I want to start a thread about VSA and how volume can be used to trade Forex.
I know the topic of applying tick volume in Forex was discussed before, but when I looked through these topics I did not find anyone posting his own charts.
to start the topic I attached a file where I compared tick volume for Euro in Forex with Euro in Futures and CurrencyShares Euro Trust.
VSA is a sound methodology to show you when professional money is taking advantage of an imbalance in the marketplace in an attempt to move it in the opposite direction. By using volume per bar and the spread of that bar (the hi to the lo) and the close of that bar, you are able to see that professional money is entering the market.
Moreover, their activity a day before the big news shows what they already know and how they position themselves before the announcement.
I am going to post here my charts with my comments on them.
Anyone who would like contribute into this discussion is welcome.
I know the topic of applying tick volume in Forex was discussed before, but when I looked through these topics I did not find anyone posting his own charts.
to start the topic I attached a file where I compared tick volume for Euro in Forex with Euro in Futures and CurrencyShares Euro Trust.
VSA is a sound methodology to show you when professional money is taking advantage of an imbalance in the marketplace in an attempt to move it in the opposite direction. By using volume per bar and the spread of that bar (the hi to the lo) and the close of that bar, you are able to see that professional money is entering the market.
Moreover, their activity a day before the big news shows what they already know and how they position themselves before the announcement.
I am going to post here my charts with my comments on them.
Anyone who would like contribute into this discussion is welcome.
Attached File(s)
Daily_Euro_2008-09-03.doc
119 KB
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3,291 downloads
Daily_Euro_2008-09-04.doc
161 KB
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1,631 downloads