[VSA] Volume Spread Analysis Part I

[Anonymous 11]

Thanks Piggyback. Nice job. Please keep the charts coming. We can all learn and grow together. Just curious why you are using the "training wheels" chart?

[monad 10]

Hello All,

 

As mentioned before, very narrow focus for me, but I'll contribute for educational purposes, you all have a good thing going here.

 

Keep in mind, the big money sold into those two wide range bars, tested price on that green bar, and ceased selling on the narrow red bar. Once that no demand printed, I piggybacked the move, pretty straightforward. I did not know, nor does it matter to me, if the market goes higher or lower, I made my money.

 

 

Thanks Piggyback for sharing your knowledge, great trade execution,

Did you mean to state NO SUPPLY on that down bar with low vol. rather than NO DEMAND.

[Soultrader 12]

Another short setup. Target low of the WRB.

 

 

Update:

 

Exit shown below. Quick trade targetting WRB body low and PDH confluence area.

 

[brownsfan019 17]

James,

Nice short on the inverted hammer!

 

Seems like an awful lot of work to simply short an inverted hammer after a big move due to news. Just throw up a candle chart with an oscillator or something and off you go...

 

[Soultrader 12]

James,

Nice short on the inverted hammer!

 

Seems like an awful lot of work to simply short an inverted hammer after a big move due to news. Just throw up a candle chart with an oscillator or something and off you go...

 

 

Didnt realize the candle pattern until you mentioned. I was actually placing this trade based on a pattern recognition through market profile. Range extension upside on news is likely to shift value higher. But will rotate near the upper range similar to a "P" profile (if u exclude the area before the breakout). This allowed me to place a counter trend trade anticipating price to rotate back down slightly (not a complete reversal) and to form a double distribution trend day.

 

[brownsfan019 17]

Didnt realize the candle pattern until you mentioned. I was actually placing this trade based on a pattern recognition through market profile. Range extension upside on news is likely to shift value higher. But will rotate near the upper range similar to a "P" profile (if u exclude the area before the breakout). This allowed me to place a counter trend trade anticipating price to rotate back down slightly (not a complete reversal) and to form a double distribution trend day.

 

 

Wow, I feel stupid after reading that.

 

I guess just seeing an inverted hammer for a quick pop is easier for me.

[monad 10]

Nice doji to short there James!

 

I was right with you there but for different reasons.

 

 

would you care to elaborate the reason, can only enhance our learning curve, do you base your trades primarily via candlestick patterns???

[sheptrader 11]

Hi everyone, here are 2 trades i took this morning based on VSA.

well the way i see it, please correct me if i am wrong

 

regards

 

sheptrader

 

PS first post with chart so hope it loads ok.

[LLL 10]

I would like to buy your VSA boot cmap CD. Please let me know if want to sell it.

[sheptrader 11]

Hi all, here is another trade i just taken.

 

regards

 

sheptrader

[jjthetrader 10]

Hi everyone, here are 2 trades i took this morning based on VSA.

well the way i see it, please correct me if i am wrong

 

regards

 

sheptrader

 

PS first post with chart so hope it loads ok.

 

Nice work. Great so see your trades with explanation.

[sheptrader 11]

Thanks jjthetrader, not sure its something i can do all the time as it takes to much time and missing other trades but hope it helps some.

 

but shall keep posting if people are interested

[jjthetrader 10]

Thanks jjthetrader, not sure its something i can do all the time as it takes to much time and missing other trades but hope it helps some.

 

but shall keep posting if people are interested

 

It's a VSA thread, people are interested in seeing trades using VSA. I am at least.

Thanks

[bh_trade 10]

To reiterate what JJ wrote: Sheptrader, very nicely annotated charts, very easy to follow your rationale, especially the numbered steps in your decision. Thank you for posting these.

[Anonymous 11]

Sheptrader,

 

Awesome. Simply awesome. Thank you so much. Please keep 'em coming. It is nice to see other takes on how to apply Volume Spread Analysis to the markets. It helps us all become better traders.

[sheptrader 11]

agian thanks every one, just saying what i am seeing, it is nice to see fellow traders in here who have been mentored by joel, Hi guys !!! as much as i trade of VSA i owe a lot more to joel in intoducing and teaching me about Richard Ney and his theory of market manipulation, merchandising and how the specialist move markets so that they can buy low and sell high, i find this and weight to VSA.

[Seb Manby 11]

Hi all, here is another trade i just taken.

 

regards

 

sheptrader

 

 

Please see attached video

 

regards Sebastian

Sheptrader.wmv

[Anonymous 11]

With much props to Soultrader (Market Profile trader):

 

Here is a shot from yesterday. We look left to trade right. The 15 min trend/profile chart sets the stage for the 5 min trade chart.

 

Things get started when price shoots out of the Value Area (t) (Deviation Range) and finds support 1 pip above the 1.4800 psych level. We get a wide spread bar on high volume closing off its lows with the next bar up. This looks like a bottom reversal.

 

Jump over to the 5 min. We see the same pattern forming here. The aggressive trader might jump in here. I am a bit more conservative and need to see certain things.

 

Back to the Profile chart. One candle later we have 3 candles closing outside of the Value Area. Now we have enough to truly consider price to have traded outside of Value. Note that other Bottom reversal just to the left. Since price did not close out side of Value on more than just the dark candle, we are not looking at a 80% rule trade here. Some may note a total of 5 Value Area exits with re-entries (Although I would not consider them all trade set ups) with 4 of the 5 hitting the opposite side of the value area. Is 4/5>=80% ? You do the math.

 

Anyway back to the bottom reversal of note. Let's jump over to the 5 min. Notice that we get a WRB about 5 candles after the reversal. This sets up a WRB support/resistance zone. Now we know that WRB signal possible changes in the supply/demand dynamics in the market. Which is why I like to take signals within the body of a WRB. Things don't always come out perfectly, or do They? Two Candles later, a nice Test forms. This not a regular Test, it is a Test in a Rising Market. An even more powerful type of Test. There is strength in the background to back up the bullishness of this candle. But wait, there's more .

 

The very next candle that confirms the Test ends at the same time we get the first candle on the 15 back within the Value Area (t). In other words, an 80% rule trade sets up as we get a Test in a rising market that is just slightly out of the body of a WRB with both periods showing a bottom reversal.

 

While it is not a stretch, There is a Long Shadow that the Test bar is completely within. But leaving that aside, the point is with a little less rigidity AND confirmation from an unrelated element, the trade remains valid.

[jjthetrader 10]

PP, where can I find information on all the pivots you have there. I didn't see anything labeld VAH etc but you talked about the value area.

Also, what times do you use for MP in FX? 12 - 12?

thanks

[Sledge 13]

OK All-

Still in my infancy of learning VSA but I have a question about GBP/USD this AM for anyone who may have access to charts- the bars in question are easy as cake to see.

 

This week the 1 HR Trendline was textbook upward moving. It touched the line over the last few days in an astonishing manner. All signs pointed towards my 1.9945 target would be hit this AM. Then the bottom fell out.

 

My question to the VSA Pro's is Why? My theories are:

1. It is Friday and Extreme Profit Taking went on and the Non-Farm Payroll was the perfect news item to transfer to weak holders (get them into shorts for the move and the rest of the day.)

2. This is a Friday Markdown for a next week rally.

 

My concern is that their appeared to be no weakness in the background- no abnormal movements- just nice accumulation/distribution over the week. Then all hell broke loose this morning.

 

Am I reading this correctly in either of my above theories or did I just get the beatdown of a lifetime 5 pips short of my target?

[Piggyback_Trader 10]

Trade of the Day:

 

Did not trade yesterday, travel day.

 

Took two trades, the first was a scratch, order entry problem, made a few ticks on it. I do take a second trade if the first is a scratch.

 

1. Set up - Effort to rise at 6:48.

 

2. Permission bar is green test bar at 6:57 - test of price back into effort to rise.

 

3. Enter on no supply bar at 7:00, lay-up for my profit.

 

Big boys knew what the news was going to be evidenced by the no supply bar at 7:00, I saw the footprints the big money leaves behind and piggybacked the move. Simple, easy trades only.

 

[Piggyback_Trader 10]

Hello All,

 

As mentioned before, very narrow focus for me, but I'll contribute for educational purposes, you all have a good thing going here.

 

Keep in mind, the big money sold into those two wide range bars, tested price on that green bar, and ceased selling on the narrow red bar. Once that no demand printed, I piggybacked the move, pretty straightforward. I did not know, nor does it matter to me, if the market goes higher or lower, I made my money.

 

 

Thanks Piggyback for sharing your knowledge, great trade execution,

Did you mean to state NO SUPPLY on that down bar with low vol. rather than NO DEMAND.

 

Correct, NO SUPPLY. I have aixelsyd (oops, I mean dyslexia), I get things backwards, big time benefit for following market manipulators - I see opposite of what they want the heard to see, which of course is how the big boys trade.

:o:o:o:o

[Piggyback_Trader 10]

Thanks Piggyback. Nice job. Please keep the charts coming. We can all learn and grow together. Just curious why you are using the "training wheels" chart?

 

humm, don't know why...just accustomed to it would be a good guess, lol!

 

keep up the good work!

[mister ed 10]

for anyone who may have access to charts

 

Hi Sledge - I dont trade FX but can access charts over the web - but these charts dont give any indication of volumes at all - is it possible to post a cable chart with volumes(tick activity a better description in FX)? You ask an interesting question and would like to check it out.

[monad 10]

Correct, NO SUPPLY. I have aixelsyd (oops, I mean dyslexia), I get things backwards, big time benefit for following market manipulators - I see opposite of what they want the heard to see, which of course is how the big boys trade.

:o:o:o:o

 

You are in great company, Virgin Boss is dyslexic, infact folks with dyslexia possess great business acumen;)

 

BTW do you employ higher timeframe charts to establish trend etc (say 15min, 30mim or 60min) and then trade off 3min charts or just focus entirely on price/vol relationships on 3min charts.