[VSA] Volume Spread Analysis Part II

[dandxg]

And now back on point. Today from a price volume standpoint has me a bit concerned. The ES closed on the low of the daily bar with volume showing of about 1.8 mil. This is going into the day of strength of April 1st with about 2.3 showing. If we blow through that low with volume, 1315.75, that's only 20 points to go, we got problems and could easily smoke right down to into the strength exhibited on March 17th. Taking out the 17th would be feat with almost 4 mil on that day, but who knows?

[mister ed]

	Quote:	dandxg
	I agree wholeheartedly. As I posted before can't we all get along and show each other some respect? We are all trading price and volume right? Some want that very specific and so VSA may or may not work. Some prefer candles and that's cool as I have used them before. Some like S/R and volume and that works too. I would like to see all outright negative nonsense omitted of this thread and every other thread, call it censorship I don't care. That goes for anyone posting nonsense, me included. That behavior is tolerated at elite trader all the time. That is why I spend less time there and more time here. I don't have a problem with hearing a different viewpoint, that's healthy when its done constructively. So in response to the question should we split the thread my answer is no. If you think VSA is nonsense then stay on your own preferred thread.

	Quote:	DbPhoenix
	I agree. The issue is not the "philosophy" of VSA, and that's not what draws the "off-topic" posts. What draws these posts is the application side. So splitting the thread won't accomplish the objective, as a thread devoted to philosophy might have maybe six posts in it (after 2500 posts, what more is there to say?). I have no doubt that those who believe that they're posting real-time trades truly believe that that is what they are doing. However, it is not necessary for those who know that the trades are not in fact real-time to bring attention to the fact in the mistaken belief that everybody is too stupid to understand the difference. Therefore, if someone who happens to disagree with what's being posted for one reason or another wants to contribute something, fine. But if someone is posting for no other reason than to create an uproar, a deletion or two and a PM from the moderator ought to be enough.

Thanks dandxg and Db ... appreciate the considered feedback. I have started a thread where I can move inappropriate posts. I am reluctant to delete any posts, better to allow people to be heard (as long as it within fourm guidelines), but may move them away from this thread. The delete option can remain in the background if needed, though.

[forsearch]

	Quote:	mister ed
	Hi forsearch - welcome. Sorry MP has nothing to do with VSA, just using it as an example of splitting the discussion of the practical from the philosophical - sorry for the confusion.

Could you explain further on the new topic that you've opened for such discussions about the merit of VSA, and how it has nothing to do with MP?

http://www.traderslaboratory.com/for...-not-3736.html

-fs

[jjthetrader]

Mister Ed, I support your ideas 100%. It's really nice when you and BlowFish, two senior members, step up and put an end to that stuff. It's amazing the clarity that comes from you guys.

Now back to the practical as dandxg has initiated, good job. It appears that the daily bar on the ES has printed a failed test. But we knew there was supply in the market because of the most recent test of the lows. Volume on a test of the lows should not be that high if supply has left the market. Maybe we've got to take another shot at it.

[BlowFish]

Actually maybe I over reacted a wee bit It's just the signal to noise ratio goes way up immediately after some posts and this thread is already a monster to keep on top of. <doh> here I go adding to the noise. None of it really bother me except wading through stuff I don't want to wade through. Funnily enough the other thread has got off to a good start. You could probably split this thread into sub topics but some would probably get left behind.

Cheers.

[Eiger]

	Quote:	mister ed
	Can I get some feedback please? So I propose splitting the thread, basically starting a new one, where a discussion can take place on the 'philosophy' of VSA, whether it is a crock or not ... whatever. This will leave this thread free for the practical applied side. Like I said, there is a role for the 'is it a crock' discussion, let it flourish I say, and it shall have its own forum for debate. Feedback please - good idea or no?

I am coming in a little late to this, but I want to say that I think this is a terrific idea. Let all the philosophical debates reside on a separate thread. At this point, all these distractions are so tiresome, and often motivated by something other than VSA. It gets boring when we see yet another post trying to debate how many upthrusts can dance on the head of a pin? I (and I suspect others) now just withdraw when these debates start. I also agree with you about deleting threads. Unless it is a post in patently poor taste, censuring will only generate hard feelings and more distractions. This is a great idea. Thanks.

Edit: I see that the new thread has rallied right out of the gates. As Martha Stewart would say, "That's a good thing."

Eiger

[Sledge]

	Quote:	jjthetrader
	Mister Ed, I support your ideas 100%. It's really nice when you and BlowFish, two senior members, step up and put an end to that stuff. It's amazing the clarity that comes from you guys. Now back to the practical as dandxg has initiated, good job. It appears that the daily bar on the ES has printed a failed test. But we knew there was supply in the market because of the most recent test of the lows. Volume on a test of the lows should not be that high if supply has left the market. Maybe we've got to take another shot at it.

JJ-
As this market is not my baby, I will tread lightly moreso than try and rally some great response. I agree with you 100% As far as the volume on that Failed Test, it is nearly identical in volume to the down bar, closing on the high of the bar from I think it was the 22nd? I am not sure what volume it would show to become a solid long-term "long" entry (as each instrument is different.)

All-
With that being said- with that much volume on both down bars, it appears that a long term banging around in this price area will have to occour for a while to get volume to a point that you could say that supply is out of the market.

By VSA standards, this appears that you would be quite safe to Short on the highs and ride them down to this low over and over, I'd change my tune when one of these tests had pretty low volume (relative to the other tests taking place) OR you saw a huge shakeout.

Remember that if you see a high volume test- it will come back to test later. It appears this market will test at least 3 times, and I'd be fairly stunned if they got all the supply out even on the next test- unless the market makers drove it to the basement and you had a wildly long and wicked tail on a shakeout.

Your other option is that you could go long out of a test and grab a few ticks to the upside as well.
Sledge

[tawe trader]

I have a weekend away from the computer to give my eyes a rest and there's a whole load of turmoil on this excellent thread. Constructive criticism is fine, we can all learnt from that, but for people to keep having a go at VSA'ers I find quite sad. I don't hang about and post on the indicator threads slagging off MACD, CCI or Stochastics !!!!

I personally think that VSA is the 'best thing since sliced bread' but there are obviously people out there who are not convinced, which is fair enough. Some may say it's a load of crap but it is a form of chart reading which is more art that anything else, which is where I believe Tradeguider (and any other VSA software) struggles. Even experienced VSA'ers will have slightly different opinions, depending how they look at the 'background' for clues and trade off different timeframes.

When I have a losing VSA trade it always because of ME and not a fault of VSA. It will be mostly due to:- incorrect reading of the chart, impatience or greed.

Regards
Tawe

[tawe trader]

Here's a trade from last Friday morning. I didn't know it at the time but the mkt was giving a 'clue' that bad news from GE was coming.

The first FTSE chart is 15 mins, the first upthrust had a high on R1 and resistance. Later on the mkt made another upthrust and there didn't seem much demand for the upside.

The second chart is a 5 min, I went short on the bar that was looking weak and just sitting on the trendline. I was lucky in this trade, due to my timing. I am normally slow to enter, this time I wasn't and it went in my favour, very quickly.

As you can see the mkt plunged and I bagged 69pts. I was a bit too quick in getting out (another weakness of mine) as the mkt continued down further to S1, before some volume and support came in.

Tawe
.

[tawe trader]

Perhaps seeing Brownsfan having a go at VSA has made me want me to show another successful VSA trade. Who says VSA doesn't work ??? Here's another trade from last Friday morning, back-to-back wins. Hopefully everyone here on this thread can learn from each others wins or losses and experiences, instead of being just plain negative with their comments.


This trade was a bit short-term for me as I tend to look for the longer swing of pts, but it worked out ok. After seeing some very high volume coming in on S1, I went for a 'bounce' trade.

I went long the FTSE at 5906 and got out at 5926, less then 10 mins later. I banked 20 pts from this.

Tawe