[VSA] Volume Spread Analysis Part II

[DbPhoenix]

Where did all these balloons and confetti come from.....

[Sledge]

......................... ......................... ....
POSTER.jpg

[Sledge]

Ok VSA'ers-- I have a riddle for all of you.

Posted below are (2) charts a GBP/USD 1 Hr and a GBP/USD 4 hr.

On the 1 hour chart you see a nice WALL of resistance around 1.9705. Indicative of a market rise is coming.
On the 4 Hour chart you see an upthrust after a nice start to the downward move. Which is indicative of further decline.

So if you were to take a trade looking at these charts. Would you go long? Or would you go short?

Looking forward to how everyone reads and analyzes this to come to a conclusion!

1Hr.jpg

4Hr.jpg

[mister ed]

	Quote:	DbPhoenix
	Nic (gassah) and I are thinking of opening up a Wyckoff thread

Read this 24 hours ago and have been looking forward to it. Sounds good.

[forsearch]

	Quote:	Sledge
	Ok VSA'ers-- I have a riddle for all of you. Posted below are (2) charts a GBP/USD 1 Hr and a GBP/USD 4 hr. On the 1 hour chart you see a nice WALL of resistance around 1.9705. Indicative of a market rise is coming. On the 4 Hour chart you see an upthrust after a nice start to the downward move. Which is indicative of further decline. So if you were to take a trade looking at these charts. Would you go long? Or would you go short? Looking forward to how everyone reads and analyzes this to come to a conclusion! Attachment 5959 Attachment 5960

Since you are trading spot forex, where are you getting the volume shown in your charts from?

-fs

[tawe trader]

	Quote:
	On the 1 hour chart you see a nice WALL of resistance around 1.9705. Indicative of a market rise is coming.

Sledge,

Don't you mean wall of SUPPORT around 1.9705 ?


Regards
Tawe

[Sledge]

	Quote:	forsearch
	Since you are trading spot forex, where are you getting the volume shown in your charts from? -fs

Each platform from your broker should have a volume indicator attached. The MT4 has a pathetic "on-chart" volume (If you go to right click on chart, properties and radio button "volume,) and it also has the nice "tick" volume you see on my charts under the "indicators" tab.

But I have used plenty of platforms and all give you access to volume- be sure you are getting TICK volume though- that is the key to success in Forex!

[Sledge]

	Quote:	tawe trader
	Sledge, Don't you mean wall of SUPPORT around 1.9705 ? Regards Tawe

Honestly, I guess this is a debatable term. To me the market is working downward, so for it to go further, I call it resistance, whether correct or not as the term I'm not sure. Basically, it is a congestion area that it needs to be cracked, so I personally call that resistance if it is to penetrate it.
Sledge

[tawe trader]

	Quote:
	Honestly, I guess this is a debatable term. To me the market is working downward, so for it to go further, I call it resistance, whether correct or not as the term I'm not sure. Basically, it is a congestion area that it needs to be cracked, so I personally call that resistance if it is to penetrate it. Sledge

I get your meaning now.

[thrunner]

I guessed support can turned quickly to resistance, but in formalizing a description, it should probably be called support because it has been the recent past swing lows.
Forex volume data are also 'tick' based data in that it is not something reported by an exchange and therefore only reflects a small subset of the total volume. It is like taking a poll in your own neighborhood which may not accurately reflect the national or international poll.