I assume it is a market profile (google it) indicator, but I’m not sure; and I don’t know how Pete uses it, indeed it is not explained in this thread, that I know.
I’m still quite ignorant, so take my answer with a grain of salt. The problem there is I can’t see stopping volume on top. Yes it was rejected by FIB area, but volume on top was average.
Wait a second, yours is not an IBFX chart.
Been reading the VSA Wyckoff method extensively. Until my brain is about to bust. Yea, I know it is taking me a long time. Sorry! But, it appears to me that VSA, Wyckoff, two different approaches but the same idea. It seems to me that reading the charts using either of these methods is basically based on strength and weakness. I mean you have a rally, strength, you have a decline weakness, you have a congestion area, balance. You have large volume, with wider spread, strength, you have narrow spread with low volume, weakness. You have an up bar with low volume, lack of demand, you have a down bar with low volume, no selling pressure, and on and on. I know that some things can make a difference in these patterns of strength and weakness, but since the markets move in only 3 directions, up, down or sideways, that it isn’t much more complicated than identifying strength and weakness. But, being that said, when do you know when to make your trades. I mean you got a rally, if you got strength, you make your trade, you got a decline, weakness, you make a trade. congestion you wait it out. Of course I know that many variables can alter the trade process like the background. Just trying to sort it out.
In answering your question about making trades. I guess one way to do it is for example:
If you have a strong rally with high volume out of a range, then you can assume that the trend is up. So you then wait for a low volume decline (pullback) and then buy when the volume increases and price increases because this is signalling the start of the second upswing. Thats what I have been doing and it works ok but I’m still not that good at reading the VSA signals to be honest. It will work better if you can read the signals accurately.
Long setups on E/U, G/U today. It doesn’t get much simpler than that.
Pete, can you please post your charts? I am having a hard time seeing the setups. Still noob, I know:)
You are then waiting for a test with the second rally. I guess that’s what your saying. I don’t know any other way a person could trade this way, it would have to be on strength and weakness. Strength, you have a rally. Weakness you have a decline. Of course there are signals, like a shakeout, a climax bar, no demand, no supply etc…etc… I guess these signals could tell you if the trend is strong or weak. I guess a lot of it is the trader himself, or herself. I probably need to go over this thread some or a lot.
I had to think for a bit on what you were saying about the pullback and second upswing. Not a second rally, but a continuation of the trend after a pullback. I believe Wyckoff himself stated that the second upswing is usually the strongest or longest. So I would say the second move up is probably a good trade to take. He called it relative strength. If a rally within a trend or time frame is of longer duration compared to other rallys or continuations then that rally is the strongest. So I assume probably better to trade that rally. But that is of course a relative strength comparison of the trend to the market being traded. In my opinion of what I understand about it.
The volume up top shouldn’t matter. You’re trading with the uptrend after a pullback to fib so the volume that’s really important is the fib rejection volume. I hope that makes sense.
Yeah I think you understand what I was saying. The only thing I would add is that when I think about trading, I try not to categorise the behaviour of the market so specifically. When you say that “the second upswing is usually the strongest or longest” it is a bit too specific to say that of market behaviour because at least in my experience the length of swings can vary regardless of the order in which they occur. Also, in Elliot Wave Theory, they say that the third wave (swing) is usually the longest. So you can see that there are differences between market practitioners.
I believe that a better strategy is too simply observe the signals in the market that tell you when a trend is beginning and when it ends. Therefore, you do not need to say “this is the second swing so it should be longer than the others”. You simply trade the swings until the market gives you a signal (a reason) to take profit and not trade the swing anymore. The market will determine how long the swings are. All you have to worry about is getting in when they begin and getting out when they end.
I probably explained this really badly but I hope you can understand some of what I am saying. Of course, this is just my take on trading but I believe this allows me to be more flexible when reading the market.
E/U begging to be shorted. 
g/u looking perfect for a confirmation too …lol hope play out very well
Target at the bottom of the hourly range? Or you see a chance of it going lower?
Edit: resistance broken, it doesn’t look good anymore. I got out at BE.
I got Yea! Actually I meant the 3rd wave. I was discounting the 2nd wave which would be a retracement, in my opinion. Actually I have been looking at MT4 VSA plugin indicators, from various sources. Not the best, but some good practice. I guess traders who are also programmers, make these plugins. Been practicing different VSA methods, plus this forum, and they all coincide pretty much. Thanks!
Can someone explain me what happened there? Firstly NS candle and then ND candle.
Edit: Another ND but seems like failed…don’t understand
Hi loeil,
It is unfortunately impossible to make a correct analysis by observing 5M time frame only. Firstly, you should try to watch price action in bigger time frames like 1H and define significant volumes not only the biggest, but also the lowest ones because every action tries to tell you something about the price action. Then, you should look for ND, NS actions in smaller TFs like 5M. Besides, you should not care about NS in an uptrend and vice versa (ND in a downtrend). Pete will correct me if i am wrong.
Yes I know that we must look H1 also, what I already did. H1 shows weakness and upthrust also. Red circle marks area where I found NS and ND both. When weakness sign appears then I should care about ND candle and even there was ND candle with confirm, price still went up. And btw, H1 upthrust closes below the previous candle and volume is very very high.
So mu question is why is it wrong to go short there?
Nothing is absolutely perfect. Sometimes even SM can seen a bit strange. The thing to do when it is not clear is NOT to trade. The idea behind VSA is not to find a trade every time you are in front of the MT4 screen, but to filter out the lower probability periods and to give a higher probability of a successful trade. That could mean days without trading, but the successful trader does not have to trade. He/she will only trade when the screen is screaming out for a trade, meaning it is a nice high probability setup.
If signals seem mixed, the best advise is to not trade at that point in time.
Imagine the chart without the chart, i.e. imagine you have been sitting in front of the Price Ticker, seeing only the price, for each of those hours.
For roughly this past 48 hours you are seeing rising prices, you are seeing strength.
A professional trader will only see that strength, he will never ever contemplate selling strength, only candles can suggest such a strange thing.
Not saying I cannot understand, when looking at your chart, why the thought of selling - but maybe, sometimes, it is advantageous to think beyond the chart and see only what Wyckoff would have seen.
Very much, he would have seen how price went up (the top wick on the right most candle in the grey area).
With candles we tend to see the ‘rejection’ or wick, with price we see the fact that price went to there (strength).
Can I add, your chart and your question perhaps personifies most what I understand to be the difference between ‘Price Action’ and ‘Price Behaviour’.
Many times I have tried to articulate that difference, without success.