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vsa with Malcolm

  • #26,641
  • Apr 21, 2015 3:57pm Apr 21, 2015 3:57pm
Could someone please help me with low volume tests. I'm confused about two things, as hopefully highlighted by the image included.

The first problem I have is that areas where people say low volume is good, I'm thinking is a previous level of resistance being tested now as support and that we wanna see high volume if it's gonna hold. Yet time and again I hear people saying that this is a "successful low volume test".

The second problem is often people refer to these as successful low volume tests as the tests are on decreasing volume, but the volume is still above average. It seems like sometimes people compare volume to the previous two bars and say it's low or high based on the recent previous action. At other times I've heard people say that the volume even though it's lower than previous bars is still higher than average so count it as low volume. So when you're looking at a low volume test, should you just be comparing it to the very recent action? Or the average volume?

Gah I'm really not sure I've explained this very well, but I hope someone can decipher it!
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"Never Take a Trade You Don't Understand!" - Pres78
  • #26,642
  • Apr 22, 2015 2:10am Apr 22, 2015 2:10am
forex is different than stocks, more money, and M5 is different than H1
and every pair is different, small differences
i was trying to find some Tom Williams videos with basics, but Gavin was everywhere,
maybe someone has links to these VSA basics?
  • #26,643
  • Apr 22, 2015 2:34am Apr 22, 2015 2:34am
Quoting ZeeDeveel
Could someone please help me with low volume tests. I'm confused ..... but I hope someone can decipher it!
Did you ask Petefader about test:
Quoting ZeeDeveel
....Because he's a successful VSA trader and coach.
The Market pays you to be disciplined
  • #26,644
  • Apr 22, 2015 4:41am Apr 22, 2015 4:41am
it`s good to ask questions

i love that Cast Away movie.

Coconuts are falling and making noise, Tom Hanks : WHAT IS THAT!!!

That is good attitude: I WANT TO KNOW!!!

Knowledge and understanding is what we need in this business to make money.
  • #26,645
  • Apr 22, 2015 6:00am Apr 22, 2015 6:00am
Mima; ignored.
"Never Take a Trade You Don't Understand!" - Pres78
  • #26,646
  • Apr 22, 2015 8:17am Apr 22, 2015 8:17am
Ooopsssssssss
UK trader charged for manipulation contributing to 2010 flash crash

http://www.cnbc.com/id/102573733
  • #26,647
  • Edited 6:09pm Apr 22, 2015 5:56pm | Edited 6:09pm
Quoting ZeeDeveel
Could someone please help me with low volume tests. I'm confused about two things, as hopefully highlighted by the image included. The first problem I have is that areas where people say low volume is good, I'm thinking is a previous level of resistance being tested now as support and that we wanna see high volume if it's gonna hold. Yet time and again I hear people saying that this is a "successful low volume test". The second problem is often people refer to these as successful low volume tests as the tests are on decreasing volume, but the volume...
Perfect example of a low volume test. Lowest volume since LO, bar made the lowest low of the last 4 bars. We were testing something (actually 2 something's) as we dipped below BRN 4300 and also the high of the 1hr UHV zone from yesterday. Perfect!
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Today's zone = Tomorrow's opportunity!
  • #26,648
  • Apr 23, 2015 10:50am Apr 23, 2015 10:50am
really disappointed after 1st failed trade not took the 2nd entry due to low volume on up bar..
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Think Twice Low Volume is Key to Success
  • #26,649
  • Apr 23, 2015 10:53am Apr 23, 2015 10:53am
that one worked
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Think Twice Low Volume is Key to Success
  • #26,650
  • Apr 23, 2015 11:22am Apr 23, 2015 11:22am
Quoting pres78
{quote} Perfect example of a low volume test. Lowest volume since LO, bar made the lowest low of the last 4 bars. We were testing something (actually 2 something's) as we dipped below BRN 4300 and also the high of the 1hr UHV zone from yesterday. Perfect! {image}
Cheers Pres,

If price had moved down lower than this back to test the previous area of resistance which was broken... would you expect to see a higher volume rejection?
"Never Take a Trade You Don't Understand!" - Pres78
  • #26,651
  • Apr 23, 2015 3:47pm Apr 23, 2015 3:47pm
Quoting classix
really disappointed after 1st failed trade not took the 2nd entry due to low volume on up bar.. {image}
Ultimately you were right to get in long but you were just a little too early by the looks of things. I'm sure it's doable but I find 5min volume zones to be tough to work with. But I think that's just personal preference.

There was a P&F trade out of this area but I didn't take it as I couldn't get my head around what was going on. In retrospect it was strength and here's my read of it. I'd never have seen this live.

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It looks like a trap up move and on an initial glance i'd think it was weak. But the next two intervals are up bars. It's on the second up bar that you get in. Maybe a break of the high and then test was a better option. For me this is a really tricky area to trade.
  • #26,652
  • Apr 24, 2015 3:54am Apr 24, 2015 3:54am
Quoting classix
really disappointed after 1st failed trade not took the 2nd entry due to low volume on up bar.. {image}

with all that mouth watering strength in the background that low volume up bar was a polar bear in Hawaii, don't you use a MA?

Attached Image
The loss was not bad luck. It was bad Analysis - D.Einhorn
  • #26,653
  • Apr 24, 2015 4:00am Apr 24, 2015 4:00am
some text book stuff

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The loss was not bad luck. It was bad Analysis - D.Einhorn
  • #26,654
  • Apr 24, 2015 11:59am Apr 24, 2015 11:59am
Hi one and all

I love this thread, I am seeking some help.

I had a terrific week trading. I made a lot of pips but very little money.
The reason was the pip value of my losers were more then the pip value of my winners.
I use 3 percent for every trade.
Does anyone know if there is a calculator that can make all my trades the same amount per pip?
Maybe it could tie all trade value to 3 percent of EUR-USD.
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  • #26,655
  • Apr 24, 2015 7:00pm Apr 24, 2015 7:00pm
Quoting Vcv13
some text book stuff {image}
Notice how that UHV zone splits that old swing high right at 50%. Support at 50% and then at the high.
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Today's zone = Tomorrow's opportunity!
  • #26,656
  • Apr 25, 2015 3:32am Apr 25, 2015 3:32am
Quoting HiddenGap
{quote} 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,...
I recreated a list of sequences after researching the names provided by trade guider (about 40 major and 30 minor sequences)
Sometime they work (:
When I have the time I will research the probability outcome for each of them and for new sequences, it would be better if they were statistically significant.
Here is an example:

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Some time after the event (rectangle)

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Also:

"Quoting Richard D. Wyckoff
The element of manipulation need not discourage any one. Manipulators are giant traders, with deep pockets. The trained ear can detect the steady 'chomp, chomp' as they gobble up stocks, and their teeth marks are recognized in the fluctuations and the quantities of stock appearing on the tape."

it seems this phenomenon can be detected in the price action.
  • #26,657
  • Apr 25, 2015 5:57am Apr 25, 2015 5:57am
Quoting ZeeDeveel
Could someone please help me with low volume tests. I'm confused about two things, as hopefully highlighted by the image included. The first problem I have is that areas where people say low volume is good, I'm thinking is a previous level of resistance being tested now as support and that we wanna see high volume if it's gonna hold. Yet time and again I hear people saying that this is a "successful low volume test". The second problem is often people refer to these as successful low volume tests as the tests are on decreasing volume, but the volume...
3 days and no one answer, hope I can help a little.

- The highest volume bar(1st blue line) is where price was challenged, and possible a bottom being conclude.
- Look at the blue straight lines, what did you see? volume higher than previous? bottom? Volume trying to confirm the bottoms.
- 1st Box, bottom challenged, 2nd box, built up. 3rd box, leaving the range.
- After deciding the bottom, price move out of range at 3rd box, price decide to retrace with high volume bar(1st bar at 3rd box)
- At 3rd box, price retrace with series of low volume bars, and with the lowest out the 3 volume bars, it rejected the range of challenge prices and move away (Upwards)

This is a good reversal/retracement trade with low risk, high reward opportunity.
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The only winner is the one who survive the longest...
  • #26,658
  • Apr 25, 2015 11:48am Apr 25, 2015 11:48am
Thanks very much Kinspk. On the third bar of the last box you've drawn. Wouldn't you expect volume to increase as demand shows up at the top of the previous range?
"Never Take a Trade You Don't Understand!" - Pres78
  • #26,659
  • Apr 25, 2015 12:11pm Apr 25, 2015 12:11pm
Quoting ZeeDeveel
Thanks very much Kinspk. On the third bar of the last box you've drawn. Wouldn't you expect volume to increase as demand shows up at the top of the previous range?
I thought I had explained very clearly. Why not ask yourself why you expect high volume? At lowest price, huge volume of trades came in to determine the price to go up. Buyers had already pushed up the price, price declining/retrace, why do you think you need a high volume to challenge the breakout which sitting on support of the breakout range?

Reversal and retracement occurs when there low volume or high volume due to some reasons.
The only winner is the one who survive the longest...
  • #26,660
  • Apr 27, 2015 7:26am Apr 27, 2015 7:26am
Quoting kinspk
{quote} I thought I had explained very clearly. Why not ask yourself why you expect high volume? At lowest price, huge volume of trades came in to determine the price to go up. Buyers had already pushed up the price, price declining/retrace, why do you think you need a high volume to challenge the breakout which sitting on support of the breakout range? Reversal and retracement occurs when there low volume or high volume due to some reasons.
I suppose I think high volume should be here because at this point there will be buyers coming in to fight the sellers causing a spike in volume.

Perhaps it's the case though that selling interest simply dries up at this area and buyers can push price up without a fight on low volume?
"Never Take a Trade You Don't Understand!" - Pres78
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