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vsa with Malcolm

  • #26,301
  • Feb 1, 2015 8:37am Feb 1, 2015 8:37am
i see strength in Euro/dollar in the last days , smart money buying?
  • #26,302
  • Feb 1, 2015 9:45am Feb 1, 2015 9:45am
Quoting TEB63
everyone is posting just one chart - are people looking at the bigger charts or are you using just one chart ? the kill rate will rise greatly if you look at the back ground of the larger charts ie {image}
QUESTION: What is a chart?

ANSWER: A graphical representation of what people or institutions are thinking about the price of a security, commodity, or currency at a particular point in time.


QUESTION: Does a chart ever lie?

ANSWER: A chart never lies. If a chart never lies, then all charts tell the truth. If all charts tell the truth, why do you need more than one?
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #26,303
  • Feb 1, 2015 10:44am Feb 1, 2015 10:44am
Quoting HiddenGap
{quote} QUESTION: What is a chart? ANSWER: A graphical representation of what people or institutions are thinking about the price of a security, commodity, or currency at a particular point in time. QUESTION: Does a chart ever lie? ANSWER: A chart never lies. If a chart never lies, then all charts tell the truth. If all charts tell the truth, why do you need more than one?
I allways ask same question on my mind.
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  • #26,304
  • Feb 1, 2015 10:48am Feb 1, 2015 10:48am
New copy of Snag it. Just trying it out.

This is not a trade taken, but is a good example for my previous post.

If you know what you are looking to see and where you are looking to see it, you don't really need more than one chart.

We see a Supply/Demand Delta Zone (AKA Entry Signal Zone) and we know we would like to see a Short entry signal on or in this zone. What do we see?

1. Climax volume. (Volume has been removed from the chart. We see the indication that the condition of climax volume exists in the form of the red marker).

2. Price continues to move up, but we see that price is now "over bought". The change in the color of the candles indicates that the RSI has reached extreme levels to the upside. The Yellow dots indicate that price is outside of the Bollinger Bands.

3. The up bar in the Zone is No Demand. Again, the volume has been removed from the chart. If you were to put the volume on the chart, you would see that the volume is less than the previous two intervals on this up bar. The basic definition of No Demand.

If this was a "valid" set-up for you. Then it would be appearing where you would want to see it. Would you really need to look at three more charts to take a high probability short at this time?
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Without VSA, you're playing checkers while the Smart Money plays chess.
  • #26,305
  • Feb 1, 2015 10:55am Feb 1, 2015 10:55am
Quoting HiddenGap
New copy of Snag it. Just trying it out. This is not a trade taken, but is a good example for my previous post. If you know what you are looking to see and where you are looking to see it, you don't really need more than one chart. We see a Supply/Demand Delta Zone (AKA Entry Signal Zone) and we know we would like to see a Short entry signal on or in this zone. What do we see? 1. Climax volume. (Volume has been removed from the chart. We see the indication that the condition of climax volume exists in the form of the red marker). 2. Price continues...
Good pretty good chart.
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  • #26,306
  • Edited 1:32pm Feb 1, 2015 1:12pm | Edited 1:32pm
Quoting HiddenGap
{quote} QUESTION: What is a chart? ANSWER: A graphical representation of what people or institutions are thinking about the price of a security, commodity, or currency at a particular point in time. QUESTION: Does a chart ever lie? ANSWER: A chart never lies. If a chart never lies, then all charts tell the truth. If all charts tell the truth, why do you need more than one?


WHY do you need more then one?
answer is you do not but you will win more if you use more then one

The basics of VSA is to understand a chart you have to understand the back ground.
It is much earlier to do that if you understand what is going on in higher charts
One of the main reasons but not the only one is the power of trend.

i.e. in the Forex 85% of the time a trend will continue (- three kinds of trend - up - down- chop)
So if the trend is up on the day chart- 85% it will be up tomorrow
So if the trend is up on the 4 hour chart - 85% it will be up next 4 hours
So if the trend is up on the hour chart -85% it will be up the next hour

if I am trading on the hour chart which of the above 3 charts is the strongest?
I will bet on the day -
and I know in reading the higher charts this helpful in finding the truth & understanding the meaning of a bar or bars on the hour?

ie. if I had a great move up on the hour chart say Down thrust bar (Spring) and a NO Supply bar on the hour
- but it was into a Upthrust on the day I would NEVER NEVER, never, never take it .

so the hour chart is not" lying" but it will be 85% of the time over ruled by the trend on the day chart
and you will be stopped out

cheers
  • #26,307
  • Feb 1, 2015 1:53pm Feb 1, 2015 1:53pm
Quoting HiddenGap
....Would you really need to look at three more charts to take a high probability short at this time? {image}

What is horizontal line crossing ND bar started from down climax bar? How do you interpret it and how do you use it?
There is a winner and a loser, nothing in between.
  • #26,308
  • Feb 1, 2015 2:00pm Feb 1, 2015 2:00pm
Quoting TEB63
{quote} WHY do you need more then one? ....
My opinion is irrelevant but I think that might be easier to see MM's intention on HTF....
There is a winner and a loser, nothing in between.
  • #26,309
  • Edited 2:28pm Feb 1, 2015 2:03pm | Edited 2:28pm
Quoting olambeth
That's cool, Wyckoff can be communicated in many forms with all having a positive impact. True Wyckoff doesn't take too long to get the old head around it though. Personally it's allowed me to have a greater understanding on the meaning of each phase of the market structure. Each to their own.

I think you are totally right - to the amount we can understand as there are lay on layer,
I personally do not think it is helpful
- what I mean you need to go big (spend 8 hours a day studying the market) or not worry (a) why it is happening (b) just react to when it happens.
- that I would say is the main difference of pure Wyckoff vs. TG.

everything you need to see is on the charts -if you including the back ground.

I think its more important to choose a style of trading
ie basically there are only four.
- tops and bottom
- break out
- trend (I trade)
- chop ( the most boring and the most profitable lol)
specialize in one
Now your choice to trade will have a say in the style you should trade.
i.e. FX is the best trending market.
Stocks love - Tops and bottoms (supply and demand zones)
commodities- love break outs (support and resistance)

cheers
  • #26,310
  • Feb 1, 2015 6:44pm Feb 1, 2015 6:44pm
This trade would not have a higher probability if you were looking at more charts.

When price gaps up, you know that there has been a key change in the Supply/Demand dynamic. Since it was a gap up, you know the zone created by the gap is Demand. Therefore you would only be looking to take longs.

Price heads down towards the Zone and we see 2 climax down bars. We know that when strength appears it usually appears on down bars. We note that price is outside of the Bollinger bands as we see the cyan dot below the candles. Then we see a professional buying bar (a squat). We then see a narrow range down bar on volume less than the previous two-No Demand.

Why would looking at any other time frame be necessary? True, if the 4 hour chart and the daily are in an uptrend, the move may wind up being 100 points instead of 10. But that has nothing to do with probability and everything to do with greed.
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Without VSA, you're playing checkers while the Smart Money plays chess.
  • #26,311
  • Feb 1, 2015 7:03pm Feb 1, 2015 7:03pm
Quoting HiddenGap
This trade would not have a higher probability if you were looking at more charts. When price gaps up, you know that there has been a key change in the Supply/Demand dynamic. Since it was a gap up, you know the zone created by the gap is Demand. Therefore you would only be looking to take longs. Price heads down towards the Zone and we see 2 climax down bars. We know that when strength appears it usually appears on down bars. We note that price is outside of the Bollinger bands as we see the cyan dot below the candles. Then we see a professional...
Just to be clear - I never said you cannot trade off one chart. I only said you will win more with more charts
or rather it might be better to say lose less.

its easy to see were it worked on one chart but if you have to make a trade having support on other charts is helpful
Also there are many cases were it is clear on one chart what is going to happen of coarse !

By the way the 4 hour chart would have been great help we see CS

cheers
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  • #26,312
  • Feb 2, 2015 10:26am Feb 2, 2015 10:26am
HI all,

Can any one tell me how to read it.

A: High spread on high volume weakness
B: Up bar narrow spread on up bar lower than leave of the high spread bar A
C: Down bar volume higher that previous nd bar. Confirmation of ND bar.

But price goes up.

How can we protect ourselves to enter short on these kind of occasions.

Regards.
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  • #26,313
  • Feb 2, 2015 11:15am Feb 2, 2015 11:15am
Quoting wajid
HI all, Can any one tell me how to read it. A: High spread on high volume weakness B: Up bar narrow spread on up bar lower than leave of the high spread bar A C: Down bar volume higher that previous nd bar. Confirmation of ND bar. But price goes up. How can we protect ourselves to enter short on these kind of occasions. Regards. {image}
Trend is still up. So no sell in uptrend
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  • #26,314
  • Feb 3, 2015 8:45am Feb 3, 2015 8:45am
Hi, I take a stab at it:

Quoting wajid
HI all, Can any one tell me how to read it. A: High spread on high volume, weakness because next candle is down B: Up bar narrow spread on up bar lower than leave of the high spread bar A This is no supply since price went down, didn't find volume so it retraced and closed up C: Down bar volume higher that previous nd bar. Confirmation of ND bar. But price goes up. How can we protect ourselves to enter short on these kind of occasions. Regards. {image}
I think that a proper sign of weakness was the no demand candle after that one you marked as "C" but next 2 candles failed to confirm = strength
We become what we think about
  • #26,315
  • Feb 3, 2015 9:59pm Feb 3, 2015 9:59pm
Nice take on VSA.

www.youtube.com/watch?v=f5hHfcxnQZI
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #26,316
  • Feb 3, 2015 10:52pm Feb 3, 2015 10:52pm
Quoting HiddenGap
Nice take on VSA. www.youtube.com/watch?v=f5hHfcxnQZI
Good
Trading 24/h
  • #26,317
  • Feb 3, 2015 11:04pm Feb 3, 2015 11:04pm
Quoting wajid
HI all, Can any one tell me how to read it. A: High spread on high volume weakness B: Up bar narrow spread on up bar lower than leave of the high spread bar A C: Down bar volume higher that previous nd bar. Confirmation of ND bar. But price goes up. How can we protect ourselves to enter short on these kind of occasions. Regards. {image}
To me I'd need to see more of a background picture. Are you in a consolidation or uptrend previous to your picture? . Always look out for HH and HL in uptrends and LH and LL in downtrends for confirmation of trend.

If you're in consolidation or want to know when price may consolidate look out for climactic action. When price climaxes as it has in your chart, you don't want to go short on the swing down, wait for price to retest climax area; notice the demand on upswing (is it less than previous upswings? How does price react on swing down? How fast is the swing down, how large is the spread?). Always compare swings in consolidation if it continues to retest the climax area and the support (S/R) using volume/price. Once price falls through support, wait for retest of old support new resistance and then go short provided the test of the new resistance is ND or low demand.

If you want to learn your signals and understand volume price relationship, I recommend reading ' Trades about to Happen ' David Weiss, ' 3 Skills of Top Trading ' Dr Hank Pruden, ' Master the Markets ' Tom Williams and good old ' Reminiscences of a Stock Operator '.
  • #26,318
  • Feb 4, 2015 12:04am Feb 4, 2015 12:04am
Quoting wajid
HI all, Can any one tell me how to read it. A: High spread on high volume weakness B: Up bar narrow spread on up bar lower than leave of the high spread bar A C: Down bar volume higher that previous nd bar. Confirmation of ND bar. But price goes up. How can we protect ourselves to enter short on these kind of occasions. Regards. {image}
this is how i was looking it. still novice trader.
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Think Twice Low Volume is Key to Success
  • #26,319
  • Feb 4, 2015 1:32am Feb 4, 2015 1:32am
Quoting classix
{quote} this is how i was looking it. still novice trader. {image}
Continue reading
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  • #26,320
  • Feb 4, 2015 1:21pm Feb 4, 2015 1:21pm
Quoting HiddenGap
Nice take on VSA. www.youtube.com/watch?v=f5hHfcxnQZI
Hey HG hows it hangin???????

Andrew claims he's increased his account by 100 000%
mmmmmmm................
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