VSA has it's own terminology and theory but I don't follow it's teachings....nicoacademia wrote:thanks captain for your wisdoms and insights.
yesterday was tough for me as i didn't react to what was on my screen. too much gains took my eye off the ball.(like a football team)
your insights help point me back to the right direction. focused on the ball.
hopped onto the EA trade. your timely words on volume exhausting.
i had studied VSA with those so-and-sos but your explanation is alot clearer functional and precise.
The volume indicator is somewhat misleading in forex. In equities, it is the number of shares trading hands. In forex, it represents price ticks. What's a price tick? Nothing more than an upward or downward movement in price. Transactions. It takes transactions to create price ticks.
When "tick volume" is low, there are few transactions taking place and price is relatively stable. In order for price to move large distances, it takes a large amount of transactions taking place, causing large numbers of price ticks.
When the fox wants to play, increasing tick volume indicates he's in the hen house. The larger the number of price ticks, the more he can move price. When this tick volume dries up, the fox has left the building and price will settle and consolidate.
It is said that the fox steps up and controls the 1st and 3rd pushes in the 3 day cycles. It is said he is absent during the 2nd push, leaving the retail traders and hedge funds to move price in this leg.
Tick volume is useful in the sense it allows us to see when price is hitting that point of exhaustion, where the tick volume can no longer support further movement. Use it wisely.
CJ
