[VSA] Volume Spread Analysis

[TinGull]

Wonderful stuff, Seb!!! Thanks!

[marketguy]

OK Seb, thanks for that. Clicked on that link and went to the site and still don't see what to click on to download that mp3 file.

B

[marketguy]

Seb: could you give your recommendations on what to read, watch etc to learn VSA? Books? DVD's? Etc? And in what order?

Thanks.

[TinGull]

marketguy, when you click the link, in the upper right you'll see something that asks you to type in a code that's presented there. Enter that and then you'll be prompted for the download.

[tawe trader]

Hello all, here's another trade I just carried out on the FTSE Future via a 5 min chart, this morning.

The market was up strong this morning and above R1.

1. There was a wide'ish up bar (yellow arrow) at 9.30am on high volume (marked with a yellow arrow).
2. The next bar (pink arrow) was up into new higher ground but it closed down on less volume (marked with a pink arrow).

Now I can assume that there was no demand for higher prices at this point and the previous bar contain some selling (into strength).

I went short when the low of this no demand/upthrust bar was broken.
I had a price target of the previous low (dotted yellow line).

The trade was successful and I managed to bank 15 pts.

[monad]

	Quote:	tawe trader
	Hello all, here's another trade I just carried out on the FTSE Future via a 5 min chart, this morning. The market was up strong this morning and above R1. 1. There was a wide'ish up bar (yellow arrow) at 9.30am on high volume (marked with a yellow arrow). 2. The next bar (pink arrow) was up into new higher ground but it closed down on less volume (marked with a pink arrow). Now I can assume that there was no demand for higher prices at this point and the previous bar contain some selling (into strength). I went short when the low of this no demand/upthrust bar was broken. I had a price target of the previous low (dotted yellow line). The trade was successful and I managed to bank 15 pts.

Once again a great realtime trade

your previous post on my query regarding using VSA info. to trade in realtime hit the nail right on the head. Just like any other TA indicator, the info. via VSA has to be incorporated into some form of consistent trading strategy, where you wait for the market to meet the criteria before trading and it appears most do not have this or those who have developed are playing close to their chest but at least some pointers in the right direction would be helpful.

You mention your friend trading FTSE based on the reading of 30min charts, surely this must entail a wide stop loss, he must have high risk tolerance. or does he then enter on 5min bars and places stop loss accordingly.

[tawe trader]

	Quote:
	You mention your friend trading FTSE based on the reading of 30min charts, surely this must entail a wide stop loss, he must have high risk tolerance. or does he then enter on 5min bars and places stop loss accordingly

Yes if you trade off 30min bars you do have wider stops but the possible gain of pts is greater also. He would patiently wait for the 'perfect' set-up and there would sometimes be a couple of days without a trade. For the month of July the record he showed me had 14 trades based on a 30min chart for a total gain of over 420 pts with no losers ! One trade netted him 101 pts. Don't forget he is also taking into account the larger timeframe ie Daily chart.

[jjthetrader]

	Quote:	tawe trader
	Hello all, here's another trade I just carried out on the FTSE Future via a 5 min chart, this morning. The market was up strong this morning and above R1. 1. There was a wide'ish up bar (yellow arrow) at 9.30am on high volume (marked with a yellow arrow). 2. The next bar (pink arrow) was up into new higher ground but it closed down on less volume (marked with a pink arrow). Now I can assume that there was no demand for higher prices at this point and the previous bar contain some selling (into strength). I went short when the low of this no demand/upthrust bar was broken. I had a price target of the previous low (dotted yellow line). The trade was successful and I managed to bank 15 pts.

You've got balls of steel my friend! Making a trade like that takes big ones. Price just blew up through R1 and you've got the confidence that it's going to blow right back under. I see it drifted sideways for a while and that shows even more trading skills, to be able to stay the course.
Nice work, love seeing the real time trades. You inspire everyone here to trust in what you know and see and go for it.
cheers mate.

[Seb Manby]

	Quote:	monad
	Sebastian, Have studied the ES charts, but am now confused as to how to implement the info. in trading this in realtime. For example, at point D & E there is weakness, then there is strength at F, Similarly at G weakness, at H strength. How do we determine entry for a trade in these situations, are we talking about gunning for a point or two? for although the bar at "I" looks ideal in hindsight, bars could have popped up as before showing strength. How does one manage the trade under these circumstances??

Hi Monad;

I cannot tell you were to buy or sell, i can only show you the way, you want to wait until the odds are stacked most in your favor before you enter a trade, then you have to monitor the changing conditions in the market and make your won judgement.

regards sebastian

[jjthetrader]

An example for Monad (who's looking for entries) and Tawe Trader.

We have weakness on the open this morning (ES). VHigh Volume up bars on narrow spread.

Point A - we get an upthrust. So we want to make a trade like Tawe and wait for the low to break.

B - it breaks, now look for the entry. I set mine at the Pivot.

C - my order gets filled and I get my 1 point scalp right away.

But for longer term traders look what bar follows point C. It's a stop catcher and it would have got mine if I was still in.

This illustration is to show what one has to be cautious of when trading these setups. If you're not scalping give your stops some breathing room.