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

It's even more beautiful if you took it. Did you? Nice example.

 

I find using Candlesticks, like you guys do, helps you see WRB to the left a lot easier so you can see what trading range you're in, as in your example.

 

I didn't want to leave your post here all lonely since you've been so kind as to comment on all mine:)

Share this post


Link to post
Share on other sites

Daily chart of the Dow. Today's action (hard right edge) looks like a failed test to me---tested lows, closed near high, but volume higher than last few bars. This would suggest that we haven't seen the bottom yet.

 

The only question I have is whether or not a true test should close below the close of the previous bar. There are examples of tests from this thread which go both ways--some closing above the close fo the previous bar, some below.

5aa70e25e4518_failedtestmaybe.thumb.png.0641391493d6bb9c4bc4e12c4e66103a.png

Share this post


Link to post
Share on other sites
Everything in VSA is relative. Spread is relative. Volume is relative. What looks like low volume at one point in the day will look high at another.

 

A moving average works well to know if you have low, average or high volume. So if Volume > Avg the = high, that type of thing. But like you said this is only a general classification to assist you.

 

Same for spread. If Spread > Avg Spread then = wide spread. Use a short period for spread, a 15 and/or 30 for Volume.

 

Indeed, but variance and so standard deviation are inherently a relative measure. Guess thats why TG uses it.

 

Whilst pure VSA relies on relative volume (sometimes in a rather arbitrary way) there certainly can be useful information to be gleaned from absolute values. Low volume at 50,000+ contracts is different to low volume at 2,500- contracts :) It is also valuable to have an idea of relative volume at a higher level. e.g. for an intraday trader knowing it can be helpful to identify a high high/low volume day whilst its in progress.

 

Cheers.

Share this post


Link to post
Share on other sites
The only question I have is whether or not a true test should close below the close of the previous bar. There are examples of tests from this thread which go both ways--some closing above the close fo the previous bar, some below.

 

The best case senario is for a test to close lower than the previous close. However, a test can close equal to and even higher than the previous bar.

 

That does not look like a test to me as it does not make a lower low. Just looking at the chart, it looks like the candle opened up on the low, and equal to the previous close, and then traded up for the period. While VSA does not look at the open, the open here shows that no time was spent to the downside, and thus when where they testing?

 

Tests go lower before closing on or near the highs.

 

I would be looking to see a low volume test in the range of that Long Shadow.

Share this post


Link to post
Share on other sites
ranj, I found the test that contained that bar on the 5 min and it had low volume.

 

Beautiful.

 

A test as price trades around R1. All one has to do is focus attention on what happens around certain predetermined levels (like pivots or Market Profile).

 

I know its after the fact, but look how logical the Test is.

 

1. Price is moving up towards the pivot

2. Price breaks the pivot

3. Price moves down below pivot again, but the volume is drying up on the downside action. Price closes on the high on a Test bar.

 

It makes logical sense that once the Resistance is broken that a Test of that area would occur. Now some may say that resistance did not truly act as support as price got below R1, but we can see that the move below was false in the first place. Hope you were able to take advantage of it.

Share this post


Link to post
Share on other sites
Daily chart of the Dow. Today's action (hard right edge) looks like a failed test to me---tested lows, closed near high, but volume higher than last few bars. This would suggest that we haven't seen the bottom yet.

 

The only question I have is whether or not a true test should close below the close of the previous bar. There are examples of tests from this thread which go both ways--some closing above the close fo the previous bar, some below.

 

What exactly are we testing here? The August Volume? I'd like to see a little bounce then come back to test the down move (on high volume) that made it bounce.

Share this post


Link to post
Share on other sites

Could you VSA pros take a look at ticker IM for me and time permitting post a chart on your thoughts.

October 18th is the main day I'm looking at. The 18th had heavy volume with a narrow spread. Then October 26th looks like more buying at the lows. So I see this as bullish longer term with the 19th having low volume on a down day, but that 18th has me wondering really how that volume could have been buying and had such a small spread. I'm wondering if you see that as distribution or as absorption.

 

Thanks guys...keep up the great posts.

Share this post


Link to post
Share on other sites
Could you VSA pros take a look at ticker IM for me and time permitting post a chart on your thoughts.

October 18th is the main day I'm looking at. The 18th had heavy volume with a narrow spread. Then October 26th looks like more buying at the lows. So I see this as bullish longer term with the 19th having low volume on a down day, but that 18th has me wondering really how that volume could have been buying and had such a small spread. I'm wondering if you see that as distribution or as absorption.

 

Thanks guys...keep up the great posts.

Hey Mcichocki,

 

I see what you mean the 18th had UHV on a narrow spread. That to me looks like a ton of effort with no results. If that was into new high ground it would "end of a rising market". I can't get a feel for the rest of the chart.

 

Sometime I will look intraday to see when and where the volume occured on those very high vol days. Also I will look at the sector, and if the sector ETF of index sold off that day and this stock had high volume closing higher, that might imply buying when the news is bad.

 

But normally a bar like the 18th would make me feel bearish on the stock.

Share this post


Link to post
Share on other sites
Hey Mcichocki,

 

I see what you mean the 18th had UHV on a narrow spread. That to me looks like a ton of effort with no results. If that was into new high ground it would "end of a rising market". I can't get a feel for the rest of the chart.

 

Sometime I will look intraday to see when and where the volume occured on those very high vol days. Also I will look at the sector, and if the sector ETF of index sold off that day and this stock had high volume closing higher, that might imply buying when the news is bad.

 

But normally a bar like the 18th would make me feel bearish on the stock.

 

Thanks, yeah if that was at a new high I'd say 1000% distribution and bet the next day would be red with more sellers . The part that's throwing me off is that volume and spread in the range its in. Very odd and I'm not sure what to make of it. In my limited experience I'm leaning towards absorption since it closed up and the next day wasn't followed with more selling. But I also note the volume is quite similar to that of 8/8 so maybe those buyers unloaded. Also demand wasn't there recently to break resistance.

 

Another odd thing is I pulled the intraday charts but the 18th volume has nothing like what's shown on the daily chart. I know the insiders are and have been selling so maybe those were insides sales or other pre/after market actions?

 

Thanks again

Share this post


Link to post
Share on other sites

I posted the chart to make it easier for others to comment on it.

 

I see selling on both bars you inquired about. The 29th appears to be a no demand after that high volume up bar. If it where buying then the price would have continued up.

IM.thumb.jpg.202d263bf798a879224d1e1ec205e4c7.jpg

Share this post


Link to post
Share on other sites

Wonder if PP and others can help out here with VSA reading

In the attached chart the market has risen over 100pts , this is a TG chart with VSA indicators,

 

Now At "A", we have an upbar closing near middle on high vol, VSA signal indicates hidden selling.

At "B" the indicator lights up a No Demand bar.

and at "C", there is the upthrust

 

All the elements appear to be in place, a substantial rise, hidden selling, no demand, sideways move indicating distribution and finally an "Upthrust",

 

Question: Where and when if at all would one consider going short. and what would negate that ?"

5aa70e26284db_CHART201.gif.3e99216dec5730becc1178f57f90d3e0.gif

Share this post


Link to post
Share on other sites

This is my kind of low-risk set-up, I would go short after the low of 'C' is broken (Upthrust bar), with a stop a couple of pts above it.

 

Isn't the whole purpose of the Upthrust bar in this situation is to bring in new longs just when the mkt is looking like it's ready for a down move ?

Share this post


Link to post
Share on other sites
I posted the chart to make it easier for others to comment on it.

 

I see selling on both bars you inquired about. The 29th appears to be a no demand after that high volume up bar. If it where buying then the price would have continued up.

 

jj,

 

if the 28th was the last bar on the chart, would you still have seen selling in it? If yes, is it because high volume (hidden selling)?

 

Thanks,

Bert

Share this post


Link to post
Share on other sites
jj,

 

if the 28th was the last bar on the chart, would you still have seen selling in it? If yes, is it because high volume (hidden selling)?

 

Thanks,

Bert

 

Hey, I was actually refering to the original posters questions about October 28, not Nov.28 which is the last bar on that chart. So on October 28th there appeared to be hidden selling and this would explain the drop off after that.

 

The last bar on that chart doesn't appear to be selling. The bar before that could even be a test which would be bullish.

Share this post


Link to post
Share on other sites

I have attached todays FTSE Future 5 min chart. The uptrend today has been strong due to US futures being up due to the possible rate rise. I have been patiently waiting for a place for a quick short.

 

Reasons for taking a short trade.

 

1. Upthrust bar at R2 resistance level (green arrow) at 12.35 pm UK time.

2. Under this bar there is the highest volume (green arrow) since the opening bar at 8am - selling ?

3. The volume in the bars leading up to this point has been rising - possible selling into the current high of the day and R2 level.

 

I did enter a small stake short trade once the low of the upthrust bar was broken and I had a target of just above the R1 level.

I decided not to be too greedy due to the strength of the uptrend.

 

After 25 mins I exited around the yellow dotted line for a 20-odd pt gain.

 

Any thoughts anyone.

FTSE Fut_Fri 30th Nov - Short at R2.doc

Share this post


Link to post
Share on other sites
I have attached todays FTSE Future 5 min chart. The uptrend today has been strong due to US futures being up due to the possible rate rise. I have been patiently waiting for a place for a quick short.

 

Reasons for taking a short trade.

 

1. Upthrust bar at R2 resistance level (green arrow) at 12.35 pm UK time.

2. Under this bar there is the highest volume (green arrow) since the opening bar at 8am - selling ?

3. The volume in the bars leading up to this point has been rising - possible selling into the current high of the day and R2 level.

 

I did enter a small stake short trade once the low of the upthrust bar was broken and I had a target of just above the R1 level.

I decided not to be too greedy due to the strength of the uptrend.

 

After 25 mins I exited around the yellow dotted line for a 20-odd pt gain.

 

Any thoughts anyone.

 

 

Way to Go, you had the patience to wait for the setup, read it well and sound trade execution, wish there were more posts like yours ,

Share this post


Link to post
Share on other sites

 

I did enter a small stake short trade once the low of the upthrust bar was broken and I had a target of just above the R1 level.

I decided not to be too greedy due to the strength of the uptrend.

 

 

That was an excellent trade. There are usually a boat load of sell orders around the pivots which could have accounted for the upthrust but once you saw the close below it you were told it was more than that.

 

Thanks for sharing the trade. It helps us all.

Share this post


Link to post
Share on other sites

I was inspired by Tawe and thought I'd like myself a nice upthrust trade as well.

This is a 5 min of the ES that just happened this morning. High Volume, Narrow Spread Up bars start out our day with a top reversal mixed in there. Then we get a beautiful upthrust. I set my order entry based on the stop I can afford above the high of the upthrust and bam! I'm in and out just like that. At $50 per point per contract that's enough for me:)

5aa70e26531be_FriTrade.jpg.2c7c526f64a238f44ce16762953bfb18.jpg

Share this post


Link to post
Share on other sites
I was inspired by Tawe and thought I'd like myself a nice upthrust trade as well.

This is a 5 min of the ES that just happened this morning. High Volume, Narrow Spread Up bars start out our day with a top reversal mixed in there. Then we get a beautiful upthrust. I set my order entry based on the stop I can afford above the high of the upthrust and bam! I'm in and out just like that. At $50 per point per contract that's enough for me:)

 

You guys are getting at this, nice to see posts getting into strategy and tactics, think have enough of text book hindsight analysis.

Great trade execution in the context of immediate previous price action, one can just aim to master a couple of these setups, learn to identify them in realtime, and increase size, you do not need to understand every bar in terms of VSA, will drive you nuts:)

 

Notice you haven't got much response on your post 889, yes it is also an upthrust, a swift markdown in prices followed by an upward drift and a No demand , place to short. However if prices refuse to go down or bars that follow are on low vol, watch out, that is a sign of strength and a potent one at that.

Share this post


Link to post
Share on other sites

Thanks Ravin,

 

Here's a continuation of my chart to show the potential of a setup like that, even though I only captured a miniscule amount.

 

It made an 11 point down move, so far, from my entry point.

5aa70e26a26d9_fritradecontinued.thumb.jpg.1bc74a08dccaeb70f5a3e7814dfe8967.jpg

Share this post


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

  • Topics

  • Posts

    • Date: 11th July 2025.   Demand For Gold Rises As Trump Announces Tariffs!   Gold prices rose significantly throughout the week as investors took advantage of the 2.50% lower entry level. Investors also return to the safe-haven asset as the US trade policy continues to escalate. As a result, investors are taking a more dovish tone. The ‘risk-off’ appetite is also something which can be seen within the stock market. The NASDAQ on Thursday took a 0.90% dive within only 30 minutes.   Trade Tensions Escalate President Trump has been teasing with new tariffs throughout the week. However, the tariffs were confirmed on Thursday. A 35% tariff on Canadian imports starting August 1st, along with 50% tariffs on copper and goods from Brazil. Some experts are advising that Brazil has been specifically targeted due to its association with the BRICS.   However, the President has not directly associated the tariffs with BRICS yet. According to President Trump, Brazil is targeting US technology companies and carrying out a ‘witch hunt’against former Brazilian President Jair Bolsonaro, a close ally who is currently facing prosecution for allegedly attempting to overturn the 2022 Brazilian election.   Although Brazil is one of the largest and fastest-growing economies in the Americas, it is not the main concern for investors. Investors are more concerned about Tariffs on Canada. The White House said it will impose a 35% tariff on Canadian imports, effective August 1st, raised from the earlier 25% rate. This covers most goods, with exceptions under USMCA and exemptions for Canadian companies producing within the US.   It is also vital for investors to note that Canada is among the US;’s top 3 trading partners. The increase was justified by Trump citing issues like the trade deficit, Canada’s handling of fentanyl trafficking, and perceived unfair trade practices.   The President is also threatening new measures against the EU. These moves caused US and European stock futures to fall nearly 1%, while the Dollar rose and commodity prices saw small gains. However, the main benefactor was Silver and Gold, which are the two best-performing metals of the day.   How Will The Fed Impact Gold? The FOMC indicated that the number of members warming up to the idea of interest rate cuts is increasing. If the Fed takes a dovish tone, the price of Gold may further rise. In the meantime, the President pushing for a 3% rate cut sparked talk of a more dovish Fed nominee next year and raised worries about future inflation.   Meanwhile, jobless claims dropped for the fourth straight week, coming in better than expected and supporting the view that the labour market remains strong after last week’s solid payroll report. Markets still expect two rate cuts this year, but rate futures show most investors see no change at the next Fed meeting. Gold is expected to finish the week mostly flat.       Gold 15-Minute Chart     If the price of Gold increases above $3,337.50, buy signals are likely to materialise again. However, the price is currently retracing, meaning traders are likely to wait for regained momentum before entering further buy trades. According to HSBC, they expect an average price of $3,215 in 2025 (up from $3,015) and $3,125 in 2026, with projections showing a volatile range between $3,100 and $3,600   Key Takeaway Points: Gold Rises on Safe-Haven Demand. Gold gained as investors reacted to rising trade tensions and market volatility. Canada Tariffs Spark Concern. A 35% tariff on Canadian imports drew attention due to Canada’s key trade role. Fed Dovish Shift Supports Gold. Growing expectations of rate cuts and Trump’s push for a 3% cut boosted the gold outlook. Gold Eyes Breakout Above $3,337.5. Price is consolidating; a move above $3,337.50 could trigger new buy signals. 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 of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou 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 Leveraged 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.
    • Back in the early 2000s, Netflix mailed DVDs to subscribers.   It wasn’t sexy—but it was smart. No late fees. No driving to Blockbuster.   People subscribed because they were lazy. Investors bought the stock because they realized everyone else is lazy too.   Those who saw the future in that red envelope? They could’ve caught a 10,000%+ move.   Another story…   Back in the mid-2000s, Amazon launched Prime.   It wasn’t flashy—but it was fast.   Free two-day shipping. No minimums. No hassle.   People subscribed because they were impatient. Investors bought the stock because they realized everyone hates waiting.   Those who saw the future in that speedy little yellow button? They could’ve caught another 10,000%+ move.   Finally…   Back in 2011, Bitcoin was trading under $10.   It wasn’t regulated—but it worked.   No bank. No middleman. Just wallet to wallet.   People used it to send money. Investors bought it because they saw the potential.   Those who saw something glimmering in that strange orange coin? They could’ve caught a 100,000%+ move.   The people who made those calls weren’t fortune tellers. They just noticed something simple before others did.   A better way. A quiet shift. A small edge. An asymmetric bet.   The red envelope fixed late fees. The yellow button fixed waiting. The orange coin gave billions a choice.   Of course, these types of gains are rare. And they happen only once in a blue moon. That’s exactly why it’s important to notice when the conditions start to look familiar.   Not after the move. Not once it's on CNBC. But in the quiet build-up— before the surface breaks.   Enter the Blue Button Please read more here: https://altucherconfidential.com/posts/netflix-amazon-bitcoin-blue  Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • What These Attacks Look Like There are several ways you could get hacked. And the threats compound by the day.   Here’s a quick rundown:   Phishing: Fake emails from your “bank.” Click the link, give your password—game over.   Ransomware: Malware that locks your files and demands crypto. Pay up, or it’s gone.   DDoS: Overwhelm a website with traffic until it crashes. Like 10,000 bots blocking the door. Often used by nations.   Man-in-the-Middle: Hackers intercept your messages on public WiFi and read or change them.   Social Engineering: Hackers pose as IT or drop infected USB drives labeled “Payroll.”   You don’t need to be “important” to be a target.   You just need to be online.   What You Can Do (Without Buying a Bunker) You don’t have to be tech-savvy.   You just need to stop being low-hanging fruit.   Here’s how:   Use a YubiKey (physical passkey device) or Authenticator app – Ditch text message 2FA. SIM swaps are real. Hackers often have people on the inside at telecom companies.   Use a password manager (with Yubikey) – One unique password per account. Stop using your dog’s name.   Update your devices – Those annoying updates patch real security holes. Use them.   Back up your files – If ransomware hits, you don’t want your important documents held hostage.   Avoid public WiFi for sensitive stuff – Or use a VPN.   Think before you click – Emails that feel “urgent” are often fake. Go to the websites manually for confirmation.   Consider Starlink in case the internet goes down – I think it’s time for me to make the leap. Don’t Panic. Prepare. (Then Invest.)   I spent an hour in that basement bar reading about cyberattacks—and watching real-world systems fall apart like dominos.   The internet going down used to be an inconvenience. Now, it’s a warning.   Cyberwar isn’t coming. It’s here.   And the next time your internet goes out, it might not just be your router.   Don’t panic. Prepare.   And maybe keep a backup plan in your back pocket. Like a local basement bar with good bourbon—and working WiFi.   As usual, we’re on the lookout for more opportunities in cybersecurity. Stay tuned.   Author: Chris Campbell (AltucherConfidential) Profits from free accurate cryptos signals: https://www.predictmag.com/   
    • DUMBSHELL:  re the automation of corruption ---  200,000 "Science Papers" in academic journal database PubMed may have been AI-generated with errors, hallucinations and false sourcing 
    • Does any crypto exchanges get banned in your country? How's about other as Bybit, Kraken, MEXC, OKX?
×
×
  • Create New...

Important Information

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