A Review of Yesterday’s Trading Session with VSA
Yesterday there weren’t any particularly important news events, but in the 5 minutes timeframe it was still possible to catch a few moves with the Alert System. Below you can find the session’s resume, with the comments on why each trade was taken, and why they were closed.
EUR/USD 5 Minutes – Dynamic Trend SHORT Alert
- Short on dynamic trend alert (sell market order). Placed the SL and TP at the suggested levels.
- Closed 1/2 trade at the blue dot level
- It hit take-profit about 1 hour later, for +15 pips
USD/CAD 5 Minutes – INVALID VSA Signal Alert
This VSA signal was invalid and wasn’t taken due to:
- Mixed supply/demand signs at this price level. When this happens, avoid taking long or short trades
- Long-term resistance just above
AUD/USD 5 Minutes – VSA Signal SHORT Alert
This short trade was taken at the suggested execution price, and the stop-loss and take-profit set at the suggested levels. The alert was valid, but soon the market started to show strength.
- Short as sell stop-order at the execution price
- There was a churn bar, which is a demand sign in this context (during downtrend). 1st sign of strength
- Low volume bars on a 2nd attempted movement. CLOSE trade here, on the 2nd sign of strength. The trade closed barely BREAK-EVEN
EUR/JPY 5 Minutes – VSA Signal LONG Alert
- Long as buy stop-order at the execution price
- Close on the TAKE-PROFIT for +10 pips
If you have read the VSA user guide before, you might have noticed that there is actually distribution by the end of the Tokyo’s session, before this alert took place. So shouldn’t we avoid taking long trades? To go long after distribution, you want to see signs that there is no more supply to take prices lower, and that’s exactly what happened in EUR/JPY. The market went lower on low volume, and the VSA signal was actually a supply test which was successful. The alert was still valid because of that reason.
Hope you found this trading session review useful. Try our demo if you want to see some of the indicators in action, and do subscribe to our blog to receive new market updates.
Doug McManamny said:
That’s very interesting and very helpful, especially showing the invalid signal and the reasons for that.
It’s a great system.