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VSA Trade Set Ups

- Volume spread analysis (VSA) uses volume to identify key support/resistance levels and turning points in markets. It focuses on periods of unusually high or low volume. - VSA traders look for "trigger numbers" which are price levels with historic high/low volume that often act as support/resistance. They also analyze multiple timeframes and trade in harmony with the overall trend. - Successful VSA traders are disciplined, have strong risk management, take consistent small profits rather than being greedy, and maintain a contrarian, optimistic mindset even after losses. They carefully study past winners and key patterns like "bag holding" and "hidden upthrusts".

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5K views28 pages

VSA Trade Set Ups

- Volume spread analysis (VSA) uses volume to identify key support/resistance levels and turning points in markets. It focuses on periods of unusually high or low volume. - VSA traders look for "trigger numbers" which are price levels with historic high/low volume that often act as support/resistance. They also analyze multiple timeframes and trade in harmony with the overall trend. - Successful VSA traders are disciplined, have strong risk management, take consistent small profits rather than being greedy, and maintain a contrarian, optimistic mindset even after losses. They carefully study past winners and key patterns like "bag holding" and "hidden upthrusts".

Uploaded by

pirriper
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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VolumeSpreadAnalysisTradeSetUps

GavinHolmesandSebastianManby

VolumeSpreadAnalysisTrade SetUps
Introduction.
PointstoRemember. MainPrinciplesofVSA The5%WhoWin. IdentifyingTriggerNumbers. ThePlayingField&MultipleTimeFrames Shortingafterweakness GoingLongafterstrength

SomePointstoRemember
Eachofusareunique.Wehavedifferentaccountsizes,losstolerancelevels, experiencelevels,differentwaysofviewingthings(twopeoplecanlookatthe samemountainfromthesameplaceandseeentirelydifferentperspectives),and differentlevelsofselfdiscipline. VSAprinciplesapplytoallmarketswherethereisvolumeavailableandinall timeframes. KISS KeepItSimpleStupid.Nothinghereisrocketscience.VSAisverylogicaland isbasedonprinciplesthathavebeenaroundfordecades. Takeaholisticapproachtoyourchartanalysis. DefinitionofHolistic Emphasizingtheimportanceofthewholeandtheinterdependenceofits parts. Thinklikeapredatorandnottheprey. AlwaysBELIEVEyouCANmakemoneyandhavetherighttomakemoney. DONOTtradeifyouareinabadmood!! Visualizeyourwinningtradesandstudypreviouswinnersclosely.

PointstoRemember Contd
Startwithatopdownapproach,lookingforareasofaccumulationand distributioninthelargertimeframe. Alwaystradeinharmonywiththetrend,unlessyouareveryexperiencedat countertrendtrading. Puttheoddsinyourfavour,watchtheparentindex.Iftheparentisfallinganda stockisrisingyouwouldbepushingyourlucktogolongagainsttheparent. Selectstockstobuythatareoutperformingtheparentwhentheparentismoving upasthesearebeingheavilysupportedbyprofessionals. Selectstockstoshortthatareunderperformingtheparentandseemtorefuseto goupwiththeparent,thesearenotbeingsupportedbytheprofessionalsor maybestillundergoingdistributionsoarenotready. Identifyturningpointsusingsupportandresistanceareas,notinganyunusual volumeactivity. Alwayslookatthebackgroundofachart,itholdsvitalcluestotherightedge. Remember,anythingseeninhindsightwillbethereagainattherightedge.

MainPrinciplesofaVSAStrategy
Allpatternsseeninthepastwillbethereattherightedgeof yourchart,buttheywillcome indifferentintensities. VSAisadiscretionarymethodologythatstillrequiresdisciplineandmoneymanagement. VSAismuchmoreeffectivewhenusedwithsupportandresistance andwithElliotWave analysis.(UsedbyWyckoff). Youmustusemorethanonetimeframetoseethebiggerpicture. Ifyoulistentonews,haveaverycontrarianviewofthecontentswhentakingaposition. Thechartneverlies,relyonyourchartingskills. Becomefamiliarwiththepersonality oftheinstrumentsyoutrade. Alwaysuseastoploss,youcanneverbe100%right. AlwayspayextraattentiontoUltraHigh/Lowvolumeonthechart whenitappears. Askyourself,whataretheSmartMoney doinghere. ManyVSApatternsrequire2or3barsforconfirmation,likecandlesticks,sodontrushin. Volumeisthekeytothetruth,ignoreitatyourperil.

The5%WhoWin
Belief Visualization seeingthewinners/cuttinglosers Contrarian Thinkasanindividual ExpertChartReadingSkills HighlyDisciplined Spiritual Openmindedandwillingtohelpothers. Expecttoreceiveanddosograciously ExcellentRiskManagementStrategies. Alwaysabletostayinthegame!! Takeconsistentandsmallprofits NOTGREEDY.(AliBaba) Arealwayshappyandcontent.

IdentifyingTriggerNumbers

WhatisaTriggerNumber
Anareaofultrahighorultralowvolumeatapricelevelseen inthepastwherethemarketrespondedorturnedandisnow atthesamepricelevelattherightedgeofthechart. ThispricelevelwillbeseenbySmartMoney andoften theseareasactasstrongareasofsupport/resistance. PivotPoints/Top&BottomofTrendChannels/Trend Clustersuncannilyappearattheseareas. Higherprobabilitytradesandstoppositioningsetupatthese levels.

DrawingThePlayingField

OverboughtandOversoldZones

ClimacticActionInTheOversoldZone

VSASetUpsLongandShort
TheTestAfterTheShakeOut. ProfessionalMoneyBagHolding TheHiddenUpthrust AfterWeakness EndofaRisingMarketFollowedByNo Demand.

BagHolding ProfessionalMoneyOpeningTheBagToCatchTheSellOrders

TheHiddenUpthrust AStrongSignofWeakness

TheTestAfterTheShakeout AStrongSignofStrength

EndofaRisingMarketFollowedByNoDemand GavinsFavorite ShortSetUp

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