New to VSA

[Bob111]

I'm new to VSA and still trying to get my head around it. I've read "Master the Markets" and "A Complete Guide to Volume Price Analysis", but I am still trying to spot the areas of interest using volume in the actual markets.

Looking at the S&P 500 (SPX) below I was wondering if someone proficient with VSA can tell me if my thinking is right? To me it looks like it is entering some sideways action and I was thinking it is the start of distribution phase? The reason I come to this conclusion is volume is starting to rise again but the daily ranges are small. I probably have it all wrong but I was just wondering if someone can tell me if I am on the right path or if I'm not understanding it properly.

 

[tech/a]

Hi Bob.

I use VSA on Indexes mostly the DAX.
And on 3 and 15 min Time frames.

To your S&P daily chart.
The S&P historically has a small range as you can see for months before COVID.
Range is rarely wide.

For that reason I dont trade S&P. I haven't had a good look at lower time frames
so cant really comment on them

Anyway moving along

VSA should be combined with Pattern in my view. Read in conjunction I find it
very helpful to anticipate a move or the end of a move.
So Based on pattern only using your chart above it appears that the Up move is still
strong with some of the volatility falling off as well as volume we could be moving
toward a period of consolidation, but nothing is really indicating that yet.

Ive written a lot on VSA and Trading the DAX with it over the years
a search should find it.

tech.

 

[Bob111]

Thanks Tech. I actually did wonder about the historical daily ranges of the S&P but just assumed that was because we were near a market top. I should have looked back further to confirm this I guess. I've seen a few of your posts but I'll do some more searching.