Price has formed a new “bottom” from where I’ve drawn my fibs, do you see it? You have to “follow the trend” with your fibs, you can’t draw it from the very bottom all the time, then you won’t get many trades :p. For an exampel, look at your chart on the previous uptrend (between 2012.04.16 - 2012.05.01) and you’ll see that you have to draw new fibs on every wave that is made.
Does it make sense? 
This looks GREAT Danny - keep it up.
Big fan of petefader and ICT - -I am hoping that soon; I will get a grasp of my own trading:
I was at a point - where on a ‘move’ ‘impulse swing’ whatever you want to call it – after the ‘big’ move - into the fib level - I would see what I call price drifting - - (ie it continued past the low/high of the big move) but than that was it - I tried to determine figure out how to enter on that candle - as it ‘sometimes’ was the actual H/L of the swing – --but I never could get it accurately.
I believe what you have introduced here will help tremendously: and combine that with a little knowedge from the ICT thread - - I think there will be a great combination made (by me hopefully).
Anyways congrats on the thread - it has a great start - -and seems to be in some pretty great company. petefader and purplepatch and others
And so a quick question . . .
Do you use strictly the 1hr time frame?
Thank you and welcome
Post a chart on it if you want, easier to see what you mean.
I’m sure it will help you! A combination could be great for you. I haven’t looked into ICT much though, so I cannot comment on the matter. But experience is key…
Oh I’ve forgotten to tell… Yes I mainly use the 1hr but I also look at other timeframes such as the 15M & 5M to get more information/confirmation. But I mainly use the 1hr for my entries. It happens that I use the 15M aswell
Something I’ve noticed that’s problematic about using volume on 4H charts is that it seems every day there are low volume candles during the dead zone hours after London closes (I draw my 4H charts from the east coast US TZ). How can these two (and sometimes three) low volume candles be factored into VSA?
Danny you aren’t missing anything. Stick to what works for you. An edge in a focused Trader’s hands is powerful… if it’s not broke why tinker with it. Keep the thread running!
GLGT :57:
You shouldn’t apply volume to the 4hr chart, it’s too much information on one single candle. Stick to the 1hr chart I only use the 4hr (sometimes) too look at PA and for drawing trendlines/fibs.
As the day goes by the volume dies out, that’s why you should only trade from london open through around london close. You can’t really “trust” volume at other times so it shouldn’t really be factored into VSA.
I have been following your thread with interest. I really like to learn your method/strategy.
Hello, Danny
I’ve been following your thread, and intend to continue.
Although I’ve studied volume in the forex market in a theoretical way, and written a lot on that subject here in the Forum, I’ve never mastered VSA as a trading technique. Petefader’s excellent thread has convinced me that I should learn this stuff, and your thread looks like the perfect place to begin.
I’m going to sit quietly, and just lurk, for a while — I learn best that way.
Congratulations on the good start you have made here. And I wish you success as you continue.
I agree with clint this thread is perfect. As I am a PA trader all the way. I do use indicators as reference. Always wanted to learn Volume and how to apply it to my trading. I have been following pete and he has good stuff over there. I think this thread is more my fit though. I do have some questions on volume though. After poping it up on my charts and looking at it for a while. I notice that extreme low volume candles can hold is big if not bigger impact in spotting turning points in the markets. Was just wandering if you use Low volume as well as high volume.
Thanks for the feedback guys, I’m glad to see that people are interested in the thread!
Bob, were you looking at the active hours or the dead hours when you spotted this? Low volume usually means less interest in a particular move. For an exampel, If you see low volume at the bottom then you know that there wasn’t a big interest in buying from the Smart money. It doesn’t mean that the market can’t turn at that point, it just won’t be as high probability. I only consider high volume in reversals.
Just scrolling back to random spots on my charts. It was just something I observed on the Aussie that most of the biggest reversals happen on low volume candles. My thought behind it was in an upmove maybe the buyers lost interest in buying at such a high price thus the low volume candle as there is no pressure for the bears to step in and drive price south. I was just curious to see what you thought. Although it would be very hard to catch a low volume candle untill the candle closes and now your late. Unlike a high volume candle that once volume is high it is high and cant go down. There is nothing saying a sudden surge in buying could not come in the last few minutes driving up both price and volume. So I guess easy to spot of left side of chart but low probability on finding it on the right side. I guess supply and demand would help but I am trying to better understand that concept. I have always been an S/R guy and reguardless of what people think S/D and S/R are not the same not even close.
I also scrolled through the Aussie to look at it but I see that most of the reversals that has low volume is during the dead hours. Volume is not to be trusted during those hours.
When talking about Supply & Demand, try to think off it like this - lower prices gets more people interested in buying, as the price gets lower and lower more and more buyers come into the market, i.e. Demand. - The other way around with Supply.
To overwhelm this Demand that comes with lower prices it requires more Supply to bring price lower. If the Demand gets the overhand then price will start rising.
To mark up areas of Supply & Demand, simply look for places where a lot of buying or selling appeared. (Areas of high volume… candles with pins etc…)
No trades today but I was watching this earlier.
As you see there’s no volume, so it wasn’t much interest in bringing price down. No real weakness shown in Price Action either, especially on the smaller TFs (15 & 5M). So no doubt in staying out of this one.
Instead of doing a long complicated post on how I trade I’d rather take it along the way as I take the trades or do my analysis, I think you’ll learn more that way. I hope you guys are cool with that? Sometimes there’s just nothing to trade and that’s when you gotta have patience.
But if you have questions don’t hesitate to ask 
Yay! - I am watching same area - but I did make the trade a little bit later than when you said you wouldn’t 
so anyways here is a mock up - a bit busy - but that is for showing here on babypips -
My strat - and I won’t post anymore on it here - but thought you might be interested as you helped me with the final thought on it Danny.
In a nutshell - after a move from above to below or visa versa - a daily s+r line - like my red line on the chart - wait for that 50% level retracement - then using all the info I can get to decide yes enter - or no don’t. So this is my very first attempt at my ‘new’ trading plan. I am hoping to start my own little journal, so I won’t bog your info or clutter it But I wanted to share.
So I entered on the candle to the right of the arrow - the bullish candle - (an ICT entry technique called OTE) - as I had a confluence of a couple of ‘criteria’ that I have in the bag…
But - as stated - you didn’t enter and for your own good reasons - and hopefully I’ll get a better understanding as I go.
edited - I guess I lied - I wasn’t watching the same area - for the same reasons as you - - I was/am wathcing the orange box - as per the entire move down, not just that last leg of it. (hope that makes sense)
And so the companion to the G/U - same sort of mark up - sorry it’s pretty busy but gives the place I am watching.
Ok that is it I will quit cluttering your thread Danny - but thanks for that 50% fib tip - I think it will do me wonders.
Oh and I am hoping to add solid volume analysis to my ‘bag’ of confluences - as I believe it is a superb tool - when used correctly (but I may or may not be a ways off from understanding it - we’ll see.
Ok, time to do some proper constructive posting, from all I have learnt over the years, I now give you my simplest ever approach to trading, I’m done with analysis and working out what’s going on and that, it’s interesting and it can be a powerful approach, but it dont necessarily make you more profitable.
Anyway, I’ll aim to post up chart before the event, so you can see exactly what to look out for, this morning there was just no time, but here’s my entry, pin bar rejection with a nice bearish reaction off the trendline.
Not sure how the wide graphic will fit, but here goes, I will edit it after if it dont look right.
U trade trendlines alone?
More or less, S/R trendline confluence, then specifically these entries for longs
vice versa for shorts, and also 3 subsequent pinbars, so this mornings entry wasn’t ‘textbook’, the more you deviate from these entries the more the risk.
I took BE SL on the one this morning, but there was a long entry after 11 BST this morning from the 1.300 rejection, as per my second entry on the above graphic, and that’s about it really, btw, not in that one, I was having a nap!