[VSA] Volume Spread Analysis Part II

[DbPhoenix]

I'm going to be merciful here, largely because this is all so off-topic, and provide a short answer that is also a long answer.

Go to my blog (below) and open up the PVSR pdf in the Price/Volume Q&A thread. Flip through to p 50 and read from there to the end. Any questions can be posted to the blog.

[dandxg]

	Quote:	DbPhoenix
	I'm going to be merciful here, largely because this is all so off-topic, and provide a short answer that is also a long answer. Go to my blog (below) and open up the PVSR pdf in the Price/Volume Q&A thread. Flip through to p 50 and read from there to the end. Any questions can be posted to the blog.

Will you ban posters in your blog that use VSA and SMI terms?Sorry feeling punchy lack of sleep, couldn't help that. Thanks again for all that you do. I appreciate that you and others on this thread constructively challenge the thinking of members of this thread. It forces all of us to re-evaluate which leads to higher understand.

[DbPhoenix]

	Quote:	dandxg
	Will you ban posters in your blog that use VSA and SMI terms?

No, just beat them about the head and shoulders (pun intended).

But to clarify, perhaps, there's absolutely nothing wrong with having a common language. If nothing else, communication requires it. And shortcuts are inevitable. Thus we eventually begin to believe that everybody knows what "float" means, and of course they don't necessarily.

But there is a danger in arriving at the point where the word becomes separated from its referent, and everybody forgets just why the word was coined in the first place. Whoever then tries to back up is in the position of holding Helen's hand under the water pump and spelling "water" into her hand, trying to get her to make the connection between the symbol and the thing that the symbol represents.

Picturing a Boy Scout scampering over the ice floes has as little to do with breaking through resistance as a train entering a tunnel has to do with sex.

[milliard]

	Quote:	DbPhoenix
	I don't want to piss off the VSA people nor the MP people (the SMI people I don't care so much), but come on. When it gets to counting bars, much less measuring them, it's time to go sit down in a darkened and quiet place and think long and hard about where it all went wrong. It's about buying pressure being more insistent than selling pressure, or vice versa. That's where it begins. If one is not attuned to that dynamic, then all the jargon in the world is not going to enlignten him.

The first paragraph will have me chuckling all w/end, nice one sir.

The second is simple, plain common sense. Unfortunately, those very pertinent comments will be lost & forgotten to most by the time the computers are switched off for the night.

[DbPhoenix]

This is a post I've saved. It may be off-topic, but I like it, so here it is.

First I spent many months drawing trend lines on charts until I understood a little something about "trend stages" and then followed price along in real time trying to apply the accelerating /decelerating trend thing.

But it wasn't enough.

So then I went through the same charts and wrote down the length of price bars during 3 different parts of the trading day, to find out what an expansion bar, a wide range bar, and a wide bodied bar were, and what was a normal or average price bar .( I was ashamed to ask about these at the time because it seemed that everybody already knew but me.)

But that was not enough.

So then I set out on the road to find the mystery about S/R. I looked at both price highs/lows, and calculated pivot points to find out which level price reacted to more often. I did this with a combination of trend lines and wide bodied bars or the lack there of. After a few months of doing this every day, I got a pretty good idea what S/R was all about.

In the beginning I also was studying an opening range breakout strategy, which first ignited the idea of contraction/expansion and how that affected the outcome of a BO.

Then I started looking at individual price bars, and where price opened and closed in relation to the overall range of the bar. On and on and on...

The point is that this is how I built up my base of understanding of P/V behaviour, by going over the same territory again and again and again with a new piece of the puzzle, and also carrying forward with each discovery.

If there is an easier way of learning what is important, I don't know what it is.

[zdo]

db
Everything you have posted in this thread has been off topic and off color,
AND everything you posted has been extremely grounding and helpful!
so stop trying to stop getting off topic and
stop trying to stop hijacking and
only get out of VSA II if you keep referring ppl to your blog instead of answering their questions... ie
just keep on coming with plain speak…

re:
“When I see selling drying up at support, I go long.“
“When I see buying dry up at resistance, I short”

For those who have never actually perceived ‘selling drying up’ what is the actual process you see. If chart patterns (or indicators, etc) aren’t used, then what is the process by which you ‘see’ selling drying up?
Basically, instead of what are the chart patterns? – What are your brain patterns?

Many thanks,

zdo

[dandxg]

Db, I took your suggestion and converted my VSA bar chart to a line on close very easy to strength and weakness, although I am not sure how I would trade off of it, but very nice for confirmation.

[DbPhoenix]

	Quote:	dandxg
	Db, I took your suggestion and converted my VSA bar chart to a line on close very easy to strength and weakness, although I am not sure how I would trade off of it, but very nice for confirmation.

Don't worry about trading off it. Just plot it in a separate window along with your usual bars and see if you can sense the flow. No hurry.

And, yes, it's very nice for confirmation.

[DbPhoenix]

	Quote:	zdo
	For those who have never actually perceived ‘selling drying up’ what is the actual process you see.

Here's a simple, straightforward example. There are many others in the material in my blog.

Support is at 1800.

I doubt there's anything new here, whether one follows VSA or Wyckoff or SMI. But when I see the retest of support with far less trading activity, that says to me "We're done". And I know they're not lying because of what happens to price. Effort, result.

[mister ed]

OK, so we seem to have reached a stage on this thread where we want to see buying and selling pressure impacting on the price, where we want to see buying and selling pressure 'drying up', where we would like to see these things happening at 'support' and 'resistance'. We aint gonna use chart patterns, VSA, Wyckoff, MP ... we are just looking at a candle chart (1 minute right?).

Now, for those who have been trading long enough and are now punching the air and saying "Right On!" (or whatever it is the kids say now to show approval) this is all well and good. But for those still coming to grips with analysis of price and volume this might not work out.

Speaking only for myself, when I 'discovered' VSA it was like a lightbulb coming on in a darkened aircraft hangar. It didn't illuminate the whole place, but it was much better than stumbling around in the dark like I had been. As I learn't about VSA, and started to get an understanding of the labels and jargon, such as 'No Demand', a funny thing happened to me ... I started to question the concepts, to critically examine them, to question why they worked as well as how, as well as when ... and in that way I developed an even deeper understanding. I then discovered Wyckoff analysis, and the hangar is much, much brighter. I am working on some MP learning now to help with my analysis and already some more lights have come on. I would be nowhere near the stage I am at if it wasn't for this thread and the people who are active on it and who have been acitve on it in the past.

Along the way I have spoken with various people on a similar journey, and read the words of many others. Some have combined VSA with Elliot Wave, to great success. Not my cup of tea at all, but their success speaks very loudly. Some have come to VSA from other backgrounds, like MP, and found value. Some have stuck pretty much with just VSA and achieved great success. Some have furthered their knowledge of Wyckoff to a very deep level indeed. One of these people has been instrumental in my learning and for that I am incredibly grateful, he has helped me get off the back roads and onto the freeway.

A lot of these people have been at this thread at some stage, have asked questions, have contributed answers. The answers on this thread are not always 'right', but the philosophy of this forum takes care of that. TL is an environment of quality trading education, a place of learning; where we experiment, make mistakes, hopefully correct them, and move ever on.

So to those who have a very developed knowledge of price and volume analysis and are able to 'see' what is important on a simple chart, I say well done. But lets not forget that there are those who are maybe just starting out, or continuing in their development, who maybe want more overt structure to their analysis, who maybe want to take some of the really important insights that VSA/Wyckoff can offer and add it to their current techniques, who just don't 'see it' (yet, or at all), who maybe will want to learn things for themselves, to prove things for themselves ... there may even be those who disagree with what we tend to all agree on here... If the descriptions in this paragraph fit YOU I would encourage you to ask questions, to contribute, to join in. If you want to ask what is 'No Demand", go right ahead, if you want to ask about 'the background', go right ahead, if you don't know what a 'sign of strength' is, ask away, if you want to post a chart and ask a question, or respond to someone else's question, go right ahead.