You’re right Pete, trading has been very messy. Outside of one or two setups I missed, I have been passing up moves only to see they wouldn’t of worked out anyways. I’m glad I’ve repressed my impulsiveness and became more patient. I’ll be searching all morning though, hopefully I can pull out a trade or two.
Cool, I’m having trouble with the video file from yesterday’s session that I wanted to post. But at least I can tell you guys I went long a/u off 1hr fib… Previous day had aggressive buying with no weakness shown. Turned out to be a great trade.
Accumulation, Distribution question. I’ve been checking out some other videos about Accumulation distribution and I myself was kind of wondering about exactly how to recognize it. from other sources I have been checking out, according to other sources Accumulation is higher volume with higher highs and distribution is higher volume with lower prices. Meaning that up trends usually have accumulation and down trends usually have distribution. It isn’t always in the consolidation areas. And from what I gather mostly never there. Unless it is at the selling climax, for accumulation and the buying climax for distribution. But to me it makes since. Since higher volume with higher highs would tend to be buying, distribution would be higher volume with lower prices meaning more selling. I haven’t heard much about what actually happens after supply has run out and demand has taken over, other than the trend will go high or low according to supply or demand.
Watch some of Pete’s videos, he goes over trades in which he indicates whether price has been accumulating or distributing. It seems you have the right idea about it but your second guessing. Check out the charts and back test to see if you can correctly identify the stages.
I’m looking at the USD/JPY right now which has been in a range since Aug 7th. It could potentially be accumulating but high volume has also been seen at the highs so I’m not exactly sure just yet. But I am looking for a short since price has reached the same resistance and the last red vertical line I highlighted was an increase in volume with a bearish reaction. Maybe a double top on the that level will allow me to enter the trade.
Your right I am not exactly sure about this method yet. Accumulation/Distribution. But I have been reading many various methods of this same Wycoff method. Most of the material gives you a lot, but is lacking in really giving details. I was doing a lot of Pete Faders reading material, and I plan on getting back to it. In your chart I see distribution before your accumulation, last red line. Higher volume, lower prices, a breakout below your moving average. Not sure what moving average it is. I may be wrong, if so I’ll take the punishment. As far as which way it’s going to go with your accumulation and a no demand or bearish candlestick, I couldn’t say. I would need more confirmation.
Where did you hear that explanation? It makes no sense to me. If SM is accumulating, that means that they are buying low. Buying into down moves, shown on higher volume with bull candle reactions off low prices. Making higher highs would actually suggest they may not be getting lower prices any more and may switch into markup…think push through, or effort to rise. That is making a higher high and by then accumulation would be looking to switch to markup. If you were simply taking the info I’m giving and not mixing it with other sources you wouldn’t be confused about anything.
I am not sure Pete on this. I just watched a video from a Pro Trader, and he had this explanation of Accumulation and Distribution. So, I thought I would post here and see what kind of reaction I got, and I can definitely see there was a reaction. No biggy! I don’t trade on this anyway, just testing the waters. I will say that so far just by reading charts that Supply and Demand definitely works, whichever way you use it. It has worked for me in practice! Thanks for the enlightenment. I’ll check your threads for some confirmation.
OK, so forget that. What I’m teaching is not just some variation of the method I did for fun. This is what works. If it contradicts someone else then they are wrong. It’s kinda crazy after all this time that you are not sure how to spot accum/dist. Get focused, I’ve given the info.
Cool, you have to find your own way I suppose. :57:
Hey Pete no offense, I’m just the type of guy who experiments. I already know about the VSA stuff. I’m just making comparisons. So far it has worked for me, I basically follow the VSA way, but I have also found that basic Supply and Demand also seems to work. I’m still not done with this Wycoff thing. Thanks! Hey I’m not spending any money, Yet! For godsakes don’t follow my advice, do your own homework newbies! When I finally make it big then I can say I told you So!
Hey Pete, just found this thread. Hoping to learn a lot about VSA. I already watched all your videos on youtube and found them very educational. I’d sign up for your live sessions if I could but I cant afford even that relatively low price since I have a very limited income and its in Rupees not Dollars. I’ve been studying VSA for about two weeks now. Currently rereading Tom Williams’ MTM and demotraded successfully today using the technique. However, I noticed today was trending down continuously. I’d like to see the results I garner on less trendy days. Hope you dont mind me asking some questions here when I need advice. Thanks…
Hey Pete, don’t mean to beat a dead horse in the mouth, but I see where your coming from. Don’t know why I didn’t think about it, but when I said High volume Higher prices=Accumulation and Higher Volume lower prices = distribution, yea it doesn’t make much sense. why would SM buy high and sell low. Of course they want to make a profit by buying low and selling high. Sorry about the confusion. I guess I got Trader head right now. But this method is for the main stock or big cap stocks, so that is why there may be a difference. I am also getting into stocks, so that maybe where the confusion is. checking out your videos. It is getting easier. Thanks!
Sure, ask questions and post analysis if you want. Have fun. 
No problem, it’s a process you have to work through. Enjoy.
Just to note, the typical buy low/sell high scenario is correct in understanding how they operate, but it’s not the only thing we are watching for.
For example, look at the high volume background I talked about in my last video, Diary 22. Effort vs Result is another principle we follow. So you can see them act a bit differently from buy low/sell high, highlighted there as aggressive buying in an up move.
Something to watch for and see if this long sets up properly. Fib zone, Monthly pivot, Weekly pivot, previous support confluence. No large/climactic supply coming in during this up move yet.
A/U 4hr.
Hey folks just some questions about no supply/ no demand bars:
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What defines a no demand bar? A candle with a wick on top, wick on bottom or just bullish? I’m sure low spread, low volume are part of the definition too.
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How many bars after a ns/nd bar should we keep looking for a confirmation bar?
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What if we recieve a nd bar after a ns bar? should we keep looking for confirmation of the first bar or is it now invalidated?
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Do we receive these bars only during accumulation/distribution or do they occur during markup/markdown too?
Thanks…
A potential ND bar is a bullish bar that does not close at its peak, and has lower volume than the previous two bars.
The confirmation bar is the one that closes below the ND low.
The confirmation bar can be any distance away, but will be cancelled if a subsequent bar does close above the potential ND high. So long as the bars after the potential ND stay below its high, it can remain valid.
These can appear in all areas. Markup, mark down, distribution and accumulation. Seeing a valid ND/NS is NOT an entry trigger. It is part of the picture and you will need to match up all your levels of confluence in order to take a trade with a positive expectancy.
Other things to look at are the background info - is there strength or weakness in the recent past, levels of support/resistance, pivot point, fib areas.
Petes vids do a great job explaining all these facets and it would be very worthwhile looking at them a few times over to get a good idea of his interpretation of VSA, which I do highly recommend.
I’ve been watching Pete’s videos and found myself thinking about the various entries.
The simple stopping/climatic volume + ND/NS + proper background
or
The simple stopping/climatic volume + Break/Test/Continuation setup
Do you take which ever comes first or is one more favored than the other?
