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Skeptical about VSA


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Skeptical about VSA

  #11 (permalink)
MajorMagnuM
south west UK
 
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bobwest View Post
It's very unlikely that one method of trading on volume, or anything else, will always work for all traders at all times, so it does not make sense to just take something from a book and run with it.

If you can use it to help make sense of price movement, along with everything else you know, and if it can add to your skill set, then make use of it to the extent that it does.

Basically, even if there were a "Holy Grail", it would probably not work for anyone unless they took it into their own understanding of the market and made it their own. So see if this VSA stuff will help you. Look at it in terms of your own understanding and how it works for you, or not. What it may or may not do for someone else will not matter much.

There is always more than one way to trade well. All you need is to put together something that you can make use of yourself.

Bob.

bloody well spot on

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  #12 (permalink)
 DbPhoenix 
Phoenix AZ
 
Posts: 470 since Dec 2012


ratfink View Post
Yes, I agree it's important and I do make use of OHLC+Volume myself. I would like to be better at it but I have enough alternative pictures that a little is enough for now. Cheers.

If you want even less, and you watch your charts live (which I assume you do), focus on the activity (how many ticks per interval, e.g., 5s), the pace (how fast price moves), and the extent (how far it gets). Given that volume is only an illustration of the number of shares or contracts or whatever changing hands and has nothing to do with whether or not price rises or falls, one can just monitor these characteristics at the same time he's watching his price bars/candles. Saves space and eliminates one more thing you have to fool with.

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  #13 (permalink)
 
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 ratfink 
Birmingham UK
Market Wizard
 
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DbPhoenix View Post
If you want even less, and you watch your charts live (which I assume you do), focus on the activity (how many ticks per interval, e.g., 5s), the pace (how fast price moves), and the extent (how far it gets). Given that volume is only an illustration of the number of shares or contracts or whatever changing hands and has nothing to do with whether or not price rises or falls, one can just monitor these characteristics at the same time he's watching his price bars/candles. Saves space and eliminates one more thing you have to fool with.

I do already make good use of exactly this sort of information, thanks for confirmation of the approach. Although I do also like deep understandings of many aspects, so I'm not so good at the 'less' bit yet. Work in progress.

ps. Appreciate your SLA/AMT, always so easy to lose forests for trees.

Cheers

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  #14 (permalink)
 DbPhoenix 
Phoenix AZ
 
Posts: 470 since Dec 2012


ratfink View Post
I do already make good use of exactly this sort of information, thanks for confirmation of the approach. Although I do also like deep understandings of many aspects, so I'm not so good at the 'less' bit yet. Work in progress.

ps. Appreciate your SLA/AMT, always so easy to lose forests for trees.

Cheers

I understand. I used to be big on volume. Wrote quite a bit about it. But time marches on, and after further years of trading via charts, one begins to see what is in the "volume bar" reflected in the price bar. Eventually the volume bar becomes superfluous, and the real estate becomes more valuable than plotting something one doesn't really need.

Same thing goes for indicators. I flirted with the MACD and a slowsto once upon a time, but it didn't take long for me to be able to "see" what the indicators were doing without actually plotting them. Which also saves a lot of real estate. I don't have to plot a 20d to know what it looks like or when it's crossing a 10d. Instead I'm looking at the culprit behind all these movements: price. And it makes the whole thing a lot simpler and more relaxing.

To me, Williams got a lot wrong from the Wyckoff/Evans course he took, partly due to the influence of Richard Nye. And while I don't want to deny or prevent anyone from investigating anything, there is a danger in picking up information that may actually retard one's progress in one way or another, simply by having been exposed to it, like "unseeing" a movie that was truly awful.

I don't recommend VSA because it's fundamentally flawed. But we often learn as much from finding out what we disagree with as we do from that with which we are in complete agreement.

And thanks for the endorsement.

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  #15 (permalink)
BW10
Houston,TX,USA
 
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of course, there is no one "holy grail" or system, but my main goal is to become consistently profitable and knowledgeable in more than one way of trading. This way I do not become a one trick pony so to say, in the event one system does not work. thanks for the help/advice everybody!

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  #16 (permalink)
 kenyee 
Detroit, MI
 
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I do not want to post any endorsement or negative information on the forum due to the fact it would be my opinion on a product I have purchased in the past but currently do not use. [email protected]

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