vsa with Malcolm

Have someone a clear definiton what are a test and hidden test are?
What is a squat bar and how works it?

Good if someone can post what are all the shortcuts are or have a link?

Greets

Michael

Really nice thread here.

Michael, hello

Mr.Icantmilk explained to me about test here : http://www.forexfactory.com/showthre...77#post9299477

Screen - about Squat

any thoughts after the usd news release? i`v added another short on usd/jpy - lots of action but dollar still looks weak.

Tried to analysis eurusd.
I see this at my lvl.

So we have downmove, 2 NS, than Climax Volume.
Next we see test at low volume and i would say it's nice place to go long. But we see how our SL would been owned.
How would be correct to entry in this situation? Where?

Regards

Good evening!

I still learning, but here is my thoughts

Hi!
I think that test isn't on low volume, it's the second highest volume of the day after the SC until that moment.
Also, I wouldn't consider those NS candles before the SC since we have no reasons to do so. We have a downtrend, no strength signals, what does a NS candle say? I think not much, just that there isn't selling pressure but the downtrend could continue, a lot maybe.
You have the proof two candles before the SC candle: an increasing volume down bar.
So I would start considering the SC as first signal. But that is followed by a test on high volume. On much lower volume, would it have been a good entry? I don't know, it's always a matter of how many times it works, how much you gain when it does and how much you lose when it doesn't.

Hello
Well, its a good point - it wasn't low volume test, but compared to SC - it is pretty low.
Maybe you're right about NS, but I think a good idea to keep them in mind. Even at this small downtrend - they began to appear right before the reverse

I only write this for the off chance that someone / anyone who is about to head down this rabbit hole may see enough logic in my comments to investigate a little futher before embarking on the futile journey of trying to read tick volume on the FX market. This is my 2 cents only, and I know there is going to be some serious congitive dissonance at play here for the poor souls who have spent years on this VSA theory and wil therfor defend it to the death and call me a fuckn loser etc and thats fine. But anyway, I am just in the mood for voicing some opinions so here it goes.

Firstly, I wouldnt deny there there could possible be people making money consistantly in FX who identify themselves as VSA traders, these people may beleive that it is the VSA that is helping them most likely it is just their experience in price action, trade management and psych that is getting them over the line.

For anyone who has ever read REAL volume before, they will understand that volume on its own means absolutly nothing without context and that is IF you have the ACTUAL volume. Tick volume is "kind of" reliable if it comes from a centralised and regualted exchange (none exist on FX for obvious reasons) but any traders worth their salt would never chose to use it as the defining factor for a trade. There seems to be this illusion in the world of VSA that there is this controlling power in the market that always has a plan and all you have to do is find out what they are doing and follow them, read their footprints etc. The reality is quite different, smart money is fucking over the smart money all day long. It is a battle of Goliath Vs Goliath most of the time in terms of volume, not David vs Goliath. So here you are trying to follow the SMART MONEY when the SMARTER MONEY is looking to fuck over the SMART MONEY. Yes its true, they dont care about your 100k lot with your market marking broker. In actual fact, most retail money never makes it to maket the banks dont even see them.

If my memory serves me correctly Tom Williams pretty much invented this whole VSA theory, and it all sounds nice and neat and makes sense in theory but in practice it is severly floored. He must of known it too, hence why he wrote the book about it and sold the software. High volume on its own at a price doesnt mean anything, you need to know HOW that volume was created for it to begin to be even slightly useful. For example lets say I lift the offer on the EU by 2 pips hitting into it for 100m then change my mind and liquidate into the bid 1 minute later for a couple tick loss, I have just create 200m worth of volume and I am FLAT. Totall neatral. Yet all the VSA guys are looking at the high volume thinking it means something. Even if it did mean somehting, the tick volume you guys are reading is so fuckn worthless that you wouldnt see it anyways.

I havnt done this for ages, but I imagine this excersise would produce the same results as it did 7 years ago when i did it. Find 5 of the most reputable MT4 brokers for FX that you possibly can and sign up for demos. Put the same chart on every MT4 and compare the volume. Is there consistancy among them? I know I know, "but a guy on a forum told me that this specific broker is the correct volume etc etc blah blah" There is a simple reason they are all differnt, none of them are right because THERE IS NO RIGHT. No body knows what the volume is! Even the big banks have been caught sharing information about heavy hitters on secret forums, dont you want to know why they themselves in their positions need to break the fucken law to get volume information?

I could go on for pages but I cant be bothered really, but let me get to my point. The purpose of me writing all this was to make one simple suggestion to anybody that really beleives these theories are worth anything. My suggestion is to AT LEAST try to implement your theories on a market that provided REAL and reliable volume just to see if it works. The world isnt short of centralised markets so why bother with this TICK BS on FX if you dont have to?

Download a demo from a futures broker and look at the US treasuries of the EMINIS, OIL, etc. If you are hell bent on pursuing FX then at least look at the volume on the FX futures markets rather than SPOT. All though it is an aux market, it can lead the SPOT as and there are plenty of ARB traders to keep the two markets in check so the volume is probably surpisingly accurate.

VSA theories are supposed to work on all time frames and all markets, so why not a market with real volume as a starting point BEFORE You blindfold yourself, tie your hands behind your back and throw yourself into the wolves den.

So, before anyone bothers, let me just tell you that I dont trade. I am not a successful trader and therefore this information is not credible in any way. I am merely just voicing an opinion on what i beleive DOES NOT work and nothing else.

I have only one thought about this to share. What doesn't work for you may work for others. If you really want to succeed in forex but you found out that VSA doesn't work for you then move on, try to find something else that works for you.

I have a link to informations about this ....

https://www.analyticaltrader.com/art...-volumes-work/

I translate the book, I can not understand the meaning of a phrase, help please:
"This is an up bar closing off the high"
Clossing off the high mean higher than previous mar high?
Or it's mean not close to current bar high?

The second one.

Thank you!

Hey)

Some newbie thoughts

Well I deleted the original post because I figured the question I asked was a question I would have to answer myself.

I went short because of a HV UT back into the 50%. I was taken out at BE, I moved my stop because if NZD was to become bullish it would have found support at the bottom of the H1 HV bar.

Some overview

Sorry, didnt noticed

Also :
And the place)

Hope this helps

NS test examples.

You're absolutely right, thank you