[VSA] Volume Spread Analysis

[malvado xetra]

I combined 60 minutes VSA with daily VSA. It is the best to avoid noise from the market. trying to trade with 5 minutes candles is like being in the middle of the jungle. everything can happen. risk management and money management is absolutely necessary for 5 minutes traders because nothing is for sure

[Gordon G.]

Hi PivotProfiler,

as regards Ultra Wide Spread Bar and the search for signals within its range, do you think it is worth considering also entries within narrow spread bars with ultra high volume ?

Thanks

[mroalan]

yes i still pop in every day,keep it up.would be interested in a blow by blow account of each candle,it would appear that most candles are just making up the numbers with the few being important,i,ve seen dojis on here which are not my idea of that candle,to me it is a very narrowed bodied candle but have seen it described as thick bodied candle at times,or am i reading it wrong? going back to that chart of pivots "where to enter" bear in mind i know nothing of VSA.my move would have on the tweezers where supply entered,if you look along the chart there are several instances of tweezers,more so the pair which formed to the underside where the original break was. if looking at EOD charts on stock it is quite easy to see and the following days candle will normally confirm which way the share is headed,not so easy with the idices charts EOD,doesn,t happen to often.anyway thankyou.

[Anonymous]

	Quote:	Gordon G.
	Hi PivotProfiler, as regards Ultra Wide Spread Bar and the search for signals within its range, do you think it is worth considering also entries within narrow spread bars with ultra high volume ? Thanks

Narrow range bars with Ultra High Volume are very important. However, with a narrow range bar it is less likely that a signal with appear within its range. That is, because the bar IS narrow, it is "harder" for a signal to appear within its range. Of course that depends on how narrow the range actually is.

It is better if the narrow range bar comes within the range of a WRB or Long Shadow.

But if a low volume signal does appear within the range of a narrow bar with Ultra High Volume, it is surely worth taking. (as long as everything else is in alignment).

[Gordon G.]

Thank you for this interesting explanation, Pivot !

Have a great day

[Anonymous]

(As I am not the thread starter, I have no compulsion to keep the thread alive. With the lack of interaction, my posts and enthusiasm have dried up. Which is why this one sucks.............)

Cool Chart here.

The first key is what is not shown: 15 min chart. From there we see that price is moving is a sideways channel from a down trend. Said channel may be accumulation or distribution.. only time will tell.

At 2200 hrs New York time we get a No supply bar on the 15. This bar is confirmed by an up bar at 2215.

Now let's look at the trading chart, the 5 min:

The first thing we see is a white WRB that constitutes effort to rise at 2205. Things get a bit tricky next. Entry 1 is a test. The bar closes on its high has volume less than the previous two bars, closes equal to the previous bar and is confirmed on the next bar. This is a low volume test that happens to be within the range of a Long Shadow (not shown) and at 2240 hrs. We know that there is No Supply on the larger timeframe and we now know there is no supply (based on a valid low volume test) on the 5 min. One could of entered here.

Depending on where you placed your stop, you could still be in or taken out as price moved down. Entry 1a is labeled as such, because once the WRB was formed and you saw that it was also "effort to rise", you could of opted to look for something to happen within the range of this candle rather than the Long Shadow. Note also that the volume on the long shadow candle was not that high. And since neither high volume nor news events created it, it might be missed.

No matter, consider 1a as a second chance entry. You were either stopped out, missed the test bar or choose to ignore the test bar. Notice how the market gives us a No Supply bar within the range of the WRB (see any previous post ).

Before we get to Entry 2 we see Professional Money push thru supply. This is the channel area mentioned before. On the 5 we get another white WRB that represents effort to rise. It is followed by a larger white WRB which sets up the support and resistance zone where Entry 2 is signaled after the appearance of No Supply. Entry 2 is really more like add-on 1, but if you did not want to take a trade within the sideways channel then this would be your entry (this could also be a reason not to take entry 1 and 1a).

[notouch]

Do you really think Professional Money is active in the Euro futures market when it's 2200 New York time and 0300 in the morning London time? A 10 pip move is nothing. It looks more like the natural ebbs and flows of a sleeping market.

[cooter]

And what time is it in Tokyo, or Shanghai, Hong Kong, Singapore or Sydney?

Quite a myopic view of the world you've got there, isn't it :p

[notouch]

No because CME Euro futures are not widely traded in any of those places. If you look at the chart you'll see volume never goes above 30! Hardly "Professional Money"... :p

[Anonymous]

	Quote:	notouch
	Do you really think Professional Money is active in the Euro futures market when it's 2200 New York time and 0300 in the morning London time? A 10 pip move is nothing. It looks more like the natural ebbs and flows of a sleeping market.

First:

This is not a picture of the futures, but the spot.

Second:
1pip = 10 dollars

10=100
5*10=500 (5 contracts)
10*10=1000 (10 contracts)

You want more money, trade more contracts. I am not calling you a losing trader, but that is a losing trader's mentality. A trader could be set for life if he could make 10 pips (net) a day every day. Not all trades need to be 150 pips. Greed may be good but it gets traders into trouble.

Third:
If you believe that an Upthrust is created by professional money, then you can not turn around and say that it is just happenstance. That is, if you believe that bars are manipulated by the smart money when the day session is going, you can not turn around and say just because the day session ended that same bar is somehow not manipulated. Simply, an Upthrust is always an Upthrust.

Four:
I have stated the time of day to trade many times before. I do not feel the need to post them in every post. Moreover, this is a post about reading the chart.