The ABC’s of VSA: Trade Set Ups

By Lauren Snedeker

OBJECTIVES

• Ways to search for Trade Set Ups

• Reading beyond the individual bars

• Understanding the whole picture

• Beware of the News

Where to Begin?

1. You can do a manual search

2. You can look at your multi timeframe scanner

3. You can scan for indicators

#1: Manual Search

A

B

C

Steps for Manual Search

1. Determine the overall trend: looking for SOS in a downtrend, SOW in an uptrend

2. Click on the indicators

3. Read the dialogue boxes – see if signal is confirmed by the next bar

Manual Search Cont’d…

4. Scan the Sequence Set up Guide to find a possible set up

Sequence 2

SOW 26 – Supply Coming In

SOW 7 – Supply Coming In

SOW146 – No Demand

Look to see if smaller timeframes have

the same signals

Do you see the Rule of Three?

15 minute

30 min

1 Hour

#2: Create a Watch List

You can create a watch list for one or more symbols You can put many timeframes into your watch list Hover over for repeat indicators Fast way to confirm overall trend

#3: Indicator Scan

Why an Indicator Scan?

• Choose for a Symbol or a Watch List

• Choose the # of Bars

• Quickly check out what the signals are across all timeframes – look for clusters

Emini 1H: Supply Coming In

A

B

C

Supply Coming In

Up Bar

High Close

High Volume = selling present

Ultra High Volume = climactic action, start of distribution/selling phase

Background: if SOW = stronger signal

Future: look for UpThrusts or No Demands

Emini 30m: Supply Coming In

Check for the Why

• If you see ultra high volume

• If you see massive wide spread bars

• Something triggered that activity

News

Event!!

Emini 15m

Bar A: Supply Coming In

Up Bar High Close Ultra High Volume = Distribution Massive Wide Spread = Climactic Action

Background = I have two SOW SOW #1 = Supply Coming In SOW #2 = No Demand Future = Look for more SOW to confirm

Next bar is up – weakness is not confirmed Look for it to whipsaw or continue to rise

Bar A: Supply Coming In

Up Bar

High Close

Ultra High Volume = climactic action, start of distribution/selling phase

Background: if SOW = stronger signal

Future: look for UpThrusts or No Demands

Bar B = End of a Rising Market

Up Bar Narrow Spread High Volume High Close Fresh New High Ground – look carefully Background – MUST MUST MUST have a SUBSTANTIAL up move (the Supply Coming In) The News will be Good

Bar B = End of a Rising Market

What to expect: Declining Prices Caution/Beware: Down bars w/High Volume Closing Low & Next Bar Up = potential strength ****** I have that! Expect Future Testing **** This weakness will not suddenly disappear – just a waiting period

I might have Sequence 5

• End of a Rising Market

• UpThrust

• No Demand

• With weakness behind me, good news, 30M and 1H confirms trend and weakness

Bar C = Reversal After Effort to Rise

Based on the action of 2bars 1st Bar Up, High Close 2nd Bar Down, takes out gain AKA a Top Reversal Strong signal Because: Higher volume on 1st Bar 1st Bar is into fresh new high ground The high of the 2nd bar is higher than the close of the 1st bar Background = SOW (B&A)

Bar C = Reversal After Effort to Rise

There has been an effort to rise with the increase volume in the 1st bar but with the next bar down it shows supply or selling has disappeared Look for No Demand

Bar D = No Demand

Narrow Spead High Close Lower volume than previous 2 bars Weakness in Background Next Bar Down In an Uptrend = a pause or small decline

Why you hate to wait

• You are trading on what you WANT to happen

• You get emotionally involved

• It’s exciting to see so much volume

• It’s GREAT NEWS

Why you have to wait to short

• You are in an uptrend

• All your diamonds are green

• There is testing within 5 bars after SOW

• Smaller timeframes never turn red (3 or 5)

• The Trend is your Friend

Caution Tape

Be a Trend Trader Be cautious of Trading the News The Sequences are there to build a case for you – They are analyzing the market not telling you to buy or sell Be Patient and wait to see what is there not what you want to be there

#3: Day’s End Indicator Scan

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How to Reach Me:

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