[VSA] Volume Spread Analysis Part II

[VolumeJedi 10]

  Tasuki said:

VJ,

Where do we learn more about jprel (or is it jperl?) and this work you regard so highly?

Taz

 

Jperl's thread is in the Market Profile section of the TL boards.

[giraia_br 10]

hi

 

can someone with eSginal data post a few recent charts of Forex instruments? Using 5, 15 and/or 60 min?

 

or just send me in pm, or just a link here, don't need to post the image direct here.

 

thanks in advance.

[jjthetrader 10]

  giraia_br said:

hi

 

can someone with eSginal data post a few recent charts of Forex instruments? Using 5, 15 and/or 60 min?

 

or just send me in pm, or just a link here, don't need to post the image direct here.

 

thanks in advance.

 

Not sure this is the best place to have posted that but here you go. Can't attach in PM so have to post.

[giraia_br 10]

  jjthetrader said:

Not sure this is the best place to have posted that but here you go. Can't attach in PM so have to post.

 

i was comparing with Ninjatrader Gain feed. Its matches on many bars but certainly is not the same

 

many thanks jjthetrader.

[jjthetrader 10]

  giraia_br said:

i was comparing with Ninjatrader Gain feed. Its matches on many bars but certainly is not the same

 

No, forex volume will never be the same from provider to provider. It all depends which banks are reporting the transactions.

There was a rumor of FX getting a central exchange. That would be great news for everybody.

For now you have to seek out the best representation, the one with the most banks reporting. I think esignal is the best in that case.

 

Tradeguider has switched over to a new integrated data feed and use realtimedata.com now for their FX data. Not sure if it's any good. If anyone tries it out it would be good to know it's quality.

[HAKUNA 10]

From their website, it seems they are more expensive than esignal, will have to call them up.

[jjthetrader 10]

  HAKUNA said:

From their website, it seems they are more expensive than esignal, will have to call them up.

 

79.99 RTD and $100 esignal so there's a marginal difference

[HAKUNA 10]

  jjthetrader said:

79.99 RTD and $100 esignal so there's a marginal difference

 

That is the exchange fee for the first instrument, then it is $29.99 for every other, that would be expensive. as I say I have to call them up to clarify.

[jjthetrader 10]

Don't know where you saw that. Here's a shot of the sign-up page with the total. We were only discussing Forex data anyway. There will always be more exchange fees for everything else you add.

[HAKUNA 10]

Am aware that additional markets incur additional costs.

just going by what I see on their website.

[giraia_br 10]

reading previous posts i see someone using the nick "Anonymous" but that people reffer as "PP" and he posted many indicators for VTtrader. Maybe someone that read the entire thread or has/had contact with him know if he was using eSignal too? Id like to know if it will benefitial for me to download these indicators and use with CMS VTtrader (FREE).

 

and, someone here has all indicators he posted in the threads in a zip format?

 

 

thanks in advance.

[kuky969 10]

Hi

same signals long

1,3 demand entry ...note spread and volume

2,4 test (or no supply ??)

Sometimes I think VSA is very easy but sometimes is headache

 

http://www.sierrachart.com/userimages/upload_2/1232570472_13_UploadImage.png

[jjthetrader 10]

  giraia_br said:

reading previous posts i see someone using the nick "Anonymous" but that people reffer as "PP" and he posted many indicators for VTtrader. Maybe someone that read the entire thread or has/had contact with him know if he was using eSignal too? Id like to know if it will benefitial for me to download these indicators and use with CMS VTtrader (FREE).

 

and, someone here has all indicators he posted in the threads in a zip format?

They're listed here somewhere. You'll have to do a search. I remember the code being posted in VSA I. As I recall that guy didn't use esignal.

Blu-Ray also translated the code in the coding section for other software.

[jjthetrader 10]

  kuky969 said:

Hi

same signals long

1,3 demand entry ...note spread and volume

2,4 test (or no supply ??)

Sometimes I think VSA is very easy but sometimes is headache

 

http://www.sierrachart.com/userimages/upload_2/1232570472_13_UploadImage.png

 

So you got long at 1 & 2? With strength in the background that was smart. Did you hold all the way intil 3 & 4? Nice work if you did.

[kuky969 10]

JJ

first signal I missed, second I took long but I dont entry simply on close num. 4 bar . I want see increase of momentum in my very little 500 V chart - nice move of price and increase ask volume- green rectangle in picture. Profit took after 2 points. I am newbie and I have problem with get out from market. Today I read this thread http://www.traderslaboratory.com/forums/f30/thoughts-from-a-professional-trader-5281.html post num.6 and I think become "1 point king" with half contracts.

 

http://www.sierrachart.com/userimages/upload_2/1232577874_12_UploadImage.png

[jjthetrader 10]

  kuky969 said:

JJ

first signal I missed, second I took long but I dont entry simply on close num. 4 bar . I want see increase of momentum in my very little 500 V chart - nice move of price and increase ask volume- green rectangle in picture. Profit took after 2 points. I am newbie and I have problem with get out from market. Today I read this thread http://www.traderslaboratory.com/forums/f30/thoughts-from-a-professional-trader-5281.html post num.6 and I think become "1 point king" with half contracts.

 

http://www.sierrachart.com/userimages/upload_2/1232577874_12_UploadImage.png

 

Good idea using the volume chart for entry. They show nicely how much volume comes in in a certain area.

 

2 points is awesome! Don't beat yourself up for not taking more. I used to target 2 points for the longest time until I got better at holding. Plus being able to trade more contracts allows you to scale out and get a nice runner while locking in profit at the same time.

[Tasuki 10]

VSA basics. Please see attached chart.

The green candle where the vertical line is--what is this bar? It's not a test, I don't think, looks more like "No Supply" but I'm not sure. It's volume is indeed less than the previous 2 bars. And there is strength in the background in the form of that shakeout 7 bars back. Anyway, comments welcome. Thanks, Taz

[VolumeJedi 10]

Tasuki;

 

Looks like you have a narrow range up candle with volume less than the previous two bars that is closing in the lower portion of its range. These all point to No Demand. However, the next bar is up, which means it is really more indicative of No Buying Pressure.

 

Take a look at the candle just prior to the "shake out" with Ultra High Volume. On this candle, buyers stepped in (demand entered). We know this because the next bar is up. If that candle was truly all selling than then next candle would not be up. But now as price falls back into the range of this heavy buying area we are seeing no buyers on up candles. Simply, dispite the Shake Out, the market is weak not strong.

[Tasuki 10]

Attachment shows the rest of the day...and my continued confusion and frustration over this issue. Todd Krueger used to call this the "polar bear in Hawaii". A "No Demand" (the polar bear, N.D. being a bearish signal) showing up where the bloody thing don't belong. Todd used to just dismiss these anomalies, but I think we can do better than that, at least I hope so. Long ago I queried the VSA#1 group as to whether we could come up with a VSA-based logical explanation. Why IS it that No Demand, and No Buying Pressure, so often show up at the beginning of up-moves??? This is when I'd like to get in long, but these contrary signals keep my finger off the trigger, and I miss the move.

 

Anybody got any good advice here?

[monad 10]

Tasuki,

After a substantial downtrend, it indicates that the supply has been absorbed on the previous high vol down bar (strength appears on down bars) and now the buyers are able to push prices up without meeting much resistance.

No demand is of more validity after a rapid rise followed by a climax ie. signs of weakness.

[CandleWhisperer 10]

Tasuki &VJ

 

You both missed the dark (red) WRB just prior to the candle in question at A. This is a wide spread candle on very high volume closing off the lows with the next candle (A.) up. This is another sign of strength in the market. After seeing this candle, you have to ignore the "weakness" of the next two candles which close up on volume less than the previous two candles. Note that neither of these can be confirmed as no demand since neither of them are followed by a down close. What this effectively means is that the smart money is not yet interested in higher prices and they are certainly not interested in lower ones either.

 

The market drifts sideways on the demand that entered on the WRB. The dark (red) candle prior to D is a no supply. It has volume less than the previous two candles and it is also confirmed with the next candle up (D.). D does not trade higher than the previous candle, so it would not bring you into the market and it trades a bit lower which we don't like to see.

 

The best place to get long is the dark (red) candle after the candle E. It is no supply. The volume is less than the previous two candles and it is confirmed with the next candle closing up. That next candle does not trade any lower which is also a good sign. The entry is taken in one of two places:

 

1. when the high of the no supply is breached.

 

2. at the close of the candle confirming the no supply on the previous candle.

 

I am pretty sure that somewhere in the Master the Markets book, Tom does mention to be careful of low volume up bars at the naissance of a new uptrend.

[kuky969 10]

Candle

SUPERB POST. Thank you.

I have asked myself same questions as Tasuki. I think this post move me a large step on my road "study of VSA" .

P.

[BlowFish 10]

  giraia_br said:

reading previous posts i see someone using the nick "Anonymous" but that people reffer as "PP" and he posted many indicators for VTtrader. Maybe someone that read the entire thread or has/had contact with him know if he was using eSignal too? Id like to know if it will benefitial for me to download these indicators and use with CMS VTtrader (FREE).

 

and, someone here has all indicators he posted in the threads in a zip format?

 

 

thanks in advance.

 

PP posted metastock code I believe (as JJ says probably in the VSA I thread). BlueRay converted those to TS and removed a couple of redundant conditionals.

 

There is a completely separate code fork that someone did for Amibroker (that is probably here in the code section too). This has been converted to Ninja and is available over at their forum. I believe they called it VPL for some reason. Looked promising to me.

 

There are also a couple of code snippets around but nothing of much consequence.

 

Also, there is at least one set of commercial indicators that lean heavily on Williams stuff. I don't really want to promote them here.

 

Oh and Tom has someone working on a program too shhh.

[Eiger 10]

  CandleWhisperer said:

Tasuki &VJ

 

You both missed the dark (red) WRB just prior to the candle in question at A. This is a wide spread candle on very high volume closing off the lows with the next candle (A.) up. This is another sign of strength in the market. After seeing this candle, you have to ignore the "weakness" of the next two candles which close up on volume less than the previous two candles. Note that neither of these can be confirmed as no demand since neither of them are followed by a down close. What this effectively means is that the smart money is not yet interested in higher prices and they are certainly not interested in lower ones either.

 

The market drifts sideways on the demand that entered on the WRB. The dark (red) candle prior to D is a no supply. It has volume less than the previous two candles and it is also confirmed with the next candle up (D.). D does not trade higher than the previous candle, so it would not bring you into the market and it trades a bit lower which we don't like to see.

 

The best place to get long is the dark (red) candle after the candle E. It is no supply. The volume is less than the previous two candles and it is confirmed with the next candle closing up. That next candle does not trade any lower which is also a good sign. The entry is taken in one of two places:

 

1. when the high of the no supply is breached.

 

2. at the close of the candle confirming the no supply on the previous candle.

 

I am pretty sure that somewhere in the Master the Markets book, Tom does mention to be careful of low volume up bars at the naissance of a new uptrend.

 

Spot on analysis. The bar before A (wide spread down with high volume) showed buying, but because of the volume, also some supply. We normally expect a Test of this high volume shortly afterwards. Price moved up and tested at a higher low (slightly unusual, but all the principles were there). As CW said, the bar after E was a lovely Test and entry.

 

The up bars on low volume after the SOS (bars A-C) does seem confusing because of low volume. Why is the market rising on low volume? Is it No Demand? Good question.

 

The basic explanation is that all of the supply has been taken out of the market. In stocks, it's called the floating supply. When suppy has been stripped out of the market at that price level, there is no one selling and thus price moves up easily on light volume. It is an indication of strength.

 

One other clue to this was the sideways movement (bars C-E). After drifting up a bit, price just held its gains (no selling). The down bars in that little range all were narrow spread (little activity) and low volume (No Supply & Testing).

 

A good chart because of the somewhat unusual testing. One to keep in the chart file for future reference.

 

Hope this helps,

 

Eiger

[kuky969 10]

Eiger wrote :

 

The up bars on low volume after the SOS (bars A-C) does seem confusing because of low volume. Why is the market rising on low volume? Is it No Demand? Good question.

 

The basic explanation is that all of the supply has been taken out of the market. In stocks, it's called the floating supply. When suppy has been stripped out of the market at that price level, there is no one selling and thus price moves up easily on light volume. It is an indication of strength.

 

AND I WOULD LIKE ASK:

 

If I am right longer spread on low volume is no buying pressure. Is possible say that it is selling pressure dried up too ??. I am a little confusing from it but ofcourse I understand that when is nobody who wants sell in this level of price only what can do is buying on higher price . But why it calling no buying pressure ??? Or I made some mistake in my analysis ??