enlarge)
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Click to Enlarge Name: Current3_squat.jpg Size: 114 KB
  • #24,937
  • Nov 25, 2013 9:18pm Nov 25, 2013 9:18pm
Quoting anton609
thought i'd get my feet wet, any corrections or observations are welcome. {image}
The bars you marked SOW, did you mean SOS?
  • #24,938
  • Nov 25, 2013 9:29pm Nov 25, 2013 9:29pm
Quoting 1pipperhour
{quote} Hahahaaa, thought almost the same We got internet even in the deepest swamp and can get it up there in seconds. So Liam, time to move ...
Swamps?? You told me that Estonia is all beaches and women in bikinis.
  • #24,939
  • Nov 25, 2013 9:42pm Nov 25, 2013 9:42pm
Quoting kumaramy
.....This represents market is bullish....
Fantastic. So what is example for representation of bearish market?
The Market pays you to be disciplined
  • #24,940
  • Nov 25, 2013 9:56pm Nov 25, 2013 9:56pm
Quoting SimpleDev
{quote} The bars you marked SOW, did you mean SOS?
oops, my bad.
the tails made me the think in terms of "downtrend weakness", which is strength.
good looking out.
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