as i was practicing =, this formation appeared. I thought there were a few things that stood out that were worthy of sharing. Always refer to Tom Willams VSA and Wyckoff for formal explanation and resource (never pay, resources are freely available)...
background was an uptrend. Objective is to find entry signals that align with the trend on the back of SM.
You should be able to clearly see a "fall through the ice" situations here. (break of support). Upon the break of support, price finds very high volume (demand) which created a violent rejection back above the broken support. Very typical VSA SOS. The spring action is circled in red. Notice again the rapid rejection right back into the TR on high volume. The spring also happened to be a 50% fib retracement (green box). This is a potential entry area.
Break-test-continuatioin pattern after the spring (2nd potential entry area) . Slight volume expansion on test (maybe called an LPS) circled in blue. The LPS converges with the 14/50 ema ad previous resistance turned support.
The trend line would have been drawn in hindsight but the 50% fib retrace could have been plotted. However, you do see the convergence after the fact.
set-up took about 2 session to begin playing out.
There are a few more variables that could be talked about here, but I am sticking to the highlights. Again, please refer to VSA and Wyckoff for more detailed training and entry techniques.
practice*
“Patience is key to success not speed. Time is a cunning speculators best friend if he uses it right”
Jesse Livermore
Sources of education:
Tom Williams Volume spread analysis VSA/ Master the Markets
Richard Wyckoff
Pete Faders VSA*
Read the ticker dot com
Dee Nixon
BTC trading challenge price action/volume techniques
Good luck
background was an uptrend. Objective is to find entry signals that align with the trend on the back of SM.
You should be able to clearly see a "fall through the ice" situations here. (break of support). Upon the break of support, price finds very high volume (demand) which created a violent rejection back above the broken support. Very typical VSA SOS. The spring action is circled in red. Notice again the rapid rejection right back into the TR on high volume. The spring also happened to be a 50% fib retracement (green box). This is a potential entry area.
Break-test-continuatioin pattern after the spring (2nd potential entry area) . Slight volume expansion on test (maybe called an LPS) circled in blue. The LPS converges with the 14/50 ema ad previous resistance turned support.
The trend line would have been drawn in hindsight but the 50% fib retrace could have been plotted. However, you do see the convergence after the fact.
set-up took about 2 session to begin playing out.
There are a few more variables that could be talked about here, but I am sticking to the highlights. Again, please refer to VSA and Wyckoff for more detailed training and entry techniques.
practice*
“Patience is key to success not speed. Time is a cunning speculators best friend if he uses it right”
Jesse Livermore
Sources of education:
Tom Williams Volume spread analysis VSA/ Master the Markets
Richard Wyckoff
Pete Faders VSA*
Read the ticker dot com
Dee Nixon
BTC trading challenge price action/volume techniques
Good luck