[VSA] Volume Spread Analysis

[Gordon G.]

Thank you so much for your view, Shep: I like your way of analyzing market's behaviour!

Also, bar following B nearly creates a bearish engulfing.

Cheers

[Brun]

Hi,

This is a great thread. Can someone with VSA experiences clarify the characteristics of “no demand” bar? I read this thread and the books…unclear about the positioning of the close within the “no demand” bar.

Thanks,

Brun

[Anonymous]

	Quote:	Brun
	Hi, This is a great thread. Can someone with VSA experiences clarify the characteristics of “no demand” bar? I read this thread and the books…unclear about the positioning of the close within the “no demand” bar. Thanks, Brun

Welcome.

There is more than one definition for No Demand.

In the book the base definition is given as a narrow spread bar closing up with volume less than the previous two bars.

The Trade guider definition, also in the book, is a narrow spread bar closing up on volume less than the previous two bars AND closing on the middle or low of its range.

Joel Pozen would define a No Demand as simply any bar closing up with volume less than the previous two bars. Or a bar closing equal, on volume less than the previous two bars with the previous bar higher than the bar two bars ago.

Still others would include any buying bar (a bar with a higher high, but not a lower low than the previous bar) that has a narrower range and with volume less than the previous two bars is No Demand. If it closes either up from or equal to the previous bar.

The underlying element is volume less than the previous two bars on equal or up closes. Note if the close is down and the we have a buying bar with the close on the low, the we have a hidden Upthrust in the form of No Demand.

Sorry, I don't think I have really answered your question. I guess the reason is, the question you should be asking yourself is "How am I comfortable defining No Demand within the context of market behavior and amidst the various possible elements set forth?".



I have added this beautiful pic from Monday. Note the two No Demands on the right of the Dotted line. The first one obviously closes on its high and has a smaller range than the previous bar. Plus it has volume less than the previous two bars and is a buying bar.

The second one has a greater range than the previous bar and closes near its low. It has volume less than the previous two bars. It is a buying bar (positional relationship), but the low closes signals no real buying going on. This is a Hidden UpThrust in the form of No Demand. TG software would NOT pick up either of these.

[Seb Manby]

Hi PivotProfiler;

For 'No demand' to be correct, you have to have weakness in the background, if you get a sign of strength followed by no demand, then it means that the smart money are not interested in higher prices at that time, and you should be careful if going in, the other thing I find is that most of you seem to view the VSA indicators in isolation, instead of putting them all together to create a complete picture, you have to view the indicators in the same way as a musician, ie read the script and put it all together as the time unfolds.

Hope this post was helpful.

Regards S

[monad]

	Quote:	Seb Manby
	Hi PivotProfiler; For 'No demand' to be correct, you have to have weakness in the background, if you get a sign of strength followed by no demand, then it means that the smart money are not interested in higher prices at that time, and you should be careful if going in, the other thing I find is that most of you seem to view the VSA indicators in isolation, instead of putting them all together to create a complete picture, you have to view the indicators in the same way as a musician, ie read the script and put it all together as the time unfolds. Hope this post was helpful. Regards S

Sebastian,
It would be extremely helpful if you could post some trades that you have actually taken on the forex or index futures to demonstrate the VSA indicators and how they are productive when considered within the context of recent price action and also what was your thinking process for your entry and exit.

[sheptrader]

3 for 3 this morning, keeps on working.

[sheptrader]

another 2 trades

thats me done for day
6 trades 5 winners


see all later

[jjthetrader]

	Quote:	sheptrader
	another 2 trades thats me done for day 6 trades 5 winners see all later

Good work Shep. You deserve the rest of the day off

Only a 1 pnt stop eh? Is that enough these days?

What platform are you using to execute there?

[sheptrader]

depends on your entry! seems to work for me

[jjthetrader]

	Quote:	sheptrader
	depends on your entry! seems to work for me

Well you seem to do quite well with it so it must be alright. I'm not too familiar with the ER2 anyway so maybe it's enough there.
Good work and thanks for sharing.