Traders Laboratory - View Single Post - VSA : Crock or Not?
View Single Post
  #7 (permalink)  
Old 04-12-2008, 06:40 AM
smwinc smwinc is offline
smwinc is in the Boiler Room

Trader Specs
 
Join Date: Sep 2007
Posts: 145
Thanks: 29
Thanked 82 Times in 39 Posts
Re: VSA : Crock or Not?

Guys, this is getting a little beyond a joke.

I don't want to create a long post, however I think problems come about from either misunderstanding or forgetting the core concepts types of analysis such as VSA are built on.

Markets have buyers, and sellers. They move in a direction when one exceeds the other.

Getting caught up on the nuances of the 'open' of a bar, etc. does not make any sense. Who cares.

Apologies if I sound a little blunt, but focusing on minor, insignificant details is what software advertising tends to do, trying to make you think it's important. This is designed for retail trades, who on net go broke. Avoid thinking like that.

For any valid type of analysis, often you can 'follow through' the reasoning of it, and get the same conclusions as you with another type of analysis.

An example scenario:

Market is falling.

Trader A suddenly sees huge bids waiting down in a correlated market. He buys the market, anticipating the implied demand from the other market, will send his market up.

Trader B sees that the market is about to hit XYZ moving average (insert: indicator name) and decides to buy.

Trader C sees that this bar was a widespread off the close with significantly above average volume. They buy.

Trader D sees that the market has hit a support level, and created a strong bullish hammer on above average volume. They buy.

Trader E sees a green light on his black box trading system, and buys.

End result = we all bought the market, for various reasons. Demand was there, for "whatever" reason - a candle, VSA, black box system, moving average, whatever, who cares - there was demand. The profitable trader bought it. The losing trader sold it.

All you want to do is be the trader who has 'some' way to identify those situations to profit more often than not.

Worthless types of analysis is generally when it can't be tied back to (real or implied) demand/supply in some way.

Reply With Quote
The Following User Says Thank You to smwinc For This Useful Post:
JBWTrader (04-13-2008)