[mp_trader]

Originally Posted by notouch »

mp trader, one of those pics is of MarketDelta - a very useful tool but nothing to do with VSA.

I included it to show the ask and bid volume within that bar that caused the close to be as high as it was. It was interesting to me because it did not seem that large negative delta would have allowed a close as high as it did. It seems the sellers just disappeared. That is my interpretation anyway. I had hoped someone familiar with MD would have a comment about that. I freely admit I know nothing of VSA and hope to learn some of it tomorrow.

[mp_trader]

Originally Posted by Soultrader »

One simple observation that really changed my approach in analyzing volume was waiting for the next price and volume bar to confirm the previous bar.

In other words, if I planned to go long at a pivot on a sell bar... the chances of the long working out would increase alot more after I observe the second bar after it. I used to not pay attention to it as much and rely more on tape. But after watching for tests/tests of supply, I am able to view price action alot more clearer. Very powerful technique in my opinion.

This is one of the VSA patterns that I hope to learn. I have no idea how many patterns there are, but I suspect they are all variations on a few themes or concepts. My VSA knowledge is limited to the posts in this thread and the "Balance Area" thread.

Perhaps the study I did is not even VSA. I really don't know, but hope to soon :-)

[TinGull]

Originally Posted by notouch »

mp trader, one of those pics is of MarketDelta - a very useful tool but nothing to do with VSA.

notouch, how does market delta have nothing to do with volume? nothing to do with analyzing the bars for selling pressure inside the bar? It has EVERYTHING to do with it, just presents it in a more graphical manner.

[notouch]

I meant nothing to do with VSA which is an analysis technique in its own right.

[Anonymous]

Okay, Let the learning and sharing of ideas begin.


1. Volume is activity. Hence tick volume can be used where actual contract volume is not available.

2. Two ways of looking at volume:
* relative volume: volume in relation to the previous bar or bars.
* actual volume: the amount (size) of volume an individual bar represents.

3. Strength comes in on down-bars and weakness comes in on up-bars.

4. Markets do not like high volume up bars with wide spreads? Why because there is a possibility of Professional Selling into such a bar.

5. Professional Money deals in large amounts and thus sells into up bars so as not to be hurt by their own selling. The converse would also be true.

6. 85% of a volume histogram represents Smart Money activity.

7. Smart Money is active on all time frames. Various time frames are used to hide their actions from those that can read a chart and each other.

[notouch]

Morning doji stars are something to look for. In a down trend this would be a long down candlestick followed by a doji which would signify a reversal. This would be confirmed by an up candlestick. Presumably other reversal candlesticks like hammers work just as well.

The issue which most interests me is what timeframe is ideal? I know "all timeframes" is the usual response but which timeframes are ideal? Looking at today's action the 1 minute charts would lead to false "signals" but the 5 minute charts would get you in very late. One solution may be to use the 1 minute for entries but only stay in the trade if confirmed by the 5 minute.

[Anonymous]

Originally Posted by notouch »

Morning doji stars are something to look for. In a down trend this would be a long down candlestick followed by a doji which would signify a reversal. This would be confirmed by an up candlestick. Presumably other reversal candlesticks like hammers work just as well.

VSA does not look at the open. There are two and three bar patterns like candle patterns, but not candle patterns themselves. Although they MAY be a candle pattern, they are not looked at in that light.

Since we do not technically look at the open, we do not know or care about a Doji. By definition, a Doji has an open equal to the close but we don't look at the open so we can't "see" a Doji. If you use TG software or look at their charts, you will notice that there are no open notches on the bars.

Personally, I do like to see the open on some bars. If fact, a NO DEMAND bar that closes in the middle and has an open in the middle is a powerful sign. This is a Doji, but VSA is concerned with the range, the closing price and the volume.

Originally Posted by notouch »

The issue which most interests me is what timeframe is ideal? I know "all timeframes" is the usual response but which timeframes are ideal? Looking at today's action the 1 minute charts would lead to false "signals" but the 5 minute charts would get you in very late. One solution may be to use the 1 minute for entries but only stay in the trade if confirmed by the 5 minute.

All time frames .

1 minute has a lot of noise on it. It also depends on how many time frames you want to look at. If only trading off of one chart, then a 1 minute might be too "fast". Joel trades off of a single 3 min chart. Todd likes to use multiple charts. One problem with multiple charts is it becomes harder to see the signs of Professional Demand/Support. This is where the software does have an advantage over those who choose to learn the method alone.

I am not a fan of the software and would not recommend it. But if you want to trade off a 1 minute chart, you do need to look at least one more time frame. Just realize it gets difficult to keep all the various bars with supply and demand straight.

[Wookey]

notouch,

I think you know the answer. there is no ideal timeframe. I wish their software analysed pure ticks not bars. There is nothing special in 1 min close price.
About entries, You should not think that all reddish signs represent short entries and greenish - long entries. Some of them are "soft" signals like "we would not go long at this time". And also they recomend looking at other indicators like Relative Volume Indicator, their trend indicators and so on.
Look at the chart attached, it's EURUSD 120 min. I think if you want to catch all swings, you should skim for several timeframes. Short term trades - 1min to 20 min, Mid-term - 30 min to 240 min and so on.
If you are interested I can post some more charts. Just let me know.

P.S. Personally I would rather have indicators for TradeStation or eSignal than stand-alone software. I use Drummond Geometry and Market Profile to trade, and using another tool for confirmation/entries is not very convenient.