TheStrategyLab.com Price Action Trading Support Forum

I have some questions about integrating your methods with Volume Spread Analysis (VSA).

1. I have been looking at VSA as a trading methodology. However, it seems to have 2 deficiencies.
One is that it does not provide clear recommendations for entering and managing trades, or for position sizing.
In other words, it does not provide an objective trading plan.
Can your methods fill this gap? Is it possible to transplant the trading plans for your setups into a VSA context
or will some tweaking be necessary?
Which of your reports would be most suitable for this purpose?

2. The other main deficiency (IMHO) of VSA is that although it provides a clear context and a variety of signs indicating when to expect a trend reversal,
sometimes a trend reversal occurs, and sometimes the existing trend resumes after a pullback.
Do your methods provide an independent method for assessing which of these outcomes is most likely, by way of cross-verification?

3. More generally, in looking at your sample charts, your methods do not consider seem to consider volume.
Is this correct, and if so, does that mean that your strategies work on tick- and volume-based charts as well as time-based charts?

Best regards
Phil

Hi Phil,

Thanks for the questions.

Answer #1

Just to be clear about WRB Analysis even though your question is directed toward my trade strategies (AJCTR, APAOR, STR or VTR)...

WRB Analysis Tutorials is not a trade signal (entry signal) methodology just as VSA is not a trade signal (entry signal) methodology.

In contrast, my trade signals are via AJCTR, APAOR, STR or VTR as noted at the below link.

http://www.thestrategylab.com/TradingReports.htm

Yes, the trade strategies from the APAOR, STR or VTR can be integrated with VSA. However, the AJCTR cannot because the AJCTR involves Japanese Candlestick patterns (Open, High, Low, Close) whereas VSA looks only at the H, L, C.

Answer #2

All the strategies in the AJCTR, APAOR, STR and VTR are objective (rule-based).

Thus, no guessing on the direction of the trade and the main complaint I get is from clients that have a discretionary trading style of prefer discretionary strategies (subjective...no definitive rules). Simply, these particular clients are not use to using objective strategies because they make them feel restricted (not being able to trade intuition).

Further, the strategies are dependent upon WRB Analysis Tutorials. Therefore, it's not a tradable price action if a trade signal (AJCTR, APAOR, STR or VTR) does not occur within the context of any WRB Analysis Tutorial chapter.

Also, the strategies (AJCTR, APAOR, STR or VTR) are independent of VSA.

With that said, I'm a little lost with your comment about cross-verification. Therefore, can you give me an example because at first glance it seems like you're asking do my strategies have a confirmation signal to confirm it's a valid trade signal.

If that's your question...the answer is YES.

Answer #3

That's correct, the WRB Analysis Tutorials and the Trade Strategies (AJCTR, APAOR, STR and VTR) do not involve using volume even though we have clients that use volume with our trade methodology.

In fact, I myself have volume on a few charts on my monitors just so that I can see what some of my clients see that are using volume.

Thus, the WRB Analysis Tutorials, APAOR, STR and VTR works on any time of charts that are commonly known for trading.

However, the AJCTR (Japanese Candlesticks) is more restrictive in that its only suitable for charts that have a Open, High, Low and Close.

----------------------

I'll send you an email later today with a link to the private thread where you can learn about WRB Analysis Tutorial chapter 9 via the 30 day free trial. This will allow you to be able to ask specific question related to tutorial chapter 9 about integration into your current trade methodology whatever that may be.

In addition, I'll copy this thread and put the copy in the private tutorial chapter thread. Next, I'll send you an email today to notify you that I've annotated your chart with WRB Analysis from tutorial chapter 9 along with showing any trade signals from the AJCTR, APAOR, STR or VTR.

Once again, thanks for the questions and chart.

Best Regards,
M.A. Perry

Mark,

Thanks for your answers.

On my 2nd question, I was looking to use the direction given by the WRB Analysis to confirm the direction given by VSA.
It sounds from your answer as though the WRB Analysis can be used that way, via objective rules.

To clarify my 3rd question, I would like to know if your methods apply to, for instance, 233-tick charts (where a new bar is formed after each 233 ticks), or 3000V charts (where a new bar is formed after 3000 contracts are traded), as opposed to eg 5-min charts.

Best regards,
Phil

PS I purchased the AJCTR a short while ago.

Hi Phil,

Thanks for the purchase of the AJCTR.

However, I will be sending you an email to confirm that's what you wanted because the AJCTR is the Advanced Japanese Candlestick Trading Report (AJCTR) and I was under the impression you were interested in either the APAOR, STR or VTR because they are suitable for integration into VSA whereas the AJCTR is not suitable for integration into VSA.

By the way, here's my annotation of your chart via WRB Analysis and any trade signals...

I'll explain some basic information about the annotations in the private thread (will be sending the link soon).

With that said, please respond to this message or the email I will be sending to confirm that you wanted the AJCTR.

Best Regards,
M.A. Perry

Hi Mark,

I bought it (a little before your post) as it seemed to be a good way into your material without getting overwhelmed with too much info at the beginning;
it looks like I should have gone for the APAOR instead. Is there a way of changing my purchase to the APAOR?
I suspect I'll end up upgrading to the full VTR in the end, but easy does it.

Thanks
Phil