[VSA] Volume Spread Analysis

[dandxg]

	Quote:	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

JJ I use Sierra Chart with EOD data and I show about 1.4. I probably has to do with the time period specified with the disparity is that great.

[dandxg]

Thanks to those that responded on TG's bootcamp. I guess it's just my computer? I just wanted to offer a suggestion that may help some, like it did me. Instead of judging bar by bar with price and volume, look for pullback to trend on lighter volume. I hope that makes sense. I find it so much easier when the market pulls back on trend with ever decreasing volume and then I get a key reversal of some kind it's time to sell one tick below the low and put my stop 2 ticks above the high and shoot for a re-test of the low that was just made before the pullback. This will also allow you to most often maintain good money management as you will be shooting for 2-1 or greater R to R. That's why DB's thread has been so helpful to me. It has lots of examples of pullbacks on lighter volume with different variations.

Does anyone here do Wyckoff P and F? I have yet to start learning it.

[jjthetrader]

	Quote:	dandxg
	JJ I use Sierra Chart with EOD data and I show about 1.4. I probably has to do with the time period specified with the disparity is that great.

I appreciate you checking these numbers for me. Tradestation is way off and I only have it on the daily session. They're pissing me off big time lately with their data.

[jjthetrader]

	Quote:	dandxg
	Thanks to those that responded on TG's bootcamp. I guess it's just my computer? I just wanted to offer a suggestion that may help some, like it did me. Instead of judging bar by bar with price and volume, look for pullback to trend on lighter volume. I hope that makes sense. I find it so much easier when the market pulls back on trend with ever decreasing volume and then I get a key reversal of some kind it's time to sell one tick below the low and put my stop 2 ticks above the high and shoot for a re-test of the low that was just made before the pullback. This will also allow you to most often maintain good money management as you will be shooting for 2-1 or greater R to R. That's why DB's thread has been so helpful to me. It has lots of examples of pullbacks on lighter volume with different variations.

Thanks for sharing your strategy. I totally get what you're illustrating. Nice work.

[mister ed]

	Quote:	dandxg
	Does anyone here do Wyckoff P and F? I have yet to start learning it.

Hi dandxg - yes I have a PF chart running on the ES. I use it in conjunction with bar/candle charts.

[gassah]

	Quote:	mister ed
	Hi dandxg - yes I have a PF chart running on the ES. I use it in conjunction with bar/candle charts.

Hi dandxg,

I also use Wyckoff PnF. I use it to find stocks that have enough potential and to estimate price targets for exits.

nic

[habi]

	Quote:	jjthetrader
	I appreciate you checking these numbers for me. Tradestation is way off and I only have it on the daily session. They're pissing me off big time lately with their data.

JJ

Be aware, that eSignal is reporting daly volume with one day delay. Check the eSignal knowledgebase:

http://kb.esignalcentral.com/display...L=&r=0.7527277

(surch for 'futures volume' and select exact prase)

Advanced Chart Window
When looking at any electronic futures symbol on an intraday time frame the volume study will show you the actual contract volume being traded. If you are looking at any non-electronic futures contract in an intraday interval it will show you tick volume (tick volume is the number of times the price has changed in a given interval). If you are watching any futures symbol on a daily interval the volume shown will be yesterdays closing volume.


You can check the correct volume on the CME website in the daly bulletin. Select the corresponding day and then the PG47 file for the S&P E-mini:

http://www.cme.com/trading/dta/hist/dbindex.html

Volume reported:

14.1. 1'456'055
15.1. 2'438'433

I had a discussion recently in the eSignal forum about this issue:

http://forum.esignalcentral.com/show...5&pagenumber=1

This changes a lot in your analysis. Instead of a down bar on low volume, it was a no demand bar in my opinion. I attached a chart with eSignal volume and a corrected volume (volume-1) with a EFS-Formula

[Anonymous]

Short set up(s):

Interesting things prior to the trade set up.

A: UpThrust out of place (Polar bear in Africa). If this had been real weakness, there would be weakness in the background.

B: Test. Notice that the volume is low and the close is in the middle. No sellers.

C: Test. Note that the volume on this Test is even lower than the Test two bars ago. Even more evidence that at this time the path of least resistance is up.

D: Narrower to equal range bar with more volume than previous bar that closes on the low and is a buying bar. That is, it makes a higher high than previous bar but not a lower low. This is a Squat/UpThrust. This candle is designed to get people in on the long side.

E: Now we get what we want to see. This is a dark WRB. High volume on down bars usually means selling and this is the case here. Since this is a WRB, we know that something is changing in the supply/demand dynamics in the market. This WRB sets up our Support/Resistance zone to look for an entry point.

F: This is a Test. But note that the volume here is higher than the previous two test, while being lower than the previous two candles. Hence, while we have low volume we have pretty high volume for a test. In other words, this is a failed test. It shows that there are sellers (supply) below. Also note the size of the range versus the previous two Test.

G: BINGO. Low volume sign within the range of the body of a WRB with high volume after a Failed Test. This is an Up bar on volume less than the previous two bars, making a higher high , on a narrower range. This is No Demand. The Smart Money is not interested in higher prices.

H: This is No Supply and out of place. More exactly, the background is full of weakness so this No Supply should not be taken as a long signal. The Pros may not be ready to take the market down, but they are not looking to go long.

I: Case and point we see No Demand. Clearly the market does not want to go up.

J: Higher high, closing on the lows, closing up on higher volume. This is an UpThrust. We have weakness in the background. This also occurs within the body of the Dark WRB making a good place to place a short entry.

K: High volume closing down from previous bar but closing in the upper portion of its range- this is stopping volume.

[jjthetrader]

	Quote:	habi
	JJ Be aware, that eSignal is reporting daly volume with one day delay. This changes a lot in your analysis. Instead of a down bar on low volume, it was a no demand bar in my opinion. I attached a chart with eSignal volume and a corrected volume (volume-1) with a EFS-Formula

Thank you so much Habi! This changes your analysis completely for sure.
It's great to have that link to check through the echange myself. Thank you.

In the last two tradeguider events Tom Williams was discussing bars on the YM and I brought them up as the same time to go over them and it turns out that they're 1 freakin' day behind which even makes the masters analysis wrong.

The new upgrade of Tguider is promising an integrated datafeed. I hope it's better than esignal. Knowing them though it may suck to.

[jjthetrader]

	Quote:	PivotProfiler
	Short set up

Are you entering at market or where are you placing your orders on these bars you point to as short?
thanks