Good morning from Thailand. OK this morning I log into facebook and everyone is saying sell gold. However, my interpretation of VSA on the charts suggests otherwise. Am I reading the volume correctly or am I hopelessly wrong?
Hi guys, I am going to post another video later today on this. I missed the best part of the day to trade to bring you this, so I hope you appreciate this. A lot longer but it was a live session so hopefully it makes more sense and also revealed some possible trading opportunities that actually materialized.
Oh! PipNRoll my sincere apologies, I will make a mental note next time, I deserve an absolute telling off for such neglect. Good to see you here as well. Thanks GP00 for adding the extra videos as well to bring clarity.
Here is todays AUDNZD M30 Chart. The spike in volume is the market movers selling right? Assuming my interpretation is right, at what point would you take a short entry?
Good morning, Daxter! As I understand it, you are indeed correct!
What happens next is that you will use your usual MVA/Fibonacci/Support&Resistance level analysis (whichever you are
accustomed to and comfortable with) for specific trade entriesā¦ For me, AUD/NZD is ātrade of the yearā to the UPSIDE,
as it has come off all-time historic lows, and the RBNZ uber-hawkishness has been priced inā¦ Look at what is happening
to NZD/USD and NZD/JPYā¦ I do not think that AUD/NZD will not have down-moves, indeed for short-term retracements
there will be plenty of opportunities, so unless you are playing the bigger bull move for this pair, then you do well to set
up here for a short set-upā¦
Lecture over 
Thank you, Professor Emerald!
We look forward to it!
Cheers!!!
Thank you, GP00053, I am listening to and watching the first oneā¦
THank you, again!!
Happy Trading.
Thanks for posting. Great video, definitely worth the time to watch and learn from.
Gp
Sorry for all the confusion, PMH :8:
Our tech support team has identified an issue with the scaling on the tick volume window of Marketscope charts. (MT4 charts are unaffected.) It will be fixed in our next Trading Station update. Iāll post an announcement in the Broker Aid Station, when I have the exact date.
There must be some confusion. FXCM makes tick volume and various other volume indicators available both on Trading Station and MT4. While an issue was recently identified with the tick volume scaling on Trading Station, a solution has already been found and will be implemented in our next platform update as mentioned in my previous post.
Youāre right. Iām submitting a request now, so hopefully we can get this added in a future update to Trading Station Mobile.
Iāll echo that. Very helpful. It is now clear that my assessment of the volume on the AUDNZD chart was 100% wrong. The volume was infact bullish. I am determined to crack this. Thanks for the help guys.
Thank you for your input, Jason!
Always helpful, as ever!
Thank you, Jason!
I noticed, yesterday morning, that using the desktop version of FXCMās Trading Station II gives a tick volume that makes
perfect sense and flows to the rhythm of the price action (this was on an hourly time-frame); when, however, I went
back to a web-based version, this morning, the tick volume on the hourly chart was āall over the placeā, meaning that
there seemed to be no rhyme or reasonā¦ I am pretty sure that I could show this through screenshots, but for now I
am just giving you my word for it (sorry, I am at work).
I know that you once highlighted to me, when I was asking about the strange lack of price levels on the Fibonacci
lines on the web-based Trading Station version, that I should really try to use the desktop version for full functionality
and true values: do you think that this could be the issue here, that is, that the tick volume on the web-based version
behaves in a different way?
Regards
Glad to see it was appreciated.
Thanks.
Hi PMH,
Thanks for bringing this to my attention. Iāve asked our tech support team to investigate this further and will let you know when I hear back from them.
While I have said several times that the charts on Trading Station Desktop provide a lot more functionality than the charts on Trading Station Web, I donāt recall making any comment regarding one platform being better for ātrue valuesā. Charting tools such as Fibonacci retracements should give you the same values on both Trading Station Desktop and Trading Station Web.
I searched the forum and this only discussion I could find where you and I discussed Fib levels: 301 Moved Permanently
If youāre referring to another discussion, please let me know.
Thanks again,
Jason
Dear Jason,
thank you! Sorry, by ātrue valuesā I was referring to the fact that Fib levels do not show price on a chart but other numbers, unrelated to priceā¦ I was not quoting you verbatimā¦
Cheersā¦
Thank you for all your (free) help!!
Much appreciatedā¦
Came across this great video with regard to Volume Indicator and how to use it
Useful Forex Volume Indicator - YouTube
Gp
Great video on volume, a shame the pics move rather fast but the explanation is perfect, it can still be seen on even a 5 min chart but I agree it is very noisy and requires a bit more experience and the 1 hour is by far the preferred time frame for accuracy and very reliable for entries.
The story is brilliantly told, thanks for posting this GPā¦
I just started reading Master the Markets by Tom Williams. So far a great read. Below in an exert and if anyone is interested I have supplied a link where you can download it for free. You do have to register with trade guide in order to get the book free, but you donāt have to buy anything or watch. But if your funds are limited itās a great read and like I said itās free. One more thing to note. I am not endorsing anything to due with trade guide or any of there services. This is a free download if you register account with them and thatās as far as I went.
The stock market revolves around the simple principles of accumulation and distribution, which are processes that are not well known to most traders.
Perhaps you can now appreciate the unique position that the market-makers, syndicate traders, and other specialist traders are in ā they can see both sides of the market at the same time, which represents a significant advantage over the ordinary trader.
It is now time to refine your understanding of the stock market, by introducing the concept of āStrong and Weak Holders.ā
Strong Holders Strong holders are usually those traders who have not allowed themselves to be trapped into a poor trading situation. They are happy with their position, and they will not be shaken out on sudden down-moves, or sucked into the market at or near the top. Strong holders are strong because they are trading on the right side of the market. Their capital base is usually large, and they can normally read the market with a high degree of competence. Despite their proficiency, strong holders will still take losses frequently, but the losses will be minimal, because they have learnt to close out losing trades quickly. A succession of small losses is looked upon in the same way as a business expense. Strong holders may even have more losing trades than winning trades, but overall, the profitability of the winning trades will far outweigh the combined effect of the losing trades.
Weak Holders Most traders who are new to the markets will very easily become Weak Holders. These people are usually under-capitalised and cannot readily cope with losses, especially if most of their capital is rapidly disappearing, which will undoubtedly result in emotional decision-making. Weak holders are on a learning curve and tend to execute their trades on āinstinctā. Weak holders are those traders who have allowed themselves to be ālocked-inā as the market moves against them, and are hoping and praying that the market will soon move back to their price level. These traders are liable to be āshaken outā on any sudden moves or bad news. Generally, weak holders will find that they are trading on the wrong side of the market, and are therefore immediately under pressure if prices turn against them.
If we combine the concepts of strong holders accumulating stock from weak holders prior to a bull move, and distributing stock to potential weak holders prior to a bear move, then in this context:
ā¢ A Bull Market occurs when there has been a substantial transfer of stock from Weak Holders to Strong Holders, generally, at a loss to Weak Holders.
ā¢ A Bear Market occurs when there has been a substantial transfer of stock from Strong Holders to Weak Holders, generally at a profit to the Strong Holders.
Master the Markets 21
The following events will always occur when markets move from one major trending state to another:
The Buying Climax
Brief Definition: An imbalance of supply and demand causing a bull market to transform into a bear market.
Explanation: If the volume is seen to be exceptionally high, accompanied by narrow spreads into new high ground, you can be assured that this is a ābuying climaxā.
It is called a buying climax because to create this phenomenon there has to be a huge demand for buying from the public, fund managers, banks and so on. It is into this buying frenzy, that syndicate traders and market-makers will dump their holdings, to such an extent that higher prices are now impossible. In the last phase of the buying climax, the market will be seen to close in the middle or high of the bar.
The Selling Climax
Brief Definition: An imbalance of supply and demand causing a bear market to transform into a bull market.
Explanation: This is the exact opposite of a buying climax. The volume will be extremely high on down-moves, accompanied by narrow spreads, with the price entering fresh low ground. The only difference is that on the lows, just before the market begins to turn, the price will be seen to close in the middle or low of the bar.
To create this phenomenon requires a huge amount of selling, such as that witnessed following the tragic events of the terrorist attacks on the World Trade Centre in New York on September the 11th 2001.
Note that the above principles seem to go against your natural thinking (i.e. market strength actually appears on down-bars and weakness, in reality, appears on up-bars). Once you have learned to grasp this concept, you will be on your way to thinking much more like a professional trader.