Pattern Recognition Series Episode 1: GOLD
Here's an in-depth look at Volume Spread Analysis.
We use tape reading to gauge future price movements based on the magnitude of previous price movements. This helps us determine the driving force of the market and position ourselves on the same side as the large operators within any market.
The key is understanding what VSA allows us to see.
Volume = activity therefore Ultra High Volume (UHV) shows the activity of not only the public but also the Large Operators of that particular asset.
This video shows that the demand in the upward trend channel diminished while the supply increased giving me the confidence to trade in alignment with the largest of the two opposing forces.
By use of Bar by Bar Volume Spread analysis the operator then uses each bar to quantify the upcoming price movement.
Climactic volume is a sign that prices are likely to reverse and that a stopping action has occurred. When analyzing UHV you want to assess the Effort (volume) and the Result(price).
Remember the markets abide by the laws of Supply and Demand, Effort vs Result, Cause and Effect, and the Law of Attraction.
I hope you guys enjoy the video!
Happy Trading!
-J Hair
We use tape reading to gauge future price movements based on the magnitude of previous price movements. This helps us determine the driving force of the market and position ourselves on the same side as the large operators within any market.
The key is understanding what VSA allows us to see.
Volume = activity therefore Ultra High Volume (UHV) shows the activity of not only the public but also the Large Operators of that particular asset.
This video shows that the demand in the upward trend channel diminished while the supply increased giving me the confidence to trade in alignment with the largest of the two opposing forces.
By use of Bar by Bar Volume Spread analysis the operator then uses each bar to quantify the upcoming price movement.
Climactic volume is a sign that prices are likely to reverse and that a stopping action has occurred. When analyzing UHV you want to assess the Effort (volume) and the Result(price).
Remember the markets abide by the laws of Supply and Demand, Effort vs Result, Cause and Effect, and the Law of Attraction.
I hope you guys enjoy the video!
Happy Trading!
-J Hair
Coach J
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