How can you make a statement like that.
You trade with VSA?
You actually understand it?
Depth is and can be misleading.
Orders at market dont even show.
When the big players move they dont sit in depth.
You could make that statement about anything, stock, index, future.
TH's way of trading isnt the only way to turn a profit on a chart short term.
To make a point.
Interested in your VSA analysis on this chart.
from the last BAR.
Say the analysis for the next 3 bars and perhaps you can tell me why the next 3.
That BIG Volume on the second last bar.
buyers or sellers?
Its an index chart
I used to use VSA on stocks (obviously not to the extent you do), not tradeguider to the tee, but my own interpretation. Because I don't believe you can read into every bar or even close too it, nor see it on every chart, only in some instances when there is something of note happening. Don't use it at all at the moment, as I only trade SPI. On the chart, I would need more background, but looks weak to me. High vol after falling out of a range, but a low close. Bit of a pause before the selling continues, assuming the chart was in a downtrend beforehand? And I obviously can't tell you if it is selling or buying, as it is BOTH equally, only if the bears or bulls are taking control of the price action.
I didn't say VSA won't work on an index, because it will, I said on the SPI. A big trader can simply be covering, which won't mean a thing and you will read something into it, as I did when I started trading the SPI. It only got me into trouble.
Depth is not misleading, it is what it is. And you can clearly see who is hitting market, what are you talking about? The spread is crossed. Simple as that. And yes, some big players DO sit in depth, watch the SPI rally Friday afternoon and you can see a clear buyer sitting in there, chasing it up. Not even pulling bids and trying to give the illusion he has gone and getting better fills. You also see them come in to defend levels and this is where you get strong support or resistance levels. I think a week back, it bounced off the same level about 3 times in 3 days and set the low for the day.
There is no TH way of trading, I am sure I take completely different set-ups to him many times a day. We probably exchange contracts on the other side half the time!
