VSA - Volume contenair Spread Analysis contenair | www.ltc.lviv.ua - Lvіvsky Club Treyderіv
This technique was developed and described by Tom Williams. He had a great experience at the market in the trading syndicate and watching its activities on the chart derived contenair a number of laws which have been called volume spread analysis (VSA). VSA is actually a further development of the earlier methods - Wyckoff contenair method. But Tom Williams introduced a number of provisions that extend this approach seriously, and thus got their method of analysis when working on the exchange. His authorship contenair of two books belong to "Lords of markets" and "Undeclared exchange trade secrets" with enough detail that approach.
1. Price spread on each bar (note that in this method there is a price spread, the distance between High and Low candle or bar); 2. Closing contenair prices on each bar relative price spread; 3. Trading volume on each bar relative spread and closing prices.
It should be noted that in this method there is no price discovery - that is, in the original VSA parameter such as open when working on the stock exchange is ignored. Work goes exclusively to bars without candlestick analysis. Likewise, the method eliminates the use of any technical indicators except volume histograms for price schedule.
The purpose of this methodology is to ascertain the causes of price movements. That is, the following actions of major players - market operators. Under the operators have in mind the professionals working at the stock exchange in the field of buying and selling securities - large funds and institutional traders who have more capital to move the market and at the same time with enough information to do it correctly.
According to VSA, analyzing spread, closing price and trading volume, you can identify the current phase of the market. The first phase of accumulation - buying shares of large volumes of market contenair operators. The second phase - the price increase due to growth. Third - distribution phase - when the big players contenair are taking profits. Finally, the phase of lowering the price.
Knowledge of the phase in which the market allows traders to act together with the "smart" money and do the same thing as they are. Namely - to buy "cheap" and sell "expensive", to become much more clear and quality transactions with fewer errors. To illustrate, consider a simple example.
Bar number 1 is the end of the accumulation phase - operators in the flat bought as many shares as unable to find here, but now in this price range do not have sufficient liquidity. Therefore, they are forced contenair to settle for a higher price - as a result of the flat is a mess on a large volume, as indicated by the number 2 on the bar, where the growth phase begins. Operators continue to buy stocks, contenair trying to get the highest possible volume at the lowest contenair possible price. Number contenair 3 on the bar upward movement is still going on, but it goes by inertia - this movement creates a crowd of small speculators contenair who hope to continue the trend. However, the volume is small - because this movement is no support from the major players, which leads to a narrowing of the price spread. At this phase of the bar is completed increase. Next comes the distribution phase - when the market operators sell stocks crowd at a high price, which gradually becomes a phase of decline.
Then, when a stock drops too low, stock trading contenair professionals - market operators are open long positions again, to buy shares of the crowd at the lowest possible price. contenair This happens over and over again in all markets and at all trading tools on all time scales. The presence of professionals in the market is an objective reality, which must be considered any trader who aims to get a plus when working on the exchange. And good VSA is that it allows to find traces of the "smart money", using simple technical analysis tools that are in any trading platform.
Popular video Ostannі publіkatsії We offer to work on the NYSE before opening a trading account Quik Quik Set Trading in Ukraine category of GrayBox Quik ROX TAKION vіdeo settings ARTICLES contenair Torgovі progr trading Ostannі komentarі clubtrader How to register mbt desktop contenair pro Oleg How to register mbt desktop pro clubtrader to Paid A.Gerchika seminar in Kiev
This technique was developed and described by Tom Williams. He had a great experience at the market in the trading syndicate and watching its activities on the chart derived contenair a number of laws which have been called volume spread analysis (VSA). VSA is actually a further development of the earlier methods - Wyckoff contenair method. But Tom Williams introduced a number of provisions that extend this approach seriously, and thus got their method of analysis when working on the exchange. His authorship contenair of two books belong to "Lords of markets" and "Undeclared exchange trade secrets" with enough detail that approach.
1. Price spread on each bar (note that in this method there is a price spread, the distance between High and Low candle or bar); 2. Closing contenair prices on each bar relative price spread; 3. Trading volume on each bar relative spread and closing prices.
It should be noted that in this method there is no price discovery - that is, in the original VSA parameter such as open when working on the stock exchange is ignored. Work goes exclusively to bars without candlestick analysis. Likewise, the method eliminates the use of any technical indicators except volume histograms for price schedule.
The purpose of this methodology is to ascertain the causes of price movements. That is, the following actions of major players - market operators. Under the operators have in mind the professionals working at the stock exchange in the field of buying and selling securities - large funds and institutional traders who have more capital to move the market and at the same time with enough information to do it correctly.
According to VSA, analyzing spread, closing price and trading volume, you can identify the current phase of the market. The first phase of accumulation - buying shares of large volumes of market contenair operators. The second phase - the price increase due to growth. Third - distribution phase - when the big players contenair are taking profits. Finally, the phase of lowering the price.
Knowledge of the phase in which the market allows traders to act together with the "smart" money and do the same thing as they are. Namely - to buy "cheap" and sell "expensive", to become much more clear and quality transactions with fewer errors. To illustrate, consider a simple example.
Bar number 1 is the end of the accumulation phase - operators in the flat bought as many shares as unable to find here, but now in this price range do not have sufficient liquidity. Therefore, they are forced contenair to settle for a higher price - as a result of the flat is a mess on a large volume, as indicated by the number 2 on the bar, where the growth phase begins. Operators continue to buy stocks, contenair trying to get the highest possible volume at the lowest contenair possible price. Number contenair 3 on the bar upward movement is still going on, but it goes by inertia - this movement creates a crowd of small speculators contenair who hope to continue the trend. However, the volume is small - because this movement is no support from the major players, which leads to a narrowing of the price spread. At this phase of the bar is completed increase. Next comes the distribution phase - when the market operators sell stocks crowd at a high price, which gradually becomes a phase of decline.
Then, when a stock drops too low, stock trading contenair professionals - market operators are open long positions again, to buy shares of the crowd at the lowest possible price. contenair This happens over and over again in all markets and at all trading tools on all time scales. The presence of professionals in the market is an objective reality, which must be considered any trader who aims to get a plus when working on the exchange. And good VSA is that it allows to find traces of the "smart money", using simple technical analysis tools that are in any trading platform.
Popular video Ostannі publіkatsії We offer to work on the NYSE before opening a trading account Quik Quik Set Trading in Ukraine category of GrayBox Quik ROX TAKION vіdeo settings ARTICLES contenair Torgovі progr trading Ostannі komentarі clubtrader How to register mbt desktop contenair pro Oleg How to register mbt desktop pro clubtrader to Paid A.Gerchika seminar in Kiev
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