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tradebetter

VSA for Forex

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Hi,

 

I've been using VSA on Forex for a while now without much problems. My trading results have been way better than when I was trading S/R breakouts. I still use S/R and trendlines for my trading, but my decisions on when to enter and exit are based on VSA. I've been using an MT4 platforma as well without any problems. Sure, Esignal is the best way to go, but if you can't afford to pay $120 monthly for real time date, then you might want to try opening a demo account with Interbank FX, from what I've read elsewhere, it seems to have a good volume data feed, not as accurate as esignal, but pretty similar at times, and should get the job done.

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I have an account at interactive brokers and they provide a free live feed down to the tick on up to 100 symbols. They have access to forex and futures. Beats $120 for esignal but I know esignal has better data. How much difference that makes in trading I can't say.

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Hi,

 

I've been using VSA on Forex for a while now without much problems. My trading results have been way better than when I was trading S/R breakouts. I still use S/R and trendlines for my trading, but my decisions on when to enter and exit are based on VSA. I've been using an MT4 platforma as well without any problems. Sure, Esignal is the best way to go, but if you can't afford to pay $120 monthly for real time date, then you might want to try opening a demo account with Interbank FX, from what I've read elsewhere, it seems to have a good volume data feed, not as accurate as esignal, but pretty similar at times, and should get the job done.

 

How exactly do you use VSA on Forex? Can you give us an example? Is there any specified in VSA in Forex resource for someone to read?

 

Thanks!

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How exactly do you use VSA on Forex? Can you give us an example? Is there any specified in VSA in Forex resource for someone to read?

 

Thanks!

 

This is an example of a trade I took earlier using the MT4 platform with feed from Interbank FX.

 

This is a trade on EU. I think the chart explains itself. Price is now testing that high volume pivot line. I already took 55 pips from the market so that is enough for me for today.

eu1.thumb.jpg.f7a5e3d457d80db576b71639f8cbbd72.jpg

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This is an example of a trade I took earlier using the MT4 platform with feed from Interbank FX.

 

This is a trade on EU. I think the chart explains itself. Price is now testing that high volume pivot line. I already took 55 pips from the market so that is enough for me for today.

 

What is this mMaker@system that I see on the chart?

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As retailers I agree that one have to have eSignal GTIS spot forex data to get the best possible picture of tick volume for VSA analysis, but if one can afford to open 1000K positions with a broker that provides ICAP EBS data I suspect that would be the optimal for FOREX.

 

I use GTIS and have compared it to single brokers with different platforms tick volumes which gives much less ticks. For example a 50 pips 15 min bar can have more than ten times less ticks. If the relationship between the volume bars where the same all the way it would not be a problem, but this is not the case. Sometimes the brokers gives a pretty skewed picture.

 

I have tried both NinjaTrader and Multicharts with eSignal data. I know one could also use TradeStation with OwnData 2 which supports eSignal. I now use a Multicharts based platform developed for my broker with the eSignal data.

 

- Laurus12

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Anyone here have experience with PFG forex feed? I found out a fair amount of small forex fund trading operations use this feed (hmmmm???)....anyone have an opinion?

 

I can't stand PFG as a futures broker but I don't know anything about their forex side of the house.

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Couple of quick questions (apologies if they have already been covered as I have only really scanned through the thread).

 

1. In the application of VSA to Spot FX, in the absence of trade volume is it permissible to use tick volume on larger time-frames (I'm currently running an MT4 platform)? I read somewhere that it is, but wanted to get your opinions as you sound as though you have some pretty extensive expertise in the field.

 

2. Is it permissible to use FX Futures price action and volume to trade Spot? I've used Futures charts in the past to trade spot and found that the price movements on the futures charts were pretty much identical to the quotes for Spot prices I was getting through my broker's platform.

 

Thanks & regards....

 

Jon

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Hi Jon it has been discussed before (possibly in this thread) in my opinion 2 is by far the best option. You can use 'tick' data but they are not even real ticks in spot FX. They are actually bid ask changes they are not even actual trades couple that with the fact of the trillions traded every day the vast majority is not reported on any exchange or ECN and you have a shaky foundation at best. I knew a jobbing bank trader (he worked orders for customers rather than taking speculative positions) he traded yards at a time (a yard is a billion units of currency) and it was all done on the phone nothing shown on any tape anywhere.

 

Some people claim to trade spot successfully using VSA, I am sure most are bonna fide (Tradeguider being the exception, there motivation is selling goods and services). It does call a few things into question in my mind. Is it because of VSA they are successful or something else? Is the price action part of VSA (the spread and close) the thing that makes it effective? Is VSA effective at all? Surely it is more effective with real volume data? Why add question marks in an endeavour where the slightest doubt is likely to trip you?

 

Another option is use the futures to make decisions and place trades in the spot. Just make sure you get a real broker rather than a bookie or if you are drawn to the latter get one that runs a straight book. (another subject that has been discussed at length!)

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Just a thought re. Trade-guider, I'm no programming whiz but would it really be that difficult to write an indicator code that identifies strength and weakness based on previous bar range, HLC data and volume compared to previous bar?

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I wrote something for tradestation once, to be honest it wasn't that good I just wanted to program a state machine in EasyLanguage. That part was pretty good (even if I say so myself) Another feature was to allowed easy addition of price and volume rules with simple high level statements.

 

The EA one was not too good when I looked (ages ago) but there are guys working away on it. What amuses me is that tradeguider has simplified less than a dozen principles into 450 odd indicators :)

 

My advice would be to get Toms original book read it a few times to understand it then hand annotate lots of charts until you get it. There is some good information in the two (or is it three) massive VSA threads here though there is quite a lot that is not (imho).

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I wrote something for tradestation once, to be honest it wasn't that good I just wanted to program a state machine in EasyLanguage. That part was pretty good (even if I say so myself) Another feature was to allowed easy addition of price and volume rules with simple high level statements.

 

The EA one was not too good when I looked (ages ago) but there are guys working away on it. What amuses me is that tradeguider has simplified less than a dozen principles into 450 odd indicators :)

 

My advice would be to get Toms original book read it a few times to understand it then hand annotate lots of charts until you get it. There is some good information in the two (or is it three) massive VSA threads here though there is quite a lot that is not (imho).

 

I guess they need to justify the price tag somehow...

 

WOW! you read my mind, I just this minute put a query out on another forum as to whether I should read Undeclared Secrets, or Master The Markets, US is shorter (I'm guessing it requires more than one read thru') and I want to avoid any annoying and blatant product placements....

 

So you think US is sufficient for gaining a grounding then? There's no additional benefit to reading MTM?

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I guess they need to justify the price tag somehow...

 

WOW! you read my mind, I just this minute put a query out on another forum as to whether I should read Undeclared Secrets, or Master The Markets, US is shorter (I'm guessing it requires more than one read thru') and I want to avoid any annoying and blatant product placements....

 

So you think US is sufficient for gaining a grounding then? There's no additional benefit to reading MTM?

 

They are quite similar to be honest. I would at least start with US. It does have a few typos and editing errors (maybe fixed in later editions).

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They are quite similar to be honest. I would at least start with US. It does have a few typos and editing errors (maybe fixed in later editions).

About a quarter of the way through, going slowly as taking notes, getting some real light bulb moments...:idea:

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