USDCAD H1 Trade Analysis

USDCADH1trendlinesetup

In this short trade there were 2 major errors:

1) There was a nearby Major Demand signal. Even though a down trendline is nearby, with significant demand behind, there is a high probability that it’ll break, or that a significant rally is to happen, hitting the stoploss. In this case there was a demand signal which prevent further losses, but as you can see the price then rallied significantly.

2) The background was blue (strong) at the time – it analyzes the supply/demand signals and trend, so a strong background means the conditions are right for a trend change, not a downtrend continuation.

USDCAD Intraday Volume Spread Analysis

USDCADH1
 
At 17th April, there was a significant selling climax in the market, marked by a green signal with a corresponding red volume in the histogram, at values way above the average. Since then, there was an attempted rally, but the volumes didn’t pick up nowhere during the whole rally, showing lack of interest by professionals. Without demand, the market had to go down to test the previous area of demand, and/or continue the accumulation.
Right now, the market is testing for supply, which can be seen by the gray bar in the histogram, with the candle making lows on the lows formed by the selling climax. If the test is successful (= no supply), the market should rally in the next few bars, because the smart money will jump in such an indication of strength. If it’s not, it’ll stall or even break the support. This is yet to be decided, and there is another factor going on – the market is trending lower, making successive lower lows. So for a possible long I’ll wait for prices to at least rally and make a dip where that red rectangle is, confirming a successful test and a change in the trend. If however this support is to be broken, the prices aren’t too far off the lower part of the channel, where a future price reversal can take place.

USDJPY H1 – Trading Volume Spread Analysis Near a Support +97 Pips

USDJPYH1_srtrade

1. Background (100) was strong
2. There was a strong signal near the support, which means there was demand
3. Wait for an entry bar near the support. The Yen gave plenty of chances to enter, and some even at a better price than at this trade
4. Exit after a Supply signal. Note that there was a previous Minor Supply signal, but 2 of those are required to exit, as those often just signal a temporary reversal.

Trader Gives His Opinion about VSA Trader

Hi my name is Rob Taylor and I am a professional Forex trader and mentor. I teach new and experienced traders how to make money consistently from the markets, by trading with knowledge and understanding.

So what am I doing here you may ask. Well I first came across Leo when he contacted me through Forex Factory about the possibility of creating some VSA related content on my blog. Now I am not a VSA trader myself, but the content he proposed was of high quality, and I felt that it could a benefit to my users, so I decided to publish the content on my site.

After publishing the content I decided to have a look at Leo’s VSA indicator. As I said I am not a VSA trader, but I do use volume as a confirmation on some of my trades. Now a lot of traders say you cannot use volume in Forex trading, as its only tick volume, and it’s not reliable. Well let me tell you here and now, that they are wrong. If you know how to read and understand tick volume, then it’s a really useful tool you can use in your trading.

A lot of traders really struggle with reading and understanding volume. I have spent many hours teaching some of my students how to read volume, and some of them find it very hard to read and understand. So when I had a look at Leo’s VSA indicator I could see that it reads and understands volume in a very similar way to the way I read and understand it, although it is far more advanced than anything I could physically see by looking at the volume data. So I decided to give it a try with the intention of introducing it to my students that were still struggling to read volume.

After using it and testing it myself, I could see that it was a very good tool for analyzing the tick volume data, so I decided to recommend it to my students, and all but one of them that have purchased the indicator has agreed, that it has really helped them to better understand volume, and how to use it in their trading.

I trade pure price action, so I am not a big fan of indicators, but I don’t really see this as an indicator as such – it deciphers tick data and presents the information directly on the chart for the user to see where the buyers and sellers are coming into the market. It also shows no supply and no demand areas too, which is also very useful in my opinion.
The good thing about the VSA indicator in my opinion is it does not just show buying and selling volume for individual candles, it also analyzes multiple candle formations to derive its results, and it has a strength indicator built in, so you can also see when the market is strong or weak, which is a very useful addition. I also find the built in alert system very useful, as you can just set that up to alert you when certain conditions are present on the chart. For example selling in a weak market, or buying in a strong market. So you don’t have to keep staring at the chart all day.

Now you are probably thinking that this review has been put together by myself and Leo to sing the praises of his indicator, but let me tell you this: I have written this review based on my own experiences, and Leo in no way has prompted me to do this, and I am not getting any payment for writing this review. I am merely trying to give an unbiased view, and an honest opinion of his indicator, because I know how hard Leo has worked on this, and he has produced a great product in my opinion, and he deserves some recognition for that.

Rob Taylor is a professional Forex trader and mentor, and runs a Forex training course Hi my name is Rob Taylor and I am a professional Forex trader and mentor. I teach new and experienced traders how to make money consistently from the markets, by trading with knowledge and understanding.

So what am I doing here you may ask. Well I first came across Leo when he contacted me through Forex Factory about the possibility of creating some VSA related content on my blog. Now I am not a VSA trader myself, but the content he proposed was of high quality, and I felt that it could a benefit to my users, so I decided to publish the content on my site.

After publishing the content I decided to have a look at Leo’s VSA indicator. As I said I am not a VSA trader, but I do use volume as a confirmation on some of my trades. Now a lot of traders say you cannot use volume in Forex trading, as its only tick volume, and it’s not reliable. Well let me tell you here and now, that they are wrong. If you know how to read and understand tick volume, then it’s a really useful tool you can use in your trading.

A lot of traders really struggle with reading and understanding volume. I have spent many hours teaching some of my students how to read volume, and some of them find it very hard to read and understand. So when I had a look at Leo’s VSA indicator I could see that it reads and understands volume in a very similar way to the way I read and understand it, although it is far more advanced than anything I could physically see by looking at the volume data. So I decided to give it a try with the intention of introducing it to my students that were still struggling to read volume.

After using it and testing it myself, I could see that it was a very good tool for analyzing the tick volume data, so I decided to recommend it to my students, and all but one of them that have purchased the indicator has agreed, that it has really helped them to better understand volume, and how to use it in their trading.

I trade pure price action, so I am not a big fan of indicators, but I don’t really see this as an indicator as such – it deciphers tick data and presents the information directly on the chart for the user to see where the buyers and sellers are coming into the market. It also shows no supply and no demand areas too, which is also very useful in my opinion.
The good thing about the VSA indicator in my opinion is it does not just show buying and selling volume for individual candles, it also analyzes multiple candle formations to derive its results, and it has a strength indicator built in, so you can also see when the market is strong or weak, which is a very useful addition. I also find the built in alert system very useful, as you can just set that up to alert you when certain conditions are present on the chart. For example selling in a weak market, or buying in a strong market. So you don’t have to keep staring at the chart all day.

Now you are probably thinking that this review has been put together by myself and Leo to sing the praises of his indicator, but let me tell you this: I have written this review based on my own experiences, and Leo in no way has prompted me to do this, and I am not getting any payment for writing this review. I am merely trying to give an unbiased view, and an honest opinion of his indicator, because I know how hard Leo has worked on this, and he has produced a great product in my opinion, and he deserves some recognition for that.

Rob Taylor is a professional Forex trader and mentor, and runs a Forex training course http://www.priceactionforextrading.co.uk/forex-training-course/

AUDUSD M15 – Trading the trend

AUDUSDM15trendtrade

AUDUSDtrade

1. Strong background. Another alternative, since there was a resistance break-out, is if there were strong demand/major demand signals before the break-out.
2. Enter in a bar with low volume. There were also other previous valid bars.
3. Closed on trailing stop. Trailing stop is a must for intraday trading, where whipsaws are the rule.

Euro/Yen Intraday Analysis

EURJPYM30trendchannel

Euro/Yen has an established trend channel, that is validated since 6th April. It’s now bouncing off the lower line and getting near the upper part of the channel, which makes it an interesting pair to watch right now.

 

EURJPYM30

Looking at what’s happening right now, the pair has shown weakness before, at these prices, by the end of yesterday’s NY session. This is marked by the red circle above the up bars. There was an effort to take prices higher, which can be seen by the very high volume bars (red histograms) and with prices going up in a wide range. It could have been strong if it had broken the 127 83 level, which was the nearest resistance. But instead, prices went sideways and then corrected in today’s London session.
Today the market showed demand, marked by the blue dot and by up wide range bars with very high volume. The smart money sure is buying at this price level, the question is whether it’s going to be enough to turn the trend (i.e. breaking the down trendline). The background is still marking it as weak since the market is still in a downtrend, and there needs to be a trendline break to confirm a trend change. More weakness at this price level would be very bearish though, and if on sufficient high volume, it would nullify the recent strength and keep the trend going.
In a simplified way, we will either enter in the Supply/Demand in a trend setup or Trend Changing setup.