“the point of this thread, and Wyckoff and VSA analysis overall, is to identify and trade clear understandable principles, and in turn reduce the risks of entries, and improve exits.”
Hi Jako.
I have been following this thread without commenting as I am not that confident enough just yet.
So far it has been one on the most interesting threads I have followed ever & absolutely the most educational & that comment above says it all I believe.
I have to admit that while VSA seems easy to understand in theory, when put to the test in real time I find it can be easily misinterpreted in isolation.
This I think is mainly due to a lack of understanding on my part & possibly by the fact that it seems to work better on large cap high volume stocks as against specs which are more easily manipulated by the pros.
That is not to say that it does not work on specs of course & often does and I expect to improve as I learn more.
I am finding also that I just cannot let go of my usual TA methodology which revolves around trading ranges (boxes) historical trend line angles, support & resistance levels, the use of momentum indicators etc. and more recently the use of the Andrews Pitchfork & its associated theories.
I have therefore decided to learn as much as I can about VSA & incorporate it into my normal TA style as it really does seem to compliment & enhance it.
I am a great believer of drawing boxes, trend lines & support / resistance lines etc. on my charts (which can appear to be messy to everyone but me) & leaving them there to watch the chart build & seeing what impact they have on the sp.
That is where the VSA is having an impact on my analysis & more often than not now I will either come to a different opinion (not always right) on what will happen or it will verify my original thoughts. I believe that my analysis is improving the more I understand VSA.
I have noticed from the many articles & written works available on the net that there are a lot of variations on Wyckoff & VSA, some of which use some of the things I use & even to the use of candles instead of the bars which I really struggle to use. That is probably just because I have always used candles & I want to see the open price.
I guess what I am trying to say here is that everyone will have a style of TA that suits them & not all styles will suit all people so I guess that if one can have an understanding of VSA then that can be incorporated into another style to enhance it.
I believe that VSA should be one of the essential things to understand in any TA method.
This thread is currently one of if not the best educational thread on HC & I hope continues.
Keep up the great work.
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