I am losing faith in VSA before I have even begun. VSA requires a reliable volume feed. What is a reliable volume feed? Each broker has their own feed which differs from everyone elses. I have applied the no supply no demand indicator which Pete used onto multiple broker MT4 platforms. Not only can I see clear differences in the volume but the indicator flags up the same ns and nd candles in different locations. Probably only 50% of them are on both platforms at the same locations.
I have circled the signals which do not appear on all three platforms.
Now I understand you donât just trade every signal it gives you. I understand the reaction to NS ND candles make a difference. But the problem is that this method relies alot on seeing a NS or ND candle in which the volume bar is lower than the previous two. So if the first step in identifying the NS ND candle is âflawedâ what chance is there in the rest of the process playing out in our favor? Due to the brokers varying volume feed this method has a major flaw. the flaw only gets worse the lower the time frame. Especially a 5 min chart used in this method.
Although you could argue not to use this NSND indicator it is not the point. It takes the volume and applies it to the chart and it clearly shows it cannot be trusted.
So It leaves me with questions.
People say you need a reliable volume feed. Well who can ever know what is reliable? You cannot compare any feed to an ultimate authority as there is none, thus cannot come to a conclusion what is and what is not more accurate. You have nothing to compare it to except other broker feeds. Vicious loopâŚ
2)I know Pete is profitable doing this and it confuses me even more. But basing the method on âvolume bar lower than the previous twoâ has such a narrow margin for error as clearly seen on these pictures.
So where do go from here? I like the method alot but basing a strategy on a non fixed, varying and random tick volume feed which changes from broker to broker seems very risky.
My main point would be this. If making money in Forex is difficult enough as is, why use a method in which the data you are using is only 50% accurate in the first place. Surely we only want to use data that truly reflects the market.
Ca anyone straighten this out and tell me what feed to use and why. Iâm concerned this method only works with something like E signal which is expensive. And how to know E signals tick volume is any better than anyone elsesâŚ
And does anyone have a point of view on FXCMâs Real volume feed. Again looks different to al the tick volume feeds but as it is real volume I wonder if it trumps all tick volume anyway and should be used instead.
Volume really isnât important. If you know how to read price and spread, thatâs all you need. You can determine supply and demand by looking at price alone.
âŚthis is coming from someone whoâs read Wyckoffâs original writings.
Price action is the same on all time-frames. Donât let these salespeople convince you that thereâs anything wrong with intraday charts. Heck, I make my bread & butter intraday plays off of the 2 minute charts in the major pairs.
Thanks for the reply. I think I will use the supply and demand method and use what Pete teaches but I think I will have to leave out the âlower volume than previous two barsâ idea. Looking at the volume as a whole picture makes alot of sense. Looking at a single volume bar which may be just 2% smaller than the previous to and saying âthis is no demandâ just sounds inaccurate. If that bar is alot smaller than the previous two then yes thatâs would make it valid.
I think it would be great if Pete would clarify his thoughts on this. Specifically how much smaller a volume bar needs to be than the previous ones in order to qualify as no supply/demand and rule out any slight differences other brokers may have. For me, 2% smaller, even 5% smaller just is not reliable. I want to see a bigger difference.
As I said, you are reading the chart wrong, come to the free Skype chatgroup, where you can see how it needs to be done properly. But hey man, keep struggling if you want, we just keep making money anyway.
All of us use different brokers, yet NS and ND are always at the same places, why? Because when there is a âsetupâ (when the manipulation happens), it looks the same. Pete never said, that you have to look at every candleâs volume, and watch for every ND/NS. There is a time for them, when they come into play.
Simplified version of a setup:
There needs to be visibly high volume on an exact place like support/resistance or a fib zone, to start the setup.
Then as price turns around, the first level it bounces back from is going to be the Automatic Rally.
Between these two levels the price can do its thing, but it has to show higher volume when it reaches the level it showed the first high volume. (That means smart money still holding.)
As it shows lower volume when it reaches the AR, that means the horde is getting consumed, thus it is going to break the AR, that is the push-through. INSIDE THE AR, OR A LITTLE ABOVE IT AT THE RETEST IS THE BEST PLACE TO LOOK FOR AN ND/NS.
If this all properly set up, we can join the trade.
Completely valid points. I talk about this towards the end of my last video. Remember, I was using IBFX for years, which was proven reliable. After they shut down I got Esignal. Now I have a custom indicator on MT4 that represents multiple brokers that I choose. I will talk about how to get it soon.
As far as the âlower than previous 2â issue, I didnât invent that. Tradeguider uses those parameters for the crappy software to identify thingsâŚother options would have been lower than average volume perhaps, but it actually is a good parameter. It helps give structure when learning. Having said that, if you really know how to read a chart, you can take trade of a low volume test that doesnât precisely fit the definition of a ND/NS. I do that at times.
Hi guys , newbie here , I have a question that may not be entirely related to VSA but I would really appreciate advice or answers from all the experience traders here.My question is , when price breaks/closes above resistance with bullish candle with low volume ,not climax volume or stopping volume , is that considered as a legit bullish breakout ? And whatâs the difference if it breaks/closes above the resistance with two or more bullish candle with high,increasing volume ?
of course you can, less volatility smaller stop smaller target and typically less volume but if you see one take it, it might not be something you want to hold as a position trade seeing as asian lows tend to get taken out,
