I’ve talked to a trader who trades VSA - Checking W1, D1 and taking entries from H4. And he said that volume on H4 is absolutly valid and there is no reason to disregard it. Yes, everybody can see that it cycles somehow, but did you try to take signals off of it? Because I did, and they work to some degree.
I didn’t want to go back and confuse someone but now when I see you talking about it, I wanted to throw in my five cents.
no no, this’s a great topic to talk about 
but I want a fair discussion. It’s not very nice to see someone told you to open eye to see that volume on 4h is just a boring cycle, especially from those who are not really into vsa. Thread reader/ newbie would take advices from someone who sounds smarter. Don’t get me wrong, I don’t have any bad intention to anyone, but just want to use fair words. If you don’t know anything, just ask; please don’t assume that you know what you are taking about.
Hi SagiCZ,
Could you post a chart showing how you take signal off 4h tf?
OMG, Arrrrgggggghhhhhhh, Sacrilege, No, no, no, no, Nooooooooooooooooooooooo.
Luiz, if you can make profitable trades with it just comparing two neighbor bars on H4 then it’s not the volume, but the session is the reason. You could also take the time as reference.
That with open eyes I just wrote because it seems you can’t or won’t see this cycling on H4 and it seems as well you are not open for a logical discussion, because you rudely just ignored my reasons and coming with assumptions. Almost every London open bar on H4 is higher than any else bar. That is evident in every chart. Just look at it. I do not care regarding ppl hearsay, I do care what logics and my eyes suggest.
It’s the same fallacy if you say all crocodiles are green, because they swim in green water. That crocodiles are green is indeed not related to the color of the water.
hmmm… too bad I was sleeping when that happened!
lmao!!!
Well I took this short. Confirmed using H1. I don’t know how to trade long-term so I don’t use H4 for confirmation.
Anyone long on EU early next week? I’ve seen some accumulation and a fairly strong resistance with high volume at around 1.42300.
Probably not worth thinking about it 'till Tuesday.
Buck’s right… I believe any volume analysis has to normalize natural session liquidity fluctuations. For instance, you wouldn’t make a trade on the S&P500 futures based on decreasing volume when it’s lunchtime in Chicago. You can compare like the last 30 bars of 5m (just a guess), you can compare hourly pretty well if you focus on higher volume sessions, and you can compare daily bars if you mentally adjust monday/friday/sunday. Weekly should be consistent enough to compare as it averages out all those fluctuations. Just something to think about… Volume analysis is valid on all timeframes, yes, but in the right context…
When you’re looking at smaller TFs (30 min, 5 min, etc) you can get away with looking for relative peaks. That in effect is normalizing the session fluctuations.
Right, that is how I understand it to use as well.
I mean, anybody could probably still use it on H4, but not just comparing two neighbors without context, because that is just cycling through the sessions. Maybe it would become successful if he would filter it via other volume numbers of the same time of other days average or something like that. Just an idea …
Another thing to add… It’s possible that the reason you’ve observed success on making entries based on 4H bars in a vacuum is that quite often, a short term reversal happens when a session is at its peak, due to scheduled news releases.
I post my chart again for Buckscoder to see whether I make a statement to compare two 4h volume in neighborhood, who would do it since we know euro/ny overlapped session would be highest.
You think that price accidentally stalled/retraced at the level I marked?
Spot on. Approach higher TF volume with a lower TF background. Volume is essentialy smoothed out as you go higher and its easy to lose focus of the real picture. A very good price/volume feed would be required if you wanted to trade solely higher TFs.
This trade has good reasons behind it, support turned resistance, and volume of the 4h bar you mark is highest for the last few day, and it painted a pin, so short is good trade, for me I like volume to be higher and I like to trade with background: accumulation/distribution; so with 4h entry, what should be the backgound :p, that’s why I like 1h/ 4h background and 5m/15m entry better. I like to pick top/bottom with tight sl as well 
2luiz: Im glad you find my trade somewhat correct. I went down to H1 and M15 for confirmation. Seeing upthrust, buying climax, and no demand, I entered below no demand. It was a good trade from my perspective, espsecially because of the massive upper wick on that upthrust.
As I said, 4h might be good for entries when long-term trading, but I dont have any experience with that and I am not entirely sure it would work.
Sigh. That was not my point. I just commented that on H4 bars are cycling every day and London open followed by NY open are the bars with most volume almost every day. And that was at first something in reply to ppf and not your chart.
Anyone got a short from 1.4120ish?, it was obvious on the 15m.
