Know exactly what you mean, although not that easy to see, once you get used to it there's nothing like it!
Saw that happening today on the 6E between 13:52 and 14:00(GMT+1).
I don't record my trades but when I go back to market replay to make a video of it (I use Ninja), it doesn't look the same. I mean, I don't see EXACTLY what I saw when I was live in the market!
The speed at which I saw things happening in the ladder isn't the same.
Maybe market replay doesn't replicate everything that happens, or at the same speed, I don't know.
But I think a video is really helpful and an excellent training tool!
VSA is very useful. It makes assumptions about the volume, where it occurred and who was the dominant side. Some of those assumptions can be clarified/proven by looking at time & sales and/or volume profiles & ladders.
Be careful using indicators such as buy/sell pressure as all this is very context specific and those indicators ignore context. One can study time & sales, DOM, & volume ladder rather than use an indicator.
Thanks for the tip.
Iīm curious if one can also use Gomiīs volume delta bars but as far as I remember, he use bid and ask values to generate the bars. Do you use IRT and if yes, have you compared it with gomiīs delta bars and what are your experience / conclusion with IRT?
Are you using an indicator for your VSA? Because I use range bars, time is something I don't take advantage of. With the bettervolume indicator, Fat Tails says it can't be used on all time frames. Between 3 to 10 minutes is the best choice. How are you using VSA?
Do you look at time&sales with your PACEOFTAPE indicator? I use it on the 6E to measure market activity. The mornings are usually boring to trade (GMT+1). Thank you for this great indicator by the way
I used to use IRT but when I stopped using volume profiling I found it not worth the additional cost as I had to have another program to place orders. I have not used gomi's stuff in actual trading but when I've put them on the chart I've found them to be similar. If you use NT for everything and can get gomi's stuff to work, it's worth it to me not to have to run 2 programs. But like I said I don't use any of that stuff much. You can try IRT for a month at a time, it's $75 per month and quite a nice program, just not for my needs.
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The better volume indicator is a VSA indicator, in the sense that it exclusively relies on the analysis of spread and volume. It uses a lookback period of 20 bars and identifies events, where either the product of volume and range, the ratio of volume per range or volume itself are highest or lowest over the lookback period.
The problem occurs, when you use it in a way that some of these 20 bars are pre-session bars (which always have a lower volume) and some of them regular session bars. You will get lot of signals, when the regular session starts, which you have to ignore.
For example, if you use the better volume on a 15 minute chart, it will give you reliable signals prior to the session start. Then it will trigger lots of signals anyhow, which cannot be used. Once you are 20 x 15 minutes = 5 hours into the session, the signals will have the same quality as before. So there is a blind spot after the session start. Even if you reduce the lookback period to 10 bars, the blind spot will still be 2 and half hours.
Now with 5 min bars, the blind spot is about 100 min, with 3 minute bars it is exactly one hour. If you just use 1 min bars, the blind spot will only be 20 minutes, but 1 min bars may not be reliable, at the high volume bar may just show a large order that was dropped. I have personally found that signals from 1 min bars are not significant, and I want to see a sustained pressure over a longer period of time.
The Better Volume indicator works well on daily charts, as these are not affected by low pre-session volume.
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That makes sense but how about a 24h market like the 6E?
The product/ration of volume and range oscillates all the time. Sure it has an European, US and Asian session but it's not linear. In the European session, for example, I can see the market stop for 2/3 hours after RTH and start again when the forex markets open (before US RTH).
This means I have to count another blind spot after I see the market start again, because it's low pressure volume, right?
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