the previous bar. Closing Price Relative to Range (Is the closing price near the top or the bottom of the price bar?). Hence, you should definitely learn as much as you can about VSA, before relying on a software for your analysis. Note the first pin bar on the left of the chart, this initially formed the event area because of the strong down move that followed. Checkout Nial's Professional Trading Course here). The daily charts below both show the spot Gold market, one of my favorites to trade. But I am sure that no software will bring you trading success unless you truly understand the VSA principles.
Your First Guide to Volume Spread Analysis (VSA) - Trading
Got a question, need help choosing the right package? He has a monthly readership of 250,000 traders and has taught 20,000 students since 2008. These three consecutive No Demand bars confirmed the lack of market interest to resume the bullish run.
I hope youve enjoyed this brief lesson on online transcription jobs from home uk key levels and event areas. Tom Williams books and software has helped to propel the concepts of VSA among traders. The ForexFactory forum has a discussion on trading forex with VSA. No Demand on Up Bar. In the charts below, I have marked the No Demand bars with red arrows and the No Selling Pressure bars with green arrows. Books on VSA Forum Discussions on VSA There are great discussions on VSA on Traders Laboratory and Forex Factory. However, in the spot forex market, volume is a tricky concept. We can see the market fell all the way down to the key support near.8080 after breaking down below that event area pin bar from January 14th. That is to say, if a market retraces back to the level or area a major move started from, many times (not every time) it will again bounce or fall away from that same level / area. Note, how the market then fell away from that level as price sold lower from the pin. It happens often enough to be something that you need to understand and know how to make proper use of, because these scenarios can often yield very high-probability / high reward to risk trades. Lets look at some more examples: In the chart example below, we can see a good example of how to use an event area both with and without a price action signal as the entry trigger.
An investor could potentially lose all or more than the initial investment.
Volume spread analysis (VSA) is a unique trading methodology that is neither technical analysis nor fundamental analysis.
VSA is able to identify the activities of the Smart Money - the institutional investors, hedge funds, investment banks and enable you to trade in harmony with them.
Forex Trading Using Volume Price Analysis: Over 100 worked examples in all timeframes - Kindle edition by Anna Coulling.