[delta]

VJ,

What is GAVIN trigger number concept? how is this line drawn? Have not read about it in any vsa book.

[VolumeJedi]

Originally Posted by delta »

VJ,

What is GAVIN trigger number concept? how is this line drawn? Have not read about it in any vsa book.

You wont find them in any book (yet). Tom once referred to them as Gavin's trigger number, with the emphasis on Gavin. Indicating to me that they are not strictly VSA.

Gavin has spoken about them a couple of times but many more times he refuses to say much about them. Basically he draws a horizontal line at the close of certain high volume bars. These lines tend to act as support/resistance areas or areas where valid signals show up. Hence the name trigger.

The point I was showing was a defacto method of creating a trigger number, which very often makes for better support/resistance than plain vanilla floor pivots.

The one I show is used because it: (1) has ultra high volume (2) is a buying bar with no immediate follow thru (or selling bar as I am not looking at the chart as I write this) (3) is not part of a balance area.

Simply one could look for an ultra high volume bar that forms a swing high or low ........

[VolumeJedi]

I like this chart. The song remains the same. Why shouldn't it? Repeating patterns are good from a trader's point of view.

A: Ultra high volume bars are always a good place to start. These are the type of bars that signal professional involvement or activity. Notice that we have a green bar on ultra high volume that closes on its highs. It does not close down, although it makes a lower low, it closes equal to the previous bar. Clearly, buying had to occur within this bar. How else could we have a wide spread ultra high volume bar that closes on its highs with the next bar up?

VSA does not look at the open, but take a look anyway. Based on where the open is, we know that the market went down and then was moved up and closed higher than the open. The bulls were in charge at the end of the period.

This paint bar follows another paint bar thus creating a balance area. Thus we now have a location (area) within which we would be looking for signals. We can conclude that strength has entered the market and thus we would be want to get long.

B: Blue paint bar that is also a buying bar. The next bar trades higher than the high of the paint bar. This tells us there is some price acceptance of these higher prices. Another sign of strength in the market. While this next bar is a low volume up bar (hence the diamond), we like the fact that it makes a higher high than our blue buying bar.

C: This is the antithesis of the action at B. Price has fallen slightly from the high of the bar proceeding B and now we have another blue paint bar. This one, however, is a selling paint bar. But look at the close, the close is in the middle portion of the bar and closing higher than the previous bar. Also note that there is no action below this bars low on the very next bar. Here again we see strength as there is a rejection of lower prices as seen by no follow thru on the next bar to the downside.

But we are not yet in this market on the long side. We are looking for a nice Test bar.

D: Decreasing range on an up bar that makes a higher high and closes on or near its low on volume less than the previous two bars. This is an Up Thrust in the form of No Demand. Not a reason to get short, but a sign that the market is not yet ready to head north. This is good cause we are not in it yet. We recognize the strength (demand) in the background so we are not in the least bit tempted to take a short trade.

E: This blue paint bar completes a small balance area that is not shown. No matter. The real point here is that we get another selling paint bar with no follow thru on the next bar. One more clue that the market's bias is for higher prices. E takes us back into the balance area and we would now be expecting to see a Test (of supply).

F: The bar we have been waiting for. A narrow range down bar closing on its high with volume less than the previous two bars. Not only is it within the range of the balance area, but it is roughly at the midpoint of the area. Price dips below the midpoint and move back above and is immediately tested. The BBs don't find anymore supply down below so the path of least resistance is to the upside. Hitch a ride on their train........

[BlowFish]

Originally Posted by VolumeJedi »

You wont find them in any book (yet). Tom once referred to them as Gavin's trigger number, with the emphasis on Gavin. Indicating to me that they are not strictly VSA.

Gavin has spoken about them a couple of times but many more times he refuses to say much about them. Basically he draws a horizontal line at the close of certain high volume bars. These lines tend to act as support/resistance areas or areas where valid signals show up. Hence the name trigger.

The point I was showing was a defacto method of creating a trigger number, which very often makes for better support/resistance than plain vanilla floor pivots.

The one I show is used because it: (1) has ultra high volume (2) is a buying bar with no immediate follow thru (or selling bar as I am not looking at the chart as I write this) (3) is not part of a balance area.

Simply one could look for an ultra high volume bar that forms a swing high or low ........

I believe the idea came from some one else, not that that is important.

What is important is the close is a bit of a hit and miss affair. It sometimes 'works' because when price comes off from a high/low it will often rest somewhere. If it happens to be resting there when the bar closes you will likely have a decent level if it is not you wont. Bars are a simply a way to sample continuous data so we can make sense of it. I don't think it takes much persuasion to see that using an arbitrary fixed datum based on a single point in time might not be that reliable. Extending that thinking one could use for example the mid point of the bar which as it is based on the high and low has had the whole bars duration to establish itself.

Edit: as an example look at VJ's chart in the previous post. Which is the better datum on the green bar marked 'balance area' the close or the mid point?

[2trade]

F is not a test with strength in the background but 3 bars later is --

[zoli]

Hi all,

this is my first post here. I am reading through VSA 1 and 2, not finished with 2 yet. I really appreciate your work and all. I am new but VSA seems to me the way of the force. I just do like that there is a logical explanation for price action. I think some of yu are great traders here and I learned a lot from your posts. Thank you for that.

Now in the meanwhile I do paper trade forex - for I have little capital in the first place, but lately I figured that I can use the strategy tester in MT4 (I have order script and everything so can monitor and record my trades accurately). It is faster and I do not need to be out on the weekend. I am trying the GBPJPY pair on 5m.

I do understand the principles, but it is hard to read the market, hard to recognize things.
I some 17 trades and I managed to be with a small profit. But only because I was lucky. I lost mostly just had a big lucky trade, possibly past news event of sudden 200 pips movement in my favor. I did not know what is wrong, and I realized that these trades were on the same day!

I concluded that for some reason I want to be in the mkt all the time, I want to force out set ups from the mkt. One accurate profit trade would make me happy a day.

My question is how to overcome on this thing? How many trades are reasonably for a newby like me a day? I think I would do way better if I just took the trades with very clear background and indications. Should not try to trade all the time. I can not possibly catch all movements and be in profit.

So I have a likely mental obstacle here. What do you suggest?

Thanks a lot!

[irastorza]

hi im posting my analsys of the SPY, this is the first time that im posting here. Open to discussion. I pesrsonaly tihink that the market will not going very far in the mid term.

[Tasuki]

[QUOTE=irastorza;71462]hi im posting my analsys of the SPY, this is the first time that im posting here. Open to discussion. I pesrsonaly tihink that the market will not going very far in the mid term.

Good job, irastorza. The overnight market on the ES futures seems to bear out your prediction. You're right, high volume on up bar followed by low volume up bar is not a bullish combination.