[VSA] Volume Spread Analysis

[brownsfan019]

For those that use VSA in your trading, would you mind posting over here - http://www.traderslaboratory.com/for...html#post29891

Just looking for some ideas on VSA resources.

[unicorn]

	Quote:	MrPaul
	We tried that, but no one participated in the second VSA thread entitled VSA II and continued posting on this one. Therefore VSA II, the thread was scrapped.

That is the reason that after informing people of the existence of the continuation thread, moderators lock the primary (first) thread before it becomes huge. SIMPLE AND EASY.

It is also helpful when the initiator or the main participants of a widely followed thread, are encouraged by moderators to keep a secondary thread with the Key methodology and a list of pointers to the most beneficial posts of the main thread. SIMPLE AND EASY when moderators actively moderate.

So Mr Paul, I for one, am requesting that this thread be closed, and that the moderators (or one of the main contributors) create the continuation thread after posting the appropriate notice.

I certainly hope that the main contributors to this thread see the reason that I am asking this action and are not in any way offended.

cheers.
Unicorn.

[MrPaul]

	Quote:	unicorn
	That is the reason that after informing people of the existence of the continuation thread, moderators lock the primary (first) thread before it becomes huge. SIMPLE AND EASY. It is also helpful when the initiator or the main participants of a widely followed thread, are encouraged by moderators to keep a secondary thread with the Key methodology and a list of pointers to the most beneficial posts of the main thread. SIMPLE AND EASY when moderators actively moderate. So Mr Paul, I for one, am requesting that this thread be closed, and that the moderators (or one of the main contributors) create the continuation thread after posting the appropriate notice. I certainly hope that the main contributors to this thread see the reason that I am asking this action and are not in any way offended. cheers. Unicorn.

Unicorn,

As of 2/08/2008 your request has been considered and denied. Please direct your personal comments or concerns to TL's private message system to avoid derailing this thread (or any other) any further.

Thanks and have nice day

Paul

[brownsfan019]

	Quote:	MrPaul
	Unicorn, As of 2/08/2008 your request has been considered and denied. Please direct your personal comments or concerns to TL's private message system to avoid derailing this thread any further. Thanks and have nice day Paul

Keep it cool in here boys.

[brownsfan019]

Hey guys, come check out the hot, new volume thread here - http://www.traderslaboratory.com/for...lume-3425.html



Just kiddin. It's my little Volume/Candle thread. Feel free to stop by and see what you think.

WARNING: MY VERSION OF USING VOLUME IS OVERLY SIMPLISTIC COMPARED TO WHAT YOU GUYS ARE DOING HERE. KEEP THAT IN MIND WHILE VISITING.

[dkbradbury]

Thank you Sebastan. Appreciate your making VSA clearer for us.

[CandleWhisperer]

	Quote:	Seb Manby
	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

"Basically you will be watching out for a low volume up-bar, on a narrow spread." Tom Williams Master The Markets, pg. 32.

At TradeGuider Systems, we define a "No demand" situation as a narrow spread bar, on low volume, that closes in the middle or low." Tom Williams Master The Markets, pg.153.

Simply put, you are half wrong.

PP defined No demand bars as they are indeed defined. What he did not mention was that all no demand bars are not created equally. They show up in different intensities and in more effective locations, i.e. with background weakness. Therefore, every up bar on volume less than the previous two bars is not a reason to short or expect lower prices. It is still a sign of immediate lack of professional interest. And thus acurrately defined as "No demand".

[CandleWhisperer]

I like DB. He is a welcome addition to the forum as a whole. Truth is, PP mentioned him in this thread long before anybody else did in the other thread. However, the new thread seems to be getting off topic. So this is a bump to raise the original VSA thread up to the top so actual VSA teaching and learning can go on.

Also, If you have a problem with Joel, grow a pair and tell him. Don't use this thread to not so subtly mask your disdain or inability to grasp what he tried to impart.

[Tasuki]

	Quote:	CandleWhisperer
	Also, If you have a problem with Joel, grow a pair and tell him. Don't use this thread to not so subtly mask your disdain or inability to grasp what he tried to impart.

I will thank you to please keep the conversation civil. If you cannot do that, then please post elsewhere.

[CandleWhisperer]

Here's a chart provided by DB.

From a VSA perspective, we see a bar that represents climatic action. Or stopping volume. It makes a lower low and closes near its high on ultra high volume after a down trend. Like the name implies, this stops the down move. Price then move up. Suddenly we see an up bar on ultra high volume that closes in the middle of its range. Note that this is the highest volume bar on the chart. If there were just buying on this bar on all that volume, then price should not close in the middle of the range.

Price moves down a bit and then we get a test. Note how little volume there is on this candle. If there is no supply, which is what they are testing for, then price is free to go up. It does.