vsa with Malcolm

No, I was just confused what it was, all good : )

Hello,

I have a question for the VSA enthusiasts.

Do combinations of signals have any significance?
For example:

Let's say we have this configuration happening on the last 15 bars and the context looks like the price is extended.

STOPPING VOLUME
SELLING CLIMAX
SHAKE OUT

If in your opinion this has any validity, what "triplets" would be the strongest combinations?
Thanks

that`s it, and No Supply is needed to that too

thanks.
what other combinations can you think of?

i have no names for the bars but trading what i am seeing

that`s about all we have, it is telling that price is gonna move up, no sellers is no sellers, shakeout is shaking out weak hands, selling and climax volume are profit taking and hidden buying
something like that
like Tom Williams is always saying: It´s so easy.
I saw you are trading Volume Price thing, I am sure that is good way to trade too, clear rules.

Changed Direction to short side After BC/Supply coming in Exited Half position next trailing.

Keep an eye on the MA, the initial long was below it again.

If you're looking for reversals, you want to be looking out for climactic volume (stopping volume). This is analysing the background.

So for example price is hitting a point of previous resistance and high volume is coming in. Go to your preferred higher TF (1H+) and compare the volume in this area to volume on previous days and at previous areas of resistance and support. You want to see volume that is "climactic" which looks like the big players are exiting their long positions and changing to shorts. This will look like significant volume which stands out above the rest, there will likely be a price rejection on that bar, closing off it's high and/or the next bar will likely be a down bar on high volume. This is as the smart money rushes to fill it's orders against the buying climax which may often be a news release, so they can exit their longs and fill new shorts against this new tide of buying at a high, attractive price. Typically after this, they will pause their activity as they don't want to push price down before they've filled the rest of their orders. So you'll see a pause in sell activity, buyers will begin to emerge again and price will go into a range as the smart money sells (distributes) in increments before pausing to let more buyers push the price back up to the top of the range where they will sell again.

This will occur for a while, so you'll likely see a double top or a triple top, often they will let price break above the previously established top to create another frenzy of buying as people trade the breakout, they can use this buying frenzy to fill more orders to the short side. Usually a fakebreak or upthrust (spring/shakeout at bottom of market) occurs late in the range and often signals the end of the range. Around this point, either before or after you will hopefully be able to notice signs of the buyers losing interest, this looks like low volume up bars, preferably closing in their middle or low, these are easier to spot on a smaller timeframe like M5 or M3. These are tests of the market and are known as either No Supply or No Demand bars. No Demand being an upbar on low volume, No Supply a downbar on low volume.

These "tests" of the market tell the smart money in this case that they've filled as many orders as they're able to, there is No Demand left in the market. This is further important because it means that as they attempt to mark the price down, there will be little resistance to the downward movement. So start a campaign of sustained selling, because there're very few interested buyers, price drops rapidly, even faster when the stops of longs are hit and they exit by covering their position (selling). New sellers will jump on the downmove too.

The wave of selling will take pauses as clumps of buyers re-emerge, they will let price be pushed up a little into a small trading range, fill a few more orders before continuing. This is known as re-distribution in a downmove or re-accumulation in an upmove. The markdown will then continue. Eventually you'll see volume which really stands out above the rest - stopping volume to the downside, which will then send price into another range. This range will likely begin on a selling climax, possibly a news item or just a rush of sellers getting into the move at the worst possible point, afraid they are losing out on a great shorting opportunity. You will likely be able to identify this as an accumulation phase by increased volume at dips in the range, signifying smart money buying at the low prices. Smart money will accumulate stock for a while, until you see No Supply bars (low volume downbars) or a fakebreak out (spring) below the support level of the range, then price will be rapidly marked up.

http://www.hankpruden.com/MTWyckoffSchematics.pdf

yes again below MA.. against the trend.. kill me.. should set the tp to LO Bar's open.
Another entry Below MA again.

Edit: Fight With MA Costs Money.

Now Shorted

a failed trade . this time it was above ma (but aggressive entry ) or wrong BG reading

Rather late to get in the long there, more like a breakout trade. Don't let the MA rule you : )

Gavin and TradeGuider call them "sequential set-ups". They are usually 3 or 4 indications of strength or weakness grouped together that give the highest probability trades. Gavin has listed a few of the sequences in his book. The main thing about them is that they are classified by number and not the name of the bar. This, of course, makes using the Tradeguider program essential. However, in his book, which can be downloaded for free at times, Gavin does give the bar names for a few of the sequences.

With or without Tradeguider, we know that a high probability sequence will usually start with Ultra High/Climatic volume. Therefore one would want to start looking for set-ups only after seeing that type of volume. We also know that the "entry signal" is typically a low volume interval. That would be a No Demand or No Supply/Test interval. If that low volume interval appears within the range of the previously high volume interval, we know that the set-up has an increased probability of success.

Take a look at the chart below.

There are two VSA set-ups on this chart. Neither is perfect. And only the second one is a "Sequential set-up". In the first set-up, we get the Climatic volume we look for to start, but the very next bar is No Supply and then the market takes off to the upside. As previously stated, a sequence would have at least three (3) intervals. Of course a long could be taken here. Especially because price is in a place where one would be looking to take longs and we see an engulfing candle. But then we would not be talking strictly about a VSA entry signal. I point this out mainly to show that the higher the volume the better for the high probability set-ups.

With that said, take a look at the short set-up. The first thing to note is that the volume on the UpThrust is high but not really extreme. But notice that in this example, the No Demand is within the range of the UpThrust and the Supply coming in interval. So in this case, we do get that low volume interval within the range of the high volume interval. This set-up can also come as Supply coming in, UpThrust and then No Demand. So these are in fact not so much sequences as they are groupings of indications of strength or weakness.

HG, PeteFader uses M5 for NS/ND entries, but I'm noticing in real time things like: what looks for approx 3 mins to be setting up to be a ND, ends up after another 2 minutes of selling volume coming in closing as a medium vol down bar.

So you got a 3min ND, low vol closing in it's middle, followed by 2 mins of medium vol selling coming into the market = 5 minute medium vol downbar, so there is no official ND and no VSA entry on M5. On M3 there would have been.

I'm sure this could happen potentially on any timeframe, but it seems like most short duration tests of the market last between 1 - 3 minutes, rarely 5 - 10.

Why is this important?

Because he's a successful VSA trader and coach.

That was not my question, not about PeteFeder. Why M3 and M5 makes difference in your trading?

Well, obviously you get testing of the market in all timeframes. Tom Williams talks about it occurring on a daily TF and possibly even the weekly TF as well, but I'm trading on small timeframes, looking for short duration tests. It seems from my experience that these short term tests last between 1 and 3 minutes, e.g. price gets to an area of resistance, buyers pause their activity to see how much selling appears. I could be wrong, but my observation is that these tests last several minutes but not as long as 5 usually. So there are potential NS and ND candles which only last a few minutes that don't appear on M5, so I think I'm missing out on entries.

The example was:

Sellers are holding off, waiting to see how much buying is left in the market. They pause for 3 minutes, during this time the market moves up a small amount on low volume. The sellers come back in to the market reassured that there are no professional buyers left and begin to push price down. The candle closes 2 mins later after 2 mins of medium volume selling. Overall the 5 minute candle would look like a medium volume, narrow spread down bar. This is not a ND candle by definition. However if only the first 3 minutes of this activity were used to make a candle i.e. using the M3 timeframe. There would be a ND candle, followed by another candle with higher volume to the down side, providing an entry.

Again, I'm a VSA novice, so I'm not saying this is the case for sure... but from my observations I believe that at areas of resistance in the very short term, tests tend to last 1-3 minutes, not 4-6. Which if correct, means that the M5 is not well suited to identifying NS/ND tests of the market.

That short setup is not valid, cause there is strength in background, so we should look only long signals as long as price stays above that area where stopping volume was.
And he was asking strongest setup.
Otherwise it was nice reading.

http://traderfeed.blogspot.co.uk/201...ctices-of.html

Always like to spend time reading this blog