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Eiger

[VSA] Volume Spread Analsysis Part III

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You can scan for volume > 'x' you can scan price > , < you can scan ATR < , > but you cant scan for guaranteed trades unless you bought one of those very special crystal balls:D .

 

2trade

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Can anyone enlighten me as to the difference between "Stopping volume" and "Selling climax"? Their descriptions in TG literature and seminars seem to me to be virtually identical - therefore I reason I must be missing something, somewhere.

 

Thanks.

WB

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Your not missing anything. Stopping volume is in fact that, if its high vol and price reverses then its stopping vol. So, the volume is called stopping vol and the reversal bar or the price action is a selling climax.

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I think in more detail Stoping Volume should have narrow spread therfore this volume stop the price move down coz SmarMoney buying all and this cause narrow spread.

 

and Selling Climax have wide spread and close in the middle or on top. and it causes by bad news and possibly also margin calls.

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  flimbo said:
I think in more detail Stoping Volume should have narrow spread therfore this volume stop the price move down coz SmarMoney buying all and this cause narrow spread.

 

and Selling Climax have wide spread and close in the middle or on top. and it causes by bad news and possibly also margin calls.

 

 

I think your getting confused too, stopping volume is stopping volume. the down trend stops, what kind of bar you have does'nt matter.

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Still new to the volume stuff. Any comments are welcomed. From what I have read a good setup would be to wait for a an upthrust bar after a buying climax to short for a short trade or to wait for a shakeout bar to form after a selling climax. I beleive that is what we had today in the es which gave to tradeabl events. I marked up a chart. Any comments are welcomed.

5aa70f7f76507_ES03-1012_11_2009(5Min).thumb.jpg.6aab48b4ff713199e725423dd94760dd.jpg

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  SRspider said:
Still new to the volume stuff. Any comments are welcomed. From what I have read a good setup would be to wait for a an upthrust bar after a buying climax to short for a short trade or to wait for a shakeout bar to form after a selling climax. I beleive that is what we had today in the es which gave to tradeabl events. I marked up a chart. Any comments are welcomed.

 

Looks good to me.;)

 

I prefer to see them on 15 or 30min. chart, but that's just me. Good stuff. you seem to be on the right path. good luck with your trading.

 

Ektrader

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  VolumeJedi said:
Hello. Threads kind of' slow. Hopefully this post will generate some helpful discussion.............

 

Q: Where do you vsa experts and newbies see an entry into this very nice up trend in the Euro from Friday?

 

Please feel free to use the chart on the left to annotate what you see and where you would of entered and why.

 

The chart on the right shows various things that I see/saw and where my entries are/were. I do not try and pick tops and bottoms, I let them pick themselves. However, much was "given" away by not entering sooner. What did I miss?

 

A: It all starts here. A wide spread down bar on ultra high volume. Notice that the close is near the low and the next bar is down. We know that strength, when it appears, appears on down bars with high volume. But the next bar is usually up. That is not the case here. Could this be a weak bar?

 

B: If you were not sure of bar A, then this bar only adds to the confusion. It is a narrow range up bar on volume less than the previous two bars. It is no demand. Note that the close is in the lower third of the range and the bar is a NR4 bar. NR4 being the lowest range bar of the last 4 bars. The smart money doesn't seem interested in higher prices.

 

C: Things get more muddled. We now see a narrow range down bar on volume less than the previous two bars. No supply. If one wants to argue that it is not no supply because of the background, then it is still a low volume down bar showing no interest by the smart money. But that means we have no interest in the upside OR the downside as both the up bars on low volume and the down bars also.

 

The only clue for me is that the volume on C is less than the volume on B, indicating even less desire for downside action than the upside.

 

D: This is a "key" bar. For some it is a "key reversal" bar. We have a wider range than the previous bar, the bar makes a lower low, closes in the upper portion of its range, closes higher, and has increased volume. This might be stopping volume? If you enter here, please tell me why (and more power to you).

 

E: At this point, the market has began to move up and we are looking for a test to enter. The previous bar gets stalled and price falls. This bar is narrow and has volume less than the previous two bars. In highnsight, this is the ideal entry bar as it is a low volume bar within the range of a high volume bar (A). But the next three bars close lower than E. Actually the third bar closes back even with E.

 

F: Pushing thru supply. Wide spread up bar on high volume closing near its high on equal volume. This bar is also an Effort to Rise. The BBs are bullish and they are willing to absorb selling at the supply line in anticipation of higher prices. Sometimes the BBs will buy at high prices because they know they can sell at even higher prices.

 

G: Low volume up bar. By definition it is no demand. But we know that there is too much evidence of strength in the background. It is more likely that the BBs have let off the gas and now want to see a test before marking prices any higher.

 

H: No selling pressure. We see an increasing range bar closing near its lows on volume less than the previous two bars. This is not a test as a test bar would be narrow and close on or near the highs. Those at the head of the class may of used this bar to signal entry and confirm that F was pushing thru supply.

 

I: This is a two bar reversal pattern. The first bar closes near it low and the next bar closes near its high. Notice the volume on the bar that closes higher. It picks up. Whilst VSA does not look at the open, notice that the first bar opens near the high and closes near the low. The next bar opens near the low (lower than close of first bar) and closes near the high (higher than the close of first bar and equal to the open of the first bar).

 

J: No Supply. This confirms the two bar reversal as the prior bar looks like a failed test, signaling some residual weakness. I would rather see low volume bar within the range of prior high volume bars. J does trade into the range of the second bar in the two bar pattern, but is not completely within it.

 

K: No Supply. This is just showing another Effort to rise bar followed by no supply bar. This is that high volume bar with a low volume bar within its range idea. So in an area (range) where there was an abundance of activity the first time, there is little activity when price dips back into it. This is bullish.

 

L: As the market begins to top out, we get another narrow range down bar on volume less than the previous two bars. No Supply. The real key is on the next bar. It is an Effort to Rise with no result. Effort without result would be bearish in this case.[/QUO

TE]

 

Greetings VSA fans: This is my first post message and it concerns thread post #126. The chart posted by the user was not annotated to show the Wyckoff Springboard trend/resistance line break rally. I have added notes and lines to Volume Jedi's chart to show the Wyckoff principle as taught by Dr Dayton aka Eiger. (Although I'm calling it a Springboard as Wyckoff did rather than a Spring as the later SMI folks did.)

 

Rate resumed its main uptrend (as seen from higher TF charts of that same date) from point D and advanced above magenta Wide Range Body resistance from bar A and over the blue trend line. Rate then declined from point E on increasing tick activity for two bars. The bullish hammer just prior to the wide range effort to rise bar at F foreshadowed the subsequent breakout over trend/resistance line. Was this a fair example of a Wyckoff Springboard Rally?

MSG126_WSR.thumb.gif.2dd834786551c144ddf3afc99ecdc4f3.gif

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  bbj_anchor said:
It appears to me that the trend changed with Climax up bar[bC]

so the prevailing trend is DOWN.

[4] could be an upthrust which is bearish

also the range increase also adds to the bearishness.

 

Tradeguider guy, Gavin, always waits for this that or the other to confirm. I would say down and I dont know ES at all. what happened is not something I know, but I'd take the play for downside! Thrusts are incredibly strong!

 

BillyBobJoe

 

Greetings VSA fans: regarding message 158 on page 15 of this thread, IMHO noted the five bars following the depicted high labeled UP ND in sequence conformed to parameters of No Supply, Failed Test, Squat Absorption Volume, Failed Test, Effort to Move Down. This sequence is quite bearish and shows major selling pressure coming in after the failed tests as would be expected when effort yields no result. The bar prior to that labeled 1 is a wide range down bar on high volume. Its price trading range became strong resistance. Thus the No Demand bars labeled 2 and 3 would prompt the VSA trader to anticipate additional causa causata in selling pressure as subsequently observed at Shooting Star bar 4's rejection of higher prices. (Note use of pretentious Latin phrase. Ha LOL, I kill me.) Bar 4 was not an Up Thrust as its high did not test a previous swing high.

 

The key to further bullish dominance would be a springboard setup where price rallies above a trend line drawn from the high of the bar prior to bar 1 to the high of bar 4 and extended to the right. When price would have rallied above that line and then dip back below, large capitalization traders (whales) would have been likely to have placed their buy stops just above the line. If price rallied up above the line a second time, then it would subsequently seem to explode out of the hole as the wales got their buy orders filled.

 

Link to chart image:

 

http://www.traderslaboratory.com/forums/attachments/151/12860d1250067526-vsa-volume-spread-analsysis-part-iii-12850d1249991359-vsa-volume-spread-analsysis-part

 

Best Wishes to the Reader for Big Profits and Low Taxes

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  robertbumbalough said:
See attached pdf showing some TG bar definitions and examples. Best Wishes for Big Profits.

 

GREAT! I have been looking for a document like this for some time. If it is you Robert who did all this work personally I would like to thank you very very much for all your effort. It is highly appreciated!

 

- Laurus12

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Hello together,

 

I am new in this forum and am trying to learn everything about VSA.

 

There is an attachment to EIGER's first post in this thread, a picture, which shows how the data in the PDF "TG Indicators Guide v1.01[1]" is reduced to a minimum of three different bar colors.

 

Is this indicator available for TradeStation? If it is, I would appreciate any help in finding it.

 

Thanks a lot.

 

Uupsa

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  uupsa said:
Hello together,

 

I am new in this forum and am trying to learn everything about VSA.

 

There is an attachment to EIGER's first post in this thread, a picture, which shows how the data in the PDF "TG Indicators Guide v1.01[1]" is reduced to a minimum of three different bar colors.

 

Is this indicator available for TradeStation? If it is, I would appreciate any help in finding it.

 

Thanks a lot.

 

Uupsa

 

Hello Uupsa

 

The picture shows Trade Guider which is a stand alone platform which is available for a monthly lease. It was up to recently possible to buy, but now only for lease. At the moment they only have it as a lease plugin for eSignal, but from what I have heard they are working on a version for TS.

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You are welcome Uupsa.

 

By the way I just heard today that there will not be a plugin for TS because of programming issues.

 

If you accidentally have overlooked it, there is the TG indicator guide in post #262. I have seen a couple of others that have made similar indicators, but they are using 50 or something for the volume mva. The TG VSA volume-mva is a 14 period simple.

 

For definition on spreads/ranges on bars, volume and so on you could take a look at this VPA for NinjaTrader 7 in the NT forum. It is quite different I think but could be useful for parameters.

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Hey guys

 

I ended of to read VSA 1, 2 and 3.

 

I want to thank all persons first PP, Sebastian, Volumejeri, Eiger ,soultrader, Sakuri, CW, JJ and all another. You went important in my learnt. Thank!

 

I copied the matter in my word Microsoft and translate to Portuguese. Here in Brazil there is nothing over VSA. I translate Ton Williams, Wyckoff, posts and anothers.

 

Now I am using VSA in analyses intermarket in indexes, ETF, currencies, bonds, interest in world and it I have that to thank them... I have problems in write in English but I to read well.

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Hi there,

 

I am new to this forum as I became a member after finding the VSA (1,2,3 threads) on Google and found them very interesting.

 

I'm about to start on the first VSA thread, however, I found that many pictures are missing and also there isn't even alot of pictures to describe anything.

 

So my question here is really, have I missed out on something? Perhaps the thread has been moved or something like that?

 

Anyway thank you very much and good trading to all!

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  laurus12 said:
Carnegie, you have to be logged in to see the pictures.

 

- Laurus12

 

I am logged in! But in the VSA 2 thread someone mentioned that the TS removed the pictures.. Which thread (of 1,2,3) is the best one to start on?

 

Thank you.

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  Carnegie said:
I am logged in! But in the VSA 2 thread someone mentioned that the TS removed the pictures.. Which thread (of 1,2,3) is the best one to start on?

 

Thank you.

 

With many many thanks to Soultrader for his work, you should start with the "VSA Official Summary Part 1" . In post #2 there is also a pdf file (with thanks to Flojomojo) of the thread added which you can print out to have on the run.

 

I wish you the very best of luck :thumbs up:

 

Laurus

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  laurus12 said:
With many many thanks to Soultrader for his work, you should start with the "VSA Official Summary Part 1" . In post #2 there is also a pdf file (with thanks to Flojomojo) of the thread added which you can print out to have on the run.

 

I wish you the very best of luck :thumbs up:

 

Laurus

 

 

Awesome :D thanks man!

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Do market makers test for supply by marking it up?

 

I know an official test is done by quickly marking it down into an area where there was previous supply. Then they withdraw there interest to see the result. If the bar comes to finish near its high on relatively low volume you can assume there is not much supply present. If the next bar is up, it confirms the lack of selling pressure.

 

You can also have a failed test if the test bar finishes on its low on relatively high volume and / or the next bar is down suggesting supply is still present.

 

Now the thing that is confusing me: do market makers ever mark prices up to search for overhead supply? Am I just stuffing around with the terminology here? Should I just be calling this a mark up bar or something? I commonly see a stocks price quickly marked up on the open then they withdraw there interest, sometimes picking it up in the afternoon. This is in the mark up phase of accumulation (the last phase). If you were a market maker would you ever mark up price to test for supply? It's not really a test is it because a test is rapidly marked down, usually on the open, then they withdraw there interest to see what happens.

 

I think I have been looking at this the wrong way, if you marked it up in the morning, then waited, and you started to see some selling pressure enter the market, you may as well withdraw and let the price fall as far as it can so you can pick it back up again, especially if there is bad news.

 

Anyway the question is: do market makers ever test for supply by marking the price up?

 

Thanks, Regards,

 

Quinn

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    • By vishnux
      Hey guys , what are the main things you look for to detect if the consolidation area is accumulating or distributing ? 
      1 ) I see springs in top , still markup happens and it becomes accumulation area and vice versa
      2) There is lots of volume absorption in support line and still markdown occurs.
      3) sometimes in market high / low it becomes re-accumulation  / re-distribution
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