I have some basic questions about VSA principles. Yes, yes, Forex does not have real volume, I know. Anyway, if someone strolls here who knows about this stuff, feel free to contribute.
1 This is a very bearish bar, closing on the low and it has follow-through. So from here, I assume a bearish background.
2 This bar closes a little off its high and has a bearish following, so the heavy volume is assumed to be bearish, meaning more weakness in the background.
3 High-volume bar, closing in the middle, bearish following. This means even more weakness.
4 High volume and very low spread on an up-bar with a level following leads to the assumption that the volume was absorption volume. So there we have more weakness.
5 High volume, closing on the low, bearish follow-through. More weakness.
6 High volume on an up-bar would indicate strength, but the price falls, so the volume must have been bearish.
So there I have six times heavy volume that should have been bearish - yet price continues to rise throughout the rest of the chart. My question is: The chart is the EUR/USD from yesterday. Today, price has been in a rather tight range. Even if the analysis turns out to be correct and price eventually falls - how do I figure out when to enter a trade?
Then why are you using terms like “high volume bar” and asking how to make decisions on that basis?
You’re right - spot forex doesn’t have volume. So what makes you think it’s a “high volume bar”? That would be the “volume” shown under your chart, wouldn’t it? You say you “know” that spot forex doesn’t have volume figures available, yet you’re discussing it all in terms of your broker’s volume, which has nothing to do with the market.
If you want to use volume information (and you should), you need to start by having available the volume of the corresponding front-month future. That actually means something.
That’s because you’re looking at something irrelevant!
Not only the volumes are important but also the time is very important in forex trading. When to get in the forex market and when to get out that knowledge is very important. Otherwise your whole hardworking will go in waste. If your broker don’t provide the volume figures you should change your broker. Because it doesn’t goes with the market. Another thing I wanted to tell you is you should trade with such a broker who understand what do you want. Before that you have to understand what actually you wanted to do.
I asked specifically for actual VSA explanation, not for answers like “There is no volume”. I am aware of that. Yet: the volume on the chart is tick volume aggregated over several inter-bank volumes. So the approximation should suffice for relative figures.
You say so, but you also ask questions that demonstrate the opposite.
No it isn’t.
If your broker’s telling you that’s what it is, then your broker’s lying to you.
It represents transactions in a different market from the one you’re betting in.
No it shouldn’t, and no it doesn’t, and no it isn’t an “approximation”, and the fact that you don’t understand that is what’s giving you the problem.
It would help you to listen to Lukas rather than to be so dismissive of his explanation: he happens to be the person posting in the thread who knows what he’s talking about.
This is absolute nonsense - it’s just completely wrong.
Here is a link to the “Futures” that some on this thread refer to - apparently they give you “tick bars” which they seem to call “Constant volume” ?
And apparently you can get “volume” for the futures - but it seems to cost you money.
Whether basing your trades on that is any better than the bars at the bottom of your chart i do not know. If anyone knows a better explanation of forex futures and how to accesss them, I’d like to know
Again: I do not need answers like the above. Neither the chart nor the volume data on the chart is that of my broker. I am simply looking for an analysis from a VSA point of view. If you are not able to give that, do not reply.
Tick bars and constant-volume bars are two very different things.
If you’re using them only to trade spot forex, rather than trading directly from them, it’s $5 per month, which doesn’t break many people’s banks.
LOL!!! “Only people who share my delusion are welcome to reply. I don’t want to hear from any industry professionals who might actually know the facts.”
Honestly, Falstaff, it really isn’t, because it’s volume from a different market and the two don’t correspond.
It’s terribly difficult, explaining this at BP, where so many people have read the school pages here that give everyone a deeply mistaken impression of what a “broker” is and almost everything about how the industry actually works.
You have absolutely no clue what you’re talking about!!
Well then either explain what you are talking about, or give us a link to where we can find out please ! otherwise you are not being helpful, just a pain !
