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TinGull

[VSA] Volume Spread Analysis Part I

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The prices could be marked down to 31.6 levels, if the vol. is low, then that would be testing for supply as there is buying pressure in the background indicated by that red bozo on high vol. In that case the prices could rise,

however if prices approach the low of that bozo which is a support level with vol. then it will break it to the downside. Those are the possible scenarios with the info. in front. Should be ready to play it eitherway.

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The prices could be marked down to 31.6 levels, if the vol. is low, then that would be testing for supply as there is buying pressure in the background indicated by that red bozo on high vol. In that case the prices could rise,

however if prices approach the low of that bozo which is a support level with vol. then it will break it to the downside. Those are the possible scenarios with the info. in front. Should be ready to play it eitherway.

What is a Bozo?

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Just started on a VSA book.....awesome so far. Right in line with what I am using any way...awesome stuff. Great way to amplify the information I am viewing as it is.

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What is a Bozo?

 

Hi Ranj,

 

Bozo refers to a Marubozu (sometimes spelt Marubozo) candle, basically candle with very minimal shadows, or no shadows at all. I am sure someone will be along with an even more detailed description, but this is the gist of it.

 

If you Google Marubozu or Marubozo, there is more info out there, I found some at :

 

http://www.streetauthority.com/terms/m/marubozucandle.asp

and at

http://www.iqc.com/101/candle_marubozu.asp

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Just started on a VSA book.....awesome so far. Right in line with what I am using any way...awesome stuff. Great way to amplify the information I am viewing as it is.

 

Is that an ebook...could you PM me with a link to find it cause when I google it I get lots of BS sites it seems. I'm interested in VSA, are there any other books you guys would recommend?

 

Thanks

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Is that an ebook...could you PM me with a link to find it cause when I google it I get lots of BS sites it seems. I'm interested in VSA, are there any other books you guys would recommend?

 

Thanks

You could try this, got it from Tradeguider, :

 

Our Master the Markets eBook is security protected through Virtual Vault. When you click the link below a page will open asking you to enter your email address. Enter this and click the "submit" button.

 

You will then begin the download process. When prompted chose the "SAVE" option. You will be asked to save the program to your hard drive, so chose a folder you would like to store it in.

 

Happy Reading and Welcome to the

TradeGuider Trading Community.

 

Click Here to continue the download process

 

or email: richardb@tradeguider.com

 

Get hold of the BootCamp CD, it will provide visual illustration of all that is in the book and take your understanding of VSA to a different level.

 

This then arms you with the knowledge of how the markets are driven soley by supply/demand, you may have heard this cliche' a zillion times, but the way supply and demand works is exactly opposite to what we have been led to believe, the general public is totally oblivious of the manipulation that goes on.

However this knowledge has then to be translated into strategies and tactics, i.e to identify setups for entry/exit, trade management.

There are basically only 7-8 principles which govern supply/demand.

Vadym Graifer's book "Techniques of Tape Reading" in conjunction with that of Marcel Link "High Probability Trading" will help you do just that.

 

From there on it is just the question of focussing on a couple of setups, defining the rules, then applying them on a consistent basis with discipline and stop the search for any holy grail, indicators etc, Keep it Simple

Hope this helps

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Here is a classic example of shake out,

 

1. 30MIN: Notice the last few red bars during the decline on heavy volume , then an inside narrow bar on reduced vol, now comes the test on a downbar where the cursor is prior to markup of nearly 40pt in 1hr (1000euros on 1 contract

 

2. 5MIN: note the test on low vol

 

3. 2MIN: Now to finesse the entry we know the smart money has absorbed the selling, however when are they ready to move up. The prices are marked down following by a rapid up bar, stops hit, people shaken out of the market, rapid mark up ensures shorts are trapped, buyers unwilling to participate etc, classic manipulation of the market, no indicators just pure tape reading, Volume Spread Analysis (VSA)

 

4. Often the market is marked further down than the previous high vol. level, with dragonfly candles appearing indicating shakeouts, followed by rapid rises , achieves the same purpose: classic money making maneuvers by the smart money

5aa70e123297b_DAX30MIN.GIF.f30c04204be16aedd7d4f838b997e91f.GIF

5aa70e12358e7_DAX5MIN.GIF.da3d3b2c63c08521196ffe3617ee1f64.GIF

5aa70e1237ea7_DAX2MIN.GIF.5fb878785390909d0048f2a0fda1aa36.GIF

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BTW

I am not in any way connected with Tradeguider , infact I am of the opinion that you do not require their expensive software to work with VSA methodology, all that is needed is a charting package and datafeed which can plot vol.

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I wouldn't say volume was light, especially on options expiry. That's the big variable in todays action...the options volume that happened. I know looking at some things like the Diamonds and Spyders the volume surged ahead 3x what it was yesterday. Looks like there could be a bit more downside to go.

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Hello TinGul,

 

Thanks for the input.

 

I just started to read the e-book, but I don't much like reading books on a computer screen. Went to print it out and that's not allowed. Guess I'll have to order the book. I see they have a bootcamp. Anyone have a bootcamp they want to sell?

 

TIA

 

Gary

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Hey Everyone,

I personally own TradeGuider and love it. It's indicators are actually just training in VSA for me. I barely look at them anymore. You get to know what you're looking for after a while.

You can't dog on Gavin for using the indicators in his presentations, he's presenting the indicators! I doubt he trades with them.

For me it was worth the money. It's saved me tons of cash in losses and helped me hone my TradeStation strategy to be way better.

If anyone has seen a presentation you know what their Trend Clusters are. I wouldn't trade without them. Worth the two grand alone.

Just my 2 cents.

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But would you base your trades on it?

 

 

I would base my trades on something learned through the socratic method and from other intelligent human beings before I would rely on a $2000 red light green light computer to tell me what I should be seeing, if that answers your question.

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I had a feeling I was posting to the wrong group but I didn't want people reading the negative comments to actually beleive they're the truth.

There's always two perspectives. Enjoy yours without claiming it as 'truth'.

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You asked a question and I answered.

 

Onward with the thread please. I am not going to get into this. I stated my opinion. Period.

 

Have a nice day, maintain respect on the forums please.

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