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

[petefader]

My trading includes VSA (volume spread analysis) along with s/r, fibs, RSX, a few emas.

Although I use these indicators, I dont live by them. It still takes a bit of thought, and weighing out the information they give you, to use any indicators successfully.

My support resistance consists of: Murry Math, Standard pivot points, and a fibb drwn from previous days hi to low. I also have a simple s/r indicator for mt4.

VSA (volume spread analysis) is done by using the "Volumes" indicator that comes with mt4, although there are custom, more detailed that versions I have found out there. I recommend the book "Master The Markets" to learn about VSA.

I also use a custom RSI, which I designed.



Hopefully this will help explain some of what goes on on my 5min template when i make posts.

[noizeg]

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

[petefader]

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, and the volume bar is also high, 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. Candle close. If you watch this play out in real time, you can determine what in that price candle cause higher volume, the down or up movement on our price, but when uncertain, candle close rules.

Another thing to know is that very high volume spikes can mean buying and selling in large amounts, and reading that can be tricky. 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 buyer AND sellers during that candle.


OK, that alot to absorb for now I think. I will be in my chat room if anyone wants to join:


just make up a user name for yourself.

[ThePhoenix]

Originally Posted by petefader

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, and the volume bar is also high, we can say there is more "buying" activity.

BUT, buying AND selling activity can occur on a 1 min 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. If you watch this play out in real time, you can determine what in that price candle cause higher volume, the down or up movement on our price.

Another thing to know is that very high volume spikes can mean buying and selling in large amounts, and reading that can be tricky. That usually happens when for example, buyers made a final push up to resistance, then changed to a sell postion, all during that one candle. So, that could cause a volume spike...lots of buyer AND sellers during that minute.


OK, that alot to absorb for now I think. I will be in my chat room if anyone wants to join:


just make up a user name for yourself.

Why do you need a volume indicator? Candles tell you all you need to know about activity. Seems redundant to me.

[noizeg]

Originally Posted by ThePhoenix

Why do you need a volume indicator? Candles tell you all you need to know about activity. Seems redundant to me.

It's sad, but this post is showing that you don't even try to understand "why".

You have 2 visually similar doji - the first was drawn after 90 lots. The other one after 2 lots.

Got the point?


Hey Jimmy, TigerWoods wtf with you guys?
If you're so great traders, well, i'm happy for you, but i don't care, because i don't see anything usefull from you, except the link to the FF.

Don't you think if somebody will pay for private room, and find it a scam, he'll post here his finding?

P.S.
And calling somebody a "clown" IS rude and childish, it's pity if your parents didn't teach you such thing.

[carlr]

OK so not been on here long but read every post,

To the people on here that dont seem to like Pete, im sorry you didnt get on very well in his trading room.... you have been in his room.... right?!! i think you get my point.

Ps i have and the guy is good at what he does, how do i know cos his in profit each time i trade with him, good enough for me.

[ThePhoenix]

Originally Posted by noizeg

It's sad, but this post is showing that you don't even try to understand "why".

You have 2 visually similar doji - the first was drawn after 90 lots. The other one after 2 lots.

Got the point?


Hey Jimmy, TigerWoods wtf with you guys?
If you're so great traders, well, i'm happy for you, but i don't care, because i don't see anything usefull from you, except the link to the FF.

Don't you think if somebody will pay for private room, and find it a scam, he'll post here his finding?

P.S.
And calling somebody a "clown" IS rude and childish, it's pity if your parents didn't teach you such thing.

That is why I asked. Why is it any better than just looking at candles.

Explain to me why volume even matters, if it is not moving the price?

In your example two doji are very similar, one had two lots traded on it, the other 90. The dojis tell me the bears and bulls are undecided in the direction. What is how many lots were traded supposed to tell me? The only logical thing is that most of the people trading that doji think for one reason or another price is going to go in one direction. Does that mean they are right? Is it just a way to follow the crowd better and hope to catch momentum, before the next candle goes up and blossums large?

I'm honestly asking. My post wasn't supposed to be snarky, at this point I don't see what a volume indicator shows that candles don't.

I'd be happy to check out the guys trading room, but if he charges, sorry no. I've been burnt by those too many times. Sorry if I can't take yours or others words for it, I'd have to see some sort of track record before following someones trading room in the hopes that they can teach what they do, well enough to produce someone who can trade with similar results.

[noizeg]

Originally Posted by ThePhoenix

That is why I asked. Why is it any better than just looking at candles.

Explain to me why volume even matters, if it is not moving the price?

Maybe a doji isn't correct example.
And i'm not using VSA, but thats my opinion on using candle + volume.

I think Volume here tell's us that there really was a lot of bying.
But honestly, it's hard for me to see "the situation" in real time.

[petefader]

btw, my skype name is petefader.

[melisky]

Alright,

I think we all need a little more now

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

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

Regard.