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#1 01-05-2011 11:24:44

kalanaetg72
Member
Registered: 01-05-2011
Posts: 2

Volume Spread Analysis

Hello fellow traders... I just want to ask if there is anyone can teach me how to use the VSA and adopting to market analysis...

best regard

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#2 01-05-2011 14:17:30

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 2534
Website

Re: Volume Spread Analysis

There are three main ideas to keep in mind:

1. Following and understanding volume which shows the true activity of professionals. This is important since professionals move the market, not home-based traders like you and I.

2. Following the spread, which is the high/low of each price bar. This alerts a trader to the bullishness or bearishness of a particular price movement.

3. Following closing price, or price action, which tells you how the price reacts to the volume and the spread.

Using these 3 techniques you can successfully trade on the right side of the market, with the professionals. Once you learn to understand these priniciples you will see that your decisions to enter a trade are rationalised by what you are actually seeing and not what an indicator is telling you to do.

Here's a video which illustrates this:


Hope this was helpful. Let us know if you've been successful with it, I haven't tried it out yet personally.

:)


"Anything worth having is worth going for - all the way." - J.R. Ewing

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#3 01-05-2011 23:10:53

kalanaetg72
Member
Registered: 01-05-2011
Posts: 2

Re: Volume Spread Analysis

Thanks johnedward, the valuable knowledge that is priceless jewel for me, I appreciate your help and I hope i can take the advantage of this in my trading,

however, I have plenty of training and understanding before I start a real trading. thanks again and hope you succeed

regards

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