Thanks Dodge. Having a slight issue with it. I’ve sent you a PM/Visitor Message. Thanks.
Have added ‘The Shake Out’ to the Crib Sheet
(btw, If you want the DOC version to use it to make your own noted, just say the word but if I do that we may need to do some kind of version control)
So, the shakeout, remember Pete always keeps saying look to the left, it says it all the time in MTM - What is the background?
If you look at the chart, you can see that you have what looks like push through supply volume, but without any accumulation to the left there is no follow through in the move, nothing has been accumulated to carry on up.
So there we are, some weekend homework! Well, I think understanding this is one of the final pieces of the jigsaw, we’ve had all the pieces but you absolutely have to put the pieces in context, at the most basic level a No Demand signal is no good on it’s own, or even in the wrong place, the same the more complex stuff, a markup will not happen unless it is preceded by accumulation.
Can’t wait to get started Monday Morning, I actually hide a nice short on the USDCAD yesterday - what a nice end to a holiday!
VSA_Crib_Sheet.pdf (204 KB)
Thanks guys. I hope this isn’t too much off topic, I suspect it is, why is why I’m replying on sunday to not interrupt focus on trading.
Yesterday I’ve been looking at charts all day long, focusing on off hours. To me it doesn’t look like SM is doing anything special during off hours. We basically have 3 phases at night. After NY close price is usually drifting by in the direction where NY left off, goes sideways, and only rarely reverses direction (and the reversal is usually accompanied wth increased vol). Then we have Asia which makes a move which might set the tone for London, or not, nothing really decisive or predictably repetitive. In any case, I don’t see much of a correlation between off-hours after NY and Asia moves, or post-Asia off-hours and London. The third phase is off hours after Asia. Again price just drifts by where Asia left off and then London picks up the action again.
My suspicion was similar to Tassiefx’s, namely that since liquidity is so low, price will be very vulnerable to manipulation. But I don’t really think that this is the case to an extent that it will somehow add significant information to what we’re already doing (vsa at office hours, and fib, s/r). After off-hours, Asia is where trading picks up again, vol increases, but nowhere near the amount of London/NY, and the size of the moves is rather small. So there still is a correlation between size of the move and vol, effort vs results, otherwise SM would be messing around with price excessively during off-hours, right?
I mean, yeah obviously off-hours can/should be read like office hours, but like Pete said, we have to put in context and in doubt I think office hours action is more sigificant. Or would you guys say that analysing price like in this chart would be valid? (This is a chart from 2009 from the old thread, this chart is where I got kinda stuck in this idea.)
Hi Guys,
Just watched the ND/NS video on Pete’s Youtube channel…brilliant stuff, very clear and insightful, and no its not too long 
…thanks Pete.
Got a question in regards to it though. About 16:48 in the video there is an example of 2 ND situations. The first one which is higher looks to my untrained eye like it has a ND and confirmation 3 candles before in the TOP, it has volume lower than the last 2 candles.
I am guessing that the reason why you haven’t tagged it as ND is that it is in the top area and you prefer that ND to occur after some move away from the top. Correct or no?
That… and also the body of the candle is still pretty large compared to the candles around it. The body of ND/NS should be very small…
I think you are over analysing there, you are trying to look for stuff and trying to anticipate too much, this leads to overtrading, look at what is immediately in front of you and to the left, liquidity and volume need to be looked at relatively, Ok after NY close nothing will normally happen, but you can never discount the Asian.
Keep focusing on what is happening and what has just happened, that will give you great entries, then the rest will follow, sometimes the market will fall nicely into place, sometimes not so much, but if you are consistently a strong holder, you are on the right side of the market, but there is absolutely no telling what will happen, you just need to be in the right place at the right time.
The market may be accumulating, you can see it’s doing so, and you get an NS, so you enter and you are on the right side of the market, but you don’t know if that accumulation will continue or will it move into markup. Having said that though, the more experienced you get, the more you will have an idea if you are likely to be in a market that moves. But the most important thing is to concentrate on the now and to the left.
Can we clarify at this point with regards to Body and Spread, Spread is from High To Low, Body is from Open to Close.
So yes it’s best if the body is small, but the spread needs to be also.
idk purple… I don’t care about the spread (aka range) that much… the body is more important to me. Also I like to see the wick on the correct side.
No, you can’t go for a large spread, it doesn’t mean the same thing, it can indicate the reverse.
Now I’ve thought about it (you often get me thinking), I’m wrong, BUT the higher the spread, the higher the risk, for basic reasons.
I was thinking of when you need to look out for a large body with exceptional volume, be it exceptionally low or high, obviously thinking of the latest thing I’m learning - The Shake Out.
I know what I mean, hope you do, if not… I’ll explain it after…
I don’t know, I might have had a glass too much after Sunday lunch, but with the NS/ND bars, I think generally the better they look, the better they perform.
POWER.zip (917 Bytes)
I have been lurking along the VSA threads for a while. I am not trading a VSA system but it has become a part of my trade decisions. I wanted to share an indicator I have been using as part of my system. It goes along with the last few posts about spread vs. body. I use this set to 1 period I look at the last bar to close. It is the average of the spread and body. I look for a bar with higher volume and a lower PWR(thats what I call this indi) when price is at an overbought or oversold condition. Nice for finding tops and bottoms in the right conditions.
Here is a pic on a chart
not trying to hijack anything just sharing how I have been using volume in a simple and limited way. With good results to. Thanks for getting me looking at volume.
Hi, welcome on board, we have had some good discussions in the past and I hope this is the start of another good one, but listen up my good forum partaker (that’s me being protective, lol, wink!)
But seriously, VSA is NOT a system, generally the word system makes me cringe in the context of trading, ‘strategy’ is a more adapt term I think for successful/profitable trading.
However, VSA is above that, and is a trading methodology, it is a way of understanding what is happening in the markets, you can apply some of the aspects of VSA to your trading, as you may well know I have a very profitable strategy using just one aspect of VSA, but that is just for starters, get into it, learn it, understand about how disadvantaged you are without it, and I think all of us on this thread won’t mind if you do a bit of hijacking, as long as it’s bang on topic (with the exception of petefader, it’s his thread so he can do what the f**k he likes, and deservedly so)
As a side note though, you need to stick with it, unless you are totally above average intelligence, it will take a few months for you to learn how to eat the market.
Rule #1 ‘Do as I say not as I do’!
I was going to send this directly to Tehmac, but thought other VSA traders on non-Windows platforms could benefit as well.
I downloaded a generic Ubuntu Virtualbox image here, made all the tweaks required for MT4, and uploaded it for your use. Follow the steps below to get it up and running:
- Install Virtualbox
https://www.virtualbox.org/wiki/Downloads
- Download and unzip the Ubuntu image I created.
http://ubuntuone.com/7Zpcan8GoDTSPDYxT7ndbj
-
Double click on the “Ubuntu-11.10.vbox” file you just unzipped, this will open Virtualbox and add the Ubuntu image to it.
-
Click “Start” in Virtualbox.
It will now open to the Ubuntu desktop. The username is “ubuntu” and the password is “reverse”. Note the “Interbank FX Trader 4” installation directly on the desktop, along with the “MT4 Shortcut”. Click the Shortcut to open MT4.
If you have any trouble, send me a direct message, don’t clutter the thread.
Have fun!
High volume, unable to break previous support. A huge sign of strength, looking for long setups.
Looks like we have had a 1hr EU Selling Climax. Prices going up again and waiting for a NS entry. Good amount of room until we hit the 50-61.8 zone. 50% on the daily pivot line as well.
and 5 minute, waiting on the NS and a confirmation
Nice to get such a good entry early in the week
Just for my train of thought. I would be thinking a stop loss below the previous lows as indicated in the 1hr chart and also the blue area on the 5 minute chart. S/L being 1.3280. All good depending on the entry price. Look at a Take Profit level around the pivot line at 1.33607
your S/L got hit buddy! hope you didn’t open position there…
Or not. Just gone through the 1.3280 level. Any comments/critique welcome 
what i see is downtrend channel. friday retracement at fibo 61.8 was strong resistance. expect interesting move aroung 1.3212… lowest on nov, 24… fibo expansion between 100 -161.8
Yes!, going against the trend, sorry but simple as, you have to obey the basic rules, but is it a shake out? It’s definitely not a proper mark down, so I think look for longs, but only after more testing of the 1.3250 area.
True PPF. Also, in looking to what was bought in to, there wasn’t really that much supply in the background. A much better trade would have been with some good obvious signs of support rather than simply rely on the previous support level and high volume selling that looked a bit climactic. Lessons to be learned always and good to get smacked back into the “you’re not there yet” phase. Will make a stronger trader out of me.
Thanks for your comments too thockthockwow. Any criticisms will always be met with the right attitude from me