Hello, I want to present the recently created Analytical VSA Trader, an indicator for Metatrader 4, based in VSA. It draws powerful signals on the chart like I honestly have never seen in any other commercial/non-commercial indicator.
So what is VSA (Volume spread analysis) all about?
VSA is a proven methodology of analyzing financial markets. First developed by Richard D. Wyckoff, one of the most successful Wall Street traders of all time, in the 1900s, and perfected by Tom Williams, during the time he was a syndicate trader for 15 years based in London in the 1960s-1970s. Other very successful Wall Street traders like William O'Neill use it as well. It's based on supply and demand, which governs any market, and not anything else: no technical indicators, no price patterns, just pure price and volume action.
Any business where there is money to be made there are professionals: Art has professional traders, poker has professional players, betting has professional betters, and likewise financial markets have professional traders. Being successful in the markets is all about following the footsteps of the 'sharks' of this game: market operators, pit traders, market-makers, syndicate traders and top professional traders. The purpose of VSA is to show you what the professionals are doing by analyzing the price movements and volumes, and profit with that knowledge!
Let's see some examples: in the gold top in September/2011, there was major supply - the strong holders (professionals) dumped their gold futures stock on the weak holders (the public), and it is visible by high volume and sluggish price increase, typical of a distribution.
In the 2008 top of the American stock market, there was also distribution and lack of demand at higher prices right before the bear market started.
The principle applies to any market in any timeframe, and you see the same exact setups. In forex, you can use tick volumes, since it also measures equally well the market activity.
- Fully automatic and complete VSA analysis
- Accurate bar-by-bar analysis, in multiple timeframes
- Background scanner
- Applicable to any market in any timeframe
- Very simple to use
- Strictly non-repainting indicator
Indicator features in detail
- Every supply, demand, or lack of supply/demand bar is marked with a specific color. AnalyticalTrader automatically scans the current timeframe and the two timeframes above the current one for these signals, and marks everything it finds in the current chart, so you get a multi-timeframe analysis in just one chart.
These are highly accurate and will point out more often than not, many tops and bottoms in the market.
- The background tells you the consensus of opinion of institutional traders and professionals. It scans the background and tells you if it’s bearish, bullish or neutral. This basically will tell you in which side of the market should you be: you never want to trade against the smart money!
The background will also tell you the weight you should give to the demand or supply signals the market is generating.
- Is Analytical Trader suitable for traders who haven't even heard of Volume Spread Analysis (VSA)?
Of course! The indicator marks all the important bars, computes the background automatically, so you don't have to worry about how it's done.
- How can Analytical Trader help VSA traders?
It accerelates VSA learning: if there is a VSA bar, this indicador will draw it. By marking every important bar, and telling you how the background is like, is almost like having a teacher at your side teaching you on what you should look for. You can also compare your own analysis to Analytical Trader analysis, which I do very often by the way!
- What makes Analytical Trader different from other VSA products?
The commercial VSA indicators we tried, and the non-commercial ones, are clearly made by non-vsa traders. They draw almost every bar as supply or demand, which is inconsistent with VSA, and getting mixed signals consistently doesn't help trading no matter how you look at it. There are also those repainting types, who conveniently erase or draw bars when the action already developed: good for product marketing, useless for trading. In contrast, Analytical Trader is non-repainting, marks the important bars, which happen to predict a lot of tops and bottoms in the market, and provides you with an accurate background analysis as an experienced VSA trader would do.
- Does it work with tick volume?
Yes, tick volume works the same way as real volume as VSA is concerned, as it measures the activity in the market. Plus it's highly correlated with real volumes in other instruments, as brokers gather volume data from many other brokers.
We're a team composed by a VSA trader who trades in forex, stocks and commodities since 2008 with success. He's also a graduate in Physics currently taking a Msc. in Financial Mathematics; ample experience coding in C++, Matlab and MQL4.
... And a computers engineer with experience in multiple coding languages, including MQL4.
Feel free to contact us with any question or problem:
Analytical VSA Trader - The First Reliable VSA Indicator for Metatrader