[BlowFish]

Myth #3: You need expensive software, subscription clubs, or courses to master VSA.

There are less than a dozen fairly simple principles to master (though a certain famous software package simplifies them into 450+ indicators). The definitive source that has all the information you need is Toms original book.

Eiger nice to see you posting again. This was not directed at you though I do see you are doing the odd gig for the 'TG evil empire'. Still better that it's you than the professional marketeer and master, ninja, expert in his own under pants.

[joshdance]

Originally Posted by MightyMouse »

The more of those you can include, the better the volume picture you will develop and VSA will perform better for you. If you are a trader who wants to use VSA on an instrument like ES and plan to use the volume of only ES, then the above statement is not a myth, since ES volume only gives you a sliver of needed volume information and trading with price action alone will produce similar results.

MM, as I'm pretty new to the subject of VSA, what other volumes would be relevant when trading ES?

[MightyMouse]

Originally Posted by joshdance »

MM, as I'm pretty new to the subject of VSA, what other volumes would be relevant when trading ES?

You would want to use any volume that is related to the s&p 500 which is the underlying instrument of the S&P emini (ES). You will notice that there are times where the volume, for instance, on the ES has a dramatic increase and the S&P volume of all the stocks traded in the S&P did not have a dramatic increase in volume. The dramatic volume from the futures contract may generate a signal where as if you were using the S&P 500 volume you would not be entering or exiting the market. To me this leads to a discussion of whether one leads the other, which tells me that sometimes one does and sometimes the other does. If that is the case, then the value of the signal is watered down if you cannot gauge the complete volume picture. So using price along is probably a cleaner approach.

I am not suggesting anything about the software since i have never even seen it, but fundamentally, I wouldn't use it with ES for the aforementioned reasons unless I could get a complete picture of the volume traded.

[srag&birdie2]

Originally Posted by MightyMouse »

You would want to use any volume that is related to the s&p 500 which is the underlying instrument of the S&P emini (ES). You will notice that there are times where the volume, for instance, on the ES has a dramatic increase and the S&P volume of all the stocks traded in the S&P did not have a dramatic increase in volume. The dramatic volume from the futures contract may generate a signal where as if you were using the S&P 500 volume you would not be entering or exiting the market. To me this leads to a discussion of whether one leads the other, which tells me that sometimes one does and sometimes the other does. If that is the case, then the value of the signal is watered down if you cannot gauge the complete volume picture. So using price along is probably a cleaner approach.

I am not suggesting anything about the software since i have never even seen it, but fundamentally, I wouldn't use it with ES for the aforementioned reasons unless I could get a complete picture of the volume traded.

This kinda response tells me you think too much! Way too complex, bro.

If you trade the ES, jus use the ES vol. Don't complicate yur life

[joshdance]

Thanks for the info MM.

[MightyMouse]

Originally Posted by srag&birdie2 »

This kinda response tells me you think too much! Way too complex, bro.

If you trade the ES, jus use the ES vol. Don't complicate yur life

Its all about getting people to pay you when you enter the market. I choose to get as true a reading as possible so that I am not acting like a monkey throwing darts, or worse, so that I am not getting sucked into a trap by other traders seeking to extract money from me. Unfortunately, i need to expend thought which I do not mind doing. Others may try to do it with less thought. All I can hope is that they trade the same markets I do.

[alcontado_80]

there are only two mytho

[YertleTurtle]

Originally Posted by MightyMouse »

You would want to use any volume that is related to the s&p 500 which is the underlying instrument of the S&P emini (ES). You will notice that there are times where the volume, for instance, on the ES has a dramatic increase and the S&P volume of all the stocks traded in the S&P did not have a dramatic increase in volume. The dramatic volume from the futures contract may generate a signal where as if you were using the S&P 500 volume you would not be entering or exiting the market. To me this leads to a discussion of whether one leads the other, which tells me that sometimes one does and sometimes the other does. If that is the case, then the value of the signal is watered down if you cannot gauge the complete volume picture. So using price along is probably a cleaner approach.

I am not suggesting anything about the software since i have never even seen it, but fundamentally, I wouldn't use it with ES for the aforementioned reasons unless I could get a complete picture of the volume traded.

Personally I find that using tick volume is superior to contract volume as you can't hide activity from the market. Contract volume can be hidden. This idea of tracking all volume pertaining to an instrument is silly. Volume in the spot and futures market are highly correlated so summing them together won't get any new picture.