[VSA] Volume Spread Analysis Part I

[Anonymous 11]

Welcome back PP

 

 

Thanks. I have been lurking and feeling good to see the brillant work being done by yourself and others. We have something special here guys and gals. Thank you all.

[TinGull 10]

Awww shucks....thanks

[TinGull 10]

 

Is this a little closer to what you'd want to see? I realize it's not right at the highs of the bar for a close, but in the upper third anyhow. It comes down to test the high of that SUPER high volume up bar.

[jjthetrader 10]

It doesn't look like a test to me closing in the middle with the next bar down on increasing volume. It could well be a test though.

The bullish bar to me is the high volume bar you are referencing. A high volume down bar closing on the high. Nice!

[jjthetrader 10]

Here's a more recent Test.

[TinGull 10]

Maybe I get influenced by the candle formation being bullish as well and not worrying that it closes at the highs or not. Agreed, the next bar had higher volume and closed lower, but at the time of the test you don't know that bar has occurred yet. I still stand with my loose defs of tests, tho. Much easier for me to work with. When I see a hammer, I just think "bullish" and if it happens to test a support area on low volume...all the better for me.

[jjthetrader 10]

I don't use candles so those bullish signs elude me. Glad you can add more depth to VSA for us with your eye.

[TinGull 10]

Thanks I think candles with VSA is a wonderful way to look at things.

[tech/a 10]

Hi from the land down under.

 

Happened to stumble on this thread on VSA and Tradeguider a few days ago.

 

I was predominantly a systems trader for the past 14 yrs and with such a tremendous bull market---success really didny warrant me investigating anything else

 

However as we all see if we look at 1000s of charts,the lure of a quck 10,30,or more % in short term trades has alwaysed had me trying a myriad of methodologies over the years---with mixed results.

 

Introduced to VSA around 9 mths ago and have been trading short term with tradeguider and combining with Elliot Wave analysis for the past 6 mths.

 

I have both EOD and Realtime Tradeguider.

Spent a fair amount of time with Gavin Holmes (Director of Tradeguider) during a seminar in Australia reciently.

In particular I'm working with him/them on improvements to their search functions.Rather practical use than programming.

 

Anyway the difference in my trading methodology with the introduction in VSA is nothing short of revolutionary---for me anyway.My conventional thinking on Volume and spread has literally been thrown out the door.

Results are consistent and rewarding.

 

Its not often you stumble across a serious discussion from fellow traders on a topic you are so passionate about.

I'm happy to help out with charts and any questions/discussion on Tradeguider and VSA.

I'm not affiliated with tradeguider other than a very happy client,but do know Gavin well enought to ask him to drop by here if you would like any questions directed specifically for him.A very approachable guy with total commitment and passion for his trading and software.

 

Havent read all of the threads but will keep I touch and comment where appropriate.

 

Till then.

[TinGull 10]

Welcome and thanks for your contributions in advance You should tell Gavin to squeak a copy of TradeGuider under my doorstep for hosting such a fabulous thread

 

But I really do look forward to seeing your contributions. I'd love to know more about how VSA changed how you view things. What were you thinking about volume and spreads before grasping what VSA has to offer?

[RAVIN 10]

Hi from the land down under.

 

Happened to stumble on this thread on VSA and Tradeguider a few days ago.

 

I'm not affiliated with tradeguider other than a very happy client,but do know Gavin well enought to ask him to drop by here if you would like any questions directed specifically for him.A very approachable guy with total commitment and passion for his trading and software.

 

 

Totally agree with the sound logic behind VSA, however as for the software, you need to remind Gavin of the glitches in it for such an expensive program and when are they going to sort out the problems and provide clients with an updated version which they have been promising now for years.

 

May be you can persuade Nick Radge to comment here, his use of VSA principles with Elliot waves is quite revealing and once again demonstrates the ease with which VSA can be tied to other methods of TA.

[BlowFish 10]

Be interesting how this plays out it certainly looks like a selling climax however it should be noted that the volume is much greater than the mid august low it is testing so could develop into a failed test. I'd be interested to hear what the VSA experts have to say (is PP around at the moment).

 

This is exactly the kind of scenario that I mentioned a dozen or more pages back when is a selling climax not a selling climax. Certainly on index futures on iintraday time scales I have seen this sort of setup develop into a stair step down with even more volume on the next leg. Perhaps you could post a chart next friday tin? Much more interesting (and tougher) at the hard right edge.

 

Cheers.

 

Would you mind posting a DLTR chart if you get a moment? I would guess with what happened in the indexes it may have dumped too. Actually I was trying to find the YM & ES charts you posted ....guess that was a different thread. I am of the opinion that once you have accepted a concept and learnt how to recognise it that analysing and learning to identify failures is equally (or possibly more) important.

 

Cheers.

[TinGull 10]

[TinGull 10]

Had to point this one out on an intraday time frame. Just was so perfect!

 

 

It's IWM, the R2K etf

[Hawkeye 10]

Is VSA suitable for forex trading, since the volumes shown on the charts are really only 'ticks', or transactions, not size?

 

tech/a, I am in Australia too. Would you please shed some light on my above question, which has made me wonder ever since I came across VSA, and TG people have not been responsive to my enquiries.

 

Thanks in advance.

[TinGull 10]

From what I've read and heard from others (pivotprofiler mainly) tick volume on Forex is a fine way to use VSA in those markets.

[jjthetrader 10]

Is VSA suitable for forex trading, since the volumes shown on the charts are really only 'ticks', or transactions, not size?

 

tech/a, I am in Australia too. Would you please shed some light on my above question, which has made me wonder ever since I came across VSA, and TG people have not been responsive to my enquiries.

 

Thanks in advance.

 

Yes VSA works with Forex. Esignal has something called indicative volume for Forex. You can still measure professional activity by this. I suggest you contact esignal about what this is and how it works.

[RAVIN 10]

Is VSA suitable for forex trading, since the volumes shown on the charts are really only 'ticks', or transactions, not size?

 

tech/a, I am in Australia too. Would you please shed some light on my above question, which has made me wonder ever since I came across VSA, and TG people have not been responsive to my enquiries.

 

Thanks in advance.

 

When Todd Kruger was around at Tradeguider, his focus was primarily on Forex and held seminars almost weekly on that, the ticks represent activity which is volume, in that respect the footprints of smart money will be reflected in that and esignal provide the tick data.

 

If you can get hold of the Bootcamp CD, you will be find a whole section devoted to Forex will comments from Tom Williams.

Hope this helps

[BlowFish 10]

has Todd parted company with Tradeguider? I guess so as you write in the past tense. Was it all amicable?

[Turning Point 10]

Yes. Todd resigned from Trade Guider. I dont know if it was amicable.

[Hawkeye 10]

Todd is supposed to be the one more in tune with VSA, and he used to demonstrate the software using forex; and Gavin being the CEO is more inclined towards marketing. Now that Todd has left TG who else in the company can we look to for advice and clarification?

 

They list 4 office phone numbers in Chicago, London, Hong Kong and Sydney. I called each one of those numbers during the respective office hours, and got recorded messages every time, with Gavin saying he would get back to me. The last 'Weekly Video' showed gavin in Malaysia marketing the software. Emails are also generally ignored.

 

The software are supposed to be requiring update as well. It's a pity because from the discussion at Traders Laboratory it seems that VSA could well work.

[RAVIN 10]

Todd is supposed to be the one more in tune with VSA, and he used to demonstrate the software using forex; and Gavin being the CEO is more inclined towards marketing. Now that Todd has left TG who else in the company can we look to for advice and clarification?

 

They list 4 office phone numbers in Chicago, London, Hong Kong and Sydney. I called each one of those numbers during the respective office hours, and got recorded messages every time, with Gavin saying he would get back to me. The last 'Weekly Video' showed gavin in Malaysia marketing the software. Emails are also generally ignored.

 

The software are supposed to be requiring update as well. It's a pity because from the discussion at Traders Laboratory it seems that VSA could well work.

 

Wyckoff(supply/demand) and VSA (volume/price range) principles exist in all markets regardless of who is at Tradeguider or whether the company is there or not tomorrow.

To learn the principles and their application, there is more than enough info in Tom William's book , Boot Camp CD and on this thread. Then all you require is a charting software which allows plotting of Vol. data with bars or candlesticks.

If you are really concerned with vol aspects on Forex, trading currency markets via currency futures on CME is another option, it is a regulated market and the volume reported are actual contracts exchanged. There is enough liquidity there to trade and the movement is line with the spot market, except ofcourse being a futures market there is the difference in price level with added premium. plus it can be traded on a normal broker DOM rather than through any bucket shop.

[Turning Point 10]

Hi Ravin,

How does Trade Guider work with real time data of e-signal. I have been told that it does not perform so well. In other words it gets stuck and you have to refresh the data. Is that correct? For such an expensive program, this should not happen. Any comments?

[jjthetrader 10]

Hi Ravin,

How does Trade Guider work with real time data of e-signal. I have been told that it does not perform so well. In other words it gets stuck and you have to refresh the data. Is that correct? For such an expensive program, this should not happen. Any comments?

 

This is not true. I've never had it occur for me. As long as your symbols are put in correctly it works flawlessly.

[Turning Point 10]

Hi,

When the market is a little fast, then the bars get a little little smudged. This was told to me by one of the users. Is that correct?