drsushi

Hi, Just thought I'd comment on one chart. SUV could be a long setting up. At weekly support and momentum has been shifting to more bullish. I've attached a chart with some comments. Just my opinion. David

the 250 tick chart method is a free scalping method he throws in if you buy the course. I bought the course and it is a ORB method. You do not know the entry price before the open. The E-book is very long winded and is purposely made to be 50 or so pages when you can explain the method on one page. The biggest draw back regarding the method is that he uses a 5 point stop with a 2 point and 4 point target. I've traded it a few times and then dropped it. I don't like the stop size for the target size and I don't like blindly entering just because the breaks an area and comes back to it.

Tasuki, I'm pretty sure UT stand for Upthrust. SOT has got me stumped. Sign of....?? David

This is very nice. Thanks for this. This is similar to the Better Volume Indicator by the guy at Emini-watch.com. I like this one better because it seems easier to understand. How did you get the candles to paint the same color as the volume. I have the volume, but no the candles. Thanks again. David

Eiger, Thanks for the explanation. That makes good sense. I was acctually refering to the bar prior to bar #1 indicated on the chart. That bar had high volume and narrow spread prior to bars 1, 2 and 3 forming. I thought that is what you mean about background. How far back to the left shoud we look when talking about background? Is there any rule of thumb on that. Also, in this example chart are there two trades here or do is waiting on the hidden upthrust necessary? One area I have an issue with in all aspects of trading is what is my trigger to get in. Since VSA does not use things like a cross of this or that, what is generally the "trigger" for a VSA trade? Is it taking out the low or high of a bar depending on direction? David

Eiger, It wasn't my post, but I wanted to take a stab at why it was a choice short. My guess is because there is a "doji" for lack of a better term on high volume. Very narrow spread on high volume so the background is indicating selling. I'm just learning, so please comment. Thanks. David

Hi All, I'm fairly new to VSA. Some of it seem simple while other aspects seem difficult. Somone has been teaching me thier version of VSA and I wanted to post a chart and get the opinions of those that know. Sorry if this is not the place for this chart. I wasn't sure on what thread to post it. The cart is a 3 minute ES chart from 4/29/09. It could be a 5 min or even a 10 minute, but I used this 3 minute because it depicts the characteristics I've been told to look for. 1. Price is rising, but closing off the highs. 2. At the peak there is a high volume bar with price closing off the highs 3. There is a narrow spread bar on low volume. This indicates lack of buying power and the professionals desire not to take it higher. 4. the indicator at the bottom is a DMI and a cross occurs and price starts to fall off. 5. Price at around the 880 areas is a current or prior pivot level. Question is: Does this seem like a reasonable interrpretation of Volume and or VSA? Any feedback / comments are welcome. David

Hello, I've been interested in this pattern as well. I've posted a 60 minute chart of the ES. Someone posted one of the ES a few days back, so I'm assuming the large pattern is the same one that was posted a few days ago only on a 60 minute time frame. There is another pattern that seems to be forming on the lower right corner (blown up). I was wondering if what Im seeing is accurate. Thanks. David

Hi, this may be a dumb question, but what is an H1 bar? Is that an hourly bar? Since what you have posted is for Meta could you make a suggestion as what I should use for Tradestation. I'm just getting into Forex and it would be great to start off with a good method. David

Question, I've read on this thread that everything can bee seen in price. If divergence by definition is price moving one way while an indicator is moving the opposite direction, how can divergence be seen in price alone? Doesn't the concept of divergence require a second data point or source? Also, isn't a divergence just a heads up as to what may happen and not and indication of what will happen? And, aren't there indicators that have a volume component (Klinger volume) to them so that if there is a divergence part of that divergence is based on volume. I see many posts on TL that discuss price/volume divergences. Is that not part of VSA? I just finished reading Trading in the Zone and from what I read and from my experience of being good a losing, it's more about what is between the ears then the method. If we have hour "minds right" then the rest will work itself out as long as the method over a reasonable number of trades provides a high enough percentage of winners to make one profitable. That doesn't mean 80-90% because money management plays a roll too. It seems to me, unless I am completely wrong that the order of importance is 1. mind right, 2. money management and 3. method. Please let me know if I'm full of it. David

I was just wondering if any has done the code for PVP? If not, would one of the coding guru's on TL be willing to take that on for us? Thanks for all the work on the VWAP. David

email, I may have been a little unclear in terms of the stop strategy. I agree that the volatility could kick one out a lot. I by no means am an expert and am still learning. Much of the info I was sharing I have learned from the google group. I think the intent of the strategy is to place a stop above a previous high or below a previous low depending on the direction of the trade, of course. In the group they discuss using 3 time frames. The longer time frame gives general trend and the lower timeframe give the trade setups and an even lower timeframe is used for entry. The main method discussed in the group is the use of the 777tic for trend, 110 tick for setup and 16 or 8 tic for entry. Higher timeframes such as a 60 minute or 240 minute etc are used as well. One thing that is emphasized a lot is that if you see a double top on the 110 tic and then a lower high on the 110 tic you that would indicate sellers taking control. Assuming the trend is down that day you could enter short with a stop above the previous high wich may be no more than 2 points. Please don't shoot the messanger. This is what is taught/shared in the group. As far as exits go I've read concepts of scaling out in thirds or quarters mainly from the Trade the Markets guys and the theory is that the sooner you can move your stop to break even or break even minus a tic or two the less risk you have. If you scale out in thirds at 4 tics for the first third, 6-8 tics for the second third and open target on the last third with a stop at break even after the second target, even if the last third scratches you have a profitable trade. That is the theory. Is it a good one? I don't know. I too would rather hold for 5, 6 or 10 points. I would love to hear about other exit strategies. One thing I was thinking of would be to take a 100% fib projection from the prior swing as a first target and/or a 127.2 extension as a target. I don't like the idea of limiting myself to a 1 point or 2 point target, but it does seem smart to scale out and limit the risk as quickly as possible. If you get a runner or even 6-10 points on your last third that is still pretty good, isn't it? Let me know. If you want me to post a chart of example trades let me know. David

Cosmic, someone modified the code to smooth it out a bit. Is your code smoothed like that. I'd be interested in your version. Can you elaborate on what you mean by the divergences being more elaborate? Whould this be for daytrading? David

Brown, I'm curious as to why you would not take a trade long on the test of the red candle with the long wick/shadow. What is it you are watching/looking for etc. If it were me, I would have thought I missed the trade after if broke 74.75 and tested it and went on up to 80.75, or I would have chased. Thanks David

Here is a chart of a possible trade. I did not take this trade and at the same time of trying to avoid cherry picking a perfect example, I also wanted to show and example that would explain the concept. I forgot to draw in the possible stop, but it could be just below the HL on the 16tic below entry or just at or just below the pivot if entering sooner. The 4 to 6 tics I think is an acceptable profit target. I'm not sure if i'm understanding your comment. If 4 tics is not an acceptable profit target then it wouldn't be worth even trading. The idea is to have say 3 contracts and with a stop just below or above the previous low or high. The stop could be 1-2 points. If I hit my first target of 4 tics moving the stop to BE-2tics seems reasonable. Could go to BE or BE +1. Or, if second target is hit then move the stop to BE. From what I have learned, and I will say maybe the most valuable thing I learned from TTM is reduce risk. The fast we can get the stop to BE, of course with out getting stopped out too soon the better. In the attached example the trade played out in a positive way. The last third can be exited on some criteria or, manage it anyway you want moving the stop to preserve profit. I don't know the best way. The Sanuk Group on Google talks about this method and many or most of the traders in that group trade with price action in this manner. They may use volume bars or minute charts, but many of them speak of this method. I am just presenting here, but it really hit home with me. Anyway, I've gone on long enough. Feel free to comment. One last thing. I do like to use the Volume Delta OSC that someone created on TL. It shows divergences very nicely and can give a heads up to a turn. Also, the way price action was explained to me is that its the buyers and sellers going at it and one of them will take control which in depicted in price. This makes sense to me. David