[notouch]

Not for VSA no. The theory is that ultra high volume on an up day indicates a transfer of stocks from strong holders to weak holders. The down day that followed the high volume up day shows strong holders were selling (taking profit aka distribution) at the expense of weak holders. As there's no longer any interest in buying from professionals, the only move possible is down. I find VSA works very well on daily charts but only for swing and position trading, not if you're looking for a precise entry.

[walterw]

Originally Posted by notouch »

Not for VSA no. The theory is that ultra high volume on an up day indicates a transfer of stocks from strong holders to weak holders. The down day that followed the high volume up day shows strong holders were selling (taking profit aka distribution) at the expense of weak holders. As there's no longer any interest in buying from professionals, the only move possible is down. I find VSA works very well on daily charts but only for swing and position trading, not if you're looking for a precise entry.

Yes it does "setup" great trades... maybe for timing it would be interesting to make some kind of fussion with some cci type timing techniques in a smaller time frame... (1/5 maybe)...

[notouch]

I like VSA in combination with market profile and candlestick patterns.

[walterw]

Originally Posted by notouch »

I like VSA in combination with market profile and candlestick patterns.

I see... so you use candlesticks for timing..? do you look at smaller time frames for more specific timing entries ?

[notouch]

Yes, in fact multi-timeframing is an important aspect of VSA. Using the daily for direction and then the hourly, 15 minute and 5 minute charts for entry works well, especially when used with candlestick analysis.

[walterw]

Originally Posted by notouch »

Yes, in fact multi-timeframing is an important aspect of VSA. Using the daily for direction and then the hourly, 15 minute and 5 minute charts for entry works well, especially when used with candlestick analysis.

What would be the best time frame for a vsa "setup"... more reliable in terms of volume concepts readings ?

[notouch]

It depends on your trading style. I'm not very interested in the smaller time frames. At the VSA tutorial that a lot of us went to a few months back the speaker used daily, hourly, 15 minute and 3 minute charts.

[Anonymous]

Originally Posted by walterw »

yes correct, calling it smart money may be a little tricky, because maybe that super volume spike was the dumb and uninformed money that bought there...

1. Okay, assume the High volume is the retail trader, or dumb money. Now the real questions is this: WHO IS SELLING TO THEM?

2. You do not want to "believe" in Professional money, fine. But Does there seem to be a group that is on the correct side of a trade more often than not? When volume is high at a top or bottom, somebody was doing the selling (at the top) and the buying (at the bottom).

VSA seeks to emulate the traders that tend to be on the right side more than on the wrong one. Yet, in the book, Master the Markets, Tom Williams clearly says that some professional are wrong more than they are right. What separates them from the masses is their ability to admit they are wrong and get out of a bad position. They do not hope the market will turn in their favor. They do not curse their indicators (and most don't use any) when they are wrong, the simply reverse their positions.

3. VSA contends that 85% of a volume histogram is professional money. This is the one thing that I call the "leap of faith". Either you believe or you do not. But once you do, that means ALL volume bars are 85% professional money, even the small ones during the none regular trading hours.

4. Most traders have some idea of what the Smart Money is. One does not have to be specifically talking about trading syndicates to find value in the VSA story.