Just a few things. You want to pay more attention to the background. There were many signs of strength prior to your short entry. As you pointed out, #5 shows demand (buying). In fact, on the chart below it is labeled a squat and is a good place to ...

Trade Using VSA (Volume Spread Analysis)

The first candle we see here is a climatic action candle indeed. It is ultra wide with ultra high volume closing off the low. The close off the low tells us that there is some demand (buying) within this candle. VSA would say, if the next candle is ...

Trade Using VSA (Volume Spread Analysis)

This could be a useful thread for many. Before it gets too large I just wanted to add my 2 pips. * Support & Resistance are better thought of as Zones or Areas rather than single lines. * Support & Resistance in and of themselves are not trade ...

Indicators are Liars! Support and Resistance Trading for FX

FXspain, Which is which?

Trade Using VSA (Volume Spread Analysis)

The last time I made a post like this, it set off a firestorm. I hope we don't get a repeat. News trading has a special place in VSA. However, VSA is not about trading the news. It is about a fundamental concept. Indeed, a "first principle". The ...

Trade Using VSA (Volume Spread Analysis)

Good question Tfflyer. I can always count on you to keep things interesting. As I said, I do not use this particular technique. The way I understand it, the focus is on the close and not the volume. That is to say, if you are short and the third ...

Trade Using VSA (Volume Spread Analysis)

Yes, this was a nice example of Stopping Volume. Demand is swamping supply on this candle. A few candles later, there is a Shake Out. Notice that the low of the Shake Out dips into the lower shadow of the Stopping Volume candle and then gets ...

Trade Using VSA (Volume Spread Analysis)

VSA teaches us to be mindful of the news. The BBs use the news to position themselves against the herd. The news usually generates high volume and the BBs need to be active when volume is high, so they don't push price up or down against themselves. ...

Trade Using VSA (Volume Spread Analysis)

The technical definition of No Demand is: A narrow range up bar on volume less than the previous two bars. That's it. From the base definition, therefore, we can see No Demand anywhere. The problem arises when a trader tries to short a No Demand in ...

Trade Using VSA (Volume Spread Analysis)

If you are speaking of the candle I think you are, then it is a Hidden Test. Like no demands, a hidden test is an up candle/bar. However a hidden test will often make a lower low and not a higher high. As is the case here. More importantly, there ...

Trade Using VSA (Volume Spread Analysis)

Today was a VSAer's dream day. There was a news release that was perceived to be good (bullish). Volume surged as prices jumped to the upside. The herd is thinking "here we go Dow 1100". VSAers know that the market does not like high volume up ...

Trade Using VSA (Volume Spread Analysis)

Just an extension of the Dr.'s brilliant post. The first sign of a Climax actually came in (5 min.) last night. We get the ultra high volume ultra wide spread up candle that is a key change in the supply/demand dynamic. The zone created here is the ...

Trade Using VSA (Volume Spread Analysis)

Dr. Geppynius; Awesome. Awesome. Awesome. Your reputation proceeds you and is well earned. I understand you are busy but it is nice to see a post once in a while from one of the greats. Thank you and I hope to see more of your VSA mastery in action. ...

Trade Using VSA (Volume Spread Analysis)

Dr. Geppynuis brings up a good point. If you were short, as in this example, you could exit on a climatic action candle instead of waiting for the three consecutive up closes. In the original post, I mentioned that there was a two candle reversal ...

Trade Using VSA (Volume Spread Analysis)

Hi Rockk. Tom allows for two consecutive up closes, but no more. So the exit is where there is a third up close. On the chart its where you see numbers 1,2,and 3.

Trade Using VSA (Volume Spread Analysis)

This was not a trade taken but I wanted to get back to the VSA. One question first: What caused that spike? Actually, that question of what caused an ultra wide spread candle or ultra high volume is something everyone should be asking themselves. ...

Trade Using VSA (Volume Spread Analysis)

Yes, long shadows represent changes in the supply/demand dynamic and form a Supply/Demand Delta Zone. I once read somewhere that long shadows represent the effect of higher timeframe players on the timeframe being traded. Of course, this begs the ...

Trade Using VSA (Volume Spread Analysis)

If it always worked, we would all be rich. Pretty nice set up here. The result, not so much. Take a look at the chart below. A: Climatic Action down candle closing in the upper portion of its range. The high volume and close hint that buyers are ...

Trade Using VSA (Volume Spread Analysis)

An even more acurate malcolmb . Save some pips for the rest of us..........

Trade Using VSA (Volume Spread Analysis)

Nice post Shreem. I have attached a shot of what I saw. First, you are correct about that zone. It is not shown on my chart as it is closed and I do not remember the numbers. There was another zone that overlapped it and that zone remains open. ...

Trade Using VSA (Volume Spread Analysis)