[VSA] Volume Spread Analysis Part II

[shreem 10]

Hello Dbphoenix, very happy to see you around here. No doubt that your extended knowledge on price and volume will be a great add to this forum.

 

Just purchased your book and will be more than happy to dig deep into it when will get it.

 

In my learning curve, I feel very much priviledge to have the good karma of meeting great traders as you, Soultrader or Jperl as it help me a lot in developping my own thinking about how to approach the market and how to interact with it.

 

No doubt, that having you, SL, Jperl, Walterws and a lot of others here will bring and even better forum.

 

Sincerely

 

Shreem:)

[Tasuki 10]

Several recent posts have mentioned DbPhoenix's book, but I didn't catch the title or where to purchase it. Anybody?

[mister ed 10]

Several recent posts have mentioned DbPhoenix's book, but I didn't catch the title or where to purchase it. Anybody?

 

Hi Taz - it is an ebook ... from my researches as far as I know the only way to buy it is to contact dbphoenix directly (PM him now he is on this site or PM him through the T2W forum).

[Tasuki 10]

Hi Taz - it is an ebook ... from my researches as far as I know the only way to buy it is to contact dbphoenix directly (PM him now he is on this site or PM him through the T2W forum).

 

Thanks Mr. Ed, sorry to drag this out, but what is his site and what is T2W?

[BlowFish 10]

Tasuki try,

 

http://www.traderslaboratory.com/forums/private.php?do=newpm&u=8353

 

Trade2win is at http://www.trade2win.com/ can't link anything more specific as the site seems to be down right now.

 

Cheers.

[mister ed 10]

Thanks Mr. Ed, sorry to drag this out, but what is his site and what is T2W?

 

Hi Taz - sorry I should have been more specific. As far as I know DbP does not have a website, to contact him send a PM at Traders Lab or at the Trade2Win site (address below).

 

DbP has two great threads on the Trade2Win forum, one at

http://www.trade2win.com/boards/price-volume/29313-springboard.html

 

and another at

http://www.trade2win.com/boards/price-volume/29082-price-volume-support-resistance-demand-supply-abridged.html

 

From either of those thread you can send him a PM.

 

As Blowfish has said the T2W board is down at present so maybe send a PM from this site, the Traders Laboratory site.

[Tasuki 10]

Blowfish,

Thanks for the info. Geez, whaddya know, yet another forum for traders. They're sprouting like weeds.

[unicorn 10]

Hi guys;

 

what is the VSA analysis for the last 60 minutes of trading on Friday 22-2-2008?

 

cheers;

Unicorn.

[Guest beantown]

Video posted form Part 1 by Sebastian. I had this saved. Cheers.

 

TL! Videos

[jjthetrader 10]

Hi guys;

 

what is the VSA analysis for the last 60 minutes of trading on Friday 22-2-2008?

 

cheers;

Unicorn.

 

There's not much point going into bar by bar on that rocket but looking at the big picture we see all kinds of accumulation so it's time for the markup. There were little or no sellers at the bottom. If you look back about a week you can see the pros accumulated at the exact same level. There's something about the 1330 area they liked.

 

Might as well be in on the markup phase. Just keep an eye out for it's when the selling starts.

[Geomac 10]

Yet more charts of PP's. Pity that he deleted all his hard work. Why on earth would someone go to all that effort...oh never mind. Here are a few more of his best charts, with a few notations by moi.

 

Thanks Good Stuff

[DbPhoenix 42]

Hi guys;

 

what is the VSA analysis for the last 60 minutes of trading on Friday 22-2-2008?

 

cheers;

Unicorn.

 

Technically, I don't provide a VSA analysis of this, but I do show how to play it via Wyckoff in my Blog. Check out the end of the "Springboard" thread there.

 

Db

[DbPhoenix 42]

Something similar happened today, Unicorn, again due to news. This time, however, you wouldn't have got much out of it unless you'd done your pre-market homework re support and resistance.

 

Note that the selling climax does not exactly jump out at you. If you didn't have support drawn at 1765, you might not even notice it. But there or nearby is the place to enter, if you're going to enter at all.

 

.

[Bearbull 10]

This may interest some who wish to employ VSA, Price/volume, Support/resistance with certain time periods during trading hours.

Also highlights the fact no one person has special mystical insight into the workings of the market.

DAY TRADER CLOCK STRATEGY.doc

[erierambler 10]

This may interest some who wish to employ VSA, Price/volume, Support/resistance with certain time periods during trading hours.

Also highlights the fact no one person has special mystical insight into the workings of the market.

 

With all due respect and my humble opinion of course, I would never put any faith or give credence to a certain time period for the sake of the hour or minute . Only volume, support and resistance, demand and supply, and the action of price, is necessary for trading techniques. For me that is........

erie

[Bearbull 10]

With all due respect and my humble opinion of course, I would never put any faith or give credence to a certain time period for the sake of the hour or minute . Only volume, support and resistance, demand and supply, and the action of price, is necessary for trading techniques. For me that is........

erie

 

Precisely, that is the reason for the post, to dispel the claims of any mystical mentors, these reversal time periods have been known for a long time, like everything else in this business, they work some time and at other times they do not, however for some who do not wish to stare at the computer whole day long and have desire to incorporate into their trading strategy and test it out, it can be productive.

[bertg 10]

If you didn't have support drawn at 1765, you might not even notice it. But there or nearby is the place to enter, if you're going to enter at all.

 

.

 

DB,

 

How far back do you go to draw support and resistance?

 

Can you please show me where you got the 1765 number? Was it on the 20th of February?

 

Thanks,

Bert

[DbPhoenix 42]

DB,

 

How far back do you go to draw support and resistance?

 

Can you please show me where you got the 1765 number? Was it on the 20th of February?

 

Thanks,

Bert

 

Beginning at the end of the day on the 21st, then tested twice on the 25th. It didn't seem to be more than minor support for pre-planning, but price didn't think of it as minor when it was reached for the second time that day. That entire zone from 1760 to 1770 established on the 19th and 20th offered potential support, of course, but 1765 became a kind of fine-tuning.

 

Db

[Soultrader 12]

Joel Pozen recording on ER2.

 

TL! Videos

[NAVEEVIa 10]

Hi everybody

I am reading the previous VSA thread and do come up with doubts so heres one

In One of posts PP asked a question: Why is a no demand within long shadow a better trade than no supply within range of WRB?( see attached chart)

I have noticed that when there are tails when market is at new high/low PP annotates it as demnad or supply entering . So My guess is that if we see a long shadow at it represents demand/supply entering especially if price is into new ground on very high volume , if we now see a low volume signal there that reaffirms the previous supply/demand seen on shadows.

Please correct me here.

Another question

we can have a no. of combinations of low volume signals in high volume area(WRBs)

1. No demand in dark WRB

2. No supply in white WRB

3. No demand in white WRB

4. No supply in dark WRB

To me it intuitively seems that 1,2 are better candidates for trade since they reaffirm but i may be wrong here

comments appreciated

Naveen

[DbPhoenix 42]

If you consider the waves of buying and sellling pressure within the bar interval you've chosen rather than focus on the bars themselves, you'll see that a wave that attempts to make a higher high is of greater importance to buyers and sellers than one which is tucked inside a previous bar. Plus it's more likely that the second ND situation in your chart will be noticed by more traders since the intermediating bars may not be visible with a longer bar interval but the swing points will. What is more important in all of this is the lower high at R (assuming that the R is legitimate).

 

As for volume and WRBs, the two need have nothing to do with each other, i.e., one can have a WRB resulting from a lot of buying pressure and very little selling pressure, or vice-versa, which graphically would show as a WRB with "low volume".

[zdo 20]

Calling all you cynical VSA’rs

Got any commentary on this chart?

 

Actually the less jaded (like dbPhoenix) are also encouraged to Wycoff / chime in.

 

zdo

 

 

 

PS And welcome aboard db.

Not as much button pushing here as over on t2w.

All the best.

[Sledge 13]

Ok VSA pro's I need some educating.

I watched the GBP/USD daily bar all day yesterday and prepped for its close (See the bar marked with the arrow)

In the chart below you see a very high volume day into "higher ground" closing, not only on the low, but BELOW the prior days close. This as I understand is TEXTBOOK reversal bar stuff!

 

I waited for the market to drift a tad higher into 11:30 PM last night- I figure the higher the better right? Monster drop ahead!

 

Now I was able to make pips and profit on the trade- but I'm scratching my head right now as this "monster drop" never came to fruition. At one time I was up 58 pips and when I woke up, found myself taking only a 20 pip profit.

 

I would like the more seasoned VSA traders to fill me in. Forget the large green bar to the marked bars "right side". I didn't have the luxury of seeing that todays volume would be higher than yesterday when I made my trading decision.

 

So what is this- temporary weakness that was overcome?

Is the volume way to low to be a "reversal bar?"

I'm dying to find out the answer to this riddle!

Thanks in advance!

Sledge

 

[DbPhoenix 42]

So why did you exit the trade? What was your plan for the trade?

[Sledge 13]

Got any commentary on this chart?

QUOTE]

 

Zdo-

Not sure when you took your screenshot but on my daily chart my volume is quite a bit higher than what you show in relation to the previous bar on yours. I also drew a few trendlines a while back.

 

As you can see it has broken from its channel and skyrocketed. The "We cracked 1.50" parties are still running rampant- I'm sure. I can say with a lot of certainty that we are now in the "Public Participation Stage" This is where the public is thinking "this bull will ride forever" and the professional money is dumping their longs off their books and gathering shorts. They are feeding the demand in the market.

 

If I were trading this, I would wait for the fuel to run out on the rocket, let it sputter on the top and strategize for when you will enter for your short. I trade the Cable almost exclusively, but if you are in the EUR every day, you will know its personality better than I. (i.e. does it mushroom over, or are turns more abrupt and lightning fast)

 

My .02 for what it is worth.

Sledge