Will VSA work for a long time

Trading Discussion
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http://forums.babypips.com/candlesticks-chart-patterns-price-action/41475-supply-demand-vsa-wyckoff-petefader.html

Is that the type of startgey i can learn and it will last me forever in forex? Like even with heavy market change will it continue to work? Thanks a lot!

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You were asking 'Is that the type of startgey i can learn and it will last me forever in forex? Like even with heavy market change will it continue to work?"
Yes you can learn it. You can use it on every pair, and only on H1 timeframe. Disadvantage about this strategy is that you can only use it once a day between 12-15gmt usually. For example today which is Monday and Fridays the market is really quite and then you cannot use this strategy. That’s why most VSA traders only trade on Tuesday, Wednesday and Thursday. Because you need an ultra high volume (not a high volume, but an even bigger one that must be ultra high).

How long will it take to learn this strategy? This strategy takes 2 or 3 days if you dedicate fully on VSA. You can also learn it in 20 minutes if you read my summary about VSA. Here it is:

Wyckoff strategy
Trainer: Pete, Tom Williams, Gavin Holmes and others

Buying climax: the end in a buying trend
Spring: test where price reaches back to SV level

Indicators for VSA method

  • 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

Reversal signals:

  • Large candle + high volume

  • Wide spread (big upthrust candle)

  • Sudden big volume big in M5 chart usually means it reverses gradually

  • Next candle of bearish SV is higher than SV.

  • 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

  • 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)
• AR/upthrust has high volume (the exact candle that bounces off the S/R, the volume of the mid-candles are not so important)
• NS has low volume
• a bearish SV is placed higher than the next candle
• previous lows that are BEFORE the bearish SV, has low volume.
• SV doesn’t contain a pin/shadow/wick
• near SR levels, daily/weekly/monthly pivots, fibo level 50, 50ema (or even 40ema in one of Pete’s videos).
• Or looking in the smaller M5 timeframe, a sudden big volume bar on a bearish candle usually means price gradually falls
• 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
• 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.
• 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.
• near the end of a symmatry trendline projection

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When it comes to forex my experience is those skilled at VSA are even more skilled at tech analysis. VSA then becomes their trigger. No short cuts here my friend. You have to learn it all.

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Hiya… Read the thread about volume by Emeraldorc ‘A brief share’ etc… You will learn one thing or two!/

Good luck

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Gday old mate. Yes i was very much thinking of emeraldorc.

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He is the ‘King of Volume’, as I like to call him! Also, GP00053 is a VSA trader, and the three of us discuss VPA, Anna Coulling, Wickoff, and Levermore among other topics: a great thread!

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Yeah unless you’re a dumbass like me and trade ticks. Theres no volume there lol.

But to the OP you wont go wrong hanging out there and learning. The thread participants are very skilled very knowledgeable and very willing to help

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[QUOTE=“bobbillbrowne;692375”]Yeah unless you’re a dumbass like me and trade ticks. Theres no volume there lol. But to the OP you wont go wrong hanging out there and learning. The thread participants are very skilled very knowledgeable and very willing to help[/QUOTE]
Disagree I think volume is what’s driving the tics
Just don’t have a indicator out there that can give you the accurate volume for each tick that comes out rmr 90% indicators are lagging
If you could see the volume per tick man you be ahead of the game in a sense bar far

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Yeah, have to agree and disagree bro. You’re right I don’t see volume in the traditional sense of a vertical histogram. Volume is displayed on the horizontal scale and is represented by an increase or decrease in the number of bars in a set time period. And if we could see the real $$$ value of a tick transaction then VSA could quite possibly be the only form of analysis one would ever need.

But I’m acutely aware that ALL brokers filter their tick transactions. Compare my broker (IC Markets) between platforms (cTrader has a far greater tick feed than MT4) then to someone like Lmax whos tick feed is far greater yet again (3 to 5 times) and you realize just how tuff it is to gauge volume. Usually (and I’m happy to be corrected if I’m wrong) practitioners of VSA get an independent data feed to ensure the quality.

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VSA can be used on Monday and friday LOL. The 1hr is not the only TF we use. Not every setup begins with ultra high volume. I know you’re trying to help but it’s the second time I have to correct you. No VSA trader would ever say that stuff.

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The Wyckoff material is like 100 years old and it still works. If anything I’d say you found the one method that HAS proven it’s self to always work. It’s based on supply/demand principles that will never change.

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To clarify, the volume we are seeing in FX is the amount of price ticks per candle. We look at it’s increases and decreases relative to the recent bars and average for the time of day. By measuring the activity at key TA points along with the candle spread/close we can see what Smart Money is doing or not doing and if it’s buying or selling. We are simply measuring market activity, but large traders cannot hide their activity, especially because they enter in concentrated blocks which cause excessive tick activity.

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Change the previous commenters “3-4 days” to learn, to 3-4 months, minimum :slight_smile:

Additionally, you’ll need to get versed up on Price Action & Market Structure too.

A degree took 4 years to complete, I make more money from trading than my degree, thankfully trading didn’t take the full 4 years (but it took most of it!)

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This guy has a fair bit of knowledge but unfortunately he can be a bit harsh on people who ask questions ,spose he’ll reply something nasty to this.But we all have to learn.hey ho.

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I’m a VSA trader, I studied Pete’s material, I’m in his group chat and also learned other VSA stuff, books, videos, etc. In my opinion knowing to read volume is a very powerful stuff, and even if somebody is not doing VSA exactly, using volume on his chart should be a must.

But just knowing VSA is not enough, it is just a confirmation of the price action. So you have to know the technical analysis pretty well, support and resistance, fibo levels, trendlines, Elliot waves, double/triple top and bottom, head and shoulder, etc. Upon this, VSA comes as an advanced level.

With studying VSA you get to know the tricks of smart money, so you won’t get sucked in. If you would use just volume and trade some other strategy, usually you would not know them.

The comment from michaellobry is not totally true as Pete pointed out.

It is kinda seems like with this question, that you are looking for the Holy Grail. Well VSA is not the Holy Grail, but it is the closest thing to it, in my opinion.

When you get to know how this thing works you realise, logically the market wouldn’t have any other way to work. The big money wants to buy low and sell high, they are not looking at indicators. Like people at Citibank are not like “hmmm the RSI is above 50, the 20 EMA crosses the 50 EMA upwards and the stochastic is pointing up, time to buy 2 billion dollars guys.”

I’d say it really worth learning and I feel lucky that it was the strategy I started with.

1 Like
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What is VSA?!?!

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Volume Spread Analysis .Have a look at Petefaders thread.While I find him a bit abrasive sometimes he seems to know his stuff.

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Hilarious. Plenty of traders in the community have dealt with me directly and know my character. Yours as well…

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His reply speaks for itself really doesn’t it ,there are plenty of other vsa people on this site and is the reason I don’t use his.Even when you say good things about him he’s still obnoxious.

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Nasty, abrasive and obnoxious…that’s good? Oh the part about “I seem to know my stuff” by bad, thanks for the kind words.