VSA with No Supply and No Demand trading Strategy

Trading Systems
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Well Some requested i make a thread about Volume Spread Analysis (VSA) and how i use it.

First, i don’t want to promote myself unless others request to see the videos i made on how i trade them, so i will discuss how i trade VSA with No Supply and No Demand Candles here.

Second, Volume on Forex is a double edge sword because it is not 100% accurate on different brokers and in reality it is only ticks happening between the bid and ask, But everything matters is about how much supply or Demand comes in a market (Volume) to react.

Third, trading time plays a big factor when looking for Volume, keep this final thought in mind.

1.) Look for supply and Demand zones on the 1hr chart.
a. It Can be 1 candle with highest volume to be a zone
b. It can be a consolidation or distribution within a range with the first 1hr candle’s Volume bar being high.

2.) Supply and Demand zone with Volume is defined as (increase in Volume and price reacted to the opposite.
a. weak supply and demand zones will not have large Volume Bars.
b. Strong supply and demand zones will have a large Volume Bar with quick opposite reaction.

3.) Look for the a high reaction in Volume on the 1 hr candle.
a. For it to be a valid high Volume, i look for last 2-3 days of volume at that exact trading hour.
b. An increase in Volume each hour by the hour is valid but a weak indication for price to react at that zone quickly.

4.) Look for No Demand or No Supply Candle with confirmation.
a. Look on the 5 min time frame
b. In the supply and demand zones look for a candle with less volume then the pervious 2 candles.
c. Next few candles after the ND/NS Candle needs to close below or above. (One of the candles needs to)
d. INVAILD ND/NS candle, is when the next candle closes above or below the wick of the ND/NS.

5.) Target always the next Supply or Demand zone
a. always have a target the zones, so you can trade the next reaction.

This is a recent screenshot of the ND/NS (No Demand/No Supply Candles) of XAUUSD.

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Here we go. Is that a duck I hear?

Data from oanda, tradingview chart, gold, all the warning signs are here folks byeeeeeeeeee

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So you ditched the “im selling something”, Now its “you use oanda data”, lol your a negative person please give me real criticism after you test what i am talking about.
criticism comes with knowledge not bias reactions. But have a great day.

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Here is EU on election day of 2016 when so many traders are worried about outcome when Volume bars tells it all.

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And here’s

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Gold on election day of 2016, They go hand in hand but, anyways most important is the reactions to these high Volume or ND/NS.

a long and short on same day of a very volatile day, but patience is key.

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Not intetested in history. We are all living the dream based on historical trades.

Dont let me in bud.

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Your trades are all based on historical data,
One of the biggest Hedge manager says Economies move in cycles, and cycles are based on pervious data that came to pass.
If you have that crystal ball thats telling you what futures look like, im sure i wouldn’t be talking to you on here.

But again please i ask you jump in and tell me whats wrong?

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Looking at your analysis and it is very valid. Your idea of trading is logical in the sense that you are reading price action in relation to relevant strength of volume. Well done.

Cheers

Blackduck

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Thanks appreciate it and even if you have productive criticism in what i am showing i have no problem, cheers

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Mate come on, I can search out a smorgasbord of historical charts and apply any technical analysis ranging from simple MA crosses to chicken scratchings in the sand and achieve the same result.

Simple fact is tick volume is a self fulfilling prophecy. Of cause volume is going to increase at Session opens and news releases. Does not mean volume is magically forecasting direction.

This is also a library of VSA books out there that are far more valuable reading than the filth spread forth here.

Also, go visit this thread A brief share, questions around volume, any contribution welcome

This at least is original thought and gives credit where credit is due. Its a long thread, old and dead. And contaminated by old mate pipmehappy but the OP knew a thing or two/

@AllTradingNow, your mistake, two simple words that proved your are a sheep, “smart money”. There is no such thing

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@therealInsideBar

My question to you is do you actually trade?? If so what do you believe are the best indicators to use?? How do you trade??

I hear lots of criticism from you so if you are prepared to criticise how about you impart some constructive criticism on us poor miss guided traders. Please share your wisdom.

Blackduck

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The Wyckoff system is built totally on the theory of smart money moves the market. And Wyckoff is a very valid system.

Blackduck

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Geez, I thought my name would give it away. I simply trade naked off price. Its the only piece of information we get on the underlying asset. Price vs time. I trade block breaks using the template of the smartest folks here on BP. They burn candles to save the planet and drive around in old cars. But they have 4 simple rules. Identify, filter, execute and manage.

I have my own brain and think for myself. I learnt programing and have spent 1000’s of hours backtesting against tick data from dukascopy. I have spent even more time staring at the screen live.

I don’t tolerate fools and am here to kick ass and chew bubblegum. But I’m all out of bubblegum.

I don’t share what has taken me years to figure out. I’m old school who took advice from members like clarkfx, rambo35, martink, tradeviper, thefisherman, bob, mrgone, emeraldoc to name a few. members who have been banned or no longer frequent this site.

But I wont take up this thread with my shite. I’ll offer some insight soon.

But the EURJPY is on my watchlist

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The rectangle indicates a block break. A block is simply an inside bar but viewed on a lower timeframe

And smart maoney is a ICT term and we all are familar with that idiot plus Wyckoff was developed like most for stock, futures etx in centralised markets where real volume could be measured, not CFD in OTC markets

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I am certainly not going to argue with that as I am a price action trader. You are right when you say price and time are the only piece of information because price is what is happening right here right now.

It depends on how you view the world of trading but I find with futures and options volume is a valuable asset to my trading. With the spot FX market, a market I don’t trade a lot, I like to use volume at price.

Whatever floats your boat I guess.

Blackduck

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Capital is the key restant. I simply don’t have the capital to trade futures. I would if I could but I can’t so am left with no other option but CFD in th retail market

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Interesting premise all around. Will be interested in your continued analysis. :+1:

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Correct. If you can get that capital and trade futures it is the way to go. I find the futures market is a far more stable market that seems to run true to price and time. Although the last few days it has been like watching paint dry as futures traders awaite the outcome of next weeks presidential election.

I only have one active trade and that is on oil. I’m down $40 if it gets to break even I’m out as I think this week is s waste of time to trade.

Blackduck

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So Before i get into the entire thing about Volume Bars:

3 things to point out to @therealInsideBar, how are you back testing for years of your price action if that has to do with your chicken gum chewing, When back testing has to do with historical data.
Second thing is we trade pretty much same way i just use Volume bars as a way to spot the exact price action happening now, instead of just looking at long candle for example.

(Never claimed this is a centralized market, that’s why i call them Volume Bars and not pure Volume).

Third call it what you want smart money, Market Makers, Banks, Institutions, Whatever (they are the movers of the markets, be it Futures, CFDs, Stocks, Forex, Commodities, etc.

@steveepperson , @Blackduck , and others ill just reply here and expand on what i see with VSA:

I always take into factor news and major events, also not to mention market opens in different time zones for if Volume spikes happen.

2 pointers:
If i was looking a long body candle and price moved in a certain direction, what helps me point out if price will continue in that direction is Volume Bars (based on How liquid price was getting hit back and forth).
When i see price going in one direction and Volume Bars keep Increasing, then all of a sudden Volume Bars get much lower ( indication to me that MM are no longer able to get the price they want and start going in the opposite direct as i showed with EU and Gold in both those Screenshots.)

I will elaborate more later on why I use No Demand and No Supply as a confirmation to get in the trade.

P.S. Price action is how i trade, i confirm my trades with Volume bars when to entire so i am not just relying on channels, breakouts, and boxes as some other traders look at :sweat_smile:

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This is your mate steveepperson on forexpeacearmy 4 years ago

" Thank you Dale. This is one of the few e-mail addresses I look forward to getting in my in-box. I speak for all your students when I say we appreciate your hard work. In the very short time I have been your student, I have increased my account by about 12%. This even though I have more losses than wins. Your instruction works well. Your site is now the only site I get on for forex price action instruction. Again, thanks. I am looking forward to studying trend lines with this new article."

People are just stupid. Steve is a sheep and a jumper yet over the years he has sold himself as a preacher. He is also sensitive and now I have to file a hurt feeling report with my manager. As I said execution is just part of the equation, but it’s the sexy bit that sells. How we identify, filter and manage a trade is where the hard work is at.

Tick data is heavily filtered by each broker. Even across platforms. I use IC Markets. cTrader has the heaviest filtered ticks, followed by MT4 then MT5. This differs from the charting platform on tradingview. Dukascopy has good volume but it is still different from say ProRealTime or Kinetick. So what volume do you believe.

By default volume increases at market open, news events or economic sediment. So what are you really using, volume or time. And by the time you get confirmation the move is already over. Take the EURJPY I posted last night.

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Today it has broken through the lower trend lines so now I’m looking for a retracement for a better entry point. What that entry point will be I don’t know. Will it come today, I don’t know. Will I be clever enough to see it, I don’t know. The bus doesn’t stop for long but then again, another bus will be along soon. I just have to be ready.

Alas, I am bored now. As long as you dont invite me back in I’ll leave you alone to your hocus pocus mumbo jumbo. If you have something new to offer then take credit for it, but if you are just regurgitating the filth spread across these forums then give credit where credit is due

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Again you came to me when I introduced myself, I never claimed, you or anyone else can’t claim these days they created something knew in trading. We just change our way of entering a trade based on our knowledge.

See you look for price to react to certain areas, I look for volume bars plus price to react In certain areas. The difference is you don’t see a need for volume bars but I can’t trade blind like that.

As for time frames, I said I take the market opens plus news into consideration when looking at the volume bars…
Tick action is all about the bid and ask so… As for certain brokers with their volume bars, I did mention it’s a double edge sword. I personally don’t take one over the other I look at multiple brokers to make sure before I take the trade