[VSA] Volume Spread Analysis

[BlowFish]

	Quote:	TinGull
	Just something that came across my "desk" today.

Be interesting how this plays out it certainly looks like a selling climax however it should be noted that the volume is much greater than the mid august low it is testing so could develop into a failed test. I'd be interested to hear what the VSA experts have to say (is PP around at the moment).

This is exactly the kind of scenario that I mentioned a dozen or more pages back when is a selling climax not a selling climax. Certainly on index futures on iintraday time scales I have seen this sort of setup develop into a stair step down with even more volume on the next leg. Perhaps you could post a chart next friday tin? Much more interesting (and tougher) at the hard right edge.

Cheers.

[jjthetrader]

This actually looks like a shakeout rather than a selling Climax which is a two bar phenomena, I wait for a second bar confirmation anyway.
Shake out the weak holders. It's a nice sign of strength. I agree that testing will probably need to occur for this bad boy to rise.

[jjthetrader]

Here's just a quick example of CLimatic Action in which the down move actually closes on it's low with the following bar up where as a shakeout closes near the highs.

[bertg]

Hi, folks,

I pm-ed the below to a member that is active in this thread, but I should have just posted here.

<begin pm paraphrase>I am new to this forum. I have been reading the VSA thread yesterday and today and I am almost half way through. I am having somewhat of a hard time, because some of the terms used are well known to everybody, but not me.

I am not ready to pay $2000 for tradeguider software, but VSA got me really intrigued.

Is there a book/ebook that I can buy or other (free) resources?

I am yet to trade real money. I traded the NQ ES minis in simulator with live feeds and using the good ol' MACD, STO, RSI... I had never even heard of VSA, but I knew I wasn't ready for real money as I knew the sharks prey on ignoramuses like me. I knew there's got to be a way to "know" what the big dogs are doing and how they are trying to steer the markets. I am so excited about VSA and maybe other tools that will help me at least have an idea of what the pros are doing.
<end pm paraphrase>

There are some in this thread that could write a ebook with charts and all. I'd obviously be willing to pay for that.

In any case, I am grateful to the posters in this thread, as it does contain a lot of great info.

Kind regards,
Bert

[TinGull]

Thanks for the kind words, Bert! I think this is one of the best resources out there in a public forum for VSA...so as for any other resources...I think you have a seriously great start right here. If you've got questions, ask! We'll do our best to help you in your understanding. There are a LOT of fabulously smart people here.

[RAVIN]

	Quote:	bertg
	Hi, folks, I pm-ed the below to a member that is active in this thread, but I should have just posted here. <begin pm paraphrase>I am new to this forum. I have been reading the VSA thread yesterday and today and I am almost half way through. I am having somewhat of a hard time, because some of the terms used are well known to everybody, but not me. I am not ready to pay $2000 for tradeguider software, but VSA got me really intrigued. Is there a book/ebook that I can buy or other (free) resources? I am yet to trade real money. I traded the NQ ES minis in simulator with live feeds and using the good ol' MACD, STO, RSI... I had never even heard of VSA, but I knew I wasn't ready for real money as I knew the sharks prey on ignoramuses like me. I knew there's got to be a way to "know" what the big dogs are doing and how they are trying to steer the markets. I am so excited about VSA and maybe other tools that will help me at least have an idea of what the pros are doing. <end pm paraphrase> There are some in this thread that could write a ebook with charts and all. I'd obviously be willing to pay for that. In any case, I am grateful to the posters in this thread, as it does contain a lot of great info. Kind regards, Bert

Refer to POST 561, you can get a free download of e-book, the Bootcamp CD is highly recommended as there are many hours of seminar with comments by Tom Williams and will really help in absorbing the VSA principles which at first appear to be counterintuitive especially when we have gotten accustomed to the traditional price based maths. indicators (RSI, CCI etc)

However the software is not at all necessary to work with the methodology in realtime trading.

Hope this helps

[jjthetrader]

tradethetruth.com has a copy of the ebook.
Ravin's right, you don't need the software, it's just a great visual learning aid and once you've had it for a while will no longer be needed. You can just look at a bar and see what's happening.
There's way more to the software than VSA as well that you may not want/need.
If you use TradeStation I'd recommend Soul Traders Pivots and watch the VSA action around these points for setups.

[jjthetrader]

I'd like to see charts of trades that people have made, successful and not, based on VSA with an explanation of their thinking when they got into the trade and out.
Anyone interested in sharing?

[TinGull]

Here's an exit that was VSA defined.

[ranj]

TG,

Looks like a nice short setup coming here . Maybe a narrow spread no demand bar within the body of the WRB down bar. I also think the wide spread bar from friday is called Lack of buying pressure.