Vsa learning club - page 3
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Hey guys ...out in the middle of no where camping...on my iPhone! Isn't technology amazing...lots more trend stuff too come ..were gonna get down pat before we move on..be home this weekend! Best regards, john
Hey guys ...out in the middle of no where camping...on my iPhone! Isn't technology amazing...lots more trend stuff too come ..were gonna get down pat before we move on..be home this weekend! Best regards, john
hi John, enjoy the rest of your holiday! Les_Paul
Broker
I've noticed that the choice of the broker is really important. I've been told many times that IBFX is a good broker, but the volume is really bad. At trigger levels there is almost never ND or NS. Either the volume is average or the bar is an up bar instead of a down bar for NS and reverse for ND. And often big volumes bars are anywhere in the midlle of a trend and they are not showing anything clear regarding the sentiment of the Smart Money.
For the demonstration of the Tradeguider plugin for MT4, Gavin was using FXCM as a broker. That's a great one.
So if we want to trade VSA, then first we have to find the right broker. You'll see, the difference is like day and night!
hey guys...back home and ready to get back in the game! how'd everybody due last week? ok so we left off with identifying the trend ....i did a little research on trends and was suprised that investopidia uses bacically the same set up , with the 3 ema's, that i posted earlier...now im not suggesting that anyone use this method but you really cant deny that price has a funny way of obeying these lines...when price peirces the 50 ema of one tf then it typically will re-act to one of the ma's of a larger TF...it seems that it always comes down to one of two things ..is the smaller tf just retracing or is it strating the change of an overall trend direction...and the good news is we can use VSA to confirm the correct answer...as i said before i hope to reach a skill level that doesnt require the use of any indies but for now they do serve as training wheels...regards, john
theres a couple of other trend helpfuls id like to mention..the diamonds offered by TG (and i believe there is an indie for mt4 thats very similiar) are a great trend identifier...and of course ther are channels which is used by tom in MTM is another great one...and lastley one of the TG indies (that i also believe can be used in mt4) that has really helped me out alot is the one that colors the bars..red for down and blue for up...not sure the name of this indie but as gavin says it not only helps id the trend but helps keep you in a trade longer by keeping the overall trend the same color even when you get a bar or two that goes against you...see chart below
so what do we have ..we have 3 ema's(10,21,50)..we have trend channels...we have the diamonds and we have the colored bars!( i highly recommend the colored bars, there awesome...
as for the drawing of the channels MTM says in a downtrend we chose 2 points on top and one on the bottom of the channel....
if any one else has any thing thats working really well for them please lets us all know...but for now lets go with these...
id like to add a quick disclaimer..although i use TG ..i am not affiliated with them in any way and am not recommending the use of there product or any product...if you want my personal opinion on the TG software just PM me and ill gladly answer any questions you have!..regards, john
ok guys , i think were ready to move on to the next step..were definetely going to be talking more trend stuff as we go though..we havent even really gotten to any real vsa stuff yet but since this is a step by step approach we need to get the preliminaries out of the way...tomarrow we move on...unless theres some comments or questions or something else someone would like to add....best regards, john
Nice to have you back John! :-)
thanks D...good to be back...i think...lol..vacation was nice...could use another one i think!..ok so lets break it down...
1) based on our daily/weekly goals weve identified the type of trader we are.(ie, short , mid, or longer term)
2) we pull up our charts and CHECK OUR NEWS for the day!!!
3) next we IDENTIFY the CURRENCY and the TREND of the currency that were looking to trade...
4) next we do a BACKGROUND check!
ok guys i feel like our next step is looking at the background...which will include drawing triggers and S/R ect... now i did some research into the subject of background and talked to a few VSA veterns who all gave me the exact same answer.... heres the quote
"When they talk about looking in the background, what you are looking for is where was there High volume activity in the background. Look at your volume Histogram and see where you have high volume bars.
Thats the area's you should be taking note of when PA re appoach's . Thats how strengh and weakness is derived. Hope that helps."
i got this exact same answer from several vsa experts....im gonna scan malcolmb, pres78 and hidden gaps (from here on out i will refer to them as the 3 wise men...LOL) post to see if theres anything they have to offer..but for now i do believe this is a very accurate way to do a background check..more on this later..regards, john
btw ..ive invited a very close friend of mine who use to be a professional money forex trader to join our discussion...
last note
to any one who would like to follow the thread i just want to make it clear that i am not a VSA expert..far from it...my goal here is NOT to teach per say..but to learn...im basically learning as i go and typing what i find...and hoping and inviting any one with some vsa knowledge to please share it...i am drawing most of my info from the Master the markets book and gavin holmes works...i do draw some of my info from some of the vsa experts over at the factory..pm me and ill pass there avatars to you for further reading..i highly recommend reading ALL there post..its a wealth of knowledge...
so if you happen to read something i post that you find incorrect please post your thoughts and more importantly WHY, so that we can all learn..best regards, john
more on trends
ok i was reading through gavins 2nd book and theres some really interesting info on trend channels id like to share....in both MTM and trading in the shadow of SM books trend channels are highly recommended....this is how the book says to draw your channels...in a down trend (see chart) we note UHV and start our trend channel by selecting the top of the bar at point A because we have made at least 2 lower highs previously (at points 1 and 2)...at point B, we again note the UHV since the market pulls back up and we select point B as our second low. the reason we select point B and not point D in this downtrend is because point B shows the higher volume. point C would have also worked based on this theroy i believe. the interesting thing is for the bottom line of the channel TG automatically drew from point E but at point F we had much higher volume so im not sure whats going on there ...but point F has the highest volume and would have drawn the same basic line....i need to do some more homework on the bottom line draws....now, gavin talks about after drawing your channel we want to look for our VSA signals in the over bought and over sold areas, especially at our tigger levels(which we'll get into further down the road) and that are in the direction of our trend.....best regards, john