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Old 04-13-2008, 12:47 AM
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Re: VSA : Crock or Not?

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Problem with candles is they actually put the emphasis on the pattern. The smart guys soon realise (took me a whole bunch of time so maybe I am not as smart as I think I am) that this dogma can actually obscure what the price action (PA) is telling you.

Incidentally, I am pretty sure Nisson is not a trader. His business model is similar to Tradeguiders though his focus is more on advisories and seminars.
3 parts to this.

1 - newbie traders (read my old posts and threads to see proof of this) put too much emphasis into the actual pattern. This is very true, and why a lot of people fail with it. Just as I'm sure there is a very similar reason why people fail using MP or VSA.

2 - While the actual "pattern" is not all that important (try to bear with me as this is difficult to explain) but the pattern in correlation to previous price action (such as trend, support and resistance, moving averages) is important. You aren't hunting for hammers or spinning tops, but looking where supply and demand come into play. Just like SMW stated in a previous post.

3 - I doubt Nison trades too. But I could be wrong, he does way too much advertising for my like. If you are ever interested in Candles, Nison has some great books. But from the little bit that I know about you, Gregory Morris's book Candlestick Charting Explained might be better suited if you are ever interested. He goes a lot further than to explain each pattern and what they mean.

I'm not going to say VSA does or doesn't work. Obviously it works for a good amount of people as it has lasted a long time - the same is true for candlesticks, MP, and various other trading analysis. For some VSA will come across as complete nonsense and backwards - for others it's that one thing that clicks and helps them make complete sense of the market.

An interesting study would be to see the different types of personalities that use various techniques.

I am glad there are VSA vs Candlestick posts on this forum as it adds validity to both methods. It's when the immaturity steps into play when it becomes nonsense and I am as much apart of this as most.

Time to go watch hockey.

p.s - The Red Wings suck.

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