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2009.06.07 VOLUME SPREAD ANALYSIS

Posted: Sun Jun 07, 2009 4:42 pm
by TheRumpledOne
2009.06.07 VOLUME SPREAD ANALYSIS

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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.

The original code for the RSX HERE.

The original code for CDRW HERE

The original code for BetterVol_CDRW_Alert HERE

Details on what the CDRW signals are can be found HERE.

I modified the originals to work with the MultiMeters.

FREE MT4 version of the TRO VSA MultiMeters including SOURCE CODE attached.

Posted: Sun Jun 07, 2009 10:22 pm
by winny
Very Nice, thank you.

Posted: Sun Jun 07, 2009 11:33 pm
by TheRumpledOne
You're welcome.

Posted: Mon Jun 08, 2009 1:05 am
by TheRumpledOne
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Looking profitable.

Posted: Mon Jun 08, 2009 1:40 am
by Shinobi-X
TRO, you're the best.

I've been testing VSA too but this version of yours is profitable even from the first look :)

Btw, TRO, are you one of those who beta tested the MT4 from MBT?

I was watching the hourly chart in MBT's MT4 several weeks back and found crazy spikes, how did that affect your account in MBT?

Re: 2009.06.07 VOLUME SPREAD ANALYSIS

Posted: Mon Jun 08, 2009 1:49 am
by Shinobi-X
TheRumpledOne wrote: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.


true, volume is a huge problem in FX especially with retail brokers. the problem with moving from retail broker to ECN or CNX broker is they mostly don't have a versatile charting platform like MT4. there is one option though: NT6.5. but another obstacle with using NT6.5 is I can't take TRO's indicators with me. what a spot I'm in... :(

Posted: Mon Jun 08, 2009 1:54 am
by TheRumpledOne
It's BETA TEST! I only use MT4 for charting. I have MB Trading and Alpari.

MB Trading is aware of the spikes and I think they may have fixed the problem.

It didn't affect my account at all because I use the MBT Navigator.

Posted: Mon Jun 08, 2009 5:19 pm
by razorboy
I think that you really have to extract "volume" data based on the candle formation - Open and Close Vs High and Low vs ATR of the candle

The question you need to ask yourself is when is a doji really a doji


TheRumpledOne wrote:It's BETA TEST! I only use MT4 for charting. I have MB Trading and Alpari.

MB Trading is aware of the spikes and I think they may have fixed the problem.

It didn't affect my account at all because I use the MBT Navigator.

Posted: Mon Jun 08, 2009 6:10 pm
by PTG
Shinobi-X wrote:Btw, TRO, are you one of those who beta tested the MT4 from MBT?

I was watching the hourly chart in MBT's MT4 several weeks back and found crazy spikes, how did that affect your account in MBT?


These spikes usually appear around 5 PM EST on several pairs (check that please). According to MBT this is due to them working on (a) server(s) which they claim is part of the beta testing process. They assured me this will be gone once they go live. They gave me that reply a month and a half or so ago.

Meanwhile, trading with Navigator works for me. I use ATC MT4 data, which has a similar feed (and spreads) to MBT. No spikes though 8)

Posted: Tue Jun 09, 2009 12:27 am
by Shinobi-X
razorboy wrote:I think that you really have to extract "volume" data based on the candle formation - Open and Close Vs High and Low vs ATR of the candle

The question you need to ask yourself is when is a doji really a doji


Exactly as you stated, razorboy. But it doesn't need to be a perfect doji, near doji (with emphasis put on the length of the upper and lower shadow) is enough because several bars later we can find out the importance/ the weight of that doji. I think the best available data feed to determine a candlestick should be the one from CNX IMHO.

Now, regarding volume... Is it safe to assume that MBT's volume data is quite reliable because they have DOM :?:

PTG wrote:Meanwhile, trading with Navigator works for me. I use ATC MT4 data, which has a similar feed (and spreads) to MBT. No spikes though 8)


Thanks for the useful info regarding spikes, PTG :)
I also followed MBT's MT4 and found out that the rate is also identical with alpari uk's tick (not very precise but close enough).

Great trading to all.