Principles of structure,gearing, rythm, symetry and the use of some tested indicators

This is a discussion on Principles of structure,gearing, rythm, symetry and the use of some tested indicators within the Trading Delta Cycles forums, part of the Specialists' Corner category; VSA (Volume Spread Analysis) # VSA is an approach utilising gearing between the price performance and volume related to a ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Jul 13, 2009, 10:50am   #9
2be
 
2be's Avatar
Joined Feb 2007
2be started this thread VSA (Volume Spread Analysis)#

VSA is an approach utilising gearing between the price performance and volume related to a given single bar, or to a formation of several bars.
It is applicable to all TF and TFs gearing is meaningful too. The basic principle links effort (which is volume) with results (price change displayed by the bar), and it is a very logical process, looking at the reasons behind market’s moves.
Spread is the range of the whole bar, with particular importance placed on the close in relation to the open and the H & L.
E.G. a pin bar with high volume is likely to be followed by a change in market direction as there has been a transfer from the weak hands (unprofessional) to strong hands (professionals). VSA applies to single bars or bar formations, like an evening star, morning star, cloud cover, piercing pattern and so on, when an added insight is added by analysing the volume.

This is a pointer and not an explanation of this approach. Both the simplicity and the complexity of this approach can be deceitful, as it is not that simple that every set up will produce great profits, neither it is so complex that only a few can understand it and use it.
There is need to have access to a good data feed where the displayed volume is a representation of a wider market and not the positions taken only within the framework of a given trading platform or a given Market Maker.

Without a doubt a lot has been written on the subject of volume, and I have included only a few sources to be considered.
Master the Markets is worth reading on this particular subject and so is the FF thread, from where you can download the indicators and there is a link to the book and quality articles too.

Recommended books to study:

Tom Williams, Master the Markets, (Third Edition)
DiNapoli, Trading with DiNapoli levels (look for SQUAT, a pin bar with high volume)
John J Murphy, Technical Analysis Of The Financial Markets

Recommended sites to study:

Trade Using VSA (Volume Spread Analysis) @ Forex Factory
Volume : The Truth of Secret !! - Forex Trading
2be is offline   Reply With Quote
Old Aug 5, 2009, 6:02pm   #10
2be
 
2be's Avatar
Joined Feb 2007
2be started this thread Ichimoku

Have been aware of Ichimoku, which is more that just an indicator.
I have found that on H1, and highier TF it provides some depth to trading.
This link( Ichimoku - DailyFX Forum ) is worth reading, I have been using and testing Ichimoku for a while, and do intend to learn more about it.
2be is offline   Reply With Quote
Old Dec 3, 2009, 1:10am   #11
2be
 
2be's Avatar
Joined Feb 2007
Re: Principles of structure,gearing, rythm, symetry and the use of some tested indica

2be started this thread I am currently re-reading and study Tom DeMark inicators, especially the sequential. So far it looks promissing, the book is written by Tom DeMark, New Market timing tichniques. I have had this book for some years and the thread on FF by Foggytrader drew my attantion to that particular indicator.
I have been using some ot Tom's indicators for years, but not this one. So far it has worked well for intraday trading, though I have to test it more.
Shall update you on this one later on.
Keep the positive pips flowing onto your accounts.
2be
2be is offline   Reply With Quote
Old Jan 29, 2011, 1:27pm   #12
2be
 
2be's Avatar
Joined Feb 2007
Re: Principles of structure,gearing, rythm, symetry and the use of some tested indica

2be started this thread Tom DeMark Count


This is an update and a pointer as opposed to a full explanation regarding TD Count and TD Sequential. For an adequate description please read the following, "DeMark Indicators" by Jason Perl, the much larger book by Tomas DeMark "New Market Timing". Jason Perl book is well written and is a good value in that aspect, I recommend to read it first, even Tom DeMark has written highly about that book. IMHO J Perl book is better by being simpler.
To date I have been using TD Count, more then the fuller TD Sequential, saying that I watch for that sequential fulfilment manually (another several bars continuing in the same direction so 9+4 bars). This is mainly due that TD Count indicator which I use works better alone rather then in conjunction with the sequential indicator which is available to me atm. TD Count, the first part of the full sequential is used to indicate possible reversal, or pause of the trending market on a given TF.
I use TD Count on shorter TF, like M5, M15,but I scan the longer TF occasionally too. I also use it alongside other indicators and the principles described earlier.
For example, I am using M5TF with TD Count, M30TF with Market Profile, and H1TF with Hull MA, on these TFs I also use semafor3 indicator (a kind of automatic indication of the minimum reached for a possible reversal based on Fibs). This allows for good intra day trades or scalps with precision entries and very easily readable tools for trade management. It is a discretionary approach, with very clear and obvious rules to be enacted according to PA. I would enter the trade where there is alignment of PA on several TFs, go in the direction of H1 trend, confirmed by HMA set on 30, preferably away and reversing from the freshly painted (or repainted) yellow3, alongside the insight/s gained from M30 with Market Profile (I shall describe it further at some other time) and in accordance with M5TF including TD Count. When I scalp, I am in trade as long as the count continues, if the count is interrupted, I treat it as a first sign to look for exit, and while scalping I usually do so. If it is a longer intra day trade, when the count is interrupted, I will look at other reasons to be in that trade,like looking for a larger amount of pips in accordance with the trend on a longer TF, or a recognised EW structure pointing to a continuation of the given direction, but I would at least protect some profit with a SL, Trailing Stop, or set SL at BE.
I use this approach for intra day or scalping.
I use other approaches too, but these trades last longer, and in case of options up to 5 , 6 wks or even longer.
Attached Files
File Type: ex4 TDcount.ex4 (24.4 KB, 151 views)
File Type: mq4 TDcount.mq4 (17.7 KB, 154 views)

Last edited by 2be; Jan 29, 2011 at 8:54pm.
2be is offline   Reply With Quote
Old Jun 29, 2011, 6:36pm   #13
2be
 
2be's Avatar
Joined Feb 2007
Re: Principles of structure,gearing, rythm, symetry and the use of some tested indica

2be started this thread Market Profile, vertical histogram of Volume in relation to PA
For some time now I have been using Market Profile, to observe the rhythm in relation to Volume (in fx it is a tick volume rather then the side of trades). Market profile and Market Statistics are very similar indicators, and I have arranged them together in the template below. Only Market Profile histogram is showing for clearer picture, and from Market Statistics the VWAP together with STD 1,2and3 of the VWAP is drown. I treat VWAP similarly to the Point Of Market Control in the Market Profile, VWAP behaves a bit like MA of the volume and this volume is displayed in relation to price, the vertical histograms. I use mainly M30, and H1 occasionally.
The volume in relation to time has been pointed in the VSA post earlier on, and is still displayed below the price bars.
Please observe how the price is drown to the Point of Market control from the previous days. Please also observe the formation of a single bell or a double bell, with a thin print/s (single prints on other software)at times of a fast PA.
There are good descriptions of the Market Profile available of FF and Forex STD Forum, please read them both, if this is of any interest to you. Please read Stocky Monk of FF, he has written some useful explanations on the subject of Market Profile.
Attached Thumbnails
g-u-market-profile-m30-28jun-2011.gif  
Attached Files
File Type: mq4 marketprofile_pob.mq4 (7.4 KB, 168 views)
File Type: ex4 marketprofile_pob.ex4 (7.6 KB, 154 views)
File Type: ex4 Market_Statistics_v4_1.ex4 (9.8 KB, 146 views)
File Type: mq4 Market_Statistics_v4_1.mq4 (9.9 KB, 178 views)
File Type: mq4 3_Level_ZZ_Semafor.mq4 (7.9 KB, 166 views)

Last edited by 2be; Jun 29, 2011 at 6:42pm.
2be is offline   Reply With Quote
Old May 31, 2014, 9:03pm   #14
2be
 
2be's Avatar
Joined Feb 2007
2be started this thread During the last 18 months or even longer I have been using TDI (traders dynamic indicator), please Google it and get a copy from other forum/s.
TDI is basically an RSI set to period 13 with two added MA, in that there is nothing new, but it comes very helpful for observing the market structure and divergence.
I am using it on all TFs.
I find it very helpful for intra day trading. There is need for volatility, and at present indices like DAX and DOW are really great to trade.
One needs to spend some time to get used to the particular way that maximises the use of TDI, but in my case the results are worth the effort.
I find that trading Indices intra day one needs to trade the ranges and measured moves and having a longer TF bias though helpful is not always absolutely necessary. I prefer to have some views on longer term perceptive, but on intra day I take trades in both directions, being more careful and conservative with SL and PT when I trade against the trend of the higher TF.

Last edited by 2be; May 31, 2014 at 9:05pm.
2be is offline   Reply With Quote
Old Nov 7, 2014, 2:47pm   #15
2be
 
2be's Avatar
Joined Feb 2007
2be started this thread
Quote:
Originally Posted by 2be View Post
Market Profile, vertical histogram of Volume in relation to PA
For some time now I have been using Market Profile, to observe the rhythm in relation to Volume (in fx it is a tick volume rather then the side of trades). Market profile and Market Statistics are very similar indicators, and I have arranged them together in the template below. Only Market Profile histogram is showing for clearer picture, and from Market Statistics the VWAP together with STD 1,2and3 of the VWAP is drown. I treat VWAP similarly to the Point Of Market Control in the Market Profile, VWAP behaves a bit like MA of the volume and this volume is displayed in relation to price, the vertical histograms. I use mainly M30, and H1 occasionally.
The volume in relation to time has been pointed in the VSA post earlier on, and is still displayed below the price bars.
Please observe how the price is drown to the Point of Market control from the previous days. Please also observe the formation of a single bell or a double bell, with a thin print/s (single prints on other software)at times of a fast PA.
There are good descriptions of the Market Profile available of FF and Forex STD Forum, please read them both, if this is of any interest to you. Please read Stocky Monk of FF, he has written some useful explanations on the subject of Market Profile.
After doing some more studies and revision of Market Statistics I have spotted incorrect and misleading statement in my previous posting related to to the relation of VWAP and Point Of Market Control (or PVP as described by Jperl). Please find his very helpful explanations posted in trader lab and please watch the videos.
This has come to my attention as I have almost stopped trading FX and trade indices and gold atm.
Trading indices made me to use shorter TF and I am finding that the theory of distribution and the use of Market Statistic and Market Profile are of great assistance.
So I use it on M5 and will try M2 and M3 TF too, however that approach demands a much more detailed study of the application of Market statistics.
I use it with conjunction of 89 and 200 EMA, and TDI plus Stochastic.

My best wishes to the traders committed to the process of ongoing studies and improvements and to the rest I convey my condolences due to killed accounts.
2be is offline   Reply With Quote
Old Feb 9, 2016, 3:35pm   #16
2be
 
2be's Avatar
Joined Feb 2007
2be started this thread Fibonacci Retracements and Extensions.

Very good at providing some likely targets in PA.

It is important to get the correct points from which to draw the Fibs.
It is important to identify the first move and the subsequent moves.
For intra day I use the semaphore indicator just to make it easy and for instant recognition. Have added that semaphore indicator to the posted H4 chart to illustrate these points.


Draw fibs with both Retracements Levels (RET) and Extension levels (EXT) added to the Fib drawing tool on any charting software, including MT4.
For an easy recognition I marked them as RET and EXT together with the Price indicated next to them.

Fibs drawn from every subsequent move indicate the important levels of RET and EXT , they are all useful and have to be interpreted accordingly.
I use different colours for the fibs drawn from different points of reference.

I look for clusters of the drawn fibs and mark them accordingly.

Please do not confuse Fib RET and FIB EXT with the Alternative Price Projection (APP) or Fib Expansion as it is known on MT4. I use APP as well as described by Robert Miner in his books but for clarity I have not drawn them on the posted chart.

All these tools are used on all TFs.

Added M5 chart showing Fib 224 ext (almost) reached
Please note the Divergence which gave a good opportunity to go long for intra day trade. Please google Bill Williams, there are some good recordings on Utube.
Price is the last thing that change says Bill Williams - that is certainly true at specific times and levels.

"Because momentum always changes direction before price, we say the AO is like reading tomorrow's Wall Street Journal." (1998) Bill Williams
Also +/- previous day's US close indicated as "war zone" was of some guidance.
Attached Thumbnails
dax-h4-2016-02-09_134526.png   dax-m52016-02-09_153436.png  

Last edited by 2be; Feb 9, 2016 at 6:12pm.
2be is offline   Reply With Quote
Thanks! The following members like this post: paszkman
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Trade and Tested gregoryphelan General Trading Chat 1 Apr 13, 2008 4:29pm
Complete,tested FX systems for sale alchemillia For Sale & Wanted 15 Feb 17, 2007 12:16am
What is the 'net gearing' of a stock? Traderuk Stocks 4 Aug 22, 2005 9:25pm
eur system tested longs slomo7777 Trading Systems 26 Nov 11, 2004 4:23pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)