That vid LOL. Yeah, I was hyped. That was the most money I made over a 6 week period or so at the time. It got surreal.
It’s tiring to trade at 3am London open, but totally worth it. When I traded NY I would often see the setups I missed and have to try to find my way in…and fast because in a few hours the market slows down for the day and I could get stuck with my trade floundering around in a small range.
Now I can take my time, no rush. It’s more relaxing and I just let setups come to me. Often I’m hitting targets on NY news, instead of looking to get in after news settles. So much better.
I have found some of my live sessions popping up online so I try to limit giving out recordings now, but in your case I’ll do it. We’ll try to catch up on Skype or email me.
I’ve only studied wyckoff in relation to the method discussed in this forum, much like traditional VSA, it’s an adaptation. Always looking for a Selling/Buying Climax, the AR/AS, and the key is how volume interacts with the AR/AS. From “most” of the setup, you won’t see clearly a preliminary support.
The green line isn’t indicating a sign of strength, it’s the “clean push” through Automatic Rally and confirming the buying (or top of the range AR) has died down a bit. Again, this method (Pete’s take on 5m volume) is a bit of an adaptation of text book wyckoff.
Lol, actually, just reviewed that sketch, there’s a PS there, but it’s not something I look for / mark up
Here’s an AU short I’ve just scalped but taken full TP. This method’s wyckoff applies, but shows you don’t awlays have to be getitng the big retrace to fib, if price is trending, inline with the US dollar, and there’s no opposing volume on the hourly, I like to get into the 5m chart and pick off smaller timeframe entries.
Normal rules apply though, high volume indicates buying/selling, sell from the top of a range, buy from the bottom, if you miss price, wait for a retest etc, no gambling. These entries really aren’t necessary, the SoS/SoW London sessions are more than enough, but what else are you going to do on a Monday morning at GMT +8?
I don’t want folks to be chasing these entries, but it’s more to illustrate selling on an upmove, buying on a downmove (pullbacks or range extremes), that volume is all “relative” and that liquidity gaps in the market (normally) get filled. Also, bonus points for the 50ema.
Hi Jala, by gaps getting filled. Do you mean for example, on Sunday 22hrs forex market opens with a gap of 30 pips. Then the usually (what often happens) is that price returns back to where the gap started which means it will go back those 30 pips?
Hi Michael, I’m not recommending that every time there’s gap down, that you should trade to fill it But yeh, I find that gaps (literal) gaps in the chart like this one, they’re no different than if we get a rapid spike in price. The bank/SM/Algo’s/whoevs, didn’t get a chance to fill and pair up opposing orders on the way down (think of a 1 second time frame making small pullbacks, buying & selling, filling orders on the way down).
So there’s a “pocket” of liquidity in there that’s available to match orders to. Kind of matches in nicely when with this method, you see a rapid spike up (or down) without a pullback, & we’re looking to fade the move.
For the newbies I would like to support them and explain what VSA method is. Below information is not from 1 teacher, I did complete trainings of multiple VSA and Wyckoff teachers:
Indicators
Clock
50ema
14ema
Volume indicator (use FXDD volume data feed)
Fibo
Daily/weekly/monthly pivot on chart
PA
S/R
RSI
Cluster indicator (works best in h1/H4 chart)
Channel trendline
VSA terms
Buying climax: the end in a buying trend
Spring: test where price reaches back to SV level
AR automatic rally (= no supply): first area of resistance after SV. AR is always bullish
AS: automatic support: first area of support after SV. AS is always bearish.
SV: stopping volume: first candle with highest volume
NS: no supply
o Bar is lower than previous 2 volume bars
o Candle is bearish
o Candle contains shadow down
ND: no demand
Trading
Entry 1
§ Next bullish candle
§ Don’t enter on a fibo level
Entry 2
o Another way to enter is: when in a large downtrend with a lot of buy volumes and still continues downwards. Then whenever there is a huge SV you can enter earlier without AR-confirmation
TP
o Look for previous high volume bars (before SV) and use those candelesticks with high volume as TP
o Whenever I see opposite candles with high volume
o Symmetry (aka draw previous uptrend and copy as projection)
SL
§ Pete: 10-15 pips above first candle that has highest volume
§ Tom says 30 pips SL
§ If SV already has a shadow below (as in fakeout) then SL can be closeby about 5-10 pips
§ Move SL below 50 fibo
Partially take in my profits when: (or add to your position when the direct opposite occurs)
o AR/upthrust has high volume (the exact candle that bounces off the S/R, the volume of the mid-candles are not so important)
o NS has low volume
o a bearish SV is placed higher than the next candle
o previous lows that are BEFORE the bearish SV, has low volume.
o SV has low spread
o SV doesn’t contain a pin/shadow/wick
o near SR levels, daily/weekly/monthly pivots, fibo level 50, 50ema (or even 40ema in one of Pete’s videos).
o Or looking in the smaller M5 timeframe, a sudden big volume bar on a bearish candle usually means price gradually falls
o after 16gmt Pete seems to make more loser trades, Pete mentioned. So it only makes sense that one would partially take profit sooner after 16gmt
o trend is your friend. It only makes sense to partially take profit when buying in a bearish main trend, incasu EUR/USD where you can clearly see that main trend is bearish in the bigger timeframe.
o if the 5 waves (from Elliot wave) hasn’t finished yet, then there is a smaller probability that price will already reverse (and instead you may rather suspect a small retracement). So it makes sense to partially take profit sooner rather than later.
o near the end of a symmatry trendline projection
The only thing that a gap in prices shows in Spot Currency is that the server to your retail liquidity just turned on, and it grabbed perhaps a stale quote, or the current weekend or holiday action in mid move, no more no less, there is no liquidity other than normal behind this.
True price/liquidity gaps happen in equities, commodities, and futures. I.E xyz stock closes at $25.00 on Friday, some anal ist over the weekend decides the stock is worth $10 more than this, phones a trader, and on Monday morning they either run down to the floor or place an electronic order for $35, the market opens, and wa la (viola) a $10 gap.
Spot Currency runs 24 7, one way or another, if you had a Bloomie, Reuters, or Currenexed White Lable platform you could see this for yourself. I do believe Oanda may still have the 24 7 gig going, if so you can get a demo and watch it through the weekend. Really exciting stuff, to watch Primes going at it and exchanging Yards in a .5 pip range, whew now that’s entertainment, if you like to watch paint dry. Sometimes there is some action, but usually Sun afternoon into evening EST, but as I said no true price gaps.
Wow, thanks for setting the record straight? Ego’s at the door please.
This doesn’t explain at all surges in price during the trading day (gaps in liquidity) that then need to be filled. Each to their own, but I’ve seen these enough to know what’s going on.
I appreciate your effort but I have to correct and clarify a few things.
I don’t TP “10-15 pips above first candle that has highest volume”. I never heard of that before.
I don’t use the 40 EMA
I have no rule about taking profit before 16GMT
This thread is focused on my method of trading VSA, which does not agree with everything you posted here. I’m often trying to “unteach” some of that stuff to my students.
What we do here is focus on my particular method of VSA/TA which we say is better than traditional VSA, that’s why we are here. I did the work of streamlining and making things more straight forward. No need to dig up what I threw out.
Again, appreciate the effort but what I do is shown thoroughly in my free youtube vids and course and this might be confusing to people. Let’s stay on my method in this thread.
True, price still moves over the weekend we simply don’t have that data on our chart so we see a gap. I’ve never subscribed to the “trade the weekend gap” method simply because I’ve seen it not fill that gap soooo many times…and again, not really a gap.
haha, nah, I modified the “better volume” indicator to show NDNS.