VolumeJedi

There's really not enough information to answer you question. There are a myriad of ways to paint the volume bars. One can paint the volume bars blue if the close is greater than the previous close and red if the close is lesser. One can paint the volume bars blue if the volume is greater than the previous volume bar and red if the volume bar is less than the previous volume bar. Some people use the better volume indicator which has various colors for the volume bar based on things like range of price bar X volume. One can use different colors to indicate many things and basically take the place of "squiggly" lines on the chart. Its just a question of how much information you want to be.able to gleam when you look at a volume histogram. I would also add that VSA looks at relative volume, and there are times when using colors helps accentuate the relative difference is size of the volume bars

Yes, this is true. It doesn't have the TradeGuider stuff obviously and according to Eiger there are more examples and they are more clear.

The trend is up. The last candle appears to make a lower low and not a higher high. It also appears to close near its high. The wick shows support (demand) on the bar. As ther volume is increasing but does not look excessive, I think the candle is strong. It may be a from of a Shake Out.

Thanks for the chart. This is how I see things. 1: Wide Spread up bar on ultra high volume. This is the highest volume bar up to this point ( I am not sure if this is an open or what cause all the previous bars look like they are part of a low volume period). Anyway, the close is off the high and the next bar is up. Even though the next bar is up, the close tells us that some supply entered here. Why else would the close be so low in the range? With the price action behind, this may be pushing thru supply, which would be bullish, but then we need to see it tested almost immediately. 2: This bar appears to be a bit narrower, but the volume increases. So we have an increasing volume bar closing off the high and this time the next bar is down. More weakness enters here. 3. Volume less than the previous two bars on a narrow range bar closing down. This is a test. This not a very good test bar. We would rather see this bar make a lower low and close in the middle or high. It does not. Plus the range here is a bit wide. This test like bar is confirmed with the next bar up. 4: Increasing volume (second highest since 1) on a average ranged bar that closes off its high. With the amount of volume here, the range should be wider and the close should be higher. So there is some weakness present here as well. Price may be rising, but weakness continues to appear. This can happen as there is a such thing as momentum. The bar after 4 is up but the volume is down. MTM tells us that in general, bearish volume is increasing volume on down bars and decreasing volume on up bars. This is the latter. 5: Another test. Note that the range here is narrow. While we don't get a lower low on this bar, we do get volume not only less than the previous two bars, but also less than any candle since 1. 6: Wide spread down bar that closes below the low of the test bar. This means our test has failed. As you correctly pointed out, prior to our test we have begun to see lower lows and lower highs. After seeing weakness enter, we would be looking for this situation-a change in trend. Basically, every up bar starting with1 has been weak. The trend eventually changes and then we get the test at 5. At that point it is a bit risky to take a long. If 5 did not fail, you would likely see a "re-test" bar soon that you could use for a long entry.

Great post. Very nice to see you back. We all missed your brilliant insights.

Lots of questions there. Ultimately it is a personal choice. VSA works well in all markets and on all timeframes. Many traders trade the indices , futures or spot forex. All you need is a freely traded market that has volume (contract) or volume (tick). There is (tick) volume in forex. Ironically to many, the signals in forex are really good. The claim that there is no volume since there is no central exchange. Never the less the signals are often clearer and more idyllic or text book than in the emini. Personally I think this has to do with competition. Remember the smart money is not only in a battle with the herd, they are in a battle amongst themselves. In my opinion this may lead to less idyllic signals at times in a market littered with smart money. Just a guess. As far as stock go, the only thing I can say is make sure it's a liquid stock. VSA will not work well, if at all, on a "penny stock" with little volume. Timeframe for stocks does come into play because of the "day trader" rules. I hope this helps and welcome.

The bar you denote as stopping volume is strength. With immediate strength in the background, why would you consider the next bar weak (no demand) ? This happens often and is the lull before the up move takes place. The very next bar is a down bar on even less volume this in no supply. The next bar (green) marked low volume up bar is a test. Some tests close up as this one does. You should be looking to enter the next bar if it makes a higher high than the test. As it does. Be careful of this as it happens often and many people mistake the no demand for weakness in this situation. Just look out for a "no demand type" bar on a nascent up move directly following strength. It's not weakness.

Question #1 (long): Every trader has to make his or her own choices. You correctly identified the strength that entered at 1. Point 2 is a test, but many people would miss this entry. Point 3 is another test/no supply type candle and another viable place to get long. More accurately, point 3 is no supply and the following candle is the test. If you wanted to enter when the high of 3 was broken, then you don't get in on the next candle. Your entry would come one candle later. Take a look at point 4. The two candles prior to this are a two bar reversal. This is into your support/resistance area marked by line a. For many this is the best place to go long. It comes down to how much background strength or other supporting evidence each individual trader wants/needs. If you are comfortable getting long at point1, then there is nothing wrong with that. Gavin, talks about "diamonds" changing colors before entering and I would think that at point 1 they would not be green. I only mention this to make my point of trader's choices. I personally don't like or use the diamonds from TG. Question #2 (short): Either would work. There is another one two candles later. This one is actually the best definition of no demand (on my platform at least because the volume is also less than the previous two candles). Based on your screen shot, it is a squat and still a good place to get short. Back to B&C. Note that B does not confirm because C closes higher. If you were looking to enter when the low of B was passed, it doesn't come on C. C has an increasing spread so it's not technically no demand. It does show a lack of buying interest of the smart money never the less.

Welcome. The high volume down bar marked 3 white diamonds is tested over the next 3 bars. Each bar has less volume as they close down. The third test is followed by an up bar and forms the second low of your channel.

Do a search. I believe it is in the coding forum.

There is no buy there. 1 bar back is a test. This test fails on the next bar as price trades lower on increasing volume. 5 bars back is a wide spread down bar on ultra high volume where some demand did enter. But that last bar made a lower low and closed lower than that bar. Your best options are to do nothing and wait for a successful test. Or look for a narrow range up bar on volume less than the previous two bars to get short.

The term WRB means Wide Range Body. The body is the distance from the open to the close of the bar/candle. Many have incorporated WRBs into VSA but it is not technically a part of VSA, as VSA does not look a the open. There is a small thread in the VSA section on WRBs take a look. For more complete info go to eliterader and do a search.

You can look at volume and compare it to range. In addition, you can compare the close "result" to the range to see what the "effort" or volume did. It's called volume spread analysis.

Don't know how useful this is (the fact that I don't trade the S&Ps not withstanding LOL), but I do get a kick out of listening the these examples. Thanks all.

Just my 2 cents. One does not have to use obscure timeframes to "get ahead" of the herd. The issue is that the herd is not looking at what matters, regardless of timeframe, and that is price action. They are concerned with arrows and candles turning green or this indicator going above that line or line A crossing line B. In fact, if one uses the same timeframe as the herd, one would be able to both see what the herd does, and more importantly, does not see. Ultimately, markets are moved by imbalances in supply and demand. These imbalances are created by the BBs. These BBs are on all timeframes, but if they want to manipulate the herd, then they have to be on the herd's timeframes.