[VSA] Volume Spread Analysis

[tech/a]

Sorry

	Quote:
	lack of demand.

Lack of supply.

Have a blood supply problem to brain!

[TinGull]

	Quote:	PivotProfiler
	On the mark. A lower close and a close on the high would make this the ideal text book example, but it is nonetheless a nice example of a test. Don't forget that a test needs to be confirmed on either the next bar or the bar after that with a close HIGHER than the close of the test bar. Keep up the good work TG. You are making us all better traders and I for one say thank you.

Thanks pivot...so you know, that really means a lot to me. you're the one that introduced this all to me and it's made a world of difference to how I see the markets. So, I owe it all to you.

And glad I finally posted up that classic test. I'll still probably just use my loose definition of it regarding candle patterns...but glad to get it nailed.

Thanks tech/a, too, for your description.

[TinGull]

	Quote:	tech/a
	Tingull. Your missing the most important bar. Thats Bar 5 back from the last bar. This is clearly an Exhaustion bar. Wide range massive volume and the NEXT day is an up day indicating exhaustion of supply. The following down days have decreased volume. Your marked bar is confirmation of bar 5 IMPORTANTLY followed by an up day. Id be interested in how this went on as the wide range last bar on low volume is indicating lack of demand. As for the software. I have both EOD and Realtime. 7 bourses Both perform without a glitch. Only ASX equities on realtime.

Thanks tech/a...got the description on your previous post.

As for how it turned out...that was a 15min chart of IWM.



That's how it finished the day....higher, and this morning, indicated higher, too. That was a test of the 2 day low in a descending triangle...

[tech/a]

Tin.

If interested I have daily US charts if you want to try some examples on them I can post the Tradeguider charts to help out as examples if you like.

Or I could find either realtime ASX charts to demonstrate/discuss or EOD ASX.

[TinGull]

Thanks tech. I do think I've got a grasp on the VSA concepts, I just don't use hard and fast rules to determine things like a test. If you want to post up some charts, by all means do. I'm sure many people can get something out of it.

[Anonymous]

	Quote:	tech/a
	Tingull. Your missing the most important bar. Thats Bar 5 back from the last bar. This is clearly an Exhaustion bar. Wide range massive volume and the NEXT day is an up day indicating exhaustion of supply. The following down days have decreased volume. Your marked bar is confirmation of bar 5 IMPORTANTLY followed by an up day. Id be interested in how this went on as the wide range last bar on low volume is indicating lack of demand. As for the software. I have both EOD and Realtime. 7 bourses Both perform without a glitch. Only ASX equities on realtime.

Actually, it is the 6th and 5th bars back.

The 6th bar is down with ultra high volume and closes near the middle of the range with the next (5th) bar up. A transfer of ownership bar. THAT IS WHY THE TEST IS SO POWERFUL.

Note that if there had been selling on the 6th bar , there was no more selling at the same price levels when the test happened. This is of course, what a test is testing for.

[Anonymous]

	Quote:	TinGull
	Thanks tech/a...got the description on your previous post. As for how it turned out...that was a 15min chart of IWM. That's how it finished the day....higher, and this morning, indicated higher, too. That was a test of the 2 day low in a descending triangle...

While I don't spend much time thinking about targets, clearly the first target here would be a close of the Gap. As the saying goes, "Gaps are filled". Many traders trade gaps. If you had seen the test and the strength prior to it, then there would be all the more reason to trade the gap to the upside.

It should also be pointed out that we are looking at one timeframe only.

Nice trade. We don't have to hit a homerun every timed. Bat for average.

[ranj]

	Quote:	PivotProfiler
	While I don't spend much time thinking about targets, clearly the first target here would be a close of the Gap. As the saying goes, "Gaps are filled". Many traders trade gaps. If you had seen the test and the strength prior to it, then there would be all the more reason to trade the gap to the upside. It should also be pointed out that we are looking at one timeframe only. Nice trade. We don't have to hit a homerun every timed. Bat for average.

Hi Pivot,

In terms of profit taking, if I remember correctly, you like to trail your stops just below the low of the last WRB, and let the market take you out as opposed to setting targets.

[Anonymous]

	Quote:	ranj
	Hi Pivot, In terms of profit taking, if I remember correctly, you like to trail your stops just below the low of the last WRB, and let the market take you out as opposed to setting targets.

Which is why I don't spend much time thinking about targets. However, for those who do and trade gaps, I was just showing that the gap was filled and that would be the first logical target for that type of trade. Hence the term, gap trade.

I would still be long with a stop just below the candle 4 back. Whic is both a WRB and a Long Shadow.

[Anonymous]

Just a pic of the EURO.

This is an example of Looking left to trade right. We look to the higher timeframe to indicate how we want to trade the lower one. When it all comes together, the higher timeframe will often LEAD the lower one. That is, it will actually show a signal PRIOR to a signal on the faster moving chart. Sometimes this takes patience, but said patience is usually rewarded.

Interstingly, there was a valid set up during the low volume time which occurs before the big news hits the air. In other words, one could of already been long when the euro jumped up. This begs the questions, What did the Smart Money know and when did they know it?