VSA for Forex

[BlowFish]

Dunno if you know FX ticks are different to ticks in other markets. In FX it is actually bid ask changes that are reported as ticks where as other markets it is actual transactions.

I looked at some of the popular MT4 'brokers' and things just seemed kinda 'off' to me (and very low tick values). The traders that post here (and elsewhere for that matter) and use tick data for FX seem to favour esignal as apparently it is a more complete feed. Just wanted to make it clear that esig was not my recommendation

[cashup]

Yeah, I've read in this and other forums that the esignal in their opinion is the most accurate tick data provider.

Regards

[cashup]

Is it better to use futures for analysing volume, like Euro fx continuous?

Btw...what's the difference between Euro fx continuous and Eur fx march 2010?


Regards

[razzbarry]

You should start by reading Tom Williams book Master the Markets, free download from 4shared.com - document sharing - download Master the Markets by Tom Williams.pdf

Print it so you can write notes on the pages. Office Max will spiral bind it for your for about $4. Once you have read it, read it three more times. It is impossible to understand it reading only once. Then if you have access to a trading program such as AmiBroker start apply what you learn by looking at volume and price charts and try to understand what is going on. If you have a broker that allows you to paper trade make trades based on your understanding. To get competent this will take months, or longer.

Cheers,
Barry

[razzbarry]

I don't agree that one time frame is better. But that is still up in the air. VSA is supposed to be fractal I trade futures intra day. Another guy and I are writing a VSA program for AmiBroker. The original is for EOD and I am updating it to work with intra day data. A crucial part is making sure it correctly displays the conditions Tom Williams defined in Master the Markets.

I am currently using it to trade Russell 2000 e-mini, TFMO, contracts on Interactive Brokers simulated account. It appears that VSA scales well regardless of the time frame used. When I am trading I look at three charts - 1, 5 and 15 minute charts using IBs live data feed.

One major problem with intra day data is that the volume for off hours is way off from normal trading hours. One would have to write a formula that will only average the day or night session so that the volume is not misleading. I wrote two programs for AmiBroker that does this for volume and spread averages. Both the spread and volume are key to getting VSA signals right.

Another problem is getting it to display the support, resistance and trend lines correctly. They are needed to help interpret the conditions that pop up relative to price and volume.

Once you have the trading platform set up you can look at the charts and decide when to take a position.

Barry

[Tataocb]

Hi,

I've been using VSA on Forex for a while now without much problems. My trading results have been way better than when I was trading S/R breakouts. I still use S/R and trendlines for my trading, but my decisions on when to enter and exit are based on VSA. I've been using an MT4 platforma as well without any problems. Sure, Esignal is the best way to go, but if you can't afford to pay $120 monthly for real time date, then you might want to try opening a demo account with Interbank FX, from what I've read elsewhere, it seems to have a good volume data feed, not as accurate as esignal, but pretty similar at times, and should get the job done.

[razzbarry]

I have an account at interactive brokers and they provide a free live feed down to the tick on up to 100 symbols. They have access to forex and futures. Beats $120 for esignal but I know esignal has better data. How much difference that makes in trading I can't say.