Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Eiger

[VSA] Volume Spread Analsysis Part III

Recommended Posts

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

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites
  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.

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites
  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

Share this post


Link to post
Share on other sites
  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

Share this post


Link to post
Share on other sites
  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

Share this post


Link to post
Share on other sites
  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

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites
  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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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!

Share this post


Link to post
Share on other sites
  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.

Share this post


Link to post
Share on other sites
  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

Share this post


Link to post
Share on other sites
  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!

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Similar Content

    • 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
      Is there any clear way to find it ? 
  • Topics

  • Posts

    • My wife Robin just wanted some groceries.   Simple enough.   She parked the car for fifteen minutes, and returned to find a huge scratch on the side.   Someone keyed her car.   To be clear, this isn’t just any car.   It’s a Cybertruck—Elon Musk's stainless-steel spaceship on wheels. She bought it back in 2021, before Musk became everyone's favorite villain or savior.   Someone saw it parked in a grocery lot and felt compelled to carve their hatred directly into the metal.   That's what happens when you stand out.   Nobody keys a beige minivan.   When you're polarizing, you're impossible to ignore. But the irony is: the more attention something has, the harder it is to find the truth about it.   What’s Elon Musk really thinking? What are his plans? What will happen with DOGE? Is he deserving of all of this adoration and hate? Hard to say.   Ideas work the same way.   Take tariffs, for example.   Tariffs have become the Cybertrucks of economic policy. People either love them or hate them. Even if they don’t understand what they are and how they work. (Most don’t.)   That’s why, in my latest podcast (link below), I wanted to explore the “in-between” truth about tariffs.   And like Cybertrucks, I guess my thoughts on tariffs are polarizing.   Greg Gutfield mentioned me on Fox News. Harvard professors hate me now. (I wonder if they also key Cybertrucks?)   But before I show you what I think about tariffs… I have to mention something.   We’re Headed to Austin, Texas This weekend, my team and I are headed to Austin. By now, you should probably know why.   Yes, SXSW is happening. But my team and I are doing something I think is even better.   We’re putting on a FREE event on “Tech’s Turning Point.”   AI, quantum, biotech, crypto, and more—it’s all on the table.   Just now, we posted a special webpage with the agenda.   Click here to check it out and add it to your calendar.   The Truth About Tariffs People love to panic about tariffs causing inflation.   They wave around the ghost of the Smoot-Hawley Tariff from the Great Depression like it’s Exhibit A proving tariffs equal economic collapse.   But let me pop this myth:   Tariffs don’t cause inflation. And no, I'm not crazy (despite what angry professors from Harvard or Stanford might tweet at me).   Here's the deal.   Inflation isn’t when just a couple of things become pricier. It’s when your entire shopping basket—eggs, shirts, Netflix subscriptions, bananas, everything—starts costing more because your money’s worth less.   Inflation means your dollars aren’t stretching as far as they used to.   Take the 1800s.   For nearly a century, 97% of America’s revenue came from tariffs. Income tax? Didn’t exist. And guess what inflation was? Basically zero. Maybe 1% a year.   The economy was booming, and tariffs funded nearly everything. So, why do people suddenly think tariffs cause inflation today?   Tariffs are taxes on imports, yes, but prices are set by supply and demand—not tariffs.   Let me give you a simple example.   Imagine fancy potato chips from Canada cost $10, and a 20% tariff pushes that to $12. Everyone panics—prices rose! Inflation!   Nope.   If I only have $100 to spend and the price of my favorite chips goes up, I either stop buying chips or I buy, say, fewer newspapers.   If everyone stops buying newspapers because they’re overspending on chips, newspapers lower their prices or go out of business.   Overall spending stays the same, and inflation doesn’t budge.   Three quick scenarios:   We buy pricier chips, but fewer other things: Inflation unchanged. Manufacturers shift to the U.S. to avoid tariffs: Inflation unchanged (and more jobs here). We stop buying fancy chips: Prices drop again. Inflation? Still unchanged. The only thing that actually causes inflation is printing money.   Between 2020 and 2022 alone, 40% of all money ever created in history appeared overnight.   That’s why inflation shot up afterward—not because of tariffs.   Back to tariffs today.   Still No Inflation Unlike the infamous Smoot-Hawley blanket tariff (imagine Oprah handing out tariffs: "You get a tariff, and you get a tariff!"), today's tariffs are strategic.   Trump slapped tariffs on chips from Taiwan because we shouldn’t rely on a single foreign supplier for vital tech components—especially if that supplier might get invaded.   Now Taiwan Semiconductor is investing $100 billion in American manufacturing.   Strategic win, no inflation.   Then there’s Canada and Mexico—our friendly neighbors with weirdly huge tariffs on things like milk and butter (299% tariff on butter—really, Canada?).   Trump’s not blanketing everything with tariffs; he’s pressuring trade partners to lower theirs.   If they do, everybody wins. If they don’t, well, then we have a strategic trade chess game—but still no inflation.   In short, tariffs are about strategy, security, and fairness—not inflation.   Yes, blanket tariffs from the Great Depression era were dumb. Obviously. Today's targeted tariffs? Smart.   Listen to the whole podcast to hear why I think this.   And by the way, if you see a Cybertruck, don’t key it. Robin doesn’t care about your politics; she just likes her weird truck.   Maybe read a good book, relax, and leave cars alone.   (And yes, nobody keys Volkswagens, even though they were basically created by Hitler. Strange world we live in.) Source: https://altucherconfidential.com/posts/the-truth-about-tariffs-busting-the-inflation-myth    Profits from free accurate cryptos signals: https://www.predictmag.com/       
    • No, not if you are comparing apples to apples. What we call “poor” is obviously a pretty high bar but if you’re talking about like a total homeless shambling skexie in like San Fran then, no. The U.S.A. in not particularly kind to you. It is not an abuse so much as it is a sad relatively minor consequence of our optimism and industriousness.   What you consider rich changes with circumstances obviously. If you are genuinely poor in the U.S.A., you experience a quirky hodgepodge of unhelpful and/or abstract extreme lavishnesses while also being alienated from your social support network. It’s about the same as being a refugee. For a fraction of the ‘kindness’ available to you in non bio-available form, you could have simply stayed closer to your people and been MUCH better off.   It’s just a quirk of how we run the place and our values; we are more worried about interfering with people’s liberty and natural inclination to do for themselves than we are about no bums left behind. It is a slightly hurtful position and we know it; we are just scared to death of socialism cancer and we’re willing to put our money where our mouth is.   So, if you’re a bum; you got 5G, the ER will spend like $1,000,000 on you over a hangnail but then kick you out as soon as you’re “stabilized”, the logistics are surpremely efficient, you have total unchecked freedom of speech, real-estate, motels, and jobs are all natural healthy markets in perfect competition, you got compulsory three ‘R’’s, your military owns the sky, sea, space, night, information-space, and has the best hairdos, you can fill out paper and get all the stuff up to and including a Ph.D. Pretty much everything a very generous, eager, flawless go-getter with five minutes to spare would think you might need.   It’s worse. Our whole society is competitive and we do NOT value or make any kumbaya exception. The last kumbaya types we had werr the Shakers and they literally went extinct. Pueblo peoples are still around but they kind of don’t count since they were here before us. So basically, if you’re poor in the U.S.A., you are automatically a loser and a deadbeat too. You will be treated as such by anybody not specifically either paid to deal with you or shysters selling bejesus, Amway, and drugs. Plus, it ain’t safe out there. Not everybody uses muhfreedoms to lift their truck, people be thugging and bums are very vulnerable here. The history of a large mobile workforce means nobody has a village to go home to. Source: https://askdaddy.quora.com/Are-the-poor-people-in-the-United-States-the-richest-poor-people-in-the-world-6   Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
    • TDUP ThredUp stock, watch for a top of range breakout above 2.94 at https://stockconsultant.com/?TDUP
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.