HOW TO USE VSA IN FOREX TRADING?WIN RATES OF 75 PERCENT AND MORE.

THE BASICE OF VSA IN FOREX.

 welcome to my blog  and today the topic of thearticle is using volumes when 75% of trades so let's dive into this one for a currency to be traded and for its price to move from one level to another volume is required or put enough away volume is the gas in a tank of the trader machine however volume has often been overlooked in the study of Forex charts but the focus has been more on price action alone volume is required to move a market but it's a particular type of volume that really matters institutional money or smart money which is large amounts of money being traded in a similar way thus affecting the market greatly only volume shows when price has been affected by this type of activity knowing how institutional money operates we are able to track those traders and trade along with them so that we're swimming along with the proverbial sharks rather than being their next meal there is a common misconception that volume cannot be used reliably in Forex trading for two reasons firstly there is no sin to exchange and therefore no volume data secondly when you're actually looking at volume data on your Forex platform you're actually seeing tick volume and not actual volume traded such as the volume with with stock charm tick volume so this measure the number of times the price ticks up and ticks down this is an excellent indicator of the strength of activity in any given bar  but also the correlation between tick volume and actual volume is incredibly high in 2011 a gentleman known as Casper Marny head of Marnie Capital and X ups and HSBC trader he conducted an analysis of actual volume and tick volume in forex he used data from a signal EBS and also hot spot for the pairs that he studied he calculated the correlation between tick volume and actual volume is over 90% so the question is how do we go about tying in volume with price action the study of volume with price started in the early 1900's with a trader by the name of Richard wicker his research they're known as wick of analysis developed into what is known today as volume spread analysis or VSA for short not all VSA traders or techniques are the same some are incredibly software driven and complex where as we like to keep it simple the simpler the approach used results experientially speaking a success rate of 75% and more is not uncommon with very few consecutive losses a simpler approach is reflected in the charts we have a price candles volume bars and that's it we use v B and 61% Fibonacci lines and simple support and resistance to help in entries but nothing more so to summarize one institutional money or smart money is necessary to move a market and is revealed in those volume bars to Forex tick volume can be read as an accurate indicator of institutional or smart money strength 3 vs a so volume spread analysis when it's kept simple it can be applied and taught more easily with wind rates of 75 percent and more. 

VSA IS A SMART MONEY IN FOREX.

Volume Spread Analysis is the study of Price in relation to its corresponding volume. It basically identifies the underlying reasons behind the market behavior or movement. If a trader anticipates a bearish or bullish movement then there must be an underlying reason behind it. Volume Spread Analysis tracks down the professional activity or the moves of the smart money. Smart Money in this context is the Big Banks, Hedge Funds and Large Financial Institutions having hefty pockets to move the market the way they want. Volume Spread Analysis eliminates subjectivity from trading because while price can be manipulated by professional activity, volumes can’t. Thereby, Volume Spread Analysis is one of the best way to understand market psychology and sentiments. VSA can be used in any market like forex, stocks, Indices, commodities, and Futures. Many people might argue that in forex Volumes are useless as it is decentralized market having no real volumes. However, Forex has Tick Volumes which is proxy to real volumes and correlates it 90% of the time. And yes, VSA methodology can also be applied to any timeframe. Wyckoff’s VSA is one of the best methods to analyze a market because: • It is non subjective • It is not prone to smart money manipulation as the method itself is used for detecting smart money activity. • It figures out the underlying reasons behind the market movements and also understands the cause of imbalance between supply and demand.