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VSA Primer


Trading becomes a profession rather than an obsession when traders understand a few concepts about the machinations of accumulation and distribution, the role market makers play in saving or executing the trapped and trading out of poor positions irrationally creating whipsaw and the subtle game of masking intentions in rallies in the subsequent breakout when prices are marked up or down. In point of fact, any combination of those three avenues is what constitutes the marketplace. Being able to reliably distinguish any scenario over another at any given time means graduating from day-swing trading to investing. This or that ridiculously simplistic formula or equally absurd but wholly cerebral equations with concern to entries and exists and portfolio management are all fine if and only if directional timing is mastered. It seems quants and program traders make their money solely by taking out stops after having run 10,000 simulations for every perceivable angle to somehow come out with a 25% gain after losing 30%. Then they look at it and zero in for big moves. It's unfortunate because 90% of the people in the marketplace lose money and those making the money for their masters can't read the tape.

Since the advent of market profile, and the vast amounts of traders amassed with thanks to the internet, long term investing has in large part fallen to the way side by virtue of weak hands creating too much volatility. Money must be made, though. It's funny because shortly after Steidlmayer served on the Board at CBOT and used his influence to pander MP for day traders Barron's introduced the Smart Money Index that showed how it didn't matter where weak hands wanted to take directionality in the morning, or even if price was at fair or unfair value, when they want to move it they move it, and at the close. As I understand it even the Smart Money Index doesn't work any more as a result of far too many new traders using that blasted MP for 2 or 3 2 or 3 point trades a day.

Outside of crippled economies and currencies not backed by anything, or rather, not worth anything, more like, the marketplace has its own troubles, and it is the ignorant, largely under or ill-informed but self-righteous and grossly fragile, egotistical trader.

This "air" I keep reading about here, and "volume tests"? Where was volume heading into and after the pocket was made and around a line of resistance and/or support? Was there found quick support after the breakout on minimal variance? Was their more a decrease or increase of volume as prices surged? Less right? So prop firms weren't distributing but rather adding long and using the trapped's money to initiate?

I'm telling you, master those three things and you won't "need" to hang out in a forum and have one sided pissing contests.

Entertaining though.


quote:
Originally posted by BruceM

I guess that proves it MM.....SPQR always seemed to suffer from a language barrier..is that last post supposed to be from merry old england? LOL!!.it is fun at times.....I guess we won't be getting any great VSA commentary ...but we knew that would happen.....I guess we all get what we need....!!!



WHAT!!!
Again
...
Red, he's cloned himself once more!! lol ... another incarnation ... either that, or an internet/etherville pathology. Please respond Al ... "say it ain't so!"
while the IP doesn't match the "tone" certainly does.......you gotta feel sorry for them.....it takes a special kind of knucklehead to seek out negative attention from a forum....but we aim to please here...if these folks applied themselves they may actually learn something about trading and turn the corner on profitability.....
Well, the enigma trader evidently read your post about the same IP address and spent the past week or two trying to figure out how to route through a server in Guam. Make no mistake though, same person. But I'm here and the rest of us to learn and share and help ... good synergy ... with some fun and yet decent debates and questioning. I agree Bruce, feel kinda sorry for folks like that in a way ... when there's so much real learning to be garnered here.
alianse's account is now locked for breaching forum rules and the terms and conditions of this site.
I have never heard of VSA primer is that some kinda paint LOL?
Yeah Joe ... used it on my first house and it melted the wood ... I think I mixed it with too much SPQR ... my bad! :-)