What you'll learn
- Ride on Smart Money actions to find trade opportunities in the same direction.
- Identify which phase the current market is in to facilitate on a long or short trades.
- Recognize signs of strength and signs of weakness to decide on entry or exiting a position.
- Familiarize with terms and their respective definitions commonly used in Volume Spread Analysis.
- Apply the concepts of Volume Spread Analysis to trades drawing from study case examples.
Requirements
- Some basic knowledge or experience in candlestick or bar charts.
- Entry level technical analysis i.e. Support and Resistance, etc...
- Interests to trade the markets.
Description
Volume Spread Analysis (VSA) is a technical analysis methodology used in trading to analyze the relationship between volume, price, and spread to identify trends, market phases, and potential trading opportunities. VSA is based on the premise that the smart money (big institutional traders) drives the market, and their buying and selling activity can be observed through changes in volume and spread.
VSA was first introduced by Tom Williams, a former syndicate trader, who observed that the smart money would manipulate the market by using large volumes and creating specific price patterns, which he called "market makers' footprints." Williams developed VSA to help individual traders identify these patterns and make profitable trades in the same direction as the smart money.
The importance of VSA in stock trading lies in its ability to provide traders with insights into market sentiment and potential market reversals or continuation patterns. VSA can help traders identify when the smart money is buying or selling, and traders can follow their lead by entering trades in the same direction.
VSA is particularly useful in identifying accumulation and distribution phases, which are market phases where smart money is accumulating or distributing a particular stock. By identifying these phases, traders can take advantage of potential price increases or decreases.
Another important aspect of VSA is its ability to help traders manage risk. By analyzing volume and spread, traders can determine whether a particular stock is likely to move in their favor or against them, allowing them to place stop-loss orders at the appropriate levels.
In summary, VSA is an important tool in stock trading as it provides traders with valuable insights into market sentiment and potential trading opportunities. By analyzing volume and spread, traders can identify market phases and potential reversals or continuation patterns, manage risk, and increase their chances of taking profitable trades.
Who this course is for:
- Beginner traders with some exposure to charting.
- Intermediate traders who have some experience trading and looking to improve their game.
- Experience traders looking for an effective simple strategy to save time.
- Totally fresh participants may face some challenge following the content but it is manageable.
Instructor
- 4.3 Instructor Rating
- 135 Reviews
- 3,635 Students
- 6 Courses
I started my professional career as a Systems Engineer. Over the course of 15 years, I moved up the ranks to head of Engineering in a multi-national company. While all this sounds great, I knew very little about finances let alone investing and trading.
I got a rude awakening when one day I realized that I had been relying fully on agents who were only interested in making commissions from my investment through them but making little to no progress in the investments itself. I paid the price for not taking my finances and investments seriously while focusing on my career.
It was at this time that I made the decision to educate myself on financial matters and get some exposure in investing in the stock market. To my surprise, my technical background helped a lot in picking up technical analysis using charts and so ignited my passion for trading.
I have since gained experience in trading various markets and taken a license to help others in their investments, who are not inclined or able to do it themselves.
Along my journey of discovery, I also had the opportunity to pick up some knowledge & experience in metaphysical topics. It helped me tremendously to both understand myself & others that I am interacting with.
It is now my mission to share my knowledge and experience to help others to either get started on the right path or at the very least get the help they need.