During a distribution phase smart money has built up short positions, but the “herd” is positioned long. A markdown phase (aka down trend) runs through their stop losses.
As the markdown continues, eventually it attracts much of the herd to now sell. [I]Smart money is taking the othe side of that trade[/I]. They’re already in profit on the short, but thin out their position and they take the other side of your shorts. Once they are switched over to a position biased long and gone through accumulation, they begin the mark up phase, again catching stop losses.
When and where the cycles take place is largely based on how many people they can get on the wrong side.
Trend retraces often go to 50-61.8% not only to test the validity of the markup/down, but that’s also where many stop losses are (reaccumulation, redistribution)
When the herd is most agressively selling, it is in turn when smart money is most agressively buying. This causes the high Volume, large candles, pins, dojis we are so used to seeing (absorbtion volume). It’s systematic carnage.
Price has moved up a bit out if this area and looking similar to the Wycoff chart now gone through accumulation, but one thing is missing for a valid setup.
Stopping volume, as shown in the previous bottoms and tops on my chart. Notice the previous high volume area over the last week or so has not been met. Not enough volume for me to be confident.
If I miss the move up, then so be it. Big money is probably still holding much of their shorts from 1.3350 area, since we have not yet had stopping volume on this down move.
If we can sucker the herd in long on an up move, it would be just what we need for another move down to get our climax. Damn I’m sounding like them now…evil! lol
There was no up move to miss. A complete fake out to attracting herd buying, which quickly became absorbed. I have to call this redistribution at this point. I have a small position short from 1.3229.
Thanks bud. It’s been quite a journey, this mission to understand everything and now I feel like it is complete. I started 7 years ago, and discovered VSA about 3-4 years ago, and yes I’m saying this now, and there is always more to learn. It’s one thing to be profitable over time, but it’s another to basically make the market your bit**.
Isn’t it funny how the first time we read Wycoff or Willliams it doesn’t make sense? …make that the first 5 times we read it. Why is it so hard for our brains to comprehend the truth?
I think it’s because the people that run the world and it’s money, and there are not many of them, do not think like us. If you ran the world, wouldn’t it be better? Would you not feed everyone, there is enough food and money to do it. It’s actually quite disgusting what goes on. Such is the market. A system that uses your own trades against you. The more you push, the more you will get pushed back. It uses your own “energy” to destroy you.
If everyone stopped trading like sheep, the system would collapse. If everyone stopped living like sheep, the global system would collapse. I don’t want to get political so…take it or leave it, it’s a good analogy at the least lol.
Now that’s how you end a markdown. Long entry was on bullish close after stopping volume, climactic bar. Remember, this was the trade I was originally looking for today…that short was a bonus.
Funny how someone from a broker shows up to deny “the truth”…lol…of course they really don’t want us to stop being sheep and start making money from them!
Did you even bother to read the thread from the beginning? [B]You clearly don’t have a clue how else volume can be used[/B]…especially with candlesticks, S&R and other factors.
VSA is finding the cause in price movement, which then can establish the imbalance bewteen distribution and accumluation. Im still new to VSA and it clicks with me. It doesnt with you… either way doesnt really matter does it.
Your entitled to your opinion, just the way you present it is over board, again you have said ‘the amateur doesnt have a clue’… but there is evidence the guy is a success. You cant argue with that.
You trade your way, he trades his. If hes profitable, there cant be any gratification in trying to expose a perfectly valid way of trading. You dont get pips or respect for that.
At 17:53 Gmt Petefader posts his last trade idea ,a long, based on stopping volume and an inside candle.From Approx 18:00 gmt untill 11:00 gmt this morning the Euro puts in a nice 1oo pip rally.This isn’t trading after the fact. You’d do well to learn the method here and quit pretending you are George Soros whilst you nickel and dime it at a two bit bucket shop inbetween bouts of coke snorting in the office toilet.
it’s interesting how someone who is an insider, or knows about “industry”, or knows everything comes here and calls everyone else bad names.
what is your problem tadaaa? non-working wee-wee? or is it just small, so you’re frustrated?
if you want to help, don’t offend people, just point where we are wrong in a normal way. can you do that? if not, please don’t waste our time and go find a job and a life, since you sound like you’ve just been fired (suffered a loss in the markets?) and want to take it on somebody. heck, if i worked for the “industry”, i would be on a yacht somewhere, enjoying life, not living through disappointment of being bullied in high-school on some forum where people come to learn and share ideas (yes, it sounds constructive, because it should be). the world IS a bad place because of people like you who don’t know to say “hello, my name is blah-blah and i think the following:…”
haha, wrong again
i’m not from us, we don’t have that bully idiot mentality in schools.
and then you’re wrong again.
i’m not trading vsa, nor following pete, nor anybody else. i have my own system and i can back it up with RESULTS.
i am, however, annoyed by the small minds like you…
oh yeah… say hi to paris hilton for me, mr superstar
E/U is still in accumulation phase. I’ve been buying dips profitably since market open, but they turned out to be partial profit scalps as the markup hasn’t begun yet. Yet again now I’m holding a partial position long at BE 1.3146.
Although there is no markup phase yet, I’m profitable today from buying low in the accumulation zone, taking some tp at resistance and locking BE.
