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

Helpful Ideas for Newcomers to VSA

Recommended Posts

At the suggestion of one of the contributors to the VSA threads, we thought it would be a good idea to have a thread for some basic info on VSA to help those just getting started in VSA. I'll start it with a couple of suggestions. Others should chime in as well. Just as important, newcomers are encouraged to post what they are finding helpful in learning and understanding VSA.

 

------------

 

Here are a couple of ideas to get started:

 

1. Read Tom Williams's Undeclared Secrets That Drive The Stock Market. This is the basic text and has a true wealth of information, both about how the markets work as well as how to read the charts. This is fundemental to understanding VSA.

 

2. Understand the background conditions of the market you are trading before putting on a trade. Although VSA is about reading the current bars on your charts, a fundemental error I see traders new to VSA commit time and again is to look at a few bars on the right edge of the chart and trade off that. You will definately lose money trading this way. VSA is more about understanding the background and using the individual bar indications to trigger entry/exit. Always look first to the background conditions that exist on your chart. If you don't understand what the background is telling you, just be patient and don't trade until you do see something that makes it clear.

 

-------

 

This is a start. Again, others - including the new folks -- are encouraged to add to this. If the thread turns into a useful list helpful for the newcomer, I'll stick it to the top of the forum.

 

Eiger

Edited by Eiger

Share this post


Link to post
Share on other sites

Question about the background.Could background be in an up move we see no demand bars after that we see uptrust ... so is this a background and what we have to wait to see before we enter the market.Test maybe?

Share this post


Link to post
Share on other sites
Question about the background.Could background be in an up move we see no demand bars after that we see uptrust ... so is this a background and what we have to wait to see before we enter the market.Test maybe?

 

Think of the background as a combination of market actions that all point in one direction. In the UT example, I drew a basic graphic to illustrate how to look at background.

 

Starting from the left-hand side of the chart, we have a rally that leaves a print of an "Old Top" or resistance level. Although volume is not shown, were the volume high at the old top, we would note that as well as a potential Buying Climax.

 

We then look at how the market reacts. In this graphic, Lower Lows are put in - weakness. Again, volume is not shown, but if the volume increased on the reaction, that would add to the developing background of weakness.

 

Now we see the market rally. As depicted here, it is rather "lackluster," meaning that volume is relatively low and the spreads are narrow - the market is struggling to advance higher -- more weakness.

 

When we get back to the level of the Old Top, price is unable to sustain a close above the resistance of the old high. This represents an UT and is even more weakness. Aggressive short trades might be taken on the UT, or more conservative short entries would occur on a No Demand following the UT, indicating a lack of interest in higher prices by larger traders, which again, is more weakness.

 

The idea is to read the background as a continuing story with the triggers being the UT and the ND. In this example, the background is the combination of:

 

  • An old top that forms resistance
  • High volume at that old top indicating a climax
  • Lower low on the reaction
  • Increased volume to the downside
  • lackluster rally - low volume, poor spreads
  • UT and rejection of higher prices

 

Hope this is helpful,

 

Eiger

5aa70ed249e72_UTExample.png.0e2febf759f65d77f61b06d16c139b66.png

Edited by Eiger

Share this post


Link to post
Share on other sites
thanks alot it really helps me!Could i ask my question here or this is no place for question .... if is not where i should i ask my questions abt VSA ?:)

 

Glad it is helpful. Best to ask on the VSA III or Pure VSA threads.

Share this post


Link to post
Share on other sites

OK I try to post some my ideas (despite my poor english) . Generally I can say that it is a little public sources ( books ,video files...) to quality learn VSA. Yes book Master the markets it is basic and is very good read it a few times or some chapters at least . But if somebody wait for exact patterns for entry and for exit trade ,will be disappointed. Book are about basic principles .

 

So question is where to start as pure greenhorn in VSA . My opinion is : ( in order)

 

1.. first .... very good learn to determine SR levels in market , in particular 15 or 60 min TF. This thred http://www.traderslaboratory.com/forums/f131/dbs-cajas-famosas-3882.html helped me . But in TL or any traders servers are other threads about SR levels. Ofcourse practice in real charts. ( I trade ES 5 min and determine SR on 1h and 300000 volume TF)

 

2 ... next ... I read almost all threads in Wyckoff forum ( basic of VSA is Wyckoff) and study all Wyckoff sources ,that you can find in this thread ( supplly–,demand , effort- result ,waves.....) Thank to DbPhoenix .

 

3 ..... Very important was everything what I consider as important for me put down and make my „own Wyckoff book“ . This book I repeatedly read ( in evening when child gone to bed,or in bath....) As time goes ,you read this book less and less because some capitols you learn by heart.

 

4 ...next I started read Master the markets ( and ofcourse continue with make a notes). You will learn a lot surprising thing.

 

5 Start read thread Volume spread analysis part I .....III , as the time goes you find some users that posts are very useful (thank you Eiger and other contributors) and I started make another „my own books“ with charts and posts ( in this time has more than 200 pages in officeWord)

 

6 Every day I watched live market (ES),tried determine background, SR levels and I wanted to see in market what I study in theory. I started to try find my own setups to entry in market, I prepared exact rules to exit trade . In threads you can find some setups for timing when entry in market , but I think it is needed too find others your own setups and gain confidence in. This take a long screen time and watching price action and volume on significant SR levels.

 

BEST IS TO HAVE GOOD VSA MENTOR AND TRADE LIVE WITH HIM . Few people have this good fortune. But we can be lucky because Eiger and some contributors share with us a lot thoughts and examples,that I think is impossible get in other study sources.

 

Important for every day: ---prepare list of things that I have to do before start market

---read your notes

---- and repeat,repeat ,repeat without end

Share this post


Link to post
Share on other sites

Dear Eiger,

Thanks for your posting. I think the hardest part in using VSA is it makes us focus too much on the current few bars instead of the whole picture. In your diagram, I will focus on picking the bottom to buy instead of waiting for the test of upthrust to sell. How could we deal with such problem ? Just like Tuesday's ES market, will you focus on picking the top as the market seems does not have upside momentum in the afternoon. Do you have any rule for the background ?

Anyway thanks for your help and posting.

Winnie

Share this post


Link to post
Share on other sites

Hi Eiger,

 

Please help to analyze the backround of daily GBPJPY Chart (Attached) with Backround intrepetation, Last 10 bar tape reading, and next week Projection.

 

Please kindly give me a Hint, how to 'read the tape" & backround right.

 

Note : I've have been read twice T. Williams "Undeclare....". but I still have Problem how to apply VSA into chart analysis and prediction.

 

A --Old Top zone(resistence), High Volume, signs fo Weakness ?

B --Higher volume on reaction and decreasing volume on down trend(Bullish Volume).

B to C --Lackluster rally ?

 

1 - Buying climax, signs of weakness

2 - buying pressure, volume with closed near high. signs of strenght

3 - High volume Uptrust, sighs of strenght

4 - Stipping volume ? signs of strenght

 

5- Buying Pressure, signs of strenght

 

Question : How we combine Backround & Last 10-20 bar reading to predict the next Bar ?

 

Next Monday--------Still bullish to break the Old top zone ? or Bearish ?

 

 

PS. Where can we have a list of Bar reading Library ?

 

Thank you

 

Cheers,

 

 

Think of the background as a combination of market actions that all point in one direction. In the UT example, I drew a basic graphic to illustrate how to look at background.

 

Starting from the left-hand side of the chart, we have a rally that leaves a print of an "Old Top" or resistance level. Although volume is not shown, were the volume high at the old top, we would note that as well as a potential Buying Climax.

 

We then look at how the market reacts. In this graphic, Lower Lows are put in - weakness. Again, volume is not shown, but if the volume increased on the reaction, that would add to the developing background of weakness.

 

Now we see the market rally. As depicted here, it is rather "lackluster," meaning that volume is relatively low and the spreads are narrow - the market is struggling to advance higher -- more weakness.

 

When we get back to the level of the Old Top, price is unable to sustain a close above the resistance of the old high. This represents an UT and is even more weakness. Aggressive short trades might be taken on the UT, or more conservative short entries would occur on a No Demand following the UT, indicating a lack of interest in higher prices by larger traders, which again, is more weakness.

 

The idea is to read the background as a continuing story with the triggers being the UT and the ND. In this example, the background is the combination of:

 

  • An old top that forms resistance
  • High volume at that old top indicating a climax
  • Lower low on the reaction
  • Increased volume to the downside
  • lackluster rally - low volume, poor spreads
  • UT and rejection of higher prices

 

Hope this is helpful,

 

Eiger

5aa70ee030e0d_gbpjpynextweekprojection.gif.e29dff1ea9ebeea4853b6d413a9d6ca3.gif

Share this post


Link to post
Share on other sites

Hi Eiger,

 

Please help to analyze the backround of daily GBPJPY Chart (Attached) with Backround intrepetation, Last 10 bar tape reading, and next week Projection.

 

Please kindly give me a Hint, how to 'read the tape" & backround right.

 

Note : I've have been read twice T. Williams "Undeclare....". but I still have Problem how to apply VSA into chart analysis and prediction.

 

A --Old Top zone(resistence), High Volume, signs fo Weakness ?

B --Higher volume on reaction and decreasing volume on down trend(Bullish Volume).

B to C --Lackluster rally ?

 

1 - Buying climax, signs of weakness

2 - buying pressure, volume with closed near high. signs of strenght

3 - High volume Uptrust, sighs of strenght

4 - Stipping volume ? signs of strenght

 

5- Buying Pressure, signs of strenght

 

Question : How we combine Backround & Last 10-20 bar reading to predict the next Bar ?

 

Next Monday--------Still bullish to break the Old top zone ? or Bearish ?

 

 

PS. Where can we have a list of Bar reading Library ?

 

Thank you

 

Cheers,

 

 

Think of the background as a combination of market actions that all point in one direction. In the UT example, I drew a basic graphic to illustrate how to look at background.

 

Starting from the left-hand side of the chart, we have a rally that leaves a print of an "Old Top" or resistance level. Although volume is not shown, were the volume high at the old top, we would note that as well as a potential Buying Climax.

 

We then look at how the market reacts. In this graphic, Lower Lows are put in - weakness. Again, volume is not shown, but if the volume increased on the reaction, that would add to the developing background of weakness.

 

Now we see the market rally. As depicted here, it is rather "lackluster," meaning that volume is relatively low and the spreads are narrow - the market is struggling to advance higher -- more weakness.

 

When we get back to the level of the Old Top, price is unable to sustain a close above the resistance of the old high. This represents an UT and is even more weakness. Aggressive short trades might be taken on the UT, or more conservative short entries would occur on a No Demand following the UT, indicating a lack of interest in higher prices by larger traders, which again, is more weakness.

 

The idea is to read the background as a continuing story with the triggers being the UT and the ND. In this example, the background is the combination of:

 

  • An old top that forms resistance
  • High volume at that old top indicating a climax
  • Lower low on the reaction
  • Increased volume to the downside
  • lackluster rally - low volume, poor spreads
  • UT and rejection of higher prices

 

Hope this is helpful,

 

Eiger

[ATTACH]11139[/ATTACH]

5aa70ee045d97_gbpjpybackround.thumb.gif.d0d027278b4db47290de89e9a8c22385.gif

5aa70ee04c24d_gbpjpynextweekprojection.thumb.gif.48b5f4684f73c4800a3c25af15dee7c9.gif

Share this post


Link to post
Share on other sites
What makes you think there is a buying climax there?

----------------------------

Thank for respone, Eiger,

 

I use Bettervolume Indicator, which give Defination for Upbar high volume high spread as Climax Bar.(shown as Red Bar----my bad, I should not blindly follow Better volume red bar indicator, without look at "5" bar(Pull back)). Thank you.:crap:

 

note : You are correct, it is to early to say that it is buying climax (look at "5" bar, it is Pull back bar, sign of strenght),----also should we wait for "another buying climax" on Monday before make any further incoming Uptrust analysis ?

 

Your Analysis on realtime GBPJPY will help people know how to setup up VSA Uptrust in forex correctly.

 

Thank you

 

Cheers

Share this post


Link to post
Share on other sites

Thanks Eiger for the title of Tom Williams' first, more in-depth book. I've read Master The Markets, but this one is much more to the point. Quite possibly I'm now starting to understand more and more; hence "Undeclared Secrets That Drive The Stock Market" is easier to absorb.:cool:

 

Thanks again for this thread.

Bohunck

Share this post


Link to post
Share on other sites

Beware USTDTSM have a few typos and errata. (Might be corrected in later editions). If you find yourself reading a passage and thinking 'hmm that doesn't make sense' it could be that "buyers" should read "sellers", there is also the odd mis labelled bar on a chart here and there. It's still the best source (and probably all you need).

Share this post


Link to post
Share on other sites

Hello,

Being a new comer I think new people would benefit from some definitions. I got these terms from another post which is not quoted. I'll start with what I have read and please feel free to add or change anything I may have made a mistake on:

 

1. tests-

2. shakeouts-

3. no demand-a norrow range bar with volume less than the previous 2 bars that closes up from previous bar.

4. stopping volume

5. pushing through supply

6. upthrust

7. selling/buying climax

8. climactic action

9. support/weakness coming in

10. trap up/down move

11. no result after strong effort

12. selling/buying pressure

13. bottom reversal

14. end of a rising market

15. squat-volume greater than the previous bar with range less than the previous bar.

16. WRB-Body greater than the previous 3 bars

17. Narrow Range-

Share this post


Link to post
Share on other sites

Well the VSA summary pretty much gives you a link to find the definition and chart examples of almost everything described, so i guess it would not be necessary to put up the definitions.

Share this post


Link to post
Share on other sites
Is there any real diference between mastering the market by tom williams and the undeclared secrets that drive the market by tom williams? Do you recommend one over the other

thanks

TC

 

Master the Markets is largely a promotional tool for a software company. The Undeclared Secrets that Drive the Stock Market is Williams' original work. So it depends on what you want. Google either one.

Share this post


Link to post
Share on other sites
Hello,

 

15. squat-volume greater than the previous bar with range less than the previous bar.

16. WRB-Body greater than the previous 3 bars

-

 

I may be wrong but I don't believe those are VSA terms.

Share this post


Link to post
Share on other sites
Hello,

Being a new comer I think new people would benefit from some definitions. I got these terms from another post which is not quoted. I'll start with what I have read and please feel free to add or change anything I may have made a mistake on:

 

1. tests-

2. shakeouts-

3. no demand-a norrow range bar with volume less than the previous 2 bars that closes up from previous bar.

4. stopping volume

5. pushing through supply

6. upthrust

7. selling/buying climax

8. climactic action

9. support/weakness coming in

10. trap up/down move

11. no result after strong effort

12. selling/buying pressure

13. bottom reversal

14. end of a rising market

15. squat-volume greater than the previous bar with range less than the previous bar.

16. WRB-Body greater than the previous 3 bars

17. Narrow Range-

 

Hi,

 

One word to describe all the above: Sex

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.


  • Topics

  • Posts

    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • Hello citizens of the U.S. The hundred year trade war has leaked over into a trading war. Your equity holdings are under attack by huge sovereign funds shorting relentlessly... running basically the opposite of  PPT operations.  As an American you are blessed to be totally responsible for your own assets - the govt won’t and can’t take care of you, your lame ass whuss ‘retail’ fund managers go catatonic  and can't / won’t help you, etc etc.... If you’re going to hold your positions, it’s on you to hedge your holdings.   Don’t blame Trump, don’t blame the system, don’t even blame the ‘enemies’ - ie don’t blame period.  Just occupy the freedom and responsibility you have and act.  The only mistake ‘Trump’ made so far was not to warn you more explicitly and remind you of your options to hedge weeks ago.   FWIW when Trump got elected... I also failed to explicitly remind you... just sayin’
    • Date: 7th April 2025.   Asian Markets Plunge as US-China Trade War Escalates; Wall Street Futures Signal Further Turmoil.   Global financial markets extended last week’s massive sell-off as tensions between the US and its major trading partners deepened, rattling investors and prompting sharp declines across equities, commodities, and currencies. The fallout from President Trump’s sweeping new tariff measures continued to spread, raising fears of a full-blown trade war and economic recession.   Asian stock markets plunged on Monday, extending a global market rout fueled by rising tensions between the US and China. The latest wave of aggressive tariffs and retaliatory measures has unnerved investors worldwide, triggering sharp sell-offs across the Asia-Pacific region.   Asian equities led the global rout on Monday, with dramatic losses seen across the region. Japan’s Nikkei 225 index tumbled more than 8% shortly after the open, while the broader Topix fell over 6.5%, recovering only slightly from steeper losses. In mainland China, the Shanghai Composite sank 6.7%, and the blue-chip CSI300 dropped 7.5% as markets reopened following a public holiday. Hong Kong’s Hang Seng Index opened more than 9% lower, reflecting deep concerns about escalating trade tensions.           South Korea’s Kospi dropped 4.8%, triggering a circuit breaker designed to curb panic selling. Taiwan’s Taiex index collapsed by nearly 10%, with major tech exporters like TSMC and Foxconn hitting circuit breaker limits after each fell close to 10%. Meanwhile, Australia’s ASX 200 shed as much as 6.3%, and New Zealand’s NZX 50 lost over 3.5%.   Despite the escalation, Beijing has adopted a measured tone. Chinese officials urged investors not to panic and assured markets that the country has the tools to mitigate economic shocks. At the same time, they left the door open for renewed trade talks, though no specific timeline has been set.   US Stock Futures Plunge Ahead of Monday Open   US stock futures pointed to another brutal day on Wall Street. Futures tied to the S&P 500 dropped over 3%, Nasdaq futures sank 4%, and Dow Jones futures lost 2.5%—equivalent to nearly 1,000 points. The Nasdaq Composite officially entered a bear market on Friday, down more than 20% from its recent highs, while the S&P 500 is nearing bear territory. The Dow closed last week in correction. Oil prices followed suit, with WTI crude dropping over 4% to $59.49 per barrel—its lowest since April 2021.   Wall Street closed last week in disarray, erasing more than $5 trillion in value amid fears of an all-out trade war. The Nasdaq Composite officially entered a bear market on Friday, sinking more than 20% from its recent peak. The S&P 500 is approaching bear territory, and the Dow Jones Industrial Average has slipped firmly into correction territory.   German Banks Hit Hard Amid Escalating Trade Tensions   German banking stocks were among the worst hit in Europe. Shares of Commerzbank and Deutsche Bank plunged between 9.5% and 10.3% during early Frankfurt trading, compounding Friday’s steep losses. Fears over a global trade war and looming recession are severely impacting the financial sector, particularly export-driven economies like Germany.   Eurozone Growth at Risk   Eurozone officials are bracing for economic fallout, with Greek central bank governor Yannis Stournaras warning that Trump’s tariff policy could reduce eurozone GDP by up to 1%. The EU is preparing retaliatory tariffs on $28 billion worth of American goods—ranging from steel and aluminium to consumer products like dental floss and luxury jewellery.   Starting Wednesday, the US is expected to impose 25% tariffs on key EU exports, with Brussels ready to respond with its own 20% levies on nearly all remaining American imports.   UK Faces £22 Billion Economic Blow   In the UK, fresh research from KPMG revealed that the British economy could shrink by £21.6 billion by 2027 due to US-imposed tariffs. The analysis points to a 0.8% dip in economic output over the next two years, undermining Chancellor Rachel Reeves’ growth agenda. The report also warned of additional fiscal pressure that may lead to future tax increases and public spending cuts.   Wall Street Braces for Recession   Goldman Sachs revised its US recession probability to 45% within the next year, citing tighter financial conditions and rising policy uncertainty. This marks a sharp jump from the 35% risk estimated just last month—and more than double January’s 20% projection. J.P. Morgan issued a bleaker outlook, now forecasting a 60% chance of recession both in the US and globally.   Global Leaders Respond as Trade Tensions Deepen   The dramatic market sell-off was triggered by China’s sweeping retaliation to a new round of US tariffs, which included a 34% levy on all American imports. Beijing’s state-run People’s Daily released a defiant statement, asserting that China has the tools and resilience to withstand economic pressure from Washington. ‘We’ve built up experience after years of trade conflict and are prepared with a full arsenal of countermeasures,’ it stated.   Around the world, policymakers are responding to the growing threat of a trade-led economic slowdown. Japanese Prime Minister Shigeru Ishiba announced plans to appeal directly to Washington and push for tariff relief, following the US administration’s decision to impose a blanket 24% tariff on Japanese imports. He aims to visit the US soon to present Japan’s case as a fair trade partner.   In Taiwan, President Lai Ching-te said his administration would work closely with Washington to remove trade barriers and increase purchases of American goods in an effort to reduce the bilateral trade deficit. The island's defence ministry has also submitted a new list of US military procurements to highlight its strategic partnership.   Economists and strategists are warning of deeper economic consequences. Ronald Temple, chief market strategist at Lazard, said the scale and speed of these tariffs could result in far more severe damage than previously anticipated. ‘This isn’t just a bilateral conflict anymore — more countries are likely to respond in the coming weeks,’ he noted.   Analysts at Barclays cautioned that smaller Asian economies, such as Singapore and South Korea, may face challenges in negotiating with Washington and are already adjusting their economic growth forecasts downward in response to the unfolding trade crisis.           Oil Prices Sink on Demand Concerns   Crude oil continued its sharp slide on Monday, driven by recession fears and weakened global demand. Brent fell 3.9% to $63.04 a barrel, while WTI plunged over 4% to $59.49—both benchmarks marking weekly losses exceeding 10%. Analysts say inflationary pressures and slowing economic activity may drag demand down, even though energy imports were excluded from the latest round of tariffs.   Vandana Hari of Vanda Insights noted, ‘The market is struggling to find a bottom. Until there’s a clear signal from Trump that calms recession fears, crude prices will remain under pressure.’   OPEC+ Adds Further Pressure with Output Hike   Bearish sentiment intensified after OPEC+ announced it would boost production by 411,000 barrels per day in May, far surpassing the expected 135,000 bpd. The alliance called on overproducing nations to submit compensation plans by April 15. Analysts fear this surprise move could undo years of supply discipline and weigh further on already fragile oil markets.   Global political risks also flared over the weekend. Iran rejected US proposals for direct nuclear negotiations and warned of potential military action. Meanwhile, Russia claimed fresh territorial gains in Ukraine’s Sumy region and ramped up attacks on surrounding areas—further darkening the outlook for markets.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • AMZN Amazon stock watch, good buying (+313%) toi hold onto the 173.32 support area at https://stockconsultant.com/?AMZN
×
×
  • Create New...

Important Information

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