Trading using the VSA (Volume Spread Analysis) system

0 2 711

Not so long ago, about two years ago, this topic began to gain more and more popularity and nowadays has gained significant popularity among traders.

The fact is that many professional traders conduct their trading on the basis of this system and often successfully. The reason for this popularity is the practicality of the system and opening a position not against strong players, but behind them.

Important note: when trading with the VSA strategy, you must trade with a low potential risk and have a deposit above average (these are the recommended settings).

I will not dwell on the details, I will list only the basics. VSA is based on an understanding of the processes occurring in the market . There are a few basic truths you should know:

1) The currency market is a place where everyone is chasing profit, and most importantly, they want to get it in the maximum possible amount, for the minimum possible period of time.

2) When you open a position in the market , be aware that large players know about its existence and will take it into account in the investment process in order to absorb it and, accordingly, take your money.

3) The market skillfully uses the fear of losing funds. By means of sharp (note exactly the sharp price jumps), large informed players force you to close a trade that is at a loss. In this situation, your behavior is easy to explain. For example, closing a long position in the event of a sharp collapse in instrument prices, you close because you do not know how long the growth will continue (to prevent such losses, I recommend using a small trade volume).

4) Everyone knows the saying: “forewarned is forearmed”, no matter where it is useful for the market of currencies, stocks and options. In order to join the ranks of informed participants, you should not rely solely on the prices on the chart. You should have access to modern cluster analysis platforms, as well as accurate data on the location of key technical levels in conjunction with volume analysis. You must understand that the lack of information makes you very vulnerable to those who own this information.

5) Remember, all news releases that do not have an objective basis are speculative actions of major players. Thanks to money and connections, the media around the world can show you everything that you want to see and never – the truth!

It will not be possible to list all the features of trading due to the excessive amount of information. I advise you to start reading the well-known book of the American stockist Tom Williams “The Masters of the Markets.”

Today it has become very fashionable to use cluster analysis platforms in relation to the Forex market , however, I assure you that the Forex we work with is a closed market. If you want to fully trade currencies, then the best platform is the futures market. I think Forex trading is convenient in terms of learning opportunities and nothing more.

What privileges do cluster analysis platforms give us over the usual MT4 and MT5 terminals? The answer is simple, the privileges are huge, but do not forget that not everything that is difficult is easy to apply. First, cluster analysis allows you to see the real number of trading volumes, with its help you can conveniently view volumes up to a 5-second period.

It is also possible to view the volume profile, and most importantly, to see at what price the contracts were executed (Bid, Ask). Naturally, it remains unknown for us whether the contracts are closed at this price or open, we only see the fact that the position is being executed. The arsenal of cluster platforms has the ability to track a major player and much more. Also, one should not forget that such information is information from the futures market and the stock market, as well as the fact that services for providing such information are paid on average 70 $ / month. You immediately feel that the information is useful, isn’t it.

Now let’s talk about the possibility of using standard analysis tools on the MT5 platform (namely MT5 due to the provision of the real number of open contracts).

The MT5 platform introduced into the market not so long ago provides users with the opportunity to see the real trading volumes on the market. Let’s just say the concept of “real volumes” is not entirely correct here (the forex market is a closed market, there is no single place for trading), and therefore the volumes provided by the platform are to some extent local (for example, Alpari does not provide such information at all, what else times says a lot). Nevertheless, the behavior of traders is the same everywhere and the volumes provided fully reflect the picture of what is happening.

An example of using free funds is the use of the RTV (Real Tick Volume) indicator for volume analysis using the VSA method. And, nevertheless, even here the paid XLines market analyzer is used, which makes it possible to view the true support and resistance lines on any financial instrument and any time period.

Check out the above literature and indicators. Start learning VSA, only knowledge of this trading method will allow you to trade “correctly”, reduce possible losses and increase productivity.

Leave A Reply

Your email address will not be published.

семнадцать − шестнадцать =