[VSA] Volume Spread Analysis

[gassah]

The Vista version of the Boot Camp doesn't seem to have limitations either.

nic

[jjthetrader]

PP wants some VSA so lets get back into it.

Here's a daily chart of the ES. Check out yesterdays action on low volume. Now this morning we're opening lower and right on the lower trendline of the downward channel.
Does yesterdays action not look like no supply or is the spread too wide?

A side note about trading the ES. Those of you who trade it intraday, what size of stop do you use? I've been using 2 pts and it's uncanny how the price will go exactly the 2 pts, stop me out and then go back in the direction I was positioned for.
When trading using VSA would it be more wire to jump back in or use a wider stop?

[jjthetrader]

Forgot to attach chart

[zdo]

	Quote:	jjthetrader
	A side note about trading the ES. Those of you who trade it intraday, what size of stop do you use? I've been using 2 pts and it's uncanny how the price will go exactly the 2 pts, stop me out and then go back in the direction I was positioned for. When trading using VSA would it be more wire to jump back in or use a wider stop?

some strange suggestions:
If entering on limit (buying into weakness and viceversa) –
1 start placing your orders where you were previously placing your stops
2 place your stops wider
3 then never let these stops be hit

If entering on stop (buying into strength and viceversa) –
1 put initial stop under most recent swinglow (vv for shorts)
2 after n bars start moving it in aggressively twd breakeven
(whether price ‘momentumd’ for you or not)
3 almost never let these stops be hit

[jjthetrader]

	Quote:	zdo
	some strange suggestions: If entering on limit (buying into weakness and viceversa) – 1 start placing your orders where you were previously placing your stops 2 place your stops wider 3 then never let these stops be hit If entering on stop (buying into strength and viceversa) – 1 put initial stop under most recent swinglow (vv for shorts) 2 after n bars start moving it in aggressively twd breakeven (whether price ‘momentumd’ for you or not) 3 almost never let these stops be hit

You know what? Those are great suggestions. I like your style.

[jjthetrader]

Could I get some people's volume count for yesterday Jan.15 on the ES daily chart.
My esignal shows 1.4 mil and tradestation shows 2.4 mil. There's got to be something wrong.
That's enough to change my view of directional orientation.
thanks

[zdo]

jj,

re: “never let these stops be hit� That is easier said than done. Several known biases are strong and operational for most of us. (and who knows about the unknown ‘biases) Takes resolve! In putting practice, Tiger Woods sinks a minimum of 100 + four foot putts in a row before calling it a day. Apply same kind of mindful resolve. Go a month without letting a single stop be hit and you’ll never go back! The tempations 'flip'! Before - it was 'decide', etc. to stay in and see if it works out. After - it is 'tendency' to get out and prepare for a 'functioning' setup... This practice saves / generates beaucoup psychological ‘capital’

To put into practice
It's system dependent but a general rule of thumb is if get a larger than average range bar against you = get out. And the final ‘stop’ to end all 'stops' in this practice = Always exit at market before price is close enough to stop order to risk getting a double fill.

After two successful months place stops (at 4.3 sigma ie in the far distance) early morning (for the whole day in case of outages/ catastrophe, etc). and use appropriate mental stops for each entry and apply the same rule –
Never let a mental stop be hit!

All the best.

zdo

[monad]

Does anybody have "The Undeclared Secrets That Drive The Stock Market" by Tom Williams, notice they are now selling them on the website for $199.

How does it compare to "Master The Markets"??? which was $99.

[jjthetrader]

	Quote:	monad
	Does anybody have "The Undeclared Secrets That Drive The Stock Market" by Tom Williams, notice they are now selling them on the website for $199. How does it compare to "Master The Markets"??? which was $99.

They're only selling at that price because Tom signed them.
I downloaded the ebook for the undeclared secrets and it seems the same only the new one has been edited for spelling and added TradeGuider screenshots and promo.
You won't get anything new for your money. There are no 'secrets' in it that are not in MTM.

[monad]

Very kind of you JJ, greatly appreciated.

I have gleaned a lot on price/vol based on Wyckoff and threads by DBphoenix on elitetrader and T2W, am trying to create my own trading style incorporating Taylor Trading Technique and some of the concepts illustrated by Soultrader on Market Profile, which BTW is excellent, check it out, he has recently posted his trades on YM.