I didn’t fall for it either. I’m glad I incorporated VSA to my trading, really I wish more people could see the benefit of it. I’ve read many times around the forum that any given trade didn’t came out as expected, and everybody is scratching their heads asking why, while VSA could perfectly tell the story. Not that it’s 100% accurate but it’s the better confirmation I could ever find to confirm or rule out any given level.
I have wanted to ask this for a while now, but, do you guys have a concrete measure/number of the volume that you look for in order to take a trade?
I know it’s all relative, and it depends on past performance, but in my platform I look for readings of at least 400,000 (that’s how my platform quantifies volume) in the 5min chart in order to start considering taking a trade.
I’ve compare my volume indicator to that of MT4 and they’re very similar, although numbers are quite different. Dukascopy volume indicator is another story, way too diferent and misleading if I may say.
Anyway do you guys make only a visual assessment in order to determine if volume is high? Or do you also have a number as a rule of thumb?
However I do use Oanda MT4 now, it’s just different, you get used to whichever one you use, but generally you can take it that a peak in one MT4 will be a peak in another, so no, no numbers, it’s just relative.
I use the eyeball method. I’m hesitant to mechanize anything but trade management, and even then only to compensate for the fact that I can’t always watch.
What are some of your thoughts on this EURAUD short setup? I plan to enter a short position at a break of the 1.35500ish level. How should I be looking at how volume reacts around that level? Smaller TF?
Very interesting to see all that is coming together at this point. Price has gone up to the 138.2 fib extension level almost to the pip, this just happens to be a r1.5 pivot level. Also, check out the divergence that has occurred on the 1 hour chart. Notice on the 4hr chart, price is coming into a previous supply zone. And of course, the high volume/pin bar action.
I am trying to get a good handle on this VSA method so please feel free to send me some constructive criticism. Any thoughts?
This has been a great thread by the way, you guys know your stuff.
This actually turned out to be my entry. I may have got a little anxious. I saw the volume pick up highlighted in red and entered there. I am noticing the pin bar with the high volume around my original entry point of 1.35500.
Nice as always pr0crast. For others that may not know, we need to see high volume in that .50-61.8 area to even consider taking the long.
Notice the 61.8 level is the old resistance, and if the timing is right it will also be the lower trend line…makes the probability higher for a bounce.
I don’t mind so much being in for the Asia session, so long as I got in between London open and mid NY when volume reactions are more definitive. Still hoping for an ideal entry on Tuesday morning – looks like the Asian session has been ranging.
Nice trade gigitranza, but more often than not, this type of trade is catching the falling knife. Not to mention vsa, the upmove is strong, and i think there’s high probability that it’ll continue going up. If it’s true stopping vl, then i think best to wait for a while since price will consolidate for a possible reversal. The test bar you mark is a hidden test, but i don’t use it. Zoom in 1h chart, we could see strength in the background, so this is against the background.
Just my opinion.
