Volume Spread Analysis or VSA adds the dimension of volume to the analysis of price action.
Price is depicted on price charts as bars or candles. Volume provides valuable insight to the bars/candles.
Price tends to trend and is the concentration of this thread.
Trends are characterized by impulses to LLs in a downtrend and HHs in and uptrend. It is desirable to trade with-trend which is accomplished by entering during an impulse.
Trends are also characterized by corrections which are the pullbacks or retracements. In an uptrend the corrections create HLs and in a downtrend the corrections create LHs.
Pivots are the areas where price transitions from an impulse leg to a corrective leg and back to an impulse leg
Using VSA to enter at pivots is a possible strategy for traders to consider.
A few easy rules for the thread:
1. Comments regarding validity of volume in FOREX are unnecessary. If this is a problem for you then move on.
2. The thread starter has no track record regarding this strategy so don't ask.
3. Posts with charts are highly encouraged. Posts without charts usually contribute little.
4. Demo (play money), Live (real money) trades, setups, etc. are all encouraged.
5. Comments regarding "in hindsight" trades or analysis are not needed. This is a learning thread and so hindsight is ok.
Price is depicted on price charts as bars or candles. Volume provides valuable insight to the bars/candles.
Price tends to trend and is the concentration of this thread.
Trends are characterized by impulses to LLs in a downtrend and HHs in and uptrend. It is desirable to trade with-trend which is accomplished by entering during an impulse.
Trends are also characterized by corrections which are the pullbacks or retracements. In an uptrend the corrections create HLs and in a downtrend the corrections create LHs.
Pivots are the areas where price transitions from an impulse leg to a corrective leg and back to an impulse leg
IMPULSE-->pivot to CORRECTION-->pivot to IMPULSE-->pivot to CORRECTION
Using VSA to enter at pivots is a possible strategy for traders to consider.
A few easy rules for the thread:
1. Comments regarding validity of volume in FOREX are unnecessary. If this is a problem for you then move on.
2. The thread starter has no track record regarding this strategy so don't ask.
3. Posts with charts are highly encouraged. Posts without charts usually contribute little.
4. Demo (play money), Live (real money) trades, setups, etc. are all encouraged.
5. Comments regarding "in hindsight" trades or analysis are not needed. This is a learning thread and so hindsight is ok.