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Volume Spread Analysis (VSA) Discussion 2 replies

Volume Spread Analysis (VSA) and background 5 replies

What is the best VSA (Volume Spread Analysis) system/indicator? 1 reply

Volume Spread Analysis (VSA) and the EURUSD 3 replies

VSA Volume Spread Analysis: No demand and accumlation 2 replies

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Analytical VSA Trader - Trading with Volume Spread Analysis

  • #81
  • Nov 20, 2014 11:15am Nov 20, 2014 11:15am
Hi VSA trader, a question about the back ground strength indicator. Is it measuring the strength of the trend on all time frames?

If so, isn't the VSA indicator a reversal indicator? So wouldn't you be trading against the trend most of the time? Or am I understanding it wrong?

Are we trading with the trend on the higher time frames, and just looking for a reversal on the current time frame. So, do we ignore the trend strength on the current time frame, and just go with the higher time frames? Thanks for clearing it up for me.
  • #82
  • Nov 20, 2014 3:36pm Nov 20, 2014 3:36pm
so which mt4 broker is supplying good data for your indie.

i was told many times that mt4 volume data is basically non existing. or not reliable to trade.

which begs the question on which broker do you run the indie succesfully ?
  • #83
  • Nov 21, 2014 5:58am Nov 21, 2014 5:58am
Quoting rjd007
Will it work with offline charts as well? Range Bar and Renko?
Hello, yes it works on offline charts. Renko and range bars I never tried to be honest, I have to test.

Quote
Hi VSA trader, a question about the back ground strength indicator. Is it measuring the strength of the trend on all time frames?

If so, isn't the VSA indicator a reversal indicator? So wouldn't you be trading against the trend most of the time? Or am I understanding it wrong?

Are we trading with the trend on the higher time frames, and just looking for a reversal on the current time frame. So, do we ignore the trend strength on the current time frame, and just go with the higher time frames? Thanks for clearing it up for me.

Hello Timo, the background takes both the trend and the VSA signals into account to evaluate the market, just like VSA traders do. So for example, if there were a lot of supply signals lately, and the trend isn't very strong upwards, the background will most likely be bearish. It calculates for every timeframe and shows on the same chart.

No, the VSA indicator isn't necessarily a reversal indicator. In the trading method and setups I explain both reversal and trend-following strategies, using Analytical Trader. Whether you use one strategy or the other one, it'll depend on the current conditions of the market. I recommend using both the current timeframe and the above timeframe's background to decide when to trade.
  • #84
  • Nov 21, 2014 6:01am Nov 21, 2014 6:01am
Quoting reinerh
so which mt4 broker is supplying good data for your indie. i was told many times that mt4 volume data is basically non existing. or not reliable to trade. which begs the question on which broker do you run the indie succesfully ?
Hey there,

You're right that you need a good data feed, but there are many MT4 brokers that offer one. I use Oanda mostly and it works great there, that's the one I recommend. But all the big brokers such as Oanda, FXCM, FxPro, Alpari, etc.. have good volume feeds, with volumes that are highly correlated with each other and with real volumes in futures. If you don't know if your broker has a good data feed just ask me so I take a look at it.
  • #85
  • Nov 21, 2014 3:46pm Nov 21, 2014 3:46pm
Quoting reinerh
so which mt4 broker is supplying good data for your indie. i was told many times that mt4 volume data is basically non existing. or not reliable to trade. which begs the question on which broker do you run the indie succesfully ?
Hi Reinerh, I have been wondering the same thing. So I decided to compare my live account mt4 broker (Axi Trader), with three other mt4 demo accounts that I have, Pepperstone, Finfx (a true ECN broker), and Alpari, and the volumes are virtually identical on all of them. That makes me think that they must all share volume data, because I'm sure the big banks and major hedge funds don't use mt4 brokers!
  • #86
  • Nov 21, 2014 4:04pm Nov 21, 2014 4:04pm
i was told true volume can only be found in futures.

but leo said oanda works well, and as long it works for him that counts. his live accounts sure look decent, even so some trades seem to have lasted weeks and could have been hold and pray.

or he simply trades highest time frames only for whatever reason.
  • #87
  • Nov 24, 2014 7:20am Nov 24, 2014 7:20am
Quoting reinerh
i was told true volume can only be found in futures. but leo said oanda works well, and as long it works for him that counts. his live accounts sure look decent, even so some trades seem to have lasted weeks and could have been hold and pray. or he simply trades highest time frames only for whatever reason.
About the volumes, yes in forex we use tick volumes but as I've said, these are very highly correlated with real volumes. In my accounts I traded a mix of daily/intraday.

Reiner in DF the moderator didn't approve these screenshots I was talking about. Before the Draghi speech, looking at M1 and M5 it was obvious what was going to happen. In EURUSD there were multiple supply signals, marked by purple and red dots above bars, as insiders were taking their short positions. Then AFTER it fell on the news, it went sideways, shown by those dots below bars on M5 and M1 too.

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  • #88
  • Nov 24, 2014 10:06am Nov 24, 2014 10:06am
Thanks for the screen shots VSA Trader, I compared your volumes to my volumes for the same time period, and they are almost identical, the levels in comparison to each other are the same, but the actual heights of the bars varies a little bit, but I don't think that matters with your indicator, right?

Is it true that your indicator compares the heights of the two previous bars with the current bar and then generates a signal? Or does it use the actual volume level also?
  • #89
  • Nov 24, 2014 11:24am Nov 24, 2014 11:24am
Quoting Timo7
Thanks for the screen shots VSA Trader, I compared your volumes to my volumes for the same time period, and they are almost identical, the levels in comparison to each other are the same, but the actual heights of the bars varies a little bit, but I don't think that matters with your indicator, right? Is it true that your indicator compares the heights of the two previous bars with the current bar and then generates a signal? Or does it use the actual volume level also?
Usually it doesn't affect much. What it might do is that instead of a green signal (very high volume), there is a blue signal (high volume), but these are interpreted in the same way anyway. No-demand/no-supply take many bars into account so these changes over brokers aren't decisive either.
  • #90
  • Nov 25, 2014 4:58am Nov 25, 2014 4:58am
I'm using VSA in daytrading and I'm quite satified with it. Good Job mate and You could post some more live trading setups BEFOREHAND, so then all members could benefit for that

Good Luck and I'm looking forward for next posts!
  • #91
  • Nov 25, 2014 9:03pm Nov 25, 2014 9:03pm
hi leo,

thats weird that you could not post on donna.

the dragi speech i am refering to was the one last friday nov 21 when just prior the price was around 2540 there abouts.

on my terminal it was 10 30 = pepperstone.

the price already weakened going into the event, and this should have clearly shown even on m15 i would think.

thats why i was wondering about that particular speech.

could you please be so kind and post that screenshot ?

thx much
  • #92
  • Dec 3, 2014 8:27pm Dec 3, 2014 8:27pm
Quoting ElliottTrade
I'm using VSA in daytrading and I'm quite satified with it. Good Job mate and You could post some more live trading setups BEFOREHAND, so then all members could benefit for that Good Luck and I'm looking forward for next posts!
Hello, thank you for your posting, hope you drop by more times and feel free to make your own comments and analysis.

Quote
hi leo,

thats weird that you could not post on donna.

the dragi speech i am refering to was the one last friday nov 21 when just prior the price was around 2540 there abouts.

on my terminal it was 10 30 = pepperstone.

the price already weakened going into the event, and this should have clearly shown even on m15 i would think.

thats why i was wondering about that particular speech.

could you please be so kind and post that screenshot ?

thx much

Hello reiner, it's here in FF now, that's what I saw before the Draghi speech.
  • #93
  • Dec 3, 2014 8:29pm Dec 3, 2014 8:29pm
New Zealand Dollar – Trading the Dip

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New Zealand Dollar/USD is right above a long-term up trendline and also above a support formed in June/2013. In terms of volume, in the daily, we got a big market shake-out on that blue signal with a very high volume, which also made a new low. This has shaken-out many long traders who hit their stop loss, who made possible for big investors to jump in long on the market without making the price go against them, so this is a very bullish signal.
The last 2 minor downtrends were on low volume, which means there isn’t much selling pressure in the market.

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In the weekly chart, those dots below bars mark demand in those particular areas. We can see the professionals supported the market by buying in the dips, and thus the market made successive higher lows.
With all these signs, a long position with the stoploss below the most recent low, which is also below the support and the trendline, would be a nice low-risk/potential high-reward trade.
  • #94
  • Dec 7, 2014 3:24pm Dec 7, 2014 3:24pm
Hi VSA trader, I'm just wondering, in the smaller time frames, does the signals produce as-good results in the Asian session as in the NY and London trading sessions? In other words are the signals dependent on higher volume to work, or can they still work on low volume?
  • #95
  • Dec 16, 2014 12:57pm Dec 16, 2014 12:57pm
Quoting Timo7
Hi VSA trader, I'm just wondering, in the smaller time frames, does the signals produce as-good results in the Asian session as in the NY and London trading sessions? In other words are the signals dependent on higher volume to work, or can they still work on low volume?
Hello, yes it works on asian sessions too, and that's because it distinguishes the volume average from the European/American session and the Asian session, which is usually much lower. You get mostly no-demand/no-supply signals and on pure asian pairs, such as AUD/JPY, AUD/NZD, NZD/JPY, etc, many supply/demand signals too. Even on the other ones many times it shows minor supply/minor demand signals because sometimes there are spikes in volumes.
  • #96
  • Dec 28, 2014 9:15pm Dec 28, 2014 9:15pm
Hi VSA trader, I thought I would share my first trade using your indicator. I noticed a cluster of signals on the 5 min charts of GBP/JPY pair. I've also noticed that a lot of the time price tends to move a bit higher after the signals for some reason, I don't know why. Any way, I like to wait for price action confirmation, and my favorites are pin bars and engulfing candles. Well, sure enough, soon a nice pinbar came along, so I went short, and took a nice small scalp of 12 pips. Off course price went much further my way, but I like to have a firm take profit in place. About 1.5 R trade, that one. Your indicator works well! Thanks for it. I'm impressed. Now I just need to keep up the success rate.

Attached Image (click to enlarge)
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  • #97
  • Dec 30, 2014 10:36am Dec 30, 2014 10:36am
Quoting Timo7
Hi VSA trader, I thought I would share my first trade using your indicator. I noticed a cluster of signals on the 5 min charts of GBP/JPY pair. I've also noticed that a lot of the time price tends to move a bit higher after the signals for some reason, I don't know why. Any way, I like to wait for price action confirmation, and my favorites are pin bars and engulfing candles. Well, sure enough, soon a nice pinbar came along, so I went short, and took a nice small scalp of 12 pips. Off course price went much further my way, but I like to have a firm...
Hi there. Yes sometimes it doesn't reverse the market, because the supply that entered in the market may not be enough to turn a trend. Other times it's the smart money taking profits during the trend, and not closing the positions completely. Also the public (weak holders) may make the market continue the trend temporarily, as many times you can see that distribution took place a bit before the high of the trend.
Good to know that, keep it up and feel free to post more charts and comments
  • #98
  • Dec 30, 2014 10:45am Dec 30, 2014 10:45am
Attached Image (click to enlarge)
Click to Enlarge Name: eurgbp.png Size: 1.0 MB


Using the trendline setup, there were 3 short trades, for a total of +310 pips. I didn’t look at EUR/GBP on the first entry point, but still managed to enter on the 2nd entry spot.

http://analyticalvsatrading.com/2014...pips-in-total/
  • #99
  • Dec 30, 2014 6:35pm Dec 30, 2014 6:35pm
Hi Leo, i'm using vsa indicator i would like to ask you about GMT in the chart, my GMT keep changing evertime i login at mt4, sometimes -2, -3 and today -22 as the attachment.
Is there a problem with the indicator or just normal? i"m using armadamarkets ecn account
regards

Yulius
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  • #100
  • Jan 2, 2015 10:41am Jan 2, 2015 10:41am
Quoting Dongdong
Hi Leo, i'm using vsa indicator i would like to ask you about GMT in the chart, my GMT keep changing evertime i login at mt4, sometimes -2, -3 and today -22 as the attachment. Is there a problem with the indicator or just normal? i"m using armadamarkets ecn account regards Yulius {image}
Hello, that's actually a Metatrader initialization bug. In the inputs there is warning saying that it should always point the correct GMT offset, so if it's not the correct one, then there was an initialization error. In that case, you have to set it manually in the indicator inputs. For ArmadaMarkets the offset is 2.

Leonardo
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