Pattern Analyis: Doji

[walterw]

I am experimenting some candle charts... after reading this doji thread I was looking how dojis after a wrb candle with lower volume would call for some nice scalps... I would apreciate some critics to this 3 min es chart... thanks Walter.

[brownsfan019]

	Quote:	walterw
	I am experimenting some candle charts... after reading this doji thread I was looking how dojis after a wrb candle with lower volume would call for some nice scalps... I would apreciate some critics to this 3 min es chart... thanks Walter.

Walter,
Nice chart here. You could be onto a nice little trade here. The key being how you define what a WRB is. I've seen many WRB's where the first candle is giant green and the next is a giant red on larger timeframes, so if you take this down to a 3 minute as your example, it could work. The smaller the doji, the better the risk/reward as well. An aggressive play would be to enter at the market on the close of the doji (as we discussed in the chat room this past week) which would give you an even better risk/reward, but could also lead to more stopouts as well.

Keep up the good work and let's get some NEW candlestick trading threads going! If we can recruit some of your loyal followers, we can get the candlestick corner back on the map!

[walterw]

Thanks Brown for your great inputs... will be nice to see what type of new hybrid aproach we can make out of this... cheers Walter.

[MC]

	Quote:	TinGull
	Nick...good start there. What I would say is that the spread was teeny showing no professional interest to continue the up move. If no one wants to continue the upmove, then the path of least resistance is DOWN. The next candle is DOWN on higher volume and then your last chance to get in is that low volume UP candle closing at the highs (4 candles after this doji) showing that there's no demand in this market. Then it heads down. Your analysis was great, tho. As for where I found that resistance, you can see the previous high to the left on that chart. And James, had that volume been very strong and it was still a small spread....my stance would be the same. If you have ULTRA high volume and a narrow spread, what's happening there? There is a lot of volume being traded in a small range. Theory is...if a lot of buying volume is happening, it's being done by the smaller players while the pros are selling into resistance, which is what you normally do see. The amount of selling indicated by the high volume is very telling for the strength of the eminent down move, IMO.

That's where I get duped from time to time. A small spread on low volume when it's just a breather or pullback and I think it's no demand.

Do yall have any tips for helping me to be more clear on what's just a pullback or "test" as we call it in VSA? I get the concept of no supply and no demand but have trouble being accurate since big volume on a narrow spread usually shows shares handed off to the herd BUT narrow spread on low volume could be just a test OR no professional support.

Thanks

[walterw]

	Quote:	mcichocki_
	That's where I get duped from time to time. A small spread on low volume when it's just a breather or pullback and I think it's no demand. Do yall have any tips for helping me to be more clear on what's just a pullback or "test" as we call it in VSA? I get the concept of no supply and no demand but have trouble being accurate since big volume on a narrow spread usually shows shares handed off to the herd BUT narrow spread on low volume could be just a test OR no professional support. Thanks

Hi Mike, I personally find VSA very dificult to read as volume data sometimes may get tricky, I always say vsa is for very smart people, still sometimes they get tricked as we do on price action readings... so dont go bald ¡¡ jejej cheers Walter.

[MC]

	Quote:	walterw
	Hi Mike, I personally find VSA very dificult to read as volume data sometimes may get tricky, I always say vsa is for very smart people, still sometimes they get tricked as we do on price action readings... so dont go bald ¡¡ jejej cheers Walter.

I think some of the core concepts of VSA are easy but you're right it can get way out of hand for a pea brain like mine.

I'm tuned in to Brown and your new threads because I think the exit can have less to do about volume and more to do with WRB or other candle based exit strategies.

Let's keep these puppies rolling, I'm hungry for knowledge and you guys have plenty of that.

[brownsfan019]

	Quote:	mcichocki_
	I think some of the core concepts of VSA are easy but you're right it can get way out of hand for a pea brain like mine. I'm tuned in to Brown and your new threads because I think the exit can have less to do about volume and more to do with WRB or other candle based exit strategies. Let's keep these puppies rolling, I'm hungry for knowledge and you guys have plenty of that.

Here's my very simple outside look of VSA - there's a reason the VSA thread is currently on page 116, which is huge for TL. Probably the biggest thread. After glancing at the thread there appears to be A LOT of questions and confusion on how to implement it in real-time. For me, it's just too much to process in real-time. For me, candlesticks provide many of the same ideas in a much simpler, easier to read format. Just my 2 cents.

[BlowFish]

	Quote:	brownsfan019
	Walter, ..... . I've seen many WRB's where the first candle is giant green and the next is a giant red on larger timeframes, .......

This of course would be a gravestone or gravestone doji (with a pretty long wick) on a chart that is double the time frame to that the WRB's where observed. A pretty powerful sign that the price has been rejected. On A lower time frame you would likely have a ^ top.

Just some food for though.

[monad]

	Quote:	brownsfan019
	Here's my very simple outside look of VSA - there's a reason the VSA thread is currently on page 116, which is huge for TL. Probably the biggest thread. After glancing at the thread there appears to be A LOT of questions and confusion on how to implement it in real-time. For me, it's just too much to process in real-time. For me, candlesticks provide many of the same ideas in a much simpler, easier to read format. Just my 2 cents.

You are probably right, it looks pretty straightforward to account for every bar with reference to the following bar or bars but in realtime those are not there

If somebody could read every bar in realtime, why would they bother to market that method, just sit somewhere on an Island in the Pacific and let the bucks roll in
If one has rule sets for exits and entries with a few of the traditional candlestick patterns which then read with wyckoff or vsa concepts would suffice provided they are applied with consistency and patience.

[Anonymous]

wish all this VSA stuff was in the VSA thread. We love to hear from the haters too. BF we both know that you could get it if you wanted to. You're one of the smart ones-not that it takes smarts; look at me. I think just maybe the thread is so long because volume is the truth.

BTW, how else is knowledge passed from one person to the next ? That is, somebody that knows something or has a particular skill TEACHES it to another person. I can' t understand why people want to disbelieve a. Person for passing on knowledge. Did they act that way to their professors?