ranj

Sleepy, A cheat sheet is great, but it makes one think VSA is bases on finding these 1 to 2 bar patterns and then execute off of them. But think about each bar as it completes in terms of relative volume, relative range and, relative closing. Then slowly putting the sequence together to build a solid trading hypthosis. I think Pivot has a great post about how markets turn. Also VSA should be applied in the correct context, accumulation (early, middle, and end) verse distribution verse trend continuation.

It looks like today is going a no demand bar. I would sell on the break of today's low on monday. Also yesterdays bar did not have volume lower than it's prior two bars. Lastly today is going to be an inside day, one of my favorite set ups.

It's pretty good. It is broken up into three sections. The middle section goes over wychoff's methods of distribution and accumulation. As a matter of fact I started to reread it after my post above just to make sure I saw things right.

Looks like a great setup from a long-term short Seq of events of Distribution initial Buying Climax, 9/24 first transfer of ownership. Supply overcoming demand on 10/29 Upthrust on 11/9 signs that the distribution period is ending 11/12, Sign of Weakness (SOW) as we break the range bottom and trend line from Aug the Lows. Test of the area of "last point of supply" occuring today. Looks like a high prob short with target of the Aug Lows. Hank pruden does a great job explaining the these sequence of events in his book. http://www.hankpruden.com/

Tin, Bring up the chart of YG or ZG or GLD. Sequence of events. end of rising market 11/6, 11/7, Break of the trend line, WRB down on high volume, "SOW", 11/12, Low Volume Rally into the gap. "no demand in an area of previous supply. Sell stop on the break of yesterday's Low. . http://www3.stockfetcher.com/sfchart/1952378858.png

B and C yes A on longer time frames only,ie daily for stocks Sometimes these higher volume, successful tests, have demand overcomming supply on short timeframes contained within them

I need volume, but looks like a solid short

agreed The purpose of a stop is to get you out of a trade, because you did not have the chance, or the ability, to recognize a change in the orderflow. I find that I tend to fiddle around to much with my positions if I watch them, ie over think them. Tin I am glad that things have improved in you trades.

No, not unless you have an exit rule prior to your stop loss Hold on to your techinical view, because that is your proven edge. NEVER add to a losing postion. The trade has told that you are on the wrong side of the order flow. Feeling as if you are a strong holder is an emotional attachment to THIS trade not your trading system. The result of this trade does not define you as a person or a trader. Failing to follow a systematic way of entering and exiting the market defines one as a consistent losing trade. Note I did not mention anything about being profitable, just systematic. I'm annoyed, but I accept it as the cost of testing my hypothesis. I know, but you are not being shook out, the market does not know who you are, you are just on the wrong side of the order flow at this time and price. As am I.

I see :shocked:. I hope you got a lot of that action. Is there a solar ETF.

Buy dip in strong sectors, and sell rallys in weak sectors.

Wide Range Body. Pivot's concept of WRB and long tails, really put all the pieces together for me when applying VSA. It took me one step further than the bootcamp CD did in solidifying the concepts VSA to develope a trading approach.

Hi Pivot, In terms of profit taking, if I remember correctly, you like to trail your stops just below the low of the last WRB, and let the market take you out as opposed to setting targets.

CNX is working well thanks Tin AKS tagged in XME, XLE, XLB all working well. Got Gapped into AU, but exited, too much risk, with a slight profit.

Looks like XME and XLE are working well. Still watching Ebay, looks like it is forming a today

It looks like the bad news on Citi is painting a lot of low vol down bars. AKS did not hit yet, but is not showing any signs of supply. Should be a busy evening tonight looking at charts

Looking at the action in XME, made me look at it's holdings. Ideally I would love to see a 1-2 day reflex rally, on narrowing spreads into the WRB downbar from Thursday and then fall into the tail of the hammer with a low volume test. The rally would suckin in the late shorts, and clear some of the selling expected in the WRB down bar, then XME would test the tail on low volume, showing no follow through on the down side. Then the market would rally and the shorts have to buy get out, adding to the long order flow. But who knows, will have to wait it out.

Hi all, Weekend review with some possible candidates to trade. Looking long on sectors XLE,XLK,XME. (sector ETF acting stronger than SPY) XME holdings that are stronger than XME ETF are MEE,CNX,ACI,AKS,STLD AKS has a nice trade set up. Friday had a test in a previous area of demand.

agreed it is "testing" the gap. It is testing if the rapid shift in supply and demand (defined by the gap) is still present. Conceptually very similar to the MP concept of rapid price rejection in the area of single prints or invisible prints (gaps).

Bert, Take a look at Dr. Brett he has some nice posts about pivot points, especially recently. http://www.traderfeed.blogspot.com/

Hi Bert, IB charts have pivot points. Pivot points are not important to VSA. But having an area that one expects to act as resistance or support and see how the volume and price react in those area is important.

TG, I know you use a mac, what software do you use to make your movies? Thanks Rajiv

Blu-Ray, The last bar is an up bar on low volume with a narrow spread. Typically that would be a no demand bar. VSA normally does not use the open, but I think the open does help. In this situation the bar gapped up and then sold off during the day. So you have low vol (little effort to do down), no result (narrow spread and close near the prior close). Second there are no signs of distribution on the chart. High Vol Up Closing off the highs, or High vol, WS up bare with the next bar down. Third the high volume bar from 9/18 (very important) was tested twice (9/25 and 10/22) and stood up with no problem. (Look at charts that are weak and look at the price action around 9/18 to the 9/19) Lastly today was a low volume day all around, (or at least for all the charts that I looked at), so hard to take away too much from this one bar. Just my two cents Rajiv

TG, Looks like a nice short setup coming here . Maybe a narrow spread no demand bar within the body of the WRB down bar. I also think the wide spread bar from friday is called Lack of buying pressure.

Bam-Bam, Here is a link to good webinar on stop placement. http://www.cbot.com/cbot/pub/cont_detail/0,3206,1084+42256,00.html I would start a stop only analysis journal, and examine about 30 trades or so. It would go something like this. Chart Direction Enter because Stop placed Stop option 1 (pivot high) Stop option 2 (bar high) Stop option 3 (Last WRB closing lower, high) Then look at the percent of times that each stop was hit. Trading is about discovering who you are and studing yourself as you participate in the market. Good Luck Rajiv