Volume Spread Analysis for MT4

[therumpledone]

VOLUME SPREAD ANALYSIS (VSA) is used successfully in the stock market. Read about VSA HERE. The article shows a forex example. There is a debate that VSA doesn't work for Forex because Forex is NOT a consolidated market and dealers would NOT give you accurate tick/volume data because you could then determine their volume flow. Finally, SMART MONEY is not trading with retail brokers.

A more in depth read on VSA can be found HERE

Others have coded indicators for VSA.

Someone sent me this LINK.

Stopping Volume Pattern (Emini 5 minute)

Professional profit taking is occurring when the following conditions are met:

* Volume is greater than the previous bar's volume
* Range is less than the previous bar's range
* A new high is made (in an uptrend) or a new low (in a downtrend), and
* Closes off the highs (in an uptrend) or off the lows (in a downtrend)

The reduction in the bar's range is the real key. It shows that additional selling (in an uptrend) or additional buying (in a downtrend) is keeping the bar's range low. So Professional traders are taking profits and/or "fading" the current trend.

You will almost always see Stopping Volume patterns leading up to a market turning point. However, if the trend is strong it might take several Stopping Volume patterns in a row to slow the trend. Remember, most turning points are Stopping Volume patterns, but not all Stopping Volume patterns are turning points!

I modified and created some volume spread analysis indicators ( SEE CHARTS ABOVE )

[therumpledone]

Originally Posted by forexflash

Yes....and I am a Santa Claus!!!
This is you code....., you just picked cdrw & better volume code from
forexfactory coded by ThatWasME, and recoded it!!!
And you made a pretty useles code, where is the spread, where is the volume.....do you realy think that your code will work???
You picture shows that you dont have a clue about VSA,
and what it is all about! ..........

Do the things you are good at....this is not one of them!

Regards

Yes, I modified the code ( your comments are intact. ) And then I made MultiMeter versions. I also created Dashboards.

[topdog38uk]

[quote=forexflash;30363]Volume Spread Analysis for MT4
--------------------------------------------------------------------------

This is indeed a very good indicator.
I've purchased your latest version, but I'm struggling to fully understand
the new indicators and their meanings.
Could do with an updated concise manual, the same as with Tradeguider's manual. Explain every Indicator in detail please.

[ContraTrader]

Can you explain how to interpret this indicator?
Thanks.

[MechXTrader]

Man, you have got some downloads... I will try it too.
I have my own idea for a VSA indicator. I will publish it here.

[TheDoc]

Forexflash,
Thanks for the info. Do not be bothered by anyone trying to "deroute" you from accomplishing your goals. Once again, thanks.

[bossxero]

How is this system doing so far?

[Vtrader728]

Originally Posted by bossxero

I dont get your point quite well... On what ground are you making such accusations against forexflash? Is it a general rule or something which you are following??

I'm also curious about this. I'd like to watch out for scams, as I am new to testing EA's. I came to this forum to find out more about the shark and griffin ea and now am realizing how much others are marketed.

Any tips on what to look out for?

victoria

[FXP]

Looks great, thanks. I'll try it out.

[therumpledone]

Animals in Translation: Using the Mysteries of Autism to Decode Animal Behavior
by Temple Grandin and Catherine Johnson

When highly verbal people get control of the audit process, they tend to make five critical mistakes:

* They write verbal auditing standards that are too subjective and vague, with requirements like "minimal use of electric prod" and "non-slip flooring." Individual inspectors have to figure out for themselves what "minimal use" means. A good audit checklist has objective standards that anyone can see have or have not been met.

* For some reason, highly verbal people have a tendency to measure inputs, such as maintenance schedules, employee training records, and equipment design problems, instead of outputs, which is how the animals are actually doing. A good animal welfare audit has to measure the animals, not the plant.

* Highly verbal people almost always want to make the audit way too complicated. A 100-item checklist doesn't work nearly as well as a 10-item checklist, and I can prove it.

* Verbal people drift into paper audits, in which they audit a plant's records instead of its animals. A good animal welfare audit has to audit the animals, not the paper and not the plant.

* Verbal people tend to lose sight of what's important and end up treating small problems the same way they treat big problems.

Page 268 - 269 Animals in Translation

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Sounds like these same people also write VSA trading systems.

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THE ILLUSION OF CONTROL

"Individuals appear hard-wired to over attribute success to skill, and to underestimate the role of chance, when both are in fact present."


OVER-OPTIMIZATION

Rats beat humans in simple games

People makes STORIES!

"Normal people have an "interpreter" in their left brain that takes all the random, contradictory details of whatever they are doing or remembering at the moment, and smoothes everything in one coherent story. If there are details that do not fit, they are edited out or revised!"

(T. Grandin and C. Johnson, Animals in translation (Scribner,
New York, 2005)

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To me, VSA complicates matters.

I liked the stopping volume indicator but I don't use it anymore because I do not want the rat to beat me.