Sometimes analyzing volume isn’t cut and dry. I marked the decreasing volume, if you look at the prices- they moved sideways. I thought this type of action would represent lack of sellers? Downtrend, decrease in volume… Look what happened with the move, continued down.
Nope, it’s cut and dry. Maybe I wasn’t clear. If anything lower price are not attracting buyers, shown by no vol increase at lower prices. No signs of strength are coming in. Simple. Also factor in time of day. It decreases everyday as things wind down.
Most of the sell activity came in much earlier at higher prices to give the setup. Basically, that tends to play out as long as signs of strength on increased vol don’t come in.
Thanks Pete. I edited, my post, so it wouldnt look like i’m pointing the finger at you. “YOU SAID…” Ha.
There are others who would say that. It’s a point where I disagree with traditional VSA, so you probably did hear it somewhere.
As long as you had an idea of what you were expecting. Honestly though, even get down to the 1m TF & trail vs exiting manually, the amount of times I’ve cut a trade off myself, and it’s gone into profit right there and then. Worth trailing up just in case and you’ll only lose the spread.
Afternoon Folks,
Just some “live” thoughts on EURUSD, Pete’s got a webinar on atm so he “might” be looking at this setup?
EURUSD is in an uptrend, but there’s been signs of 1h selling throughout the week, we’ve just broken the weekly high and a bit of a “turning point” on the daily TF:
On the 5m chart we’ve got the potential of a Buying Climax and the Automatic Support marked in gray. Will be looking for a break-test of the AS on low/minimal volume, or a breaktest/cont.
Update -> Price stalled while G/U moved up on news, won’t be stalking this setup & will re-asses at New York. This is an example of how/why Pete’s (the method’s win/loss% is very high / minimal losses)
Update Update -> A couple of hours later, nice to see how price interacted with the Auto-Support (but a shame I gave this a miss!)
Cont… (no points for guessing where price pulled back to before presenting “more” selling volume and a No Demand 
Price has been nicely mark up until “failed up thrust”.
Volume on that day was high which suggested that market is not interested in higher prices.
Next day confirm “weakness” form previous day - No demand.
5 days of higher supports after “Big Upthrust” suggested that SM wants people to believe that this rally is strong…
Because of this and that we have not got “accumulation base” I am bearish on this pair.
On first target I aim “recent low” and will see what happen there.
Thanks Scy, noted your analysis. 
Caught E/J short during the live session today, about an hour and a half into London Open. 3/4 this week. Killed it.
Ladies and gents, the “Doing it live” remix. Have a good weekend. 
I like your posts of explanation with the pictures jalapenoninja, they are very clean and helpful to understand this method, keep them coming please. 
Hi Darastonius, cheers. I posted quite actively last year, this forum/thread has some gold in it, keep digging
Honestly, all the posts are the same… daily chart for structure, hourly chart for a sign of strenth/weakness, then the wyckoff template
Morning morning,
Continuing my series of “clogging up this thread” today I thought I’d post how I (via this method, learned from Pete, youtube, webinar, etc) read the 1h volume to help establish a bias. This is the key to the method in my opinion, you can be a bit looser on the Wyckoff if this is correct.
So on the 1H TF I review the previous 4-5 days volume to get a “story” of what’s going on, to do this, I look at the 15m chart each day for the overall picture. Here’s an example of the EURUSD for yesterday, Thursday 27 March.
Finding the area (in volume) of roughly the 3-4 highest spikes in volume, then move up to price and read what happened. I judge yesterday E/U action to be buying that was continuously overcome… So it’s not particularly strong selling, but also no confirmed Sign of Strength/Buying. I’d be tempted to label this day as “Neutral / Neutral/Buying”…
While we had selling at the top, we’ve already “seen” the result of this move, it’s used up that energy already. I think of it as looking for potential energy in the chart, that hasn’t resulted in a move yet.
Anyway, long story short, do this over 4-5 days, note each “result” of that day’s volume on your chart, & you’ll get a good picture.
I rank volume (roughly) as:
Buying, Lack of Selling, Neutral, Lack of Buying, Selling. Sort of in a +1, +0.5, 0, -0.5, -1 setup…
One thing to note, is the London Close, this is when everyone has left the market. Literally, you wouldn’t think Apples were cheap if all the vendors had left and were getting rid of everything at 90% off, anything after London Close, take with a pinch of salt.
Here’s the “story” for this week’s EUR/USD 1h, the 1h chart is a case of “trade with the trend or respect the range unless the volume hints otherwise”:
Hi guys, my name is Karl this is my first time posting here. However im not new to this stuff, Pete’s VSA that is. I have been a follower of Pete for like 2 years now. Also i have been following this thread for quite some time and a while ago i saw some ppl trying to challenge Pete for his FXBook and doubt the validity of his strategy. Just wanna share some thoughts of my own.
I have learned several strategies throughout my trading career and I have to say Pete’s VSA method is the best i have learned, it made most sense to me and its simple and repeatable, most importantly, profitable. I have joined his webminar for quite a while before I was too busy taking care of my little one that i cant go to Pete’s class anymore due to the change of class time from NY open to the London open. And I can testify that Pete call out his trades in front of a group of students Live in the room. And majority of his trades are profitable trades.
So for those of you who are trying to undermine Pete, id say you will never be successful doing that because you can never beat facts. I have recently started to getting back in to trading again and im glad I took the same trade with Pete on EJ (I guess), weakness on the background and and then a fib retracement, stopping volume at fibzone, push through on automatic support on normal volume, really clean and simple setup that gave over 100 pips on this one trade.
Image Screen Shot 03-28-15 at 03.11 AM.PNG
I would love to rejoin the webminar though, hopefully my schedule would allow me to do so in the future.
Morning folks, CTFC/CoT reporting day! There’s some great Wyckoff pattern longs on EU and GU from Friday, will let you guys mark them up & post them here, same deal, selling climax, automatic rally, clean push through on “not high” volume, retest of AR, bombs away.
Edit > Ok your silence has convinced me to do atleast one of them…
Pete I’m thinking of releasing a t-shirt line with the Wyckoff schematic printed on the front?
The Wyckoff sequence for the end of a downtrend is ps (preliminary support), sc (selling climax), ar (automatic rally), st (secondary test). I’ve studied Wyckoff for three years - taken the SMI course and studied Wyckoff’s original course (written circa 1932). Your chart doesn’t show a ps (preliminary support). However, assuming there was a ps prior to the sc, the green check marks indicate secondary tests. The green line to the right is pointing to a SOS/Jump Over the Creek, sign of strength, however volume should be higher for a SOS.
Thank you for your message, Jala. Yesterday and today were a couple of nice VSA entries!
About your t-shirt idea, I think below or above ‘wyckoff’ you can make a funny forex joke. I was thinking about:
- Wyckoff: please bear with me, or in this case bull with me!
- Wyckoff: the only way to trade.
- Wyckoff: VSA is bulletproof and bearproof
- Wyckoff gives you no bull crap nor bear crap
For following Monday I give you my EUR/USD analyses. Use it with VSA confirmation (Stop volume, NS and then enter the trade and just sit there with trailing stop).
+1 for the bull crap or bear crap!
Daily timeframe for me wrt to VSA, the volume isn’t a good read due to a few things:
- Market Participants on a Monday/Friday with a lack of over-lapping session,
- NFP, FOMC & Occasionally PMI days, extra volume throws of “true” movement & relative volume,
- End of month intra-bank & trading quotas, increased (or decreased) volume at EOM,
I spent a lot of time (a couple of years ago) with Bollinger Bands, and read a lot of John Bollinger’s theory etc… used them on a smaller timeframe. tbh the only thing I can truly conclude wrt Bollinger Bands:
“When price hits the outside bands, it will reverse, except for when it keeps going through the band!” So really, nothing for me! Your moving average in the middle is more valuable.
But I’ll keep you posted on the t-shirt business! lol
Karl! Good to hear from you. Thanks for that. Yep, we had the same entry on E/J. Textbook. Some things never change.
Hey Pete!its been a while 
Glad I took the same trade with you! Looks like my VSA skills is still intact lol and the market seems to be very clean in recent months, hope it stays this way for a long time.
I have been keeping up with your YouTube videos , I love the one that you kept saying un-believavle for your win streak lol, you seemed so hyped up And I guess you won’t be changing the class time back to the NY open any time soon right? Since you have been doing great in London open, do you happen to record the session? I might rejoin you guys or I could try to listen to the live session on my iPhone
Ha, cool. I’ll be your first customer. Maybe put dollar signs on the back. I always joke about getting a tattoo or a giant framed pic in my living room. Oh, here’s and idea…coffee mugs!