VSA for ThinkorSwim

December 11th, 2010, 09:35 AM

Dqbuzz.... First, I would like to shout out a couple thankyous to you. I caught the Galvin webinar you mentioned earlier this week....( it was so informative with live trading using VSA) and then secondly, the wonderful charts and methodologies you took the time to post. Your trade / chart was great, as it also had what I mentioned in the previous post, the test for supply (white box) , followed by the successful Test symbol (Cyan Triangle.) Very Nice!!
VSA techniques used off support and resistance areas really is a combo for success!
I will post a chart of a different kind of VSA setup I caught Friday on my next post.I first need a couple more posts to get it to allow me to post pictures / charts.

December 11th, 2010, 06:22 PM

Guys, I admit that I did not read this whole thread, but I did read most of the pages. Kudos to all who have contributed. I am most thankful.

Unlike most here, at least from what I can surmise, I don't regularly find myself working with intra-day charts,with minute increments. I'm more of daily charter, 3 and 9 months, trying to spot longer term trends and possible reversals. I read somewhere that VSA's are mostly for traders looking at 1, 3 and 5 minute charts. But, contrary to this, I also read that VSA's can be successfully used on daily and weekly charts.

So, I'd be curious to hear your thoughts, or better yet, experiences in this respect. And, with that, might there be a "better" ToS script or modification with this in mind?

December 11th, 2010, 06:43 PM

I see that TradeGuider has something called "Trend Clusters". Is there code for TOS that can do that?

December 29th, 2010, 03:55 PM

I found an image posted by Karthik that has a lower indicator that looks like his three time periods plotted on it. Does anyone have ideas on how this plot could help in trading decisions? Maybe there's some crossover points that mean something? I think he uses the Amibroker platform. There's some interesting heatmap type ribbons on his chart also.

Here's a trial code for the lower indicator, if anyone wants to see if it helps.

Code

# SJ_VPA3TimePeriods
declare lower;
# Trend Definitions
rec fiveDaysSma = compoundValue(5, Average(close, 5)[0], Double.NaN);
plot LongTermTrendSlope = LinearRegressionSlope(price = fiveDaysSma, length = 40)[0];
LongTermTrendSlope.SetDefaultColor(Color.red);
LongTermTrendSlope.SetLineWeight(1);
LongTermTrendSlope.HideTitle();
LongTermTrendSlope.HideBubble();
plot MiddleTermTrendSlope = LinearRegressionSlope(price = fiveDaysSma, length = 15)[0];
MiddleTermTrendSlope.SetDefaultColor(Color.green);
MiddleTermTrendSlope.SetLineWeight(1);
MiddleTermTrendSlope.HideTitle();
MiddleTermTrendSlope.HideBubble();
plot ShortTermTrendSlope = LinearRegressionSlope(price = fiveDaysSma, length = 5)[0];
ShortTermTrendSlope.SetDefaultColor(Color.yellow);
ShortTermTrendSlope.SetLineWeight(1);
ShortTermTrendSlope.HideTitle();
ShortTermTrendSlope.HideBubble();
AddChartLabel(Yes, "LongTermTrendSlop", Color.red); 
AddChartLabel(Yes, "MiddleTermTrendSlope", Color.green);
AddChartLabel(Yes, "ShortTermTrendSlope", Color.yellow);

January 3rd, 2011, 11:14 AM

By current versions, I don't mean in ThinkScript code, unfortunately. Besides Karthik there are a few others who have programmed VSA indicators for Amibroker that some energenic programmer might like to translate to TOS or we could just add Amibroker to our toolkit. I'm attaching the codes for those who are interested. Programming credits go to: Karthik Marar, PivotProfiler and Coats.

Attachments:
Karthik Marmar - VPA V.1.1
Karthik Marmar - VPA V.1.2
PivotProfiler - VSA(PivotProfiler)
Coats - VSA(Coates)

January 5th, 2011, 01:32 AM

This image shows the price and volume at a stock's reversals and the best places to get the most out of a trade.

January 27th, 2011, 07:00 PM

Here's the pivotprofiler version above converted to TOS exactly as written. I haven't done much with it yet to jazz it up so feel free to do so and if I have time I will come back to this in a couple of days. Still needs multiple ma's added and much better graphics.

January 28th, 2011, 02:49 PM

Very interesting indicator. I've been giving my best guess on how to use it, but if you have some background information on it, please post it. I'd appreciate it.

February 2nd, 2011, 10:30 AM

I haven't posted in a long time but am dropping in today to share a particularly clear example of the VPA study working quite well on a 2-minute 6e chart (see attachment). Over the past couple of months I have been watching to see if the candle colors are useful in any way. The conclusion I have come to is that they aren't always useful but they tend to be quite useful at the extremities of a move. A case in point is seen on today's 6e chart. The two Yellow Circle Stopping Volume symbols at highs clearly signal the end of a brief Up move. The fact that the second Yellow Circle appears on a green candle adds strength to its indication, although this particular example is not after an extended Uptrend in which case the indication would be even stronger.

The second set of symbols is a stronger example of what I'm talking about. I have noticed that at the end of extended downtrends marked by numerous red candles following a series of Orange candles the appearance of Green indicators of any kind tend to be quite meaningful. In this case a Green Square Strength in Downtrend followed by a Green Arrow Strength in Confirmation 2 clearly indicates that an Uptrend is imminent. The Yellow Triangle Weakness Warning appearing subsequently doesn't carry as much weight as it would if it occurred on a green candle after an extended Uptrend. All it indicates here is a brief pause in an Uptrend that has begun.

I am also seeing value in mentally combining 2 or 3 candles in order to add (or subtract) strength from a symbol or set of symbols. At the end of the downtrend marked by "Time to Go Up" the three-candle combination of two Green Symbols and the previous down bar would create a strong Green Circle Stopping Volume symbol on a Long-Lower-Wick Hammer Doji on a 6-minute chart.

[A side note: The fact that "Time to Go Up" is positioned at the bottom of a brief excursion below the 6e's Daily Pivot and yesterday's 11:30 AM ET London close adds significance to the green symbols on red candles following a series of orange candles. When in a Downtrend the 6e often likes to dip below the DP or the most recent London close before moving back up over these levels. In this case, the two levels are very close to each other so the tendency to dip and recover was even stronger].

I am not currently doing any development work on the VPA study but am still watching its behavior and learning to use it profitably in my trading.

Good trading to All!

February 10th, 2011, 07:47 PM

Snowcloud,

I guess that I'm still not clear on applying VSA as you are. Could you provide a little more clarifications to your posting?

snowcloud

The fact that the second Yellow Circle appears on a green candle adds strength to its indication

Your combining a colored symbol with a colored candlestick for an intrepretation. How are you applying VSA principles to intrepret this?

snowcloud

I am also seeing value in mentally combining 2 or 3 candles in order to add (or subtract) strength from a symbol or set of symbols.

Why do this mentally and just use the next timeframe?

snowcloud

I have noticed that at the end of extended downtrends marked by numerous red candles following a series of Orange candles the appearance of Green indicators of any kind tend to be quite meaningful.

Please explain why you think that a sequence of VSA colored candlesticks mean something.

snowcloud

I have been watching to see if the candle colors are useful in any way

I still haven't found any meaningful VSA use for them. If you have, please elaborate.

snowcloud

"Time to Go Up"

Which VSA indicator says this?

snowcloud

a strong Green Circle Stopping Volume symbol on a Long-Lower-Wick Hammer Doji

I'm not clear on how to read this using VSA. Could you explain this further on how you are using candlesticks with VSA?

Thanks for your help.

VSA for ThinkorSwim

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