[VSA] Volume Spread Analysis

[torero]

Amen to that PP! I know that there are some legit businesses out there but seems each trader has to find his own way to gain knowledge and experience. Post well said.

[Tasuki]

Hopefully, attached should be an example of "no demand" (at least as I understand the term)

[sds]

	Quote:	Tasuki
	Hopefully, attached should be an example of "no demand" (at least as I understand the term)

I am not able to understand one thing.

Consider the right hand side of the dotted vertical line. There is move down till 1420.
But if instead of a move down, had there been a move up then I would have said there is no supply, at the dotted line.

Things happened in the past could easily be analysed and concluded. But I am not able to apply logic on the current scenario.
Perhaps PivotProfiler can throw light on this.

sds.

[Horus]

For those you that have the VSA software, have you looked at these arrows printed on chart in realtime?

Last time I look at this software all the arrows changed position so it looks great after the fact but in realtime you will get a quick wake up call followed by empty trading account!

I would be interested to see and almost guarantee this is still the case, all their arrows change position after the fact. but I can tell you now when something looks so good (roy kellys pivot trader is in this category) you have to questions it twice.

[walterw]

Horus: I did try Tradeguider and Roy Kelly many years ago when I was on the pursuit of making myself a technicall aproach , and I can testify unfortunatly that this softwares change signals of place after the fact.... lol , that was my experience...

[Horus]

WalterW, thats exactly what happened to me, its funny cause you dont even notice it until its running in realtime. When i first got a hold of VSA and Roy Kellys rubbish I was in shock after I placed my first trade! I placed the trade and 5min later the arrow changed! I thought I was seeing things or going crazy! LOL

Basically the fact that the signal positions change make VSA and the concept behind it worthless. TradeGuider Systems chart signals changing means that the concept is fit to data after the fact. I spoke to Tom Williams
a few years back, he even admitted he was not happy with the way the software promoters presented the concepts. Same for Roy Kellys indicators.
Both VSA and Roy Kellys tradestation code are available on the old omega forums. But dont waste your time.

[sds]

	Quote:	Horus
	WalterW, thats exactly what happened to me, its funny cause you dont even notice it until its running in realtime. When i first got a hold of VSA and Roy Kellys rubbish I was in shock after I placed my first trade! I placed the trade and 5min later the arrow changed! I thought I was seeing things or going crazy! LOL Basically the fact that the signal positions change make VSA and the concept behind it worthless. TradeGuider Systems chart signals changing means that the concept is fit to data after the fact. I spoke to Tom Williams a few years back, he even admitted he was not happy with the way the software promoters presented the concepts. Same for Roy Kellys indicators. Both VSA and Roy Kellys tradestation code are available on the old omega forums. But dont waste your time.

Hello Horus,

I have not read any material on VSA. My knowledge of it is limited to what is present in this forum.

Could you read my earlier post on this forum. When I try to apply concept to what has happenned in the past, its okay. What about the present tense? It is very difficult to apply logical. Could you comment on this?

sds.

[notouch]

I see the point. With hindsight it's easy to look at Friday's price action and think that VSA would have got you into a perfect trade but in real time you would have been stopped out several times on the way down. E.g. on a 5 minute chart you would have gone long at 1140 EST only to see YM go down another 80 points.

[walterw]

Horus : Volume analisis is another thing.... vsa tried to put in a can a very sofisticated concept wich is, (from my perspective) very dificult to program on a software.... the volume concepts, by them selfs are worth taking into acct... now they are much previous to the existence of vsa... you can go back to wickoff who actually was a tape trader... and a candle chart plus volume histograms its enough... cheers Walter.

[Anonymous]

	Quote:	Tasuki
	Hopefully, attached should be an example of "no demand" (at least as I understand the term)

I have attached the chart with a few arrows.

First, let's start at the left side. The first bar with the double arrow points to a bar where SUPPLY entered the market. The bar is wide, closes up from the previous bar, closes near the low of its range, and has ultra high volume.

If this bar was buying, then why did it close near its low? Many people will see up volume and up close and think demand. VSA, however, tells us that Weakness comes in on strength and strength comes in on weakness.

Next skip to the next double arrow. Here we have an UP THRUST. This bar makes a higher high, closes higher than the previous bar, closes in the middle of its range and has high volume. The Professional Money is trying to get traders to go Long, when the next likely direction is down. They are trying to trick the retail trader into a bad position. So an UP THRUST is a sign of weakness.

Now we come to the bar in question. We have a narrow range bar that closes up from the previous bar, closes in the middle of its range and has volume less than the previous two bars. YES, THIS IS NO DEMAND. If the Smart Money was interested in higher prices, then the volume should not be so small. The narrow range also tells us that the Smart Money is not interested in higher prices. They keep the range narrow because they know the market is weak. The retail trader thinks he is getting a good fill, and then the floor drops out..........

The last two arrows point to Stopping Volume/climatic action. Wide spread bar with Ultra High volume that closes in the upper portion of it range and lower than the previous day. BUT THE NEXT BAR IS UP. If all that volume represented selling, then the next bar could not be down. Moreover, if all that volume was selling, then the close should be on the low of the bar, not in the upper portion.

On an aside, without seeing the open of the bars, It looks like we have a valid white hammer pattern setting up there. Or at least a Long Shadow that we need to take a closer look at. WRB analysis also tells us about the change/shift in supply that is happening at this key bar.