What is VSA concept?

What is Volume Spread Analysis (VSA)? VSA is the study of the relationship between volume and price to predict market direction. In particular, it pays attention to: Volume. Range/Spread (Difference between high and close)

How do you trade on VSA?

4 step Process for Volume Spread Analysis (VSA Trading) Entry

  1. Identify the trend.
  2. identify the sign of weakness in an exiting uptrend.
  3. Wait for test the weakness for confirmation for the continuation of the uptrend.
  4. Look for any bullish reversal candlestick pattern for entry.

What is volume spread analysis?

Volume spread analysis is a new way of looking at the market. It more like the candlestick analysis taking into consideration the volume. The basic premise behind the volume spread analysis is that the market is basically moved by the “Smart Money”. The smart money accumulates the stocks at low prices.

What is VSA in forex?

Volume spread analysis is the type of analysis based on volumes and the spread of the candlestick. It tries to find out the differences between supply and demand, which the biggest players create in the Forex market (professional traders, institutions, banks and market makers).

Who is Tom Williams trader?

Tom Williams (1929 – 2016) was the founder of TradeGuider Systems Software (formerly Genie software) and initiator of the Volume Spread Analysis methodology- he was also a very successful syndicate trader in the U.S.Tom was introduced to day trading while working in Beverly Hills for a boss of an elite group of trading …

What is a low volume test?

Low volume test When the market is testing supply any down move dipping into an area or price range where there was previous high volume (previous selling ), which then returns to close on, or near the high, on lower volume, is a clear signal to expect higher prices immediately. This is a successful test.

What is tick volume in Forex?

“Tick volume” measures the number of times the price ticks up and down. This is an excellent indicator of the strength of activity in any given bar. But also, the correlation between tick volume and actual volume traded is incredibly high.

What is a price volume analysis?

Volume analysis is the examination of the number of shares or contracts of a security that have been traded in a given time period. By analyzing trends in volume in conjunction with price movements, investors can determine the significance of changes in a security’s price.