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Volume Spread Analysis (VSA) Discussion 2 replies

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Analytical VSA Trader - Trading with Volume Spread Analysis

  • #161
  • Jun 10, 2015 8:00am Jun 10, 2015 8:00am
Using it in stocks CFDs in FxPro. Yesterday went short in Apple on supply signal, hit TP today Lets see if stock market goes into bull mode again, do u follow FTSE and Dow?
  • #162
  • Jun 10, 2015 6:21pm Jun 10, 2015 6:21pm
Quoting MikeFx8
Using it in stocks CFDs in FxPro. Yesterday went short in Apple on supply signal, hit TP today Lets see if stock market goes into bull mode again, do u follow FTSE and Dow?
Hi Mike,

Nice! I trade European/American stock indices on a daily/weekly basis, posted something about it in investing recently http://www.investing.com/analysis/in...-market-252824
  • #163
  • Jun 12, 2015 10:26am Jun 12, 2015 10:26am
Prices are just now breaking-out the resistance at 191.93, formed at 5/June. The background is positive, though the market has been on a strong trend for 3 days now, so a pause after the break-out is likely. I want to see a good volume on the break and a test bar (gray histogram bar) afterwards. Given the circumstances, it’s likely the market will have to be shaked-out, with prices coming to 191 2 price level, so the stop-loss can’t be too tight. GBPJPY H1 Imminent Break-out

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  • #164
  • Jun 14, 2015 6:58pm Jun 14, 2015 6:58pm
How do you recommend to set the alerts? Do you need to change anything there or just leave it as it is?
  • #165
  • Jun 16, 2015 10:41am Jun 16, 2015 10:41am
Quoting MikeFx8
How do you recommend to set the alerts? Do you need to change anything there or just leave it as it is?
Hey Mike,

You should leave the default values in it, using the Standard template it's already configured to alert in M15, M30 and H1. If you're going to trade higher timeframes, you'd just need to set those timeframes in the Multi-timeframe Module, and that's about it.
  • #166
  • Jun 17, 2015 5:45pm Jun 17, 2015 5:45pm
Quoting VSATrading
{quote} Hey Mike, You should leave the default values in it, using the Standard template it's already configured to alert in M15, M30 and H1. If you're going to trade higher timeframes, you'd just need to set those timeframes in the Multi-timeframe Module, and that's about it.
Thanks. And if there is there is a trendline for e.g. in H4,would you trade it in H1? What about daily?
  • #167
  • Jun 18, 2015 10:52am Jun 18, 2015 10:52am
Quoting MikeFx8
{quote} Thanks. And if there is there is a trendline for e.g. in H4,would you trade it in H1? What about daily?
Hi Mike,

Yes, in H4 I'd trade until M30. I don't use the present trendline for higher timeframes trading though, as they usually won't have much meaning.
  • #168
  • Jun 18, 2015 10:53am Jun 18, 2015 10:53am
Euro/Pound has seen massive buying around 714 price level, seen by the green signals and very high (red) volumes that accompanied them. The trendline is coming from 10th June, and has been recently broken. The prices also went below the 61.8% Fibo, levels used by retail traders that are usually shook-out for stop-losses on long positions by the smart money. Read more http://www.analyticaltrader.com/eurg...ings-changing/

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  • #169
  • Jun 19, 2015 3:14pm Jun 19, 2015 3:14pm
Quoting VSATrading
Euro/Pound has seen massive buying around 714 price level, seen by the green signals and very high (red) volumes that accompanied them. The trendline is coming from 10th June, and has been recently broken. The prices also went below the 61.8% Fibo, levels used by retail traders that are usually shook-out for stop-losses on long positions by the smart money. Read more http://www.analyticaltrader.com/eurg...ings-changing/ {image}
The low-volume rally I referred in my last post was indeed weakness, and the prices quickly rejected the trendline. Since there wasn’t a bullish test or strength above the trendline, there was no confirmation; the strong signal was formed below the trendline, which means it could be buying from traders buying at the broken trendline (in analogy with the commonly seen demand signals near an important support). Read more http://www.analyticaltrader.com/blog/

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  • #170
  • Jun 22, 2015 5:15pm Jun 22, 2015 5:15pm
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stocks might be Correcting but taking them profits in between Entered long at 2091 and exit at 2116 about 3 hours ago, hold too much time but was hopeful it would break-through, anyway.. lol
  • #171
  • Jun 23, 2015 9:40pm Jun 23, 2015 9:40pm
Quoting MikeFx8
{image} stocks might be Correcting but taking them profits in between Entered long at 2091 and exit at 2116 about 3 hours ago, hold too much time but was hopeful it would break-through, anyway.. lol
Alright! I'm looking at Dow Jones tomorrow to see if it breaks today's low, the last low volume rally followed by weak supply signals before might be the start of a correction, though European markets are making a strong rally. Gonna wait and see...

Intraday looking at Gold (XAU/USD) and Silver (XAG/USD). They are naturally, two very correlated commodities, and the recent action is no exception. Gold is near a support and a previous broken trendline. There was recent strength (blue signal) with moderate volumes, in an area of previous strength, which could be the first signal the support is holding, but so far the market doesn’t show signs of stabilizing – it keeps making new lows, and the background is still weak. Read more Gold and Silver Volume Spread Analysis

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  • #172
  • Jun 26, 2015 10:00pm Jun 26, 2015 10:00pm
GBP/AUD was near a support after the low at 18th June (red line below prices). Everything fit into place in this trade for the Support/Resistance trading setup.
1. Background was neutral
2. Demand signals near the support, which is the smart money buying into a previous area of demand
3. Went long in a test-like bar (part of long type bars), shown by the volumes indicator
4. Exit in a weak signal. Holding through the weekend and exiting on the trailing stop was also OK

GBPAUD – Trading the Support +268 Pips

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  • #173
  • Jul 3, 2015 5:14pm Jul 3, 2015 5:14pm
The referendum on whether the Greece government should accept Troika’s bailout presented at 25th June, will be held this Sunday. The polls show that the ‘Yes’ and ‘No’ are tied, and so speculation about the result will last until the very end. This undecision is of course being reflected on the markets.
In the Euro pairs, we can see there was significant supply at 2nd July... Read more http://www.analyticaltrader.com/befo...-in-spotlight/

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  • #174
  • Jul 6, 2015 5:12pm Jul 6, 2015 5:12pm
After the Greek voted ‘No’ on accepting the Troika’s bailout proposal, Euro gapped down at the opening, in seeming weakness. But lower prices meant it’s now a currency more attractive for buying, which is what institutional traders did – we can see 2 major demand bars, still in the Asian session, and afterwards test bars (Oanda’s feed). EURUSD also failed to break the previous support at 1.095. Read more Euro After the Greek ‘No’

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  • #175
  • Jul 8, 2015 8:58am Jul 8, 2015 8:58am
1. Background was weak
2. Wait for an up bar near the broken support. Entering on the break-out bar, about 2 hours before, is also valid, as long as it has a volume above average.
3. Set the take-profit on the red-line of the StopLoss indicator for the S/R Breakout setup. If there were strong signals (Major Demand/Demand signals) before they would be the exit point instead.

http://www.analyticaltrader.com/usdj...k-out-47-pips/

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  • #176
  • Jul 9, 2015 9:11am Jul 9, 2015 9:11am
Leonardo or Mr VSA Trader, I have read this thread several times over and still haven't discovered how you can call your indicator VSA when you constantly speak of volume. How specifically does your indicator analyze the spread which I take to mean the length of the bar? How does this relate to volume? You have mentioned congestion,supply,support,strong background,low spread down bar,smart money and volume volume volume. Please explain all of these and their relationships as I believe that eventually I will end up totally lost if you go any further. WHY does spread matter? WHAT does small spread v high volume and the opposite indicate relative to what the smart money is doing? WHAT is a supply signal relative to spread and or volume? For example,how would your indicator analyze a large doji with large v small accompanying volume or for that matter a small doji? It would be helpfull if you attach some charts to your explanations.
I should never have switched from scotch to martinis
  • #177
  • Jul 10, 2015 7:40am Jul 10, 2015 7:40am
Quoting VSATrading
{quote} Alright! I'm looking at Dow Jones tomorrow to see if it breaks today's low, the last low volume rally followed by weak supply signals before might be the start of a correction, though European markets are making a strong rally. Gonna wait and see... Intraday looking at Gold (XAU/USD) and Silver (XAG/USD). They are naturally, two very correlated commodities, and the recent action is no exception. Gold is near a support and a previous broken trendline. There was recent strength (blue signal) with moderate volumes, in an area of previous strength,...
You short'ed? Greece made the American market bottom pretty quick, it was not so bad after all.
  • #178
  • Jul 10, 2015 10:54am Jul 10, 2015 10:54am
Quoting fxj
Leonardo or Mr VSA Trader, I have read this thread several times over and still haven't discovered how you can call your indicator VSA when you constantly speak of volume. How specifically does your indicator analyze the spread which I take to mean the length of the bar? How does this relate to volume? You have mentioned congestion,supply,support,strong background,low spread down bar,smart money and volume volume volume. Please explain all of these and their relationships as I believe that eventually I will end up totally lost if you go any further....
Hi fxj,

You can call me Leo Well VSA means 'Volume spread analysis', and so it looks at both volumes and spreads (length of bar). The indicator takes these into account when calculating the supply/demand signals it outputs. One way to relate both volume and spread is when you have a churn bar (narrow spread and high volume), which in an uptrend is usually supply, and in a downtrend is demand. For the uptrend case, the reason is that if the spread is so narrow, yet it's showing a high volume, it means that the activity going on is preventing that bar from going upper, as the market is being swamped with sell orders. But if it's not going down either, it means there are many people buying as well (this will often happen on significant events that increase the market liquidity); what's really happening is that uninformed traders are buying on the bull market, afraid of missing out the rest of the move, and the smart money is dumping their long positions in the market. If this bar had low volume, that would show that at that time atleast, the smart money isn't interested in higher prices.

Apart from the signals it calculates, the upcoming update also now shows these type of bars directly. The image I attach shows two tops made recently in USDCHF. In the first one, that green bar is a churn bar, marking the exact top of the market. There were also other supply signals (purple dots) due to the high volumes and other price patterns. In the second top we can see 2 red bars, which are high volume bars. The first one goes on to make new tops, but then closes much lower - this is called an upthrust. It's often a manouver to get stop-losses near a resistance such as in this case. The second red bar is a wide spread down bar, showing clear supply as the selling drives prices downwards. These are some types of supply and demand signals the indicators look at, but there are many others of course. Anyway, hope this helped!

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Quote
You short'ed? Greece made the American market bottom pretty quick, it was not so bad after all.

Hi Mike, yeap shorted Dow Jones, but closed already some days ago because of the Greece's instability. European markets were showing demand already before Greece anyway, this might have been the end of the correction.
  • #179
  • Jul 17, 2015 12:58pm Jul 17, 2015 12:58pm
AUDUSD has shown several weak signals approaching the down trendline, which was a confirmation that the downtrend was to continue. After some strength on the end of the US Session at 15/July (blue dot), the market reversed and it rallied to the trendline once again. Upon reaching near it, the market tested for demand in the market, by marking up the prices and waiting for activity to show up. The volume was relatively low, below the average, and the prices failed to rally, which means the No-Demand test marked by the pink bar, failed, and there was lack of demand in the market.

AUDUSD H1 – Trading with Alert System 2.0
  • #180
  • Jul 20, 2015 3:52pm Jul 20, 2015 3:52pm
Quoting VSATrading
{quote} Hi fxj, You can call me Leo Well VSA means 'Volume spread analysis', and so it looks at both volumes and spreads (length of bar). The indicator takes these into account when calculating the supply/demand signals it outputs. One way to relate both volume and spread is when you have a churn bar (narrow spread and high volume), which in an uptrend is usually supply, and in a downtrend is demand. For the uptrend case, the reason is that if the spread is so narrow, yet it's showing a high volume, it means that the activity going on is preventing...
Thanks , very clarifying. Liking the newer updates, can see the action of SM better, keep it up
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