TradeGuider VSA Relative Volume

21 Sep 2021The TradeGuider VSA Lite package is designed for those traders who want to trade in harmony with the professionals (‘smart money’) and is based on Tom Williams’ Volume Spread Analysis methodology ( VSA ). It works in any market and any time frame. The trader can use it as a standalone toolkit to support their trading decisions, or in conjunction with other trading tools to obtain additional confirmations.
The package consists of two parts:

• TradeGuider VSA Lite indicator
  
• TradeGuider Relative Volume indicator
  

Together with the TradeGuider VSA Lite indicator, the TradeGuider VSA Relative Volume indicator helps to determine the interaction between supply and demand as well as assisting traders in their trading decisions. In the VSA methodology all analysis is based on Relative Volume . This means that the exact values of the volume on the price bars are not nearly as important as their volume in relation to the previous volume bars. The following classifications of Relative Volume are used in VSA:

• Ultra High Volume
  
• Very High Volume
  
• High Volume
  
• Average Volume
  
• Low Volume
  
• Very Low Volume

Users can easily see how any volume bar is classified by observing which color band in the volume indicator is reached by the top of any given volume bar.
Price bars where the volume is Ultra High very often begin the VSA Setup, while price bars on Low or Very Low Volume can be the confirmation and end the VSA Setup.
Using this indicator, users may also observe bullish (when price falls and volume decreases) and bearish (when price rises and volume decreases) behavior.

See the Author's instructions below to get access to this package and the accompanying documentation.