[lylo]

Originally Posted by brownsfan019 »

Here's an interesting one from today:




Now the high volume is actually on the red hammer type thing but that trade would require a fairly wide stop. The very next candle - a spinning top that is also a harami type setup provided an incredible risk/reward. In essence, the need to 'borrow' the volume from the previous candle was needed here. I THINK that is a VSA thing where the red candle has the major volume and the 2nd one shows no interest to continue the down move, so can get long here.

Great idea for a thread, BF. I am trying to do the same, as I believe candles are a good indicator of market psychology, and can be combined with VSA.
Looking at the chart you provided, that was a perfect marriage of candles and VSA. That is a morning star, a 3 line candle formation (along the lines of 3 is better than most 2 and better than most single candle signals) Having the bear candle with so much volume, indicating possible strength, is awesome. The morning star was your confirmation.

lylo

[thnickster]

I've tried volume as an indicator and find it unreliable..for me anyway. I have much
more reliable signals for trend change and small moves. Quite long ago I realized that much of the ER2, ES, and EUR moves could be utilized by taking small hits with many contracts..especially ER2 as it reverses quickly. In my opinion..say..if you trade 3 contracts and only take 2 pts..that is 6 minus cost in and out..around $4.80 in some places. So you get around $72 minus $14.40..around 58 bucks per hit. You can do this all day. Mixed with some really strong longer ones..you've got a nice day. I often hit over 90% with my signals.

[brownsfan019]

Originally Posted by thnickster »

I've tried volume as an indicator and find it unreliable..for me anyway. I have much
more reliable signals for trend change and small moves. Quite long ago I realized that much of the ER2, ES, and EUR moves could be utilized by taking small hits with many contracts..especially ER2 as it reverses quickly. In my opinion..say..if you trade 3 contracts and only take 2 pts..that is 6 minus cost in and out..around $4.80 in some places. So you get around $72 minus $14.40..around 58 bucks per hit. You can do this all day. Mixed with some really strong longer ones..you've got a nice day. I often hit over 90% with my signals.

Interesting points thnickster. Feel free to start a new thread to discuss!

[Rahmat]

Interesting setup using this method. I will try it out for Forex Trade.
Thanks James

[nycdweller]

Thnickster, what kind of realible signals do you use for trend change and small moves? Thank you.

Originally Posted by thnickster »

I've tried volume as an indicator and find it unreliable..for me anyway. I have much
more reliable signals for trend change and small moves. Quite long ago I realized that much of the ER2, ES, and EUR moves could be utilized by taking small hits with many contracts..especially ER2 as it reverses quickly. In my opinion..say..if you trade 3 contracts and only take 2 pts..that is 6 minus cost in and out..around $4.80 in some places. So you get around $72 minus $14.40..around 58 bucks per hit. You can do this all day. Mixed with some really strong longer ones..you've got a nice day. I often hit over 90% with my signals.