Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

TinGull

[VSA] Volume Spread Analysis Part I

Recommended Posts

There you go, meant to say you guys are getting good at this,

Get hold of article "Day Trading S&P futures" by Linda Raschke, (on her website), there she mentions a Professional who has made a most enviable living for over 15years by trading just one of these setups and that also trading only in the afternoon (patience) and goes in with size. She says the moral of the story is he knows himself and what style works best for him and he always has a resting stop loss order in the marketplace

Share this post


Link to post
Share on other sites
due to US futures being up due to the possible rate rise. I have been patiently waiting for a place for a quick short.

 

I meant to say possible rate cut.

 

--------------------------------------------------------------

 

Thanks Ravin and JJ for your kind words of encouragement.

 

Great quick-in-and-out trade JJ, I know you may be kicking yourself for giving up a further 9 pts but even with the understanding of VSA we still can't predict the future with 100% certainty. We can only be patient and wait for low-risk setups to appear before acting.

 

After I got out of my trade the mkt went sideways for about 45mins before turning back up and past R2 level. I wouldn't have made more than another pt or two if I had stayed in.

Share this post


Link to post
Share on other sites
I was wondering if any of you are using TraderGuider software and what your experiences are?

 

Thanks

 

Yes, a lot of people on this thread are. If you read through you will find quite a few comments on it.

I personally use it and love it. What an aid it was/is in getting up to speed on VSA.

You'll find other that will tell you you don't need it and this is true to. It's just way easier at first when you see something forming to get the confirmation from the software and being able to read the comentary of what to watch out for.

Share this post


Link to post
Share on other sites

jjthetrader:

I have been reading a good deal of this thread. There is a lot of negative things said about TG. I'd like to run a few things by you.

 

1. Several guys claim that signals in TG change depending on the next bar. So, a signal that looks good after the fact may not have actually been at the same spot real time. True or false?

 

2. How is the customer training? Do we get a lot of Todd?

 

3. Do you see TG as an indicator based system or are a signals just a guide to use simplify and use VSA effectively.

 

4. Could you get by effectively, at this point, without the signals?

 

Thanks

Share this post


Link to post
Share on other sites
jjthetrader:

I have been reading a good deal of this thread. There is a lot of negative things said about TG. I'd like to run a few things by you.

 

1. Several guys claim that signals in TG change depending on the next bar. So, a signal that looks good after the fact may not have actually been at the same spot real time. True or false?

 

2. How is the customer training? Do we get a lot of Todd?

 

3. Do you see TG as an indicator based system or are a signals just a guide to use simplify and use VSA effectively.

 

4. Could you get by effectively, at this point, without the signals?

 

Thanks

 

I spoke with Todd in person a few months ago. He is no longer affiliated with TradeGuider.

 

With regards to the other questions, I have not used TG and can't comment on it.

 

SMW

Share this post


Link to post
Share on other sites
jjthetrader:

I have been reading a good deal of this thread. There is a lot of negative things said about TG. I'd like to run a few things by you.

 

1. Several guys claim that signals in TG change depending on the next bar. So, a signal that looks good after the fact may not have actually been at the same spot real time. True or false?

 

2. How is the customer training? Do we get a lot of Todd?

 

3. Do you see TG as an indicator based system or are a signals just a guide to use simplify and use VSA effectively.

 

4. Could you get by effectively, at this point, without the signals?

 

Thanks

 

These questions were not posed to me, but I would like to chime in on a couple.

 

1. This is the biggest issue of all. First, I do not like TG software and believe it is not necessary. Now for the answer. Most "signs" of strength or weakness are two bar signals. Like many candlestick patterns, certain requirements need to take place both before and After a particular candle or bar on many of the signs. Now, when a person looks at a static chart on the web, they may see a No Demand on the highest bar and just before the price fell. This looks good and makes them think the exact top can be called. Which is of course, what the uninitiated newbie and losing trader is looking for.

 

What they do not understand is that the No Demand bar is only no demand if certain criteria are met on the next bar. So the software will wait for the next bar and then place a sign on the High bar (1 bar ago). Now it looks like it is late in real time and in a static chart it looks like it is a perfect fit. So while it may appear that the high tick or the low tick is being called it really is not.

 

Take a look at the work of John Pearson on High/Low close Dojis. Obviously by the name, you can see that while the doji is the point of interest something must happen AFTER the doji: a high/low close. If the lowest candle is a Doji and the next bar closes higher, then it may look like the entry was on the bottom bar (the doji). But by definition the entry is two bars later. The 1st bar after the doji must complete the pattern on the close. Suppose your software places a dot on the doji. It would look pretty dead on and some would mistakenly assume that was the entry point. This is where people go wrong.

 

 

I do not use TG. Here is what my software (vt) does on one of my definitions of No Supply:

 

A. It will look for a bar that has volume less than the previous two bars that is has a lower low than the previous bar and closes lower.

 

B. To be No Supply, the next bar must not make a lower low or close lower. Hence as soon as the next period opens, and does not open lower than the previous close, a dot will appear. If the current price trades equal to the previous close, the dot disappears. If it then trades up, the dot re-appears. ONLY AT THE END OF THIS NEXT PERIOD WILL THE DOT BE EITHER PERMANENTLY AFFIXED THERE OR NOT. It is therefore possible to look at a bar and see a sign, turn the computer off and come back and find the sign no longer there. Why? because the first time was DURING the interval of the next period and not on the CLOSE. TG works much the same way.

 

2. Todd is no longer with TradeGuider.

 

3. TG does not give buy/sell signals they are indications of strength and weakness. However, the red/green bar paint is basically an indicator based buy sell method if one wanted to use it that way.

Share this post


Link to post
Share on other sites

:)So Who is providing support/teaching on VSA, now that Todd is gone. Attended a couple of live seminars, does not look as if anybody has any real trading experience, no shortage of talk though:)

 

A colleague had the software for a trial period, it is o.k, the above comments on signals via 2 or 3 bars are very pertinent to the package, so initially it does help to learn VSA with the explanations of each indicator popping up, but it is not absolutely necessary, the bootcamp CD is more helpful I am told.

Share this post


Link to post
Share on other sites
I have attached todays FTSE Future 5 min chart. .

Any thoughts anyone.

 

Good trading on the ftse, tried the instrument sometime back, was very spikey then.

 

1. How do you find you fills, and what do you think of the liquidity.

2. Which trading platform you use for trading ftse

3. Also which data feed, do they provide charting with it.

 

Do post some more as I am thinking of trading the instrument, what is the tick value?

Share this post


Link to post
Share on other sites
Good trading on the ftse, tried the instrument sometime back, was very spikey then.

 

1. How do you find you fills, and what do you think of the liquidity.

2. Which trading platform you use for trading ftse

3. Also which data feed, do they provide charting with it.

 

Do post some more as I am thinking of trading the instrument, what is the tick value?

 

Hello monad, I'll try and answer your questions.

 

As I live in the UK I trade through a spreadbetting company, they do supply free live charts but there is no volume so I use Sierracharts with a DTN IQFEED, which I am very happy with. I haven't had many problems getting filled through the s/bet company and there's plenty of liquidity in the mkt. I also don't find it that spiky.

 

I believe the tick value or pt value is £10 through a Futures broker.

 

I will post some more charts (in a word doc) as I now know how to upload them to this forum.

Share this post


Link to post
Share on other sites
jjthetrader:

I have been reading a good deal of this thread. There is a lot of negative things said about TG. I'd like to run a few things by you.

 

1. Several guys claim that signals in TG change depending on the next bar. So, a signal that looks good after the fact may not have actually been at the same spot real time. True or false?

 

2. How is the customer training? Do we get a lot of Todd?

 

3. Do you see TG as an indicator based system or are a signals just a guide to use simplify and use VSA effectively.

 

4. Could you get by effectively, at this point, without the signals?

 

Thanks

 

1. Some "signals" appear right away and others take 2-3 bars to develop but this is VSA, confirmation is needed on a lot of them, PP was right on that. It's a multi-bar formation. For example, a test won't signal in TG unless the next bar is up even though you see a low volume down bar closing on the high.

 

2. Customer training now blows. There is no Todd so the only one left for teaching is the head of marketing. I was at 2 events this week and the trades made were blunders based on trends only but not VSA.

 

3. I have never taken a trade based on the TG signals, this would be foolish. It'll fire off a no demand even when there is strength in the background just because the bar meets the criteria of a no demand bar. But with strength in the background this is what they call a polar bear in hawaii, it doesn't belong.

 

4. I do get by effectively at this point without it's signals. I turn them on most of the time so the program will signal me that something has occured on a different timeframe chart then the one I happen to be looking at. I have to admit it is nice to get the confirmation that what you're seeing is in fact what you thought. It's reassurance and that gives you a bit of confidence.

 

TG has a lot more features than just VSA as well that I love. Trend clusters (wouldn't trade without them), Auto Pivots, relative volume bands etc. I find it visually appealing, easy to use and an overall good charting package even without VSA.

 

Am I happy that I'm currently paying off $2,000 for it? Yes. If I look at what it's taught me and given me it's worth that and then some. Look at what the guys at trade the markets sell their seminars for. I look at it as education.

 

For those that know how to use google and search places they're not supposed to surf you'd be able to obtain a working copy of the RT version to try it out but I would not endorse this.

Share this post


Link to post
Share on other sites
I have been told about this thread by a friend of mine in London. I wil post my charts and commentry for you all to read(If you like)

 

This week I am staying with Tom Williams, so it may be a bit hit and miss.

 

Regards Sebastian

 

Post away! Your input is much appreciated :cool:

Share this post


Link to post
Share on other sites
I have been told about this thread by a friend of mine in London. I wil post my charts and commentry for you all to read(If you like)

 

This week I am staying with Tom Williams, so it may be a bit hit and miss.

 

Regards Sebastian

 

Sebastian,

 

I follow this thread and it's got great contributors.

 

Thank you for the analysis. I enjoyed the first edition. Please keep posting.

 

Pretty chart, too. Not sure I've ever seen a chart background with a gradient.

 

Regards,

Bert

 

edit: I have Adobe Reader 6, so I'm sure later versions have this feature, too: I watched the chart and listened to the narration. From my mac os 8.5 days, sounds like Bruce voice. I thought it was way cool. Do a View>Read Out Loud> and select one of the options, and see how you like it.

Share this post


Link to post
Share on other sites
Hi TinGull;

 

Yes, I use the VSATrader over at Elite and T2W.

 

Regards Sebastian

 

Great to see you here, a close friend "Rak..." talks a lot about your expertise in this field. Besides your daily analysis, your comments and input on posts by others regarding their trade setups etc would be greatly appreciated . Majority would like to learn how to trade with reading VSA. i.e VSA is fine in identifying areas of changes in supply/demand, how can that information be used to determine entries and exits (strategy/tactics).

Share this post


Link to post
Share on other sites
I have been told about this thread by a friend of mine in London. I wil post my charts and commentry for you all to read(If you like)

 

This week I am staying with Tom Williams, so it may be a bit hit and miss.

 

Regards Sebastian

 

Right on! Now this is what I like to see!

Thanks for contributing.

Share this post


Link to post
Share on other sites

Sebastian,

Have studied the ES charts, but am now confused as to how to implement the info. in trading this in realtime.

 

For example, at point D & E there is weakness, then there is strength at F,

Similarly at G weakness, at H strength. How do we determine entry for a trade in these situations, are we talking about gunning for a point or two?

for although the bar at "I" looks ideal in hindsight, bars could have popped up as before showing strength. How does one manage the trade under these circumstances??

Share this post


Link to post
Share on other sites
I have been told about this thread by a friend of mine in London. I wil post my charts and commentry for you all to read(If you like)

 

This week I am staying with Tom Williams, so it may be a bit hit and miss.

 

Regards Sebastian

Sebastian

 

Welcome - I have one quick question on bar A on the 3rd dec chart. You stated that a wide spread down on high volume is generally bullish. However this bar closes near the low, so would this not be interpreted generally as weakness.

 

Primavera

Share this post


Link to post
Share on other sites
Sebastian

 

Welcome - I have one quick question on bar A on the 3rd dec chart. You stated that a wide spread down on high volume is generally bullish. However this bar closes near the low, so would this not be interpreted generally as weakness.

 

Primavera

Primavera

Not Sebastian, but the next bat was up, Telling us that there was some strength in the high vol down bar.

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.

  • Topics

  • Posts

    • Date: 29th March 2024. GBPUSD Analysis: The Pound Trades Higher But For How Long? The global Stocks Markets are closed due to Easter Friday (Good Friday). The NASDAQ continued to follow the sideways trend while other indices again rose. The SNP500 reaches an all-time high, but the NASDAQ remains under pressure from Tesla, Meta and Apple. The Euro continues to trade lower against all major currencies including the US Dollar, Euro and Japanese Yen. The British Pound is the best performing currency during this morning’s Asian session. However, investors are largely fixing their attention on this afternoon’s Core PCE Price Index. GBPUSD – The Pound Trades Higher but For How Long? The GBPUSD is slightly higher than the day’s open and is primary due to the Pound’s strong performance. At the moment, the British Pound is increasing in value against all major currencies. However, the US Dollar Index is also trading 0.10% higher and for this reason there is a slight conflict here. If investors wish to avoid this conflict, the EURUSD is a better option. This is because, the Euro depreciating against the whole currency market avoiding the “tug-of-war” scenario. The GBPUSD is trading slightly lower than the 2-month’s average price and is trading at 49.10 on the RSI. For this reason, the price of the exchange is at a “neutral” level and is signalling neither a buy nor a sell. The day’s price action and future signals are possibly likely to be triggered by this afternoon’s Core PCE Price Index. Analysts expect the Core PCE Price Index to read 0.3% which is slightly lower than the previous month but will result in the annual figure remaining at 2.85%. The PCE rate is different to the inflation rate and the Fed aims for a rate between 1.5% to 2.00%. Therefore, even if the annual rate remains at 2.85%, as analysts expect, it would be too high for the Fed. If the rate increases, even if only slightly, the US Dollar can again renew bullish momentum and the stock market can come under pressure. This includes the SNP500. Investors are focused on the publication of data on the UK’s gross domestic product (GDP) for the last quarter of 2023: the quarterly figures decreased by 0.3%, and 0.2% over the past 12-months. This confirms the state of a shallow recession and the need for stimulation. The data, combined with a cooling labor market and a steady decline in inflation, increase the likelihood that the Bank of England will soon begin interest rate cuts. In the latest meeting the Bank of England representatives did not see any members vote for a hike. USA500 – The SNP500 Rises to New Highs, But Cannot Hold Onto Gains! The price of the SNP500 rises to an all-time high, before correcting 0.33% and ending the day slightly lower than the open price. Nonetheless, the index performs better than the NASDAQ which came under pressure from Tesla, Meta and Apple which hold a higher weight compared to the SNP500. For the SNP500, these 3 stocks hold a weight of 9.25%, whereas the 3 stocks make up 14.63% of the NASDAQ. The SNP500 is also supported by ExxonMobil’s gains due to higher energy prices. The market will remain closed on Friday due to Easter. However, the market will reopen on Monday for the US and investors can expect high volatility. Investors will also need to take into consideration how the PCE Price Index and the changed value of the US Dollar is likely to affect the stock market next week. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • MT4 is good and will be good until their parent company keep updating the software, later mt4 users will have to switch to mt5.
    • $SOUN SoundHound AI stock at 5.91 support area , see https://stockconsultant.com/?SOUN
    • $ELEV Elevation Oncology stock bull flag breakout watch , see https://stockconsultant.com/?ELEV
    • $AVDX AvidXchange stock narrow range breakout watch above 13.32 , see https://stockconsultant.com/?AVDX
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.