Is it possible to trade using VSA on a FOREX 5M chart? It looks like each time I identify a signal and enter after confirmation, that's right when the trend is reversing.
Are you using multi timeframes?
Is 5M too noisy for VSA?
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depends what type of trader you are? Are you a day trader?
The main points you have to understand about a market is there are a few things to remember.
Markets operate on supply and demand
markets operate on accumulation and distribution
markets operate on the principle of effort and result
markets operate on the principle of cause and effect.
The main points you have to understand about a market is there are a few things to remember.
Markets operate on supply and demand
markets operate on accumulation and distribution
markets operate on the principle of effort and result
markets operate on the principle of cause and effect.
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These are key fundamentals of how all markets today function, reading a chart is easy,understanding a chart is easy and reading price action is easy. It's the fundamentals that will guide you to profitable trading while you use the VSA principles.
VSA stands for volume spread analysis its basis is learning how to analyze the bars, volume and background of a chart to anticipate future market movements. No indicators necessary
Before you go long a market you have to first see if there strength in the background. In VSA strength is classified according to bars either stopping volume, climatic bars, or reverse upthrust. However all these bars usually produce high volume which means there is supply contained in the bars. So smart money will always test that supply in the near future to make sure all selling has disappeared. If the test is successful then you can expect higher prices.
Point take well the basis of VSA is mapped utilizing some kind of volume and tick volume is sufficient. To people who actually have interest in this process. I'll break it down
Selling Climax:An imbalance of supply and demand causing a bear market to transform into a bull market.
Explanation: This is the exact opposite of a buying climax. The volume will be extremely high on down-moves,accompanied
by narrow spreads, with the price entering fresh low ground. The only difference is that on the lows, just before the
market begins to turn, the price...
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Hi Nyse1982.
Sorry, but I don't understand the way you calculate the spreads. As far as I know, in Master the Markets, the spread is calculated as the difference between the High and the Low of each bar.
Sorry, but I don't understand the way you calculate the spreads. As far as I know, in Master the Markets, the spread is calculated as the difference between the High and the Low of each bar.
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I think u will find he does it his way.. not the Master Markets.. way.. and it is a very sucessful way.. Diffrent thinking so to speak..
I think u will find he does it his way.. not the Master Markets.. way.. and it is a very sucessful way.. Diffrent thinking so to speak..
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But it is still a bit confusing. He does it this way (H - L) - (H - C), which by the way equals C - L.
(H - L) - (H - C) = H - L - H + C = C - L
The only reasonable way for using it that way is in case you use it also for downbars. Otherwhise, for donwbars you should use another formula, something likke (L - H) - (L - O)= L - H + L + O = O - H. Being O= Open. Isn't it?
