jjthetrader

I totally agree, I have no trading plan regarding VSA. That's why I ask for real-time trades, to see what others are doing so I can form a plan and see how it's done. I'm looking for help setting up a plan and developing trading strategies around VSA principles. But I like your ideas PP about mixing VSA up with TA to find entries.

This adds to the discussion from yesterday about VSA and actual trading. Monad, you'll see that it's quite easy to identify the strength I have pointed out on the attached chart. That's what I mean about the easy part. Now that we identify strength, where would we enter. If we entered long after that first sign of strength and place out stop under the low then we would have got stopped out. But if we get in quick and get out quick then we could trade each one of these signs of strength. So for me deciding how to trade VSA is the more difficult part of the equation. This is where people's real-time trades come in handy, you see how they're actually applying it. I was hoping Sebastian might post trade entries and exits based on his VSA reading. Entries might be too personal for people and they may want to keep it secret to. That's understandable, its their right. But even the guys at tguider after they promise you they'll teach you how to trade don't actually tell you when to get in. They teach you VSA and barely do a good job of that.

Hey zdo, although not technically vsa I'll shed what light I can on clusters. They show up where multiple trend lines intersect. This will include trend lines from as far back as you have chart data. This does also include highs and lows. I find them very effective and you can indeed watch price change it's behavior in them. If you would like to start another thread about this we could since we want to keep it strictly VSA here for the boys + girls who don't like Tguider.

Calling the event a failed test is named that because it depicts "negative action". It becomes a bearish sign. If you were bullish seeing a test and were actually in the market this would be a good time to get out or reverse. If you were looking for a long setup then this would indicate to fade it instead. Yes monad it is my entries that make vsa difficult (for me) at times. Translating into trading setups was difficult but Ravin & Tawe have been helping me out and giving me a clearer picture of what trading VSA is. Jumpin: Todd's bootcamp is available at the tradeguider website. PP, everyone appreciates your commentary. Do you only trade forex? What timeframes do you like?

You don't have to post the trade in real-time just post a trade that took place in real-time. That's what I was refering to. Tawe didn't post in realtime, he posted a realtime trade not in hindsight as what he would have done. Monad, I find reading VSA the easy part. Seeing weakness is easy, where to get in and not have a stop taken out is hard without large stops.

The nice thing about Tawe's lessons is that they are real time, not hindsight. He read it in realtime and emailed me just after the climactic action saying look to go long. Great trading man! This is what I like to see on the forum, how VSA translates into trading with entries and exits from someone who couldn't see what the next bar was going to say. The other nice thing is that Tawe shares his losing trades which help us not make the same mistakes. Reading VSA seems to be the easy part, making the trade is the more difficult half of the equation. Even Tom Williams admits that trading is not easy. Thanks Tawe, you make it easier.

Awesome Tawe, I was beginning to think your order execution software didn't have capacity to execute long trades;) Good trade, thanks for sharing. I think you're smart to not be greedy. Tom said in the Bootcamp that if weakness appears on the 15min chart you can expect weakness for at least 15min. This is a good reason to get out on the second bar as you did because as you can see your follow through volume wan't that great on the bounce. Congrats!

I asked this exact same question on the page before this one with a chart example. What I've discovered by looking into the phenomena is that if there is weakness (supply) on the run up before it "pulls back" then those no supply bars are polar bears in hawaii, they don't belong. In my example, which I'll post again here to make it easy for you, you see ultra high volume on an upbar then an upthrust following it with the following bar closing below the upthrust. This is weakness and thus those "no supply" bars are in a sense no demand from the big boys. Does that make sense? I was dumbfounded when I saw it taking place as well. Check out my second example. We have a rally on steady increasing volume, no big spikes. This is strength or demand.Then we get a sweet pullback on low vol thus no supply. So it's the background that determine's what the bar you're looking at means. Does that help?

I'll post instead of private message so that others can compare as well. I think it's an important VSA component, proper data. I am on the east coast of Canada, you're right about that. Both esignal and Tradestation show approx 25000 contracts on that bar. Your chart looks like it's close to 50000! The pic with TradeGuider is eSignal and you'll recognise TS.

Hey bert, I have tradestation and esignal and neither had a volume reading like that for that bar. Bad data is scary when you're dealing with VSA. You want to see a horrible data source? Subscribe to Qcharts. The actual volume isn't updated until 24hrs later!

PP, are you a full time trader? Are you willing to take a VSA trade that is setup in the middle of nowhere, so to speak, meaning a trade not off of a pivot or anything like that?

Thanks for the good comments PP and Tawe. Good job on the S&P Tawe. How'd it go on the FTSE? Are you back in the "black" after the bank announcement day now? Thanks again to Sebastian. Any chance of getting a walkthrough of a day you actually traded with explanation of why you did what you did and what you were seeing at the time? cheers

Would you short this upthrust ? If not or if so, why?

Check out my first pic. We see a breakout up through the Pivot on the YM. It goes up and hits a bit of supply (yesterdays close) and does what seems to be a pullback to the Pivot. See the no supply bar on the Pivot? Would this not usually be cosidered a high probability Long position? Now check out the second pic. Is this just one of those times that that setup wouldn't work? I know Tawe would have been short right after that upthrust and ridden it straight down through the pivot. How would one distinguish a pullback from a new trend? thanks

The bands appear to be fixed. There may be a more complex calculation for it but using trial and error they match. Plus you don't really give a whole lot of weight to the bands anyway, they're just a quick visual que as to what volume is doing relatively. Once volume goes into high territory you start watching the spread and close a whole lot closer and vice versa. So std dev would be a nice visual cue as well. I would encourage a banding system like this as well and would love to see it.

Hey jaybird, love seeing RT trades, especially when they go wrong. These are lessons that you pay for and we benefit from. Tawe Trader on this forum likes to take trades like yours and he suggests waiting on the low of the upthrust to break with a close below it. Your direction was correct and it's not your fault that stops were gunned for on the 10:25 bar. See how the 10:30 bar closes below the upthrust of the 10:25? There you go. I made a similar mistake yesterday. I got anxious to get the better price instead of waiting for confirmation. Good trades though bro. Keep posting. I like your energy. JJ

That's how much the smart money doesn't want you to know these things, they're intercepting your emails. :o

Any reading equal to the upper band = Very High Volume. Any reading above the upper band = Ultra High Volume Any reading between the middle band (average) and upper band = High Volume Any reading around the middle band = Average Volume Any reading in the area below the average band and the lowest band = Low Volume Any reading below the bottom band = Very Low Volume Logic behind it: Average range is just a 15 bar EMA. Very High Band is 1.75 times the 15 EMA. Very low range is 0.25 times the 15 EMA. It's that simple. Marketing makes it sound complicated. But if all you're doing is measuring relative volume it makes perfect sense. To do the colours in metastock you're on your own:) RELATIVEVOLUME.ELD

Sure, being an indicator lets discuss it here: http://www.traderslaboratory.com/forums/f56/req-help-with-trend-indicator-2428.html

Here you go for the DJI.

Blu-Ray seems to be able to code anything so I'd see if he could code it up for you. I don't use MS so didn't think to do it. I can give you the logic behind it if you'd like. Thanks to Blu-Ray for figuring out all the perdy colours that I was insistent on having:) Also he was able to take my basic code and have the 'ranges' increase with increasing volume and vice vera which tguider does. The average rage becomes wider as volume increases, very sweet. Thanks BlowFish for the StdDev post.

They produce the same results. I have TradeGuider and it matches perfectly.

Based on average and then deviation from that.

I know this should go in the indicator section but I'm sure more people in this forum may want to take a look at it. Blu-Ray and I worked out a volume indicator that matches TradeGuider's Relative Volume Bands for Tradestation. Enjoy. RELATIVE VOLUME.ELD

Customer only tonight with Tom and Sebastian