What's new

Volume Spread Analysis indicator

Anne

New Member
This indicator can be used to determine buyer and seller echaustion, churning and absorption of the candles. The end of buying activity is indicated when the VSA bar is red on a bullish candle while selling exhaustion is (End of selling activity) is when the VSA bar is black on a bearish candle.

Candle churn is shown when the VSA candle is green (Churn simply means that teh bulls and bears are head to head)

Candle absorption is when teh VSA candle is pink and it is in essence a combination of the following:-
1. Red and green VSA (buying exhaustion and churn are happening at the same time)
2. Black and green VSA (sellers exhaustion plus churn)

It can be used in conjunction with orderflow for confluence and a more precise entry. It is an NT7 indicator.
 

Attachments

  • BetterVolume3 (2).zip
    8.2 KB · Views: 29
Hi, How is your experience using this indicator? Any pic to share for this indicator?
I used it as conlfuence for Order Flow. Orderflow had it's shortcomings for me as it was very inconsistent in several ways. Though this trading methodology does work for some people :)

Attached is an example of the VSA indicator (at the bottom).... Please ignore the arrows (It was the only pic i could get as i am now back to purely using price action now)

Notice the black VSA, it was not supported by an orderflow signal. The Red VSA however is in confluence with the next Candle that has an Orderflow signal called professional sellers therefore indicating one should have sold at that point.

All the best.
 

Attachments

  • pic x.jpg
    pic x.jpg
    119.7 KB · Views: 36

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Similar threads

Replies
0
Views
227K

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)

Top
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock    No Thanks