VSA analysis: the art of managing Forex volumes!

VSA analysis: the art of managing Forex volumes!

VSA analysis: the art of managing Forex volumes!

There is such a practice in Forex: novice traders are constantly searching for the perfect strategy that will consistently bring profit. They go through / add a lot of indicators, in most cases, even without a full understanding of how to use them. In the end, from the" vinaigrette " of indicators, there is a certain combination that shows not bad results on historical data.

However, when it comes to real trading, unpleasant surprises begin, namely, a series of unprofitable trades. The trader is perplexed, tries to understand what is going on, and the search for the Grail continues. And so on indefinitely.

But the fact is that the market is not a linear structure and the fact that indicators in the past, on the history, showed good entry points, does not mean that the same will happen today or tomorrow.

Eventually, after a diligent search, the trader begins to think that the indicators are a waste of time and they don't work. This is not the case, they work, however, due to the volatility of the market, some stop working, and some again begin to give good signals to enter the market.

So what is the best solution? What kind of analysis tool should I choose that will work in any market, in any phase of it? The answer is VSA (Volume Spread Analysis) - a trading system that gives the trader an understanding of where large market participants start to act. After studying the VSA trading system, you will have confidence in the process of making trading decisions.
The basis of the VSA trading system

Volume Spread Analysis (abbreviated to VSA analysis) in translation from English means "analysis of volume and prices." And this is a kind of Grail that gives answers to basic questions:

Where to wait for a price reversal and open a buy/sell position;
When to fix the profit.

After studying the VSA strategy, you Will:

Learn to find entry points with minimal risk and good profit potential;
Learn to see the phases of the market-accumulation and distribution;
Understand the psychology of crowd trading and learn to be outside of it;
Learn what a shake-up is, what benefits market professionals get from it, and how it should be applied in the process of making trading decisions;
Learn to understand Up-Thrust, how and when to trade when this setup appears;
You will understand why the background is very important when analyzing the market and trading;
Learn what a test is, what types of tests there are, and how to recognize them;
Learn how to find VSA setups and be among the first traders to open positions on market reversals;
You will understand the essence of supply and demand, and how they affect the price when there is an imbalance;
Learn how to find the most profitable entry points for buying and selling with the minimum Stop-Loss size.

Eventually, after completing the course and developing practical skills, You will become a true professional in the field of trading. This will allow you to show stable, positive trading results from month to month.

Knowing how to" read " the price and exchange volumes gives you an undeniable advantage over the market.

The chart below shows the EUR/USD currency pair. The number 1 indicates a growing bar and the volume that was formed during the price growth. Then (marked with the number 2) we see how the previous, growing candle is absorbed by a descending candle with an increased volume, which tells us about the weakness in the market and gives a signal to search for an entry point to sell:

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On the same segment of the chart a little later, we again see signs of weakness. The number 3 indicates a descending bar on an increased volume, followed by an ascending bar, but the volume is significantly lower than the previous one, which tells us that the major players are not interested in growth. Then there is another signal of weakness – the bar at number 5 is ascending and the volume on it exceeds all previously considered. Then a descending bar under the number 6 is formed, completely absorbing the bar under the number 5. At the same time, the volume is also growing. Look at the chart:

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As you can see from the example above, it didn't take a single indicator to "read" the price and determine that the market is weak, i.e. the price will tend to decline.

Another undeniable advantage of the VSA trading strategy is that it works on all timeframes and all financial instruments without exception.

Would you like to learn how to manage volumes yourself in the same way, and even better, than it is shown in the article? There is nothing complicated! Just watch the video below, where experienced Forex Academy analysts will tell you about the intricacies of the VSA system. You will get valuable and useful information for yourself!

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