VSA in action

Not too happy trading yesterday evening and today: quite substantial losses, yesterday due to big stop let run and it was hit on EFSF rumours, and today on opposite - too small SL and got jammed in ranging price action.

However managed a classic good trade later on on demo, VSA plus MACD. I have been going through my trades and analyzing them, found inconsistency mainly caused by either calling reversals solely on basis on some TL being broker (unreliable) or even horizontal support/resistance broker (more reliable but far not enough) with VSA confirmation only good for few pips and reverse. So I started to look for a filter to those signals and found it in MACD. So, if we have positive MACD on M5 and M1 and on M1 it crossed zero line to down and on M5 it crossed down the signal line - I start looking for VSA confirmation to go short on breaking of the level or momentum candle, by this time MACD on M1 must produce 3 consecutive bigged down bars. Opposite applies to long trades. Trade is open till it hits SL or TP (based on current volatility), or if opposite signal is received (3 bars) then I will close the trade but not reverse unless M5 MACD supports it.

And another one from earlier today, when I just started to apply MACD:

Few live VSA trades today

Entered on a weakness of up bars and high churn, while in a strong down trend aiming for a continuation. Aimed 21 pips, got almost there but was stopped out by a trailing stop at +16. Stop was around 9-10 pips risk.

Another one: first attempt failed, stopped out for 13 pips on a single position, of course I used authomated trade management and did not accommodate for this specific trade, I have learnt the lesson though, and increased default stop level while will be adjusting for a smaller individual TP after the entry.

However, then I re-entered with one and then second lot and closed out in an overall profit counting in first losing trade. The moment I closed it run twice that. I cut my profits too short. Need to learn to let them run, however it is also wise to cover initial loss if possible. So I guess it is a success after all.

Order Flow scalp

I have started to study some order flow trading, I got a trial of OrderBookFX software, and here is an attempt to scalp M1 market with an entry confirmed by the order book imbalance: at the moment of entry order book was heavily skewed towards offers and indicated strong selling pressure. Setup itself is a range top with stochastics cross and exit from overbought area but exact entry was based on chart pattern and volume indicating struggle to move higher with small candles produced on high volume (churn). This type of consolidate can be before reversal or breakout, but when I saw the heat building up in the order book with lots of offers above the area, I went short and price followed in a couple of minutes. I took only 14 pips but about 50 was available, the sell-off was pretty big and order book imbalance big too. Stop was only 5 pips. P/L 2.8:1

Another one: this went around 12 pips against me, but I consciously entered against a trend as I saw a point of exhaustion and anticipated a bigger run for stops above swing highs and potentially up to 1.3700 before down trend will resume. I went with a half normal lot (0.25% risk) and was tolerating up to 18 pips floating loss. It went then up to 16 pips in profit, but then I saw bears starting to take control over order flow, pressing lower and a climax low candle down on a big volume where I bailed out for 9.3 pips (on half lot, so 4.65 pips normal lot equivalent).

Morning glory G/U classical trade

I did not take it, but I had order in place, just removed because went on a conference call. Anyways, this is a classic example of range breaking trade on high volume with nice VSA confirmation. Good 20 pips with risk 10 (drawdown was only a matter of spread).

Correction to US Durables trade

I am an idiot. I posted a trade (and took it!!!) on EURO/USD, however my plan assumes a trade is taken on EUR/JPY as I never trade US news on EUR/USD!!! I lost 10 pips yesterday, but if taken properly on E/J it would yeild 7 points instead!!!

CAD RS fade trade

According to setup, first M1 reversal candle with TP7/SL9. I came late, so entered on retracement, that bettered my position by few pips, but used TP and SL that would be used with original entry. +7 played out, my position managed profit of 11 pips thank to late entry.

VSA S/D 15M U/CAD trade

I took this trade primarily from VSA perspective as it did not reach my level where I looked for long (STT from 1D area). However VSA shown some good reversal sign and I decided to go after I have seen price reversed from small supply area on M15 from Friday. I took only 10 pips as bias is bearish and I will be looking to long from a lower level using VSA.

First trade of the week - a 33 pips winner on G/U

Ok, that was one with a bigger stop, so it accounts to win of normal 10 pips, but entry was placed last week and trade got triggered on Friday late night, I closed down for profit manually when opened charts this morning as price struggles at 1.65 which is a very strong resistance area and supply is abundant. My mistake in the first place was to place take profit at 1.6520, I should have noted significance of 1.65 and place tp just before that. Nevertheless week is nicely opened with a profit trade.

Many losers on pending order entry, great winner on VSA

Today was a bad day for lazy trading - that is using pending entries. I got 3 losers on EU (however only one entry was justified, other two were rushed in, one of these was market order but I opened it without confirmation so no different than limit ones). However I waited a bit and took market order entry after EU had topped out and produced down candle on decent volume, after market shown buying climax and high churn. I took 30 pips out of it, but there were at least 10 more to gulp. As usual. Best trading in terms of closing out is when I am not around. My EU win covered all three losers, the only damage left to fix is from AU loser. I will look for confirmed trades only today since there are some commercial and central bank buying happening today which drives market through supply-demand areas with ease.

Several losses today

EURUSD scalp M5 with VSA

Similar setup to AUDUSD one. Once I saw support zone given up, and break through candle had a big volume (selling climax as per indicator, but rather mark down), I placed pending buy at the bottom of the zone. It took me in, closed manually for 11 pips at the level where previous two candles indicated minor demand.

UK CPI trade

While I recon it is one of the best fade trades on calender, today it wasn't so good. I used M15 to enter, but looked at M1 for VSA signal. Once I got it I was in. Trade moved into profit immediately, but I had a big spread on broker so wasn't looking to close soon. It moved about 15 pips into profit and then reversed. After few moves like that it actually went to 30 pips profit where my TP1 was but failed to close part of the trade due to damned spread again. Eventually Fitch announced AAA reaffirmation for US and GU blasted up. Quite soon it hit my SL, which I extended above supply level at 1.6400-1.6415. If I would be entering on the first reversed M15 candle I would be stopped out almost right away. It happens. Move on.

Classic VSA scalp snapshot!

Classic VSA scalp setup! I wasn't near to take it. You see mark-up, then high volume churn that failed, you can also call it test, very good signal that supply has exhausted.

E/U 5M Supply-Demand scalp

Just grabbed my 22 pips today on EU, short off formed supply/resistance with weekly pivot in there. Looked for candle volume, but it was relatively low and not enlightening. So I guess I just spotted a good level that is it. I planned originally for some 60 pips but decided it's too much to expect from M5 chart setup and better not to be greedy even on demo, steady profits make balance.

Stop was at 1.4290 in 19 pips from entry, could be closer actually, 15 pips.