Candles and VSA

[jessechan]

I like very much the idea of integrating VSA with candles. Tom William's "Master the Trade" uses bar charts only. Thanks TG for starting this thread.

[Reaver]

	Quote:	jessechan
	I like very much the idea of integrating VSA with candles. Tom William's "Master the Trade" uses bar charts only. Thanks TG for starting this thread.

Is that a good book, in your opinion? Thanks. I have heard mention of it on these threads, but always looking for more insight.

[jessechan]

I like the book, it's kind of price action type trading book, it seems that Tom develops the VSA concept from the Wyckoff method. However, having read through it several times, I've summarized the whole book into 2 A4 pages. It seems that maybe I've missed a lot of important points. Need to do more hard working on this subject.

[TinGull]

Watching this ETF...One thing I'm noting as it's hanging out consolidating at a resistance level is the excess being formed in the tails of candles along with volume. Note yesterdays volume...almost half of the previous day's volume as well as being at the bottom of the consolidation zone. Dalton would say that as volume declines into an area of a bracket extreme, the more likely that area is to hold.



The biggest signs to me are the hammers/dragonfly doji and other signs of excess showing possible upside potential. While there is some resistance overhead, I'd watch for this one to make an upside move.

What ETF is it? IYR. Real Estate

[RAVIN]

	Quote:	Reaver
	Is that a good book, in your opinion? Thanks. I have heard mention of it on these threads, but always looking for more insight.

Reaver,
The book is good and in many ways quite unique .The Boot Camp CD will provide more visual on the various principles which as Tom says are only a few and taken in conjunction with trendlines, support/resistance and a couple of time frame can provide enough material to construct viable strategies and tactics for logical trading.
VSA principles can help you identify selling and buying pressure professional or otherwise in context of background strength or weakness, that is it, nothing more. It brings in a new dimension of looking at price action and blends easily with any traditional TA indicators such as MA, RSI etc.
If you get hold of Vadym Graifer's book on "Techniques of Tape Reading" that will certainly help you in further grasping the basic principles and constructing setups, strategies, tactics etc.
The Tradeguider software is not necessary to trade with VSA.
Hope this helps

[TinGull]

[MC]

	Quote:	TinGull
	Watching this ETF...One thing I'm noting as it's hanging out consolidating at a resistance level is the excess being formed in the tails of candles along with volume. Note yesterdays volume...almost half of the previous day's volume as well as being at the bottom of the consolidation zone. Dalton would say that as volume declines into an area of a bracket extreme, the more likely that area is to hold. The biggest signs to me are the hammers/dragonfly doji and other signs of excess showing possible upside potential. While there is some resistance overhead, I'd watch for this one to make an upside move. What ETF is it? IYR. Real Estate

Looks like this guy pulled back to test the top of that box and buyers came in as it was shook down. That shake below the box should have ditched all the weak hands I'd think.

Thoughts?

[TinGull]

What I thought was no supply was quickly negated the following day and supply entered the market on a nice down spread on increasing volume. Price did probe the top of the previous box, and with higher volume on the down move, decent spread and closing near the midpoint of the bar...would could *think* we've got a little upside to possibly see.

With this being a real estate ETF...I think downside is more to come as we've broken the primary uptrend line. If we do end up closing inside the previous box, look for a continuation to the bottom around 70.

[Reaver]

	Quote:	RAVIN
	Reaver, The book is good and in many ways quite unique .The Boot Camp CD will provide more visual on the various principles which as Tom says are only a few and taken in conjunction with trendlines, support/resistance and a couple of time frame can provide enough material to construct viable strategies and tactics for logical trading. VSA principles can help you identify selling and buying pressure professional or otherwise in context of background strength or weakness, that is it, nothing more. It brings in a new dimension of looking at price action and blends easily with any traditional TA indicators such as MA, RSI etc. If you get hold of Vadym Graifer's book on "Techniques of Tape Reading" that will certainly help you in further grasping the basic principles and constructing setups, strategies, tactics etc. The Tradeguider software is not necessary to trade with VSA. Hope this helps

Thanks Ravin. I appreciate the info.

[Nick1984]

	Quote:	TinGull
	What I thought was no supply was quickly negated the following day and supply entered the market on a nice down spread on increasing volume. Price did probe the top of the previous box, and with higher volume on the down move, decent spread and closing near the midpoint of the bar...would could *think* we've got a little upside to possibly see. With this being a real estate ETF...I think downside is more to come as we've broken the primary uptrend line. If we do end up closing inside the previous box, look for a continuation to the bottom around 70.

Tin, is that up trend line there mathematically calculated or just visually? That support at the box hasn't been broken yet on that chart. I see that the volume on the down moves as still being smaller than on the up moves so maybe the bulls are waiting patiently for price to the come back down to support. I wouldn't be surprised if on the L2 you see a lot of long orders around the 75 mark. However the last few bars do show an increasing volume to the downside.

I'd stay out of this one for a while till something a bit more concrete comes up!