Eiger

Are those odd wide spreads for real or some data abberation? I've actually been looking at the Aussie$/US$ for some early AM trading before the S&Ps open, but looking at that, maybe I'll just forget it

Hi Winnie, There is a volume rule-of-thumb in VSA for No Demand and also for Test bars. We would like to see volume on the No Demand (or Test) to be less than the previous two bars. Again, the idea of the No Demand is that the professional money is uninterested in higher prices and withdraws from the market. Their withdrawal is seen in low volume and also narrowing spread. Please also keep in mind that a No Demand indication is valid only when there is weakness in the background. Here are two examples of No Demand from today: This morning, we saw weakness come in on the wide spread up bars closing off their highs. These are marked with W. Note the volume is high on both bars, indicating selling coming into the market in the 1369-1371 area, where supply was anticipated. Bar A shows No Demand. This is an up bar on realtively narrow spread and on volume less than the previous two bars with weakness in the background. Although the market sold off only a few points, the principle was nicely demonstrated. In the second example, the last bar shows another No Demand in a slightly differnet context. The market fell out of a trading range and we saw supply swamp demand with wide spread bars closing on their low with increasing volume (this is definate Weakness in the Background). A bit of buying came in on the high volume spike causing the bar to close in the middle. Was this going to be a turn in the market? It was high volume, after all? Well, the very next bar was down and volume remained high - not a good sign for higher prices. Then we see an up bar on good volume (its not excessive volume). This, of itself, is a bullish bar. Next bar is also up, but the volume falls off. More importantly, the spread is narrowing, the high was not greatly higher than the previous bar, and look at the close! The close shows little net gain and is inside the previous bar's spread - not what I would call overly bullish. In fact, this bar can be considered a No Demand bar. Now the next bar: even less upside progress, an even narrower bar, and the volume is significantly low (less than the previous two bars). Note that the volume on the rally is receding. This is a weak rally caped with two No Demand bars and Weakness in the Background - the market is signaling that it will not go much higher. And it falls from here to new lows. Hope this is helpful. Eiger

S/D = Supply swamping Demand T/R = Top Reversal B/R = Bottom Reversal T = Test I use the NYSE volume with the SPX partly because my data provider lags volume by one day on all futures contracts, including the emini, so volume on the daily time frame is difficult to read. I also like to track the actual cash market and the volume of trading on the major exchange. The emini is a derivative of the cash market, and will always come in line with the cash market. If your data provider gives you clean volume data on the emini, then using that across all time frames should be fine.

I keep a running account in a notebook and on an annotated chart of the VSA indications on the 60 & 30-minute charts. I think it is a useful practice and helps me keep track of the structure of the market and what we might expect next. This analysis compliments and gives more refinement to the daily and weekly chart analysis that I posted earlier, along with the figure chart. Keeping this current throughout the day will help you see a change in trend, which you can then look to shorter time frames (10, 5, & 3-min charts) for trades. Here's last week's annotations: The week prior (May 30th) ended with the market in an Apex. An apex simply means an area where price has narrowed its oscillations and comes to a "dead center" point. You can see this fairly easily by drawing a line through the price bars. Wyckoff originally wrote about the apex or “hinge” as one typical area where price is "on the springboard” for a rapid move. Here, price actually gave an indication at the very end of the day that it was weakening. On Monday, price fell out of the Apex and moved easily down (Ease of Movement - Down) on an expansion in volume. Supply swamped demand. Note: here the wide spread and high volume would not indicate a climax because price is just breaking out of an Apex. 1 - The market goes sideways, demonstrating an inability to rally. Lower lows and closes indicated supply, and the 30-min chart had an UpThrust bar that initiated lower prices. 2 & 3 - The market rallies (note the overall weak character of the rally), but as it comes back into the area where supply swamped demand, supply again comes in at 2 with an increased volume, close well off the highs. The 30-min chart shows this nicely. We next see No Demand at 3 and then an UpThrust on the 60-min chart and a Top Reversal on the 30-min chart. Weakness in the background is confirmed by these VSA indications. We have a Selling Climax that gets tested, but as discussed earlier, there was still quite a bit of supply on the tests. 4 - Nevertheless, the market has a rally on Thursday. At 4, we see a wide spread up bar closing on its highs with strong volume. This is price being pushed through the old trading range to the left, and is bullish. This high volume is immediately tested on the 30-min chart. The market goes sideways, maintaining its gains, then a little Shake Out occurs that turns into a Bottom Reversal, and price made its way back up to the supply area of the Apex of May 29-30. Note the character of the action and volume here as it approaches this old top. Compare this with the price and volume at 4 which pushed through an old top. It took a lot of volume and wide spread to push above the trading range at 4. Why would we expect it to overcome the apex trading range that was a clear distribution area on narrower spreads and lighter volume? These are the kinds of nuances we look for in VSA. On the overnight, the market UpThrusted the Apex area. On Friday, the market fell and again we see supply swamping demand. Note the volume is even greater than the June 3rd SC (so we likely didn't have a final SC). Over the noon hour on Friday at 5, just like at 1 earlier, the market showed inability to rally. The market fell during the afternoon on lower lows and lower closes. On the 10-min chart (not shown) some buying came in at the end of the day. So, how does this help us for Monday? We know supply is dominate at the moment, and we have not seen climactic action yet to indicate that the market is ready to turn. We also know from the earlier post that there is more downside potential based on the figure chart and overall higher time frame weakness. Nevertheless, on an intraday basis we are probably oversold (consult your 10 or 15-minute charts and draw tend channels -- we are at the demand line in an oversold position). We also had a little buying come in at the end of the day Friday. So, I would be looking for a test of yesterday's low (or perhaps Globex, if it falls further tonight), and, if successful, a small rally. Because of the overall weakness, though, I would anticipate any rally to be modest and die out in the 1370 area, which is the nearby resistance. If it manages to get above 1370, I would next be looking at the high made on Friday afternoon around 1375-76.50 for a VSA indication to short. Eiger

You could use either the futures or the diamonds - both have volume. Dow futures are listed on the CBOT, and use the symbol YM. Diamonds are an ETF listed on the American Stock Exchange and use the symbol DIA. There are other options, like i-Shares, but these both have very good volume characteristics and track the cash closely.

Hi Winnie, I think that section of the book must be referring to a Shake Out, which I find to be the most difficult to see real time. The market is marked down rapidly before a mark up to make sure there is no more supply and to take trades away from the average trader by catching stops. When the professionals mark the market down, they are looking to see if supply jumps onto the mark down. We read this in both the spread and especially the volume. If a Shake-Out, volume is generally less. The attached chart is the 15-min ES with three Shake-Outs. It is important to remember that these come in "varying intensities." The first Shake-Out comes after a fall in the market. It occurs on the open. Note that the volume is less than the earlier down wave (though definately still high), and that the bar closes on its highs. The market then goes sideways for a day, before beginning a mark-up. Whatever stops (and there were thousands) were under the lows of the previous two days are now in the inventory of the professional traders, which they are happy to sell back to the herd at higher prices, thank-you very much! Note that a severe drop like this would cause bears to jump onto the downside and sell into it, if there was supply in the market. It would be an opportunity for selling to take control and bring the market down. But, it didn't happen. Thus, it is a Shake-Out. The second Shake-Out occurs at the end of the trading range, just before the market rallies. The Shake-Out closes on its lows and looks as if it will casue the market to fall (in real time), but the bears do not join into the selling. You can see this by the low volume. It is a way for the professional traders to know whether or not there is still supply in the market, which would swamp them as they tried to take prices higher. The next bar is up and the market rallies. The third Shake-Out is similar. A fairly wide spread down, closing on the lows. The lower volume, and the next bar being up, closing on its highs, indicates that this is a Shake-Out. Selling did not materialize when it had the opporutinity to take control and bring the market down. So instead, it risies. Eiger

Last week (and earlier this week), we were talking about the weakness that was becoming evident in the market: • an UpThrust-like bar on May 19 • a rounding over at the highs • a break of the Demand Line from the mid-March Spring on wide spread and increased volume • achievement of the first phase count to the downside on the FC • a Top Reversal on the weekly chart, followed by weekly No Demand. Some buying came in on Wednesday and Thursday, but persistent high volume indicated supply remained present. There was no test to show supply had been drained out of the market. We had weakness in the background, and as Tom Williams points out, the background doesn’t go away. Friday’s break was on the widest spread and heaviest downside volume since the rally off the mid-March Spring. The 5-point FC (S&P cash market) has a count across the 1415 line that was broken into two phases. Phase A indicated sufficient cause to drop to the 1375 level, and this was achieved by the market. As noted, a market will frequently stop around the first phase objective and build a “stepping stone” count and confirm the second phase, if it intends to go lower. This is also a useful timing indicator. The market has built that stepping stone cause to confirm the Phase B objective of 1325. The 3-point of the 5-point FC (not shown) shows a cause to the 1310 level and there are larger counts on both the 5-point and the 3 x 5 FCs, but, being prudent traders, we always use the more conservative count On the daily cash chart, the ½-way correction point is just below, and this coincides with the Demand Line of the downtrend channel drawn. The Phase B objective of the 1325 area is also were we saw demand reemerge after several days of corrective action. Will the market get to 1325? I don’t know. This is a roadmap that I find useful for the intermediate term, but it is always best to keep an open mind. Hope this is helpful Eiger

Thanks for the kind words, Tawe. I appreciate them. I must tell you, though, that I get an awful lot out of doing this. When Sebastian suggested a wee bit more clarity was needed (rightly so), I had to think about how to do this. As I did, the structure of VSA and how to apply the principles became even more clear to me. So there is a some self-interest here You know, the more I study and trade VSA, the more I appreciate the incredible work Tom Williams has done and given all of us. What a gift! His original book, The Undeclared Secrets that Drive the Stock Market is simply amazing, and the book that turned my understanding of markets and trading around. Though, as Sebastian said, even having this material in hand, it took me a fair amount of study and lots and lots and lots of miss-steps to begin to really understand it and to begin to apply it in trading. Even then, it wasn't until I tripped across Sebastian's series of daily analysis that I began to truly understand how to apply it. Sebastian is a true master at this. I've studied the work he published on the trading forums, his videos for TG, and TG's London web cast -- he is a remarkable trader and a helluva educator. If you really want to understand VSA, go seek his stuff out. -------------------------------------------------------------------------- Yesterday, we looked at the 60-minute chart (ES). One of the cool things about the market is that it is fractal. Tom Williams points this out. Fractal means, in part, that the same VSA principles apply across different time frames. It's a little bit like deja vu, or 'history repeats itself'. Here is a piece of the market (ES) on the 3-minute time frame from today. Compare this with the 60-minute chart posted yesterday: A - an Upthrust (like Bar 5 on the 60-min chart) B - No Demand (when we see No Demand after weakness has occurred in the background, we know there are very good odds the market will be unable to rally very far) C - another No Demand D - Ultra high volume on a wide spread down bar, closing in the middle, next bar shoots up and closes on its highs - Demand has come into the market on the professional side (because of the ultra high volume -- look familiar? Not really sure? Look at Bars 6 & 7 on the 60-min) E - a Test on volume less than the previous two bars -- supply drying up and the market begins to rally F - a little supply (weakness) comes into the market - a fairly wide spread up on a sudden increase in volume, closing well off the high (in the middle). There was selling on this bar, and this could be expected as we run into an old congestion area (red line) to the left where we know there are some trapped traders with poor positions. G - although we see weakness on F, it is immediately tested on G - a narrow spread, down bar on very low volume, close in the middle. Because of the spread and the volume, we know professional money is not interested in the downside. Thus, higher prices must be in the offing. And, of course, they are. H - another nice test followed by a further rally. Although different, this is almost the same set of principles that occurred yesterday on the 60-min time frame. It doesn't matter what time interval, VSA principles work. Hope this is helpful, Eiger

Hi Winnie, Thanks for the questions - these are good ones. Bar 5 is a down bar on lighter volume. There are two things that are important about this bar. Most important is where it occurs. It comes after two other signs of weakness. Second, is is what VSA calls an Upthrust. An Upthrust is a bar that goes higher than the previous high, reverses, and comes back down to close on its low. The close is also lower than the prior bars high, penetrating into the prior bar's range, and best when the close if lower than the prior bar's close. It signifies that higher prices were rejected. Please keep in mind, though that the background is crucial. Bar 5 occurs after weakness, and essentially is conifming that weakness with the rejection of higher prices. Look at Bar 8. Technically, this, too, is an upthrust. It goes above the prior bar's high and closes within the range of the prior bar and on its low. However, there is no weakness in the background, but strength. Therefore, we ignore this as an upthrust. This is a nuance of sorts, but even if you saw this as an upthrust, the next bar would cancel the upthrust interpretation. Bar 9 - The character of the price bar indicates there is buying. It dips below the previous bar and closes on its high and the close is within the upper half of the previous bar (8). This is bullish. However, there is a lot of volume on this bar. Compare the volume at 9 with the volume at 6, which is the highest volume on the chart. Bar 9 has nearly the same volume as 6. Very high volume on an up bar indicates supply is still present. One of the axioms of VSA is that markets do not like very high volume on up bars -- why? because supply is present and supply (selling) could swamp demand as professinals try to take the market higher. This is why we see another attempt to test that volume at 10. But, as noted, the volume at 10 was also high. On my charts in the volume window, you see three lines - one solid and two dashed. The solid line represents average volume (20 bar simple moving average). The dashed lines are standard deveiation lines, representing 2 SDs and 4 SDs respespectively. You can think of 2 SDs as very high volume and 4 SDs as ultra high volume. I wouldn't actually use the 60-minute chart to trade off. The stops would be too wide. I would drop down to a smaller time frame (3, 5, or 10-minute charts) and look for a VSA trrade set-up there. To answer your question though, I would definately take my trade off if I saw a bar like that. The spread and volume indicate the potential for a reversal. Plus, had i been lucky enough to be in a trade and a bar like this occured, I would consider it a gift Hope this is helpful, Eiger

It sounds like something he would say. He wrote a great little book called Pit Bull that is worthwhile reading.

For Mary, First, my apology if my earlier explanation only served to confuse you. That certainly was not the intent. I’ll do my best to try to explain weakness and some of the technical terms I used. Others should join in and help clarify. Basic Idea behind VSA One of the unique things about VSA is that is looks at the market as a place where stock is transferred from weak holders to strong holders before the start of a bull (up) move, and also where stock is transferred from strong to weak holders at the end of the bull move and before the start of a bear (down) move. This basically means that strong holders buy at lower prices from weak holders and then sell out at higher prices, again to weak holders. This is a process that is ongoing across the different time frames and markets. Strong holders are professional traders. These could be market makers, specialists, very large trading houses, and similar groups and individuals who are well capitalized, very well informed about the markets they trade, and who are experts at reading the market. Weak holders are often considered the public, the average trader, or the herd. These are traders who are generally not well-informed, can’t really read the market, and tend to act in unison. Because of these characteristics, they frequently enter poor positions and are easily shaken out of or scared out of their positions. Reading the Bars & Professional Money We want to be on the side of the strong holder, or what we often call “Smart Money,” or “Professional Money”. We do this by reading the spread, the close, and the volume of the bars, and the direction of the bars (from the close). Here is a little shorthand aid you might find useful: Spread wide narrow average Direction up down level Close highs lows middle Volume heavy light average So, from this we can begin to talk about the bars in a common language. For example, A wide spread down bar, closing on the low on heavy volume (spread means the range of the bar, from high to low). Or, a narrow spread up bar, closing in the middle on light volume. By reading the bars in this manner, we can also follow the activity of the Professional Money. Because of the size of their trading, professional activity shows up in the volume and the spread. Heavy volume and wide spread generally indicates that the professionals are active, either buying or selling, as the case may be. Very light volume and narrow spread generally means that the professionals are not active or not interested in buying or selling, as the case may be. We also are always measuring the supply and demand in the market. The markets operate on supply and demand, nothing else. Supply means selling is dominate, and thus prices are either falling or are about to fall, and demand means buying is dominate and prices are rising or are about to rise. We look for the supply and demand created by the professionals, as this is what counts. Professional Buying and Selling, Strength and Weakness One of the important concepts to understand is that professionals only buy on down bars, and they only sell on up bars. This is exactly the opposite of what most think. Professionals buy on down bars because they are looking to buy very large quantities of stock. If they tried to do this while the market is rising (on up bars) they would put the price up against their buying, and force themselves to pay higher prices. This doesn’t make economic sense. Thus, the Professional Money looks to buy on down bars when others (the herd) are actively selling. The same is true for selling. If professionals sold on the way down, they are causing prices to fall even lower, against their interests (of either selling out and getting a good price for stock bought lower, or selling short in anticipation of a down move). Selling on up bars (usually when the herd is buying) gives them maximum gain for stock bought lower. So, if we want to follow the Professional Money and they only buy on down bars, then Strength, when it comes into the market, will always appear on down bars. Likewise, weakness, when it comes into the market, will always appear on up bars. Application We’ll take a look at the last two days in the S&P e-mini futures (ES) on the 60-minute time chart to see how VSA can be applied: 1 – On June 2, the market opened down and fell from the trading range of the previous two days. It falls on wide spread, closes on the lows on high volume. This indicates weakness or supply in the market. Because there are weak holders who took positions in the trading range over the last two days, the market is rapidly pushed down to put pressure on those weak holders who are long, trapping them and forcing them to sell into the downdraft. The next two bars are on narrow spreads and show no ability to rally. This is continued weakness. 2 – The market drops farther, again on heavy volume and fairly wide spread. This bar, however, closes off the lows, indicating some buying came into the market. The next bar is up and the market starts to rise. You can track this rally quite nicely by the closes. 3 – On this bar, we have a wide spread (compared to the previous bars in the rally) up bar. Although the bar is up, it closes below the middle. There is also a sudden increase in volume. The wider spread and heavy volume indicate professional activity. The poor close indicates supply or selling came into the market. The market has now potentially turned weak. 4 – This is an up bar, average spread, with a good close, but take note of the volume. It is low. VSA compares volume over the past several bars. As a rule-of-thumb, when the volume is less than the previous two bars, it is considered significant. In this case, it is signaling that the Professional Money is not interested in higher prices and are withdrawing from the market. We know this because of the general weakness in the background from the open, and the most recent sign of weakness we see at 3. 5 – Price tried to go higher, but immediately falls and closes on its low and back within the spread of the previous bar. In VSA terminology, it is called an UpThrust, and it signifies weakness. Note also that this is the first down bar since the rally began. And now we have three bars in a row (3, 4, 5), all signaling weakness – clear supply at 3, No Demand at 4, and a rejection of higher prices at 5. The market then falls. 6 – A very wide spread (what VSA calls “ultra” wide spread) down bar, closing on the lows on ultra high volume. The next bar (7) is an up bar, also wide spread and on very high volume. It is the combination of bars 6 & 7 that are important, as they signal buying coming into the market by the professionals. Perhaps you can see this best by comparing the bars and volume at 6 & 7 with those at 1 and the two bars that followed 1. At 1, the market demonstrated no ability to rally. At 7, the market shot up on good volume. It signifies buying likely occurred on 6 and carried over on 7. 8 – As a confirmation (in VSA we always look for confirmation), the next bar dips down and closes low on narrower spread, but note the volume. It is low. It is an early indication that supply is draining from the market. 9 – Professionals will frequently test the market, especially after the action of 6 & 7. Although buying came in on 6 & 7, there was also a lot of selling (there had to be to produce all that volume). Professionals test because they want to be sure that supply has come out of the market. If they are buying at these levels in anticipation of higher prices, they want to be sure that when the market is marked up, supply doesn’t come in and swamp the mark-up (if it does, professionals will have to buy into the rise – up bars, so to avoid this, they test the market looking for low volume on dips down into previous high volume areas). Bar 8 and again on 9 is a test of that selling. Note that bar 9 dips into the high volume area of 6 & 7. Bar 9 closes on its highs, but there is still a lot of volume, almost as high as the volume on 6 & 7. This level of volume is indicating that there is still selling in the market. This is the reason the market comes back down to the same area on bar 10. 10 - A down bar, close near the middle on above average spread, and again on high volume. The close well off the lows indicates buying (remember, professionals buy on a down bar) and tends to confirm the buying seen at 6 & 7, but there is still a fair amount of volume. The market appears to be turning bullish, but it still may need additional testing. Well, this has turned into a bit of a primer on VSA, but that is OK as it is quite helpful for me, as well One last thing, all who follow and use VSA owe a deep debt of gratitude to Tom Williams. I certainly do. Do ask questions …. Hope this is helpful. Eiger

Hi Seb, No offense taken at all. In fact, thanks for pointing that out. It is easy for me to slip into the technical terms and not realize others might not have a clue. And, you are quite right that this can seem very foreign when just starting with it - it certainly was for me for a very long time, too. I can see how it could be disheartening, which we don't want. I'll put together some explaination for Mary. Also, I appreciate the daily anaysis you posted. Eiger

Nice short set-up on the 3-minute in ES: A - Weakness on above average volume. B - Effort to rise on low volume, poor result. C - 2-bar UpThrust on above average volume, followed by: D - No Demand E - No Demand. Lots of synergy in this. Weakness in the background at A-B. The overall volume at C on the attempt to break to new highes was insufficient. VSA indications in the right place at C, D, & E. Eiger

Thanks, Gamma. I appreciate the response. I use MetaStock Pro as my charting software. I am using an indicator that makes a lot of calcs and slows MS way down to a crawl. I have a pretty good computer with 4 Gigs of ram and a zippy dual core processor, so i figure that it would be better to do the calucs outside MS. MS allows an easy link into Excel, though I must say, I will need help in programming, as i am not that sophisticated. Thanks again.

Chart for above

Hi Mary, Welcome to the VSA forum. The close is pretty vital to VSA. We place a lot of emphasis on whether a bar is an up bar or a down bar, and this is determined by the close. Many of the VSA indications are based at least in part on the close of a bar. The 60-min chart of the ES has a few examples. The close at bar A shows that, although an up bar, the close below the middle and high volume indicates there was weakness on that bar. The next bar is an up bar, but on No Demand. No Demand only occurs on up bars. Had this bar closed level or on its low, it would have a different meaning. Bar B closed on its low and is an UpThrust. It we didn't have the close on this (or any of the bars) and only had the spread, it would be difficult to read the bar. We wouldn't know, for example, that A and B were weak bars because we wouldn't know how they closed. Finally, bar C is an up bar and is a Hidden Test and indicates strength. So, for VSA the close is important. I think if you just looked at the range of the bar with volume, you wouldn't be able to read the chart. That being said, you can read the intraday market in another way, which doesn't use the close. VSA is based on Wyckoff and Wyckoff did develop what is known as the Wave Chart for intraday trading. This tracks the intraday swings or waves, and is a very helpful way to read the intraday market. When tracking and comparing intraday waves, you would be looking at support and pressure via price, the length of time for each wave, and the volume associated with the wave. I personally use a wave chart, but it is not a standard part of VSA. Eiger

The discussion over the past few days about having a view, market bias, the ego, Marty Schwartz, etc has been a good one, I think. It caused me to think quite a bit more about the subject. It is so important to our trading, because it is the easiest thing to take us astray. In VSA trading we are trying to follow the footprints of the professional money, but when we have a view or bias, we become part of the herd, don't we? It's just the opposite of what we are striving to achieve. In my thinking, that becomes a major trading Mistake. So, i spent last night reviewing the section of my trading plan that speaks to this, and made a few adjustments. It is copied below. You'll see that there is quite a bit of Mark Douglas, Schwartz, and others in there -- standing on the shoulders of giants, for sure. I would, however, appreciate comments. Is there any additional ideas that would be worth considering? My trading methodology is based on probabilities and there is an important paradox in trade outcome that I must manage psychologically. The paradox is this: With a large sample size, the probability of a trade set-up can be determined, but the outcome of any individual trade is not able to be known in advance. This means that the outcome of an individual trade meeting all the criteria of my trade set-up is always uncertain; it may or may not result in a win. However, over a series of trades meeting the criteria of my trade set-up there is a definable winning edge. Thus, I must operate within the paradox that the market is relatively uncertain and unpredictable in the context of an individual trade; but over a large sample of trades, it is certain and predictable. This means that when I put on a trade, I do not have to know what is going to happen next in order to make money. What I do know is that over time with a large number of trades, the higher probabilities associated with my edge will prevail and I will make money. Therefore, it is always important to remember that being right about a trade has no meaning in my trading. Further, holding onto a bias about market direction is also meaningless. Maintaining an open mind and patiently waiting for my trade set-ups is the productive way to operate in the market. Winning trades are always in front of me. I know this because of my trading edge. It is never painful to take a small loss, and it is never a Mistake if the loss occurs as a result of a trade taken because it met my trade set-up criteria; it is just a cost of doing business. As I said, comments and ideas would be much appreciated. Eiger

I am trying out a set of indicators real time and find that they seriously slow down my charting software. I can make an OLE link from Excel to the software. I am wondering though, can Excel be made to run real time? In other words, will it update real time or do you need to keep copying & pasting data into it?

As others have said, get the book. In addition to these recommendations, look up and study Sebastian Manby's nightly VSA analyses that he did mostly in Nov-Dec last year and Jan this year. You can find them on the T2W site and Elite Trader (use Google). There might also be a couple here, too. These are invaluable. Eiger

I like to keep an eye on the higher time frames during the day. Even though I don't trade off them (because the stops would be too wide), they can often give a good indication about what might be coming later in the day or tomorrow. Strength or weakness on these time frames tend to continue for a while. Today's 60 & 30 minute charts in the ES gave a nice clue about the sell off. The 60-min showed weakness during the first hour (A), and then had an UpThrust (B). The 30-minute chart showed the first hour weakness even more clearly (1 & 2), and showed continued weakness as the volume fell off on the rally to retest the highs at 2. The 30-minute chart then gave a Top Reversal at 3, with the high higher than the previous bar and a close below the low of that bar. From that point, weak bars on the lower time frames could be shorted with added confidence. Eiger

A lot of value in that statement, and quite worth adopting as an approach to analyzing the market. Thank you, Sebastian. Eiger

Nice set-ups on the 3-minute ES chart this morning. Climactic volume and spread over two bars at A, followed by a nice No Demand three bars later on narrower spread, low volume at B, and again later at C. There was also a small tick divergence on the highs.

One of my favorite passages comes from the Marty Schwartz interview in Market Wizards. Schwartz was saying that he basically failed as a trader for about 10 years, and then Jack Schwager asked him the following question: When did you turn from a loser to a winner? This is Marty Schwartz's reply (pg 264): When I was able to separate my ego needs from making money. When I was able to accept being wrong. Before, admitting I was wrong was more upsetting than losing the money. I used to try to will things to happen. I figured it out, therefore it can't be wrong. When I became a winner, I said, "I figured it out, but if I'm wrong, I'm getting the hell out, because I want to save my money and go on to the next trade." By living the philosophy that my winners are always in front of me, it is not so painful to take a loss. If I make a mistake, so what! I found a tremendous amount of personal value and meaning in this passage. I thought about this statement an awful lot for a long, long time. It is pasted up on my bulletin board where I keep important reminders. It really helped turn my trading around. Eiger

Yes, I agree we all develop an opinion or a view ... BTW, I didn't post Seb's quote as a comment about you, Habi. It's something i always have to remember for myself, and I know that a lot of traders fall into the trap of having a bias, including some excellent traders from time to time. ... The best traders I have seen and worked with have a view, but are lightening quick to change that view when market conditions tell them to do so. If you look, for example, at Sebastian's VSA analyses (on other forums) you can see him change his view about the market being strong or weak throughout the trading session. As the bars unfold, he says in sync with the market and allows the market to tell him what to do. How many traders do you think stayed short and added to shorts yesterday, despite the SC just before 1:00? The morning session was weak and it looked like it might continue lower to retest late May lows. But the climactic action told us to consider changing our view. Much of the problem we have as traders is that our ego gets involved. We want to be right more than we want to make money. It's at the heart of many, if not most trading difficulites. It is, for example, why we tend to cut our profits short and let out losses run. Our ego always has a view and is always trying to tell us what the market should do. Dave Mathys, the Director of Trader Education at Wyckoff/SMI in the 1970s, encourged traders to anticipate rather than to predict. Anticipating the market's next move gives us a little more flexibility than predicting it. Prediction is specific and finite; anticipation is more dynamic. The ego, of course, loves to predict Eiger

I think Sebastian was probably referring to the small shake out at the end of Friday that would typically lead to a rally the next morning. I think maybe everyone is talking different time frames. The Dow and S&Ps generally do move togther, but not always. On the recent top on May 19, the S&Ps moved higher, but the Dow did not. At the mid-march lows, the S&Ps made new lows, but the Dow held higher. You can see other differences as well, but these two examples stand out. I also think Sebastian makes an excellent point: It appears to me that you all seem to have a view, or opinion, this can be dangerous as you get sucked in to your belief and that is how the herd get slaughtered, don't be one of them. This is really important to always keep in mind. Eiger