Volume Spread Analysis

[tech/a]

I think you have Amibroker?
Just concerntrate on a few setups.
Search for them and learn how to apply them.

 

[pavilion103]

I think you have Amibroker?
Just concerntrate on a few setups.
Search for them and learn how to apply them.

Thanks mate.
Yeh Amibroker.

 

[village idiot]

Bobby.

I'm going through my experience with Tradeguider VSA software here.

http://lightning.he.net/cgi-bin/suid/~reefcap/ultimatebb.cgi?ubb=get_topic;f=4;t=000327

tech/a, this link you posted 3 years ago is no longer valid. is the content still up on the web anywhere else? I would be interested to have a read.


thanks

 

[tech/a]

tech/a, this link you posted 3 years ago is no longer valid. is the content still up on the web anywhere else? I would be interested to have a read.


thanks

There is a fair bit over on The Chartist
You might find the original in the body of threads

 

[village idiot]

ok I found it , thanks. a lot to get through there. thanks for all your input, or should it be output, on this subject.

 

[pavilion103]

I'm trying to work out my exit strategy using VSA. Is it too early to exit a position if it doesn't behave the way I expected it to in the first couple of days. Eg if I enter on a break of resistance and then the next day it pulls back but on heavy volume and wide spread?

 

[tech/a]

I'm trying to work out my exit strategy using VSA. Is it too early to exit a position if it doesn't behave the way I expected it to in the first couple of days. Eg if I enter on a break of resistance and then the next day it pulls back but on heavy volume and wide spread?

I believe your talking about 2 different things here.
(1) an initial stop.
(2) an exit.

Your initial stop should be at a place where you can clearly see that your analysis is wrong. A single down day following a breakout may not be a true indication that your analysis is wrong!

Your exit can be any number of things depending on timeframe traded.
Your exit comes into play when your entry (initial stop) is no longer influencing the trade.

Both of these topics have books written on them----
Just test and test and test.

 

[pavilion103]

Are there any books that you would recommend which are specific to this?

Thanks

 

[tech/a]

Are there any books that you would recommend which are specific to this?

Thanks

There are many. Nothing in particular stands out.

What you need is literature which shows specific application of analysis. So when browsing look for that.
Having said that I must admit that pretty well all I have seen is hypothetical.
Ive not seen anything I can remember which shows that applying analysis in a particulary way will give you a particular return---ie tested and proven.

There is plenty of buy setup stuff but nothing of proven methodology (Enter here/stop there/exit here) that I can clearly remember.
Advanced Get has 5 methods in its software all shown at length in the manual.
Tradeguider is all hypotheticals.(VSA).

Ive just found the title of my first book.
"Tested and Proven Practical Application of Technical Analysis"

 

[pavilion103]

When does the book come out?

 

[village idiot]

the long green bar seventh from the end with the high volume; this is a buying climax bar right? rising volume culminating in a bar whose volume is third highest in last twelve months, ultrawide spread into new ground. it closes in top part of bar but not at the high (although one of the many definitions of a buying climax, on p77, requires it to close well off the highs?). that bar is followed by 4 downbars of above average volume.

this is hell bearish amirite?

but then today a bit of buying volume has come in at what could be a support line?

am i anywhere near on the right track here? would be grateful for feedback

 

[tech/a]

the long green bar seventh from the end with the high volume; this is a buying climax bar right? rising volume culminating in a bar whose volume is third highest in last twelve months, ultrawide spread into new ground. it closes in top part of bar but not at the high (although one of the many definitions of a buying climax, on p77, requires it to close well off the highs?). that bar is followed by 4 downbars of above average volume.

this is hell bearish amirite?

but then today a bit of buying volume has come in at what could be a support line?

am i anywhere near on the right track here? would be grateful for feedback

Your analysis is pretty right except perhaps for the last bar.
Cant be seen as buying volume---

I wouldnt call it hell bearish --just correcting.

 

[village idiot]

thanks tech.

yes i see now today's bar cant be considered buying volume as it is technically a down bar (lower close) given that open is ignored in VSA. It does look a lot like an up bar though given that it rose steadily all day (from a gap down open) and finished in top third.

I probably didnt mean 'hell bearish''; perhaps i meant 'this would be considered a bearish setup under VSA principles'. so as far as the scale of a correction, are we talking about the sort of correction that has already taken place over last 5 days or so , are are we talking about a bigger one we are only partially into, perhaps on the scale of the one a couple of months ago from 2650 down to around 2400?

i am not looking for a prediction here, just trying to get to grips with the sort of scale we should be applying this sort of analysis to

thanks