[mister ed]

Originally Posted by RAVIN »

you will find that with this VSA stuff, it is relatively easy to get into detailed discussions with the benefit of hindsight as to the meaning in each bar and whether one should have gone long or short, but in realtime one does not have this luxury. As with all tools there are no full proof setups, probability always rules, VSA provides that extra edge, however any scenario which works on one occasion can be negated next time depending on selling and buying pressures from folks who operate on higher time frames, and one has to be ready for that rather than get tied up with any forecasts IMO

I agree with your points here RAVIN, especially regarding time pressure in real-time trading, and not having the luxury to go into detailed analysis. Which is why threads like this are so important - use this time while the market is closed (or at least RTH is closed) to really learn this stuff, or as much of it as you find valuable. If recognizing the signs can become second-nature then using this process in real time is much easier.

Your second point regarding probabilities - spot on.

[mister ed]

Originally Posted by sleepy »

... if anyone has put together cheatsheets ...

Great idea - I have a list of 14 important points that i got for somewhere that I can't remember, it may even be from earlier in this thread!(EDIT: It is from a post by Tasuki, thanks Tasuki!). It is certainly not my original work and I would love to give credit where it is due but I didn't note down where I got it.

It is not a bad starting point if you want to expand briefly on each point and use that as your cheatsheet. I think some of the points are more important than others.

--

First – what is the background?

1) Tests (successful and unsuccessful)
2) Shakeouts
3) No demand
4) Stopping volume
5) Pushing through supply
6) Upthrust
7) Selling/buying climax
8) Climactic action
9) Support/weakness coming in
10) Trap up/down move
11) No result after strong effort
12) Selling/buying pressure
13) Bottom reversal
14) End of a rising market

--

Love the nickname sleepy, might have change mine to Iamsleepy2...

[ranj]

Sleepy,

A cheat sheet is great, but it makes one think VSA is bases on finding these 1 to 2 bar patterns and then execute off of them.
But think about each bar as it completes in terms of relative volume, relative range and, relative closing. Then slowly putting the sequence together to build a solid trading hypthosis. I think Pivot has a great post about how markets turn.
Also VSA should be applied in the correct context, accumulation (early, middle, and end) verse distribution verse trend continuation.

[jjthetrader]

Hey all, here's a chart that's got my attention. I don't usually trade EOD so thought I'd post it. Does the most recent bar look like testing?
I know there's no follow through yet to confirm it but it does look like testing with that strength in the background.

[TinGull]

I think the bar before it would be a test, and this would be another test on stronger volume showing strength indeed.

JJ,

I cant send PMs yet ... can you please PM me your email addy.

Cheers,
sleepy

[habi]

Nice chart of the week about tests:

http://www.tradeguider.com/cotw/cotw.aspx

[jjthetrader]

The news is all over the impending fallout of FedEx Stock. Huge Gap down on Friday with massive volume but look at the close.
It just dropped out of it's trend channel so will that now be resistance for it or is there enough strength in that down bar to "rise" to the occasion?