1,500 PIPS PER MONTH with this method, VSA/SR/fibb etc

Hi!
I can’t fully understand how to use VSA on forex, so i may suggest that this thread can be very very interesting.

1 Like

OK, I will start with the basics.

I use the “volumes” indicator that comes with mt4. The bars that appear tell you the amount of ACTIVITY per candle (if you are using candles for price, which I mainly do). So, on a 1 min chart, each volume bar tells you the amount of activity that occured during the coresponding 1 min price candle.

So, we now know the amount of activity per 1 min candle, higher volume bar means more activity. The next thing to determine is IF it’s buying or selling activity. The most basic way to determine that is to ask “what did the price do”. If you see price moving up during that 1 min candle, we can say there is more “buying” activity.

BUT, buying AND selling activity will occur on a candle as well. How do we know which one has the increased volume?? to put it another way, the price candle may be green BUT, what if it has a big wick on top…indicating selling as well? [B]The answer lies in the candle close.[/B] A large wick on top, with increased volume shows us selling pressure. But needs to be taken in context with things such as s/r, and background buy and sell pressure.

Very high volume spikes can mean buying and selling in large amounts. That usually happens when for example, buyers made a final push up to resistance, where they found sellers entering, all during that one candle. So, that could cause a volume spike…lots of buyers AND sellers during that candle.

2 Likes

Alright,

I think we all need a little more now :wink:

Btw, it was nice to trade with you last night!

Hope I’ll read you here in the forum pretty soon!

Regard.

ok, some more about what I do.
I mainly trade ej, gu and eu.

I look at all TFs to get the big picture. If I can get a scalp trade in the direction of the larger TF move, I will sometimes let a piece of the trade run for more pips.

I include volume in my trading. I also use common stuff, like SR, Fibbs. Which I draw myself. Also, patterns and channels.

No fancy indicators. Big traders dont use the HV237 trend analyzer 3000, so why should you?? Indicators are for refence and secondary to SR, fibbs, and Volume…the only things you really need to trade Volume. The rest is bells and whistles. The idea is to KNOW what the market is doing and why, not just to be told when to buy and sell. With a basic understanding of those 3 things, a whole world of information becomes available…

1 Like

You will hate me for that but… about a video? :wink:

But seriously, thank you very much for sharing :slight_smile:

2 Likes

I’ve been very interested in VSA, and it seems like people either swear by it, or think it’s useless based on the fact that currencies are over the counter, and the indicators really just count ticks. I guess ticks are price action, and price action can reflect volume. In any case, I’ve seen screen shots of MT4 charts at the same moment on the same pair, from different brokers that show very different volumes.

[B]Does the broker matter when it comes to the quality of the volume data?[/B]

Lots of things confuse me about VSA.

It seems that everyone has a different term for different bars and patterns. When I first started reading on the subject, I was looking at a table of patterns. Several of the patterns said “This pattern could represent a top, a bottom, or a continuation.” I thought, " This isn’t very helpful… [B]any[/B] point on a chart is a top, bottom, or continuation."

My gut tells me that VSA could be a valid tool, but when it comes to applying VSA in currency markets, the available info isn’t easy to digest and apply.

Hopefully you will be able to really come down to my level, and help me wrap my head around the methodology.

Thanks

Thanks for the post Babatot. There is a difference between brokers as far as the volume feed. I mainly use ODL MT4 for volume. I am aware of the vsa in forex debate. Tick volume is very helpfull to me, I combine that info with SR, fibbs, patterns… I’ll give an example:

Lets say price is moving up to a .50-61.8 fib level. We are wondering if it will hit that fib level and [B]pull back[/B], or [B]break up through.[/B]
One thing you will very often see, to signal a reversal back down, is this.

The 5 or 15 min price candle hit the level and pulled back forming a candle with a [B]large wick[/B] on top. If volume level for that candle is high compared to the recent range…it’s a give away. Sell orders were hit during that 5 or 15 mins, which caused the spike in volume. BUYERS push up price to hit target, found sellers, may have even closed longs and went short…all creating the increase in activity.

Try to spot this by scrolling through your 5 and 15 min chart.

  1. A move up to a .50 - 61.8 fibb, or resistance level.
  2. A 5 or 15min candle with at least 40% wick on top, and a [B]volume spike[/B].
  3. A reversal down begins, good entry for a sell trade.

*same works in opposite direction, with a wick on the bottom of the candle.

2 Likes

I will be around to learn some about this system, thank you

cool,
:slight_smile:

At what time do you trade? :confused:

cool, this night I’ll try to join you if you don’t mind (and if I’m still awake…)
Do you use H4 chart to determine S/R and Fibs?
I’m really curious how you use volume …

For Meister_Propper:
He trades during the asian session (deep night for me…)

He trades during the asian session

The asian session goes from 23.00 to 6.00 GMT, or am I wrong? Thx for your help!

I’m not sure… I believe 11 pm to 8 am GMT…

I trade London open through min US. Good start to the week, +150 pips. :slight_smile:

Thank you! I�ll try to join your chat if you don�t mind. :slight_smile: Where can I find the chat? :confused: Do you have special days when you are online or it�s from monday to friday?
Sorry for my bad english… :o

There’s a head and shoulders pattern forming there…great stuff! BTW, can you teach me how to trade using your system? Thanks!

I made over 1,000 pips in April with a ridiculous % increase on my account. All my trades were annouced when I entered and exited. :wink:

I’ve been here long enough to (I think) be able to tell apart the real deal from the clowns.

You seem to know what you’re doing so I say: welcome to Babypips Pete. I will follow your thread and I might ask some questions along the way.

Your use of volume is interesting, I’ll look closer at that.

Edit: just noticed that you registered before me, but welcome anyway :slight_smile:

Thanks for not branding me a clown, lol :slight_smile: I may be a good trader, but I’m a clown too, haha. But really, I have been trading quite a while, and have many friends in the fx “commuinty” that can vouch for my skills. So, yes feel free to ask questions about volume or whatever.

Where do i get ur signals petefader
I have 3k in live account. Like to trade with u live if u allow me to … please share the info with me asap thanks