[VSA] Volume Spread Analysis

[mister ed]

James - thanks a lot for the video showing this trade, really makes it clear what you were doing and why

[bertg]

James:
Which pivot formula do you use? Classic? Do you calculate them on 24h trading? It seems your charts are not 0930-1615 ET.

Mr Paul:
Should I see something on your website? It's blank right now.

JJ:
James is using Investor R/T, as mentioned above.

Regards,
Bert

edit: LOL, post 1422 (JJ's) was the last one when I started typing...

[MrPaul]

	Quote:	bertg
	James: Which pivot formula do you use? Classic? Do you calculate them on 24h trading? It seems your charts are not 0930-1615 ET. Mr Paul: Should I see something on your website? It's blank right now. JJ: James is using Investor R/T, as mentioned above. Regards, Bert edit: LOL, post 1422 (JJ's) was the last one when I started typing...

I was in the process of starting a really great blog, but then I totally lost interest and am still wondering what I should do with it.

[Soultrader]

	Quote:	bertg
	James: Which pivot formula do you use? Classic? Do you calculate them on 24h trading? It seems your charts are not 0930-1615 ET.

I dont use pivots that much for trade locations anymore.. I use them as reference point in case Im in a trade and wondering why supply/demand is approaching.

I use 24 hour charts for all my intraday charts besides the MP chart. Pivots are using the classic formula.

[Piggyback_Trader]

Hello All,

As mentioned before, very narrow focus for me, but I'll contribute for educational purposes, you all have a good thing going here.

I make one trade per day, win or lose. I only trade the ER2 on 3 minute chart with 1.1 point target, 1 point stop. As account grows I add one contract per $3,500 (margin on ER2) gain and conversely decrease one contract with any decline of $3.5K in equity.

I only take simple, easy trades. It's all about market manipulation, merchandising as Joel Pozen defines it. So my style is to look for the setup (merchandising), then a permission bar (confirmation) and then the entry.

Here's today's trade.

1. Setup - two wide range up bars (blue) with heavy volume at 7:09.

Now looking for confirmation of weakness to go short or strength after weakness for long.

2. Permission - Green test bar tested price at 7:18, slight increase in volume shows buying came in, bar closed at it's high - strength after weakness.

Market has given me permission to enter long, so I wait for entry.

3. Entry - Narrow range down bar, with very low volume at 7:21, closes at center of bar. Enter long

4. Get my fill and 1.1 point profit in one bar, less than two minutes actually. Trade went like 4-5 ticks against me.

Keep in mind, the big money sold into those two wide range bars, tested price on that green bar, and ceased selling on the narrow red bar. Once that no demand printed, I piggybacked the move, pretty straightforward. I did not know, nor does it matter to me, if the market goes higher or lower, I made my money.

Tradestation labels my entry and exit, "Market" order for entry and "Limit" target 1.1 higher.

[Anonymous]

Thanks Piggyback. Nice job. Please keep the charts coming. We can all learn and grow together. Just curious why you are using the "training wheels" chart?

[monad]

[quote=Piggyback_Trader;29 240]Hello All,

As mentioned before, very narrow focus for me, but I'll contribute for educational purposes, you all have a good thing going here.

Keep in mind, the big money sold into those two wide range bars, tested price on that green bar, and ceased selling on the narrow red bar. Once that no demand printed, I piggybacked the move, pretty straightforward. I did not know, nor does it matter to me, if the market goes higher or lower, I made my money.


Thanks Piggyback for sharing your knowledge, great trade execution,
Did you mean to state NO SUPPLY on that down bar with low vol. rather than NO DEMAND.

[Soultrader]

Another short setup. Target low of the WRB.



Update:

Exit shown below. Quick trade targetting WRB body low and PDH confluence area.

[brownsfan019]

James,
Nice short on the inverted hammer!

Seems like an awful lot of work to simply short an inverted hammer after a big move due to news. Just throw up a candle chart with an oscillator or something and off you go...

[Soultrader]

	Quote:	brownsfan019
	James, Nice short on the inverted hammer! Seems like an awful lot of work to simply short an inverted hammer after a big move due to news. Just throw up a candle chart with an oscillator or something and off you go...

Didnt realize the candle pattern until you mentioned. I was actually placing this trade based on a pattern recognition through market profile. Range extension upside on news is likely to shift value higher. But will rotate near the upper range similar to a "P" profile (if u exclude the area before the breakout). This allowed me to place a counter trend trade anticipating price to rotate back down slightly (not a complete reversal) and to form a double distribution trend day.