jjthetrader

Exactly, an immediate test of that high vol bar did signal the long there. It happened to be on a pivot as well.

I only found my basic 'diamond indicator' but I will explain to you what you need to do in order to complete it. Here's it's basic background. TGuider uses a 5 period MA as it's default. You can change this for quicker responses in immediate trend changes. Logic: If Price closes below the MA a red dot will paint in TSation. If Price closes above the MA a green dot will paint. That's the basis of it. But there is a little twist that gives you the warning of a possible trend change and that is the white diamond. Here's how the white diamond works. You'll have to code this part in but not to worry it's very simple. If you're in a downtrend, closing below the MA then all of a sudden you get a close above the MA, that would paint you a white diamond. If price then reversed and closed below the MA on the following bar, this would also be a white diamond. In order for either the red or green dot to paint, it will need to be the second close on that side of the MA since the first will be white. Are you following? Good. It's as simple as that. Here's the basic code for just red and green dots. You'll have to put in the extra conditions for the white (possible change in trend coming) dots. inputs: Price( Close ), Length( 4 ), Displace( 0 ) ; variables: Avg( 0 ) ; Avg = AverageFC( Price, Length ) ; if Displace >= 0 or CurrentBar > AbsValue( Displace ) then begin If Close < Avg then begin Plot1( Avg , "Avg", Red ); end else begin Plot1 (Avg , "Avg", Green); end; { Alert criteria } if Displace <= 0 then begin if Price crosses over Avg then Alert( "Price crossing over average" ) else if Price crosses under Avg then Alert( "Price crossing under average" ) ; end ; end ; Good Luck!

Thanks for the input. Here's why I asked, look how price just goes straight up after it. I was wondering what it was so I can look out for this in the future. This was the smaller timeframe ranj. I got the cue on a higher timeframe then zoomed down to this 2 min chart and saw this but thought the volume was too high to be a test. However a downbar closing on the high is usually a bullish sign is it not?

Right, sorry I forgot all about this. I'll get on it, it's on my laptop so as soon as I have it running I'll post. If you'd like to discuss it please feel free to PM me. JJ

Is this considered a test in the attached chart even though the Volume is high? The next bar is up so it's hard to say. It's something but is it a test. I suppose it could be a shake out.

I've reattached the same chart but with pivot points and this gives us another clue as to why price action is taking place in that particular range. Thanks Mr.Paul

MrPaul, is the attached chart what you were pointing at with yours?

No? Not even for a small ride?

And if that 75 Point move wasn't enough for you then look what POTENTIAL buying after that move produced around the same price level. The amount of volume at these potential levels seemed to determine the size of the move. I find that Posting these examples helps me learn so I hope it's helping others as well.

For Tin and PP, and anyone else interesed I suppose, here's an example I found that is almost the exact scenario as I posted regarding hidden POTENTIAL buying. Would you mind having a look at it and see if I'm getting it now. Thanks

Distinction noted, there was no "next bar up" on my potential hidden buying. This forum is great. All these little things you've got to look out for slip your mind when VSA is new for you. Thank you.

I found this trade today on the DOW mini. It's a TTM setup but look how VSA is incorporated in it to confirm it. Notice how the 50% FIB retracement line matches up to S1. Now look at the bar approaching that line. LOW volume. That would have been a sweet short scalp.

Thanks to both for your comments. Here's a chart of what happened after what I posted earlier. Tin, I overlooked Effort, you're right. I thought any wide spread down bar on ultra high volume closing off the low was hidden POTENTIAL buying and once you see the potential you then wait for confirmation. But if I keep waiting and waiting for confirmation, where the heck do I enter my trade (without the wipsawing catching my stops)? I suppose the bar after the no demand bar signals a continuation and I chould enter there eh? Thanks for all the input.

Here's another "what if" to help me understand background. In the attached chart we see what could be hidden potential buying. We dip below S1, possibly to catch stops, and rebound back up to it where we see a no demand show up. Is this a polar bear in Hawaii and is the market resting before a push up or is this a Polar Bear in Alaska and that hidden potential buying was not buying at all. PP, since you take trades in this area what would you do? Sorry to ask so many questions but I want to make sure I'm reading things correctly. You guys have been VSAing longer than myself so thank you for sharing. thanks JJ

I haven't updated my daily stuff yet but as of yesterday it is continuing down. Don't know what's in store for this one. PP, in one of your earlier posts you said you put a blue dot if a certain condition is met and a red if another. What were your conditions?

Thanks Tin. There's more to weakness/strength then hidden potential buying/selling, I see that now.

Yes but at some point in the day buying/selling has to come in and I don't want to be shorting when the bottom has been reached and we're moving sideways just before an up move. That's the kind of background I'm looking for. I'm not really looking to call the bottom but to see if potentially we're done selling/buying for the day so I can act on "no supply" if at the bottom and not a "no demand" in the same range at the bottom. Polar Bears in Hawaii (if you've seen the boot camp).

Thanks Tin, I didn't know what kind of answer I was looking for either but I think you answered it. I was just seeing hidden potential buying with a positive test but then the market turned and headed downwards. This applied vice versa as well with selling so I assumed I had the wrong background information. I was just wondering where to look really. I may be looking too far back or too close. But you made a good point, in a downtrend look to short signs of weakness.

Would you guys mind helping me out on this chart. One thing I'm still getting tripped up on is the background. Have a look at this chart of the DOW mini (15 min chart), would one of you be able to point out the elusive (to me anyway) background? I know Ravin's familiar with the YM, any pointers? Thanks!

I'll PM you to get you going

Well you could try saving your monthly's in one folder and your daily's in another folder. You obviously know about the 'save group' function but you want a timeframe applied to all, correct? Do you have the RT version or EOD?

I agree also. Trend is very important for higher probablilty trades. Thanks for reminding us of that important part of VSA/trading.

Thanks bud, that confirmation bar is so important, you're right.

When we see ultra high volume down bars closing off the lows then, in what circumstances are we to think bearish?

It's Fedex.