Logical Trading

[VON KRIEGER]

Hi Forks,

I just wanted to share the trading method which is working for me.

Although I have tried many techniques like Market Profile , Point and Figure , Volume Profile and I find logic of these techniques overlaps with what I'm using .

 

So what am I using?

I'm using Wyckoff , Wave And VSA

 

Now the obvious question is what is that ?

Before I answer it , just open any chart and add 50 moving average , you will find it's very easy to see what if price is above your MA then it's bullish and vice-versa for bearish.

 

Maybe in other chart you will find that sometimes price goes above the MA then after sometime it come below it and continue going down instead of up , thus create traps etc ( whatever layman calls it)

 

Maybe you will notice that price is moving back and forth of MA without making any real progress( not in trend)

 

 

All these observations points out one thing , market is RANDON most of the time .

 

But not all the time , so the obvious question is how to understand when market is not random.

 

Now to remove the randomness , I use Wyckoff SCHMATICS to understand the script I'm trading is in which phase.

Each phases provide us different Knowledge thus removing the total randomness but still some of it is there.

 

In other works I use Wyckoff SCHMATICS to understand the structure and phases .

 

Then comes Price itself , which is difficult if not impossible to read individually. So for that I look at them in terms of Waves.

 

What is waves? , Well it's a one-sided movement of price until it turned otherwise.

 

Why waves is important?

Well one can gauge STRENGTH/WEAKNESS by comparing one wave to another ( just like we did in bar/histogram charts in elementary schools :P)

 

For instance , You may have heard if price is making higher - high then it's in uptrend .

 

But if you break that logic then what is means is that upwave is large as compare to down wave(thus making lower high) and new upwave is going above previous upwave (thus making higher high)

 

 

Now with knowledge of structure I know whether I should look for long or short opportunity, waves strength/weakness confirm my BIAS to a extend.

 

Then comes Volume , simple put I can Futher confirm my BIAS if volume is in favor of price direction or not . I.e if I'm assuming upmove then can I notice good volumes (which shows interest of smart money aka their participation)

 

Or perhaps structure was showing me accumulation with good volume .

 

Maybe I will CHEAT my way in with Delta Volume, or even better Cumulative Delta Volume to understand the true story.

 

Volume is awesome thing, maybe I will even read volume of bar by bar to understand the current sentiment

 

 

Now why I said it overlaps with Market Profile , Volume Profile , Point and Figure etc.

 

Because all these tools are use to show you one thing that is STRUCTURE

 

But hey we are 2 step ahead , we are looking at STRUCTURE, along with PRICE WAVE and VOLUME.

 

 

"Be a Bull, Be a Bear, Don't be a Pig*""

 

-Von Krieger

Edited February 11, 2021 by VON KRIEGER

[logicgate]

Markets are not random, they are chaotic, which is completely different. There is order in chaos.

[logicgate]

I also use the cumulative delta, but just as "cherry on cake", it doesn´t drive my trading decisions (those are based on price, volume, structure and setup).

 

I think VSA is just beautiful, look how clear you can read this chart with only price, volume and a simple line (and I added the cumulative delta as bonus so you can see how there is a negative delta divergence).

 

Check the very high volume down bar to the left from where I extended a line from it´s low. When price revisits this area, it gets capped. Now I can merge the volume of those bars that have high volume and are next to each other, kind of inside each other, I See that as one bar with very high volume. I marked with small lines the bars that I merged and you can see the volume they would have, see how they are massive, it is so clear that price is being capped at that level, with massive bearish Effort Vs. Result. See how the high of those massive volume bars "coincide" with the low of the high volume bar to the left.

 

 

 

 

 

 

 

 

This here happened a bit earlier than previous image, but same concept applies. I merged the volume of the four bars to the left (they were all inside the high volume down bar), look how the volume would be colossal. Then price revisits the high of that bar to the tick, with low volume (no demand), narrow range bar with some bearish effort vs result and collapses, then gives two nice shorting opportunities.

 

 

[ootl10]

Drawing on your chart with median lines please remove if you do not want it

Two bars offer best trades

First is easy to miss Upthrust with exit and turn

Second is main trade on blue w-lines up to get to Upthrust

Third is the best very nice No Demand with trail or exist into supply and lower line

hxxps://www18.zippyshare. cmm/v/sTgEXBdG/file.html

[flipsy32]

nice post! thank you!

[VON KRIEGER]

nice post! thank you!

 

Thanks man :)

[simionaretz]

Thanks man :)

 

 

Link not working for me

[logicgate]

@ootl10

 

What really catches the turn is the 1st standard deviation to the upside of a modified schiff pitchfork drawn from the pivots marked A, B and C:

 

[VON KRIEGER]

Kindly have a look at https://www.tradingview.com/x/ioRPxrEP/

 

I prefer to keep my trading simple :)

[VON KRIEGER]

NOT A RECOMMENDATION :p

 

https://www.tradingview.com/x/HsLvx5c0/

 

do post your thoughts on my analysis

[ootl10]

yes i try not to use modified schiff because Andrews did not

he used 2 sets of lines but can be called devcations

it is a hard chart to show which is why I tried it

the VSA alone was too easy :)

@ootl10

 

What really catches the turn is the 1st standard deviation to the upside of a modified schiff pitchfork drawn from the pivots marked A, B and C:

 

[ATTACH=CONFIG]463[/ATTACH]

[VON KRIEGER]

My analysis , which i have posted above is easy and mass can understand : ) that what simplicity means :P plus its logical ;)

[VON KRIEGER]

HERE IS KINDA COMPLICATED (for newbie) , Analysis based VSA

https://www.tradingview.com/x/pZZHBSLs/

 

compare it with previous analysis and u will understand which one is better and why ,

[logicgate]

You are putting all eggs in one basket by having only 1 scenario. And, by the way, the weakness/short scenario is the lowest odds one, in this chart.

 

For starters, that is not a buying climax, it is a demand bar, one of the cases where high volume up bars are strength (called "pushing through supply to the left"), it even breaks two levels of resistance with a wide range high volume bar.

 

All I can see in this chart is pure buying and bullish effort vs. result (buyers are in control), so far there was no sign of serious supply, anything that indicates that the up move has finished. Price just went overbought in trend channel, but could not even retrace to the demand line of the channel so far, in fact is holding above the 50% of the channel (which means strong up move), and I See it holding gains near the resistance created by the last swing high, with lows lifting, which could be absorption. To me the highest odds scenarios is a bit of retracement and price keep going up (sort of BUEC).

 

[ATTACH=CONFIG]468[/ATTACH]

[kon]

nice logicgate =D>

[syed.quadri81]

Nice to see people discussing VSA

My Last Resort for Trading is VSA after going through many painful years and testing of different things

 

Thanks, Logicgate and Von for sharing your insights.

 

I will also try to share my understanding of VSA in the near future.

[syed.quadri81]

Hi can anyone suggest Weis Wave for Tradingview.com?

[VON KRIEGER]

Hi can anyone suggest Weis Wave for Tradingview.com?

I have created one for myself.. here it is

https://www74.zippyshare.com/v/9kJn61S3/file.html. This is weis wave volume .

 

 

https://www20.zippyshare.com/v/u4idtOz0/file.html

This is Weis Wave Zig Zag Panel

 

P.s file extension is .pine ( I have created it in MS Visual studio code) , open it with notepad if you don't have VS installed

Edited February 14, 2021 by VON KRIEGER

[aotegaoteg]

sorry i dont mean to bash anyone

trading with the VSA methord,

reading the last few posts in this thread,

seems to me that this methord

is very very subjective, you both have different views

of the same market and are

describing the VSA methord, using

the same timeframe.

Dont get me wrong, i have used VSA in the past

watched all the training materials

provided by Tradeguider

and i have to say i wasnt sucessfully with this methord

you can spend a lot of your time manually analysing a market

and waiting for your setup to appear

while in the other market the price is moving and volatility is occuring.

 

 

The only methord that seems to work for me to trade theses markets

these days is, prices, volatility and Negative correlation,

For example: you can just plot a range or renko bar chart onto your platform

and use that to track price, followed by

using the VIX to track the volatility of the SNP500 as an example and Negative correlation

and then use the inverse ETF that tracks the SNP500

as your Negative correlation

and scalp for 3/5 points from the market, anyway

please note im not giving you all any financial advices

i have just described the basics of what works for me,

so its up to you to findout or use Marketreply to

findout what works for you.

and remember overtrading and your trading psychology is your

worse enemy and all the brokers out there, know it.

Edited February 14, 2021 by aotegaoteg

[VON KRIEGER]

Nice to see people discussing VSA

My Last Resort for Trading is VSA after going through many painful years and testing of different things

 

Thanks, Logicgate and Von for sharing your insights.

 

I will also try to share my understanding of VSA in the near future.

 

Sure.. I would love to see others opinion and their usages of VSA ..

[VON KRIEGER]

sorry i dont mean to bash anyone

trading with the VSA methord,

reading the last few posts in this thread,

seems to me that this methord

is very very subjective, you both have different views

of the same market and are

describing the VSA methord, using

the same timeframe.

Dont get me wrong, i have used VSA in the past

watched all the training materials

provided by Tradeguider

and i have to say i wasnt sucessfully with this methord

you can spend a lot of your time manually analysing a market

and waiting for your setup to appear

while in the other market the price is moving and volatility is occuring.

 

 

The only methord that seems to work for me to trade theses markets

these days is, prices, volatility and Negative correlation,

For example: you can just plot a range or renko bar chart onto your platform

and use that to track price, followed by

using the VIX to track the volatility of the SNP500 as an example

and then use the inverse ETF that tracks the SNP500

as your Negative correlation

and scalp for 3/5 points from the market, anyway

please note im not giving you all any financial advices

i have just described the basics of what works for me,

so its up to you to findout or use Marketreply to

findout what works for you.

and remember overtrading and your trading psychology is your

worse enemy and all the brokers out there, know it.

 

You are smart and you understand the downfall of vsa .

That's why in my above post I talk about Structure, wave , and volume instead of naked VSA .

 

 

Most people forget vsa is part of wyckoff and they don't even look at SCHMATICS(Phases/Structures) and started analysis bars..

That's why they are doomed always.

Edited February 14, 2021 by VON KRIEGER

[logicgate]

@aoteagaotec

 

Funny, to me is the opposite: I tried everything else and only lost money, when I discovered VSA I finally learned how to read a chart properly and never blew up an account again, in fact I rarely have a losing day. It was what finally made me be, more often than not, in the right side of the market.

 

But what you have said about VSA can be said of every other method out there, you show a chart to 10 different traders, you are probably gonna get 10 different opinions.

 

The problem is never with the method, but with the people. You can have a room with traders being taught by the "master trader of the universe" with an "unfallible method" and you can bet the farm that even then 90% of those traders are gonna lose money, they just can´t trade or use the knowledge properly, for they own benefit (as it is the case with all those gurus and analysts that know every single thing about the markets and know all trading/financial books by heart and still can´t make money trading)

 

VSA is a discretionary method, it have it´s principles and rules but they allow a "rigid flexibility" (the flexibility being the discretionary part). This method is surely more of an art than science, i mean more than any other method out there (as they generally say about trading anyways). In the end you gonna use what makes sense to you, if you make money with candlestick patterns and moving averages crossing giving you signals to buy and sell, do it then...

 

The thing with VSA is that it´s a type of analysis that makes you really use your brain and think logically and a lot of people can´t do it, it is not easy to engage and maintain rational thought in the markets. What the majority wants are flashy indicators turning green to buy and red to sell, and that is it, they don´t wanna think, they don´t have a clue why the market is going up or down, or why it stopped on a high volume narrow range bar, for example...

 

I think that VSA is the only method that teaches you how to read a price chart like if it were a musical sheet.

[aotegaoteg]

@Logicgate, @VON KRIEGER

 

Great, glad to here that VSA, does work and it makes sense

In the end, the most important is to use what ever method you want and it makes sense to you.

[stingrayzz]

sorry i dont mean to bash anyone

trading with the VSA methord,

reading the last few posts in this thread,

seems to me that this methord

is very very subjective, you both have different views

of the same market and are

describing the VSA methord, using

the same timeframe.

Dont get me wrong, i have used VSA in the past

watched all the training materials

provided by Tradeguider

and i have to say i wasnt sucessfully with this methord

you can spend a lot of your time manually analysing a market

and waiting for your setup to appear

while in the other market the price is moving and volatility is occuring.

 

 

The only methord that seems to work for me to trade theses markets

these days is, prices, volatility and Negative correlation,

For example: you can just plot a range or renko bar chart onto your platform

and use that to track price, followed by

using the VIX to track the volatility of the SNP500 as an example and Negative correlation

and then use the inverse ETF that tracks the SNP500

as your Negative correlation

and scalp for 3/5 points from the market, anyway

please note im not giving you all any financial advices

i have just described the basics of what works for me,

so its up to you to findout or use Marketreply to

findout what works for you.

and remember overtrading and your trading psychology is your

worse enemy and all the brokers out there, know it.

 

Hello aotegaoteg, I would like to see some charts from you showing what you indicated above. Could you post some screen shots of your screens showing what you posted?

Edited February 14, 2021 by stingrayzz

[mike83]

it would be good if you put some explanation with nt8 addons so that we will learn the usage of addons.