Thursday, September 28, 2017

VSA basic

First, your reference of that highlight sideway price action on your chart is called a trading range. Secondly, you need to re-study Volume Spread Analysis (VSA) within accumulation (buying) / distribution (selling) via whatever resource you've been using if it contains the information. Simply, the highlighted area (trading range) on your chart does not represent an overall theme of accumulation. In contrast, the overall theme in that highlighted area is distribution. Yet, there are small areas in that highlighted area of distribution that represents accumulation (e.g. mid May and mid June).

Therefore, I highly recommend you learn about accumulation/distribution outside of VSA via Wyckoff (supply/demand) or Wyckoff's Market Phases. You should also learn about support/resistance or supply/demand within trading ranges. Next, after you've developed a strong understanding of Wyckoff accumulation/distribution, support/resistance, supply/demand you can then return to using VSA and merge that knowledge with your VSA. Simply, get your evidence or knowledge about accumulation/distribution from outside resources if your current VSA resource lacks the information.

By the way, here at Traderslaboratory there are excellent old discussions about Wyckoff via supply/demand.

P.S. I don't use VSA. Instead, I've been told by several VSA users that Wyckoff's Market Phases has given them a stronger understanding of VSA and improved their trading of VSA after they've been having problems being profitable via VSA. You have a lot of work to do and don't take another trade until you've mastered accumulation/distribution on its own two feet. 


From here

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...