Great advice. When I first read the original post, I was thinking it could be "reaction lag", but is does sound more and more like a case of seeing what one wants to see "in the heat of battle" versus seeing what is really there. Whilst traders ...

How to overcome "Hindsight Bias"?

Whilst the thread title says "daily", I trade off of much smaller time frames. I also don't predict markets-I trade them. I am of the camp that traders fail with candles for two reasons: 1. They use generic candle patterns like those found in books ...

Daily candle chart

You misunderstand. Price Action and Japanse Candlesticks are not separate. You can take the miopic view a candle pattern, like a hammer. But those that simply trade hammers will fail because they do not look at the context inwhich the hammer was ...

Support and Resistance Trading Simplified

The correct application of Japanese Candlestick patterns INVOLVES an understanding of the price action prior to and or within the Japanese Candlestick occurs. Most traders who fail with Japanese Candlesticks, fail because they don't focus on price ...

Support and Resistance Trading Simplified

wow.

Charts on Drugs or works of Art?

In fairness, a choppy market should look unappealing to most traders. LoL. For some great examples of "indicator traders gone wild", check out DaCharts.com.

Charts on Drugs or works of Art?

Mal. Help me out here, it appears that this would be a sell above yesterday's close. Is it not?

Trade Using VSA (Volume Spread Analysis)

Seems like a really bad premise to me. If you don't trust their data for testing, how can you trust it for live trades? TradeGuider and PFGBest are currently offering a special deal. It started this weekend. TradeGuider is offering a FREE two week ...

Trade Using VSA (Volume Spread Analysis)

Looks like a 2 bar reversal. If it was stopping volume over 2 bars, the high volume should be on the first of the 2. Here the bar that reverses has the increased volume showing increased activity or interest in upside prices. Either way you would be ...

Trade Using VSA (Volume Spread Analysis)

You can trade any number of ways using Volume Spread Analysis. If you want to scalp, you can scalp. If you want to counter trend trade, there is nothing in the VSA dogma that says you can't. From my perspective, it looks at worst as you’re trying to ...

Trade Using VSA (Volume Spread Analysis)

Two disclosures before we begin: 1. This was not an actual trade taken. A bit early for me. It just contains at least one worthwhile element for discussion. 2. This falls into the "trade what you see" category because if the gap does not exist on ...

Trade Using VSA (Volume Spread Analysis)

Interesting Porkpie. I would love to know more. Please post some more examples and the underlying logic if you would. I should have stated this previously because I believe it to me so fundamentally important: SUPPORT/RESISTANCE is NOT a trade ...

Price reaction to support and resistance

Great question. I am a bit frustrated that nobody took a stab at this one. Partially because I am not sure of the answer and would like to know myself. I am not sure but this is what I have come up with. Caveat emptor. The first things we need to ...

Trade Using VSA (Volume Spread Analysis)

I don't like to think in terms of Support/Resistance lines, but rather in terms of a Supply/Demand Delta Zone. What is a Supply/Demand Delta Zone? It's a zone or area where selling swamps buying causing prices to fall or buying swamps selling ...

Price reaction to support and resistance

Forget about the color and the placement for a second. Next think about the term Climatic Action candle/bar. Now the better volume definition of this would be: Highest V*Range in x number of intervals, where x is usually 20. Now think about the ...

Trade Using VSA (Volume Spread Analysis)

That's why I prefer S/R levels that represent areas (rather than single lines) where this change in order flow has ALREADY happened. As oppossed to things like Fibs where the change is only presumed to might happen. One of the truest things I have ...

Price reaction to support and resistance

This is in response to a question I was pm'd. The last time I tried, I could not put an attachment in a pm, so the answer is here. It is a much oft asked question so everyone seeing this should at least further the discussion. How much background is ...

Trade Using VSA (Volume Spread Analysis)

Unlike Silverwhite1, I had issues yesterday. Take a look at the chart below: A. This is the essential candle. As we know, the first place to start looking when analyzing the market is an ultra high volume candle. That candle is even more relevant ...

Trade Using VSA (Volume Spread Analysis)

This is the eternal question. It stymies newbies and fuels the fire of detractors. There are two sides of this question to look at. The first has to do with the interpretation of the bar/bars, and the other has to do with how to trade them. Let's ...

Trade Using VSA (Volume Spread Analysis)

Hopefully we can get some others to chime in here. From my perspective, the first bar is weak. We see a ultra high volume up bar closing well of its high with the next bar down. The first bar marked weakness, however, is actually strength. The bar ...

Trade Using VSA (Volume Spread Analysis)