Forex Trading Strategy: VSA

This video demonstrates a technique which was partially developed by Tom Williams, a former professional trader, who now lives in Europe. His system is based on three main ideas:

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.