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Analytical VSA Trader - Trading with Volume Spread Analysis

  • #141
  • Apr 27, 2015 4:36pm Apr 27, 2015 4:36pm
At 17th April, there was a significant selling climax in the market, marked by a green signal with a corresponding red volume in the histogram, at values way above the average. Since then, there was an attempted rally, but the volumes didn’t pick up nowhere during the whole rally, showing lack of interest by professionals. Without demand, the market had to go down to test the previous area of demand, and/or continue the accumulation. Read more USDCAD Intraday Volume Spread Analysis

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  • #142
  • May 5, 2015 5:19pm May 5, 2015 5:19pm
The Yen is on a trending channel, and recently got to the upper part of it. After an attempted break-out, the market quickly reversed, which was marked as supply by a purple dot above the candle. Looking back though, we can see there was an avalanche of demand bars around the 118.500 level. It was also accompanied by very high (red) volumes. Looking even further back, more such signals can be seen, starting from 18th March. This is actually a retracement of an uptrend started in January/2015, which is where that up trendline in the chart is coming from. Read more USDJPY Volume Spread Analysis – Between a Range and a Trend

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  • #143
  • May 6, 2015 7:33am May 6, 2015 7:33am
The background is weak and there was a recent weak signal. But when prices got near the dynamic trend changing point, it was already green again; prices then spiked up, which goes to show the danger of not following the rules. Now in GU it’d be interesting to see another weak signal to see if there is another dynamic trend setup, or if prices come down to 1.5155 they’ll be near a trendline, that with the right background, can give a potential trading setup.

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  • #144
  • May 12, 2015 1:08pm May 12, 2015 1:08pm
1. The important in the trendline setup is that there is no significant supply recently, that could turn the trend down. In AJ there was some selling when there was a rally attempt, but since the volumes weren’t that high, they were no reason for concern.

2. Wait for a long entry bar, shown by the volumes histogram above the histogram bars. Here they were low spread down bars, but there are others, like low volume down bars, tests, etc… There were actually 2 supports to choose to where to place the stoploss, but the support at 94.306 is more significant, and it wasn’t too far away, to keep a good R:R.

3. Exit in a weak minor signal (minor no-demand) when prices are approaching a previous long-term resistance.

AUDJPY H1 – Trading the Trend +96 Pips

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  • #145
  • May 14, 2015 7:07pm May 14, 2015 7:07pm
Check out the updated video about the indicator features and about this methodology:

Inserted Video
  • #146
  • May 19, 2015 1:20pm May 19, 2015 1:20pm
Quoting VSATrading
Check out the updated video about the indicator features and about this methodology: https://www.youtube.com/watch?v=hJ3F-VjoSNg
Looks good Reading the website, is there a strategy for stocks too?
  • #147
  • May 19, 2015 6:07pm May 19, 2015 6:07pm
Quoting VSATrading
The Yen is on a trending channel, and recently got to the upper part of it. After an attempted break-out, the market quickly reversed, which was marked as supply by a purple dot above the candle. Looking back though, we can see there was an avalanche of demand bars around the 118.500 level. It was also accompanied by very high (red) volumes. Looking even further back, more such signals can be seen, starting from 18th March. This is actually a retracement of an uptrend started in January/2015, which is where that up trendline in the chart is coming...
Greetings,

I've taken some interest in VSA lately, curious about its potential to enhance my approach to Supply/Demand trading. Perhaps, you could comment on the similarity or dissimilarity, as the case may be, between your approach to understanding and trading Supply / Demand and how others who don't use VSA analysis, but rather in SD zone + pa style trade it. You've probably seen many threads on the topic already.

I was particularly drawn to this example because you showed a potential setup on usdcad and I had to go to my chart to see what the outcome was and I wanted to see what was to the far left off the chart because I was sure that the spike down of April 17th which you called demand because of the green square was in fact itself a reaction.

That's what I want to demonstrate here with my charts. I hope they make sense. Given how Price approached I would therefore have been biased to Price breaking that level and going to the demand zone below which in fact it did.

1) we see spike down as a reaction to demand zone on left
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2) Wanted to show the origin of the move up and what constitutes another demand zone although the base prior to it is not great due to a strong spike out of the base. Ideally, we like to see the Base staying within its range:

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3) Finally, how Price reacted to both these areas on its return
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  • #148
  • Edited 8:33am May 20, 2015 8:15am | Edited 8:33am
Quoting MikeFx8
{quote} Looks good Reading the website, is there a strategy for stocks too?
Hi Mike,

Welcome to the thread! Yes these work for stocks as well, I trade stock indices myself often.
  • #149
  • May 20, 2015 8:22am May 20, 2015 8:22am
Quoting livindaylite
{quote} Greetings, I've taken some interest in VSA lately, curious about its potential to enhance my approach to Supply/Demand trading. Perhaps, you could comment on the similarity or dissimilarity, as the case may be, between your approach to understanding and trading Supply / Demand and how others who don't use VSA analysis, but rather in SD zone + pa style trade it. You've probably seen many threads on the topic already. I was particularly drawn to this example because you showed a potential setup on usdcad and I had to go to my chart to see...
Hi there,

Welcome to the thread! In USDCAD there wasn't anymore strength after that, so the test that I pointed out failed. The background also didn't change to strong because of these factors going on, and so the support was broken. I'm not familiar with those zones, would you explain a bit more what do you mean as a supply/demand area? Looking at volumes, I would think that these are former high volume areas, or accumulation/distribution price patterns.

Here's my view in UCAD

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  • #150
  • May 20, 2015 10:22am May 20, 2015 10:22am
Quoting VSATrading
{quote} Hi there, Welcome to the thread! In USDCAD there wasn't anymore strength after that, so the test that I pointed out failed. The background also didn't change to strong because of these factors going on, and so the support was broken. I'm not familiar with those zones, would you explain a bit more what do you mean as a supply/demand area? Looking at volumes, I would think that these are former high volume areas, or accumulation/distribution price patterns. Here's my view in UCAD {image}

Thank you.

Interesting that one can look at the market in different ways and arrive at the same conclusions.

I think it may have been Sam Seiden who coined the term Supply / Demand zones. Essentially, we share the understanding that markets are governed by supply and demand. The way we identify it is by seeing where Price leaves in a very strong fashion an area that in VSA you might call a accumulation or distribution phase. Such an area, (BASE) where Price leaves very strongly alerts us to look for opportunities to buy or sell again when price comes back. I tried to illustrate it on my chart. And that's about it in a nutshell. It suffices to search on FF 'supply demand' and you'll find many threads on the topic. Its similar to S/R but some will say its in fact different, but that's another story. But, its an area of interest for sure for entering or exiting the market.
  • #151
  • May 21, 2015 10:11am May 21, 2015 10:11am
Quoting livindaylite
{quote} Thank you. Interesting that one can look at the market in different ways and arrive at the same conclusions. I think it may have been Sam Seiden who coined the term Supply / Demand zones. Essentially, we share the understanding that markets are governed by supply and demand. The way we identify it is by seeing where Price leaves in a very strong fashion an area that in VSA you might call a accumulation or distribution phase. Such an area, (BASE) where Price leaves very strongly alerts us to look for opportunities to buy or sell again when...
Yes, like we spoke through Skype, those zones are usually what I call supports/resistances, with some extra price patterns, and it can be used with VSA. This is a way to trade them: http://www.analyticaltrader.com/trad...rading-setups/
  • #152
  • May 24, 2015 7:14pm May 24, 2015 7:14pm
GBPUSD is trading near a support formed at 19th May, and is also near an up trendline coming back from 20th April. After the Pound bull market being stopped by professional selling around 1.578 (purple signals), and consequently going into a correction, more recently it has seen buying at this level. This may mean this is actually re-accumulation, and so the bull market may be sustained. The background reflects this and it shows up as strong. Read more http://www.analyticaltrader.com/gbpu...read-analysis/

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  • #153
  • May 28, 2015 11:53am May 28, 2015 11:53am
Hey Leo , in Oanda background turned weak in GU, you took the trade? I short swiss today in trend change with supply b4

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  • #154
  • May 28, 2015 6:08pm May 28, 2015 6:08pm
Trying the demo, looking neat
  • #155
  • May 29, 2015 9:03am May 29, 2015 9:03am
Quoting KroneMad
Hey Leo , in Oanda background turned weak in GU, you took the trade? I short swiss today in trend change with supply b4 {image}
Hi Mat, nope, GU made a lower low before it broke out the support, that was weakness. Then it broke the support and now it's bouncing off the lower trendline with demand, but since the background is weak I'm not trading it for now. Going to do a follow-up on it in the blog.

Quoting MikeFx8
Trying the demo, looking neat
Great, as always, if you have questions feel free to contact me or post them here!
  • #156
  • Jun 1, 2015 12:36pm Jun 1, 2015 12:36pm
GBP/USD and EUR/USD Analysis

In GBP/USD there were multiple demand signals near the lower part of the channel, but since their lows weren’t sustained for much longer, this wasn’t accumulation, but rather take-profits on short positions. My trade ideas in H1/H4 are either to wait for prices to get near the support at 1.508, or if prices sustain the most recent lows, I can start thinking of the most recent demand signals (with a very high volume red histogram bar) as accumulation, which could change the trend.

Read more http://www.analyticaltrader.com/gbpu...aday-analysis/

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  • #157
  • Jun 2, 2015 11:47am Jun 2, 2015 11:47am
I would appreciate comments on amount of screen time necessary. Number of pairs followed and which ones. Also,I live in Chicago and my best trades are entered during Asian session. London and German open are too early for me and US is usually good for first two hours of open. This is of couse predicated on 15 min to 1hr. After that I have no idea what time would be best to view which pairs on higher TFs however I have a bad habit of needing sleep on occasion.
I should never have switched from scotch to martinis
  • #158
  • Jun 3, 2015 10:01am Jun 3, 2015 10:01am
Quoting fxj
I would appreciate comments on amount of screen time necessary. Number of pairs followed and which ones. Also,I live in Chicago and my best trades are entered during Asian session. London and German open are too early for me and US is usually good for first two hours of open. This is of couse predicated on 15 min to 1hr. After that I have no idea what time would be best to view which pairs on higher TFs however I have a bad habit of needing sleep on occasion.
Hi there,

Welcome to thread. Just using the Dynamic Trend setup in 5 pairs in M15-H1, you can expect in average about 8 trades/week. The alerts will pop up when the dynamic trend changes, and by deactivating those on which the background doesn't fit, you just need to screen for longer when you're about to enter in a trade. The next update will improve this further by combining signals/background and dynamic trend/SRs and other factors to give the alerts, so that they are much more directed and so that the necessary screen time reduces significantly.
  • #159
  • Jun 4, 2015 8:43pm Jun 4, 2015 8:43pm
This pair has been showing significant supply at 1.25 and up, with no previous resistance, which means it isnt overhead supply (which is usually not something to worry about). The most significant resistance is at 1.25369, which is the high of the previous supply bars. There is a trendline coming from almost the beginning of this rally, since 12th May, which is the level to watch for an eventual short trade.
There is a high chance there will be a fake break-out, in order to get more longs trapped and to catch the stop-losses of shorts, which would confirm that this is in fact distribution. This would be a break-out with either low volume, or a break-out with supply signal right above the resistance after it was broken. To the downside, a break-out of the trendline with good volume would be a trend change signal, if the background keeps at being weak, and given the weakness behind. At the moment the pair is making successive higher lows, which means that for now the prices are being supported, and the dynamic trend is giving the same indication as its still up. Read more USD/CAD and Oil Volume Spread Analysis

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  • #160
  • Jun 8, 2015 7:24pm Jun 8, 2015 7:24pm
Quoting VSATrading
This pair has been showing significant supply at 1.25 and up, with no previous resistance, which means it isnt overhead supply (which is usually not something to worry about). The most significant resistance is at 1.25369, which is the high of the previous supply bars. There is a trendline coming from almost the beginning of this rally, since 12th May, which is the level to watch for an eventual short trade. There is a high chance there will be a fake break-out, in order to get more longs trapped and to catch the stop-losses of shorts, which would...
Follow-up (trade): USDCAD False-breakout Trade +118 Pips

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