Supporting the VSA Trading Strategy and the software toolset is a 5 part VSA trading course. This provides important supporting information about the tools, strategies and principles used in the trading process
The course offers a mix of video, graphics, animated charts and audio commentary
It can be accessed on PC, tablet and SmartPhones
They can scan up to 25 trading instuments simultaneously across 10 time-frames and will show you graphically when there is trend alignment across multiple time-frames.
When trend alignment is seen - espcially in larger time-frames - the chance of making successful trades is much higher.
The scanners will also scan for and then diplay, the VSA indicators in the scan window.
The scanners can be configured to send you email alerts when key VSA indicators and VSA setiups have been triggered.
There are 2 types:
VSA Indicators which alert you when major VSA principles indicate a potential future market turn.
VSA Confirmation Indicators which confirm the VSA principle.
When you click on an indicator - the green or red triangle symbols - a dialogue box appears giving you detailed information about the trading area you are looking at. Written by the inventor of VSA, the late Tom Williams, the dialogue box contains three sections:
1. Price bar description: The latest populated price bar and what it means in VSA terms.
2. The Background: This is very important as it can influence how the market reacts to the indicator in question. You must look back 1 to 50 bars for high / ultra-high or low / ultra-low volume accompanied by a major VSA Indicator. If there are VSA Indicators in the background this adds extra weight to the strength of the Indicator you are looking at.
3. The Future: This gives you strong support when deciding whether to trade or not. This section will tell you to wait for at least two bars.
The software is continuously llooking to see the relative amount of bullish and bearish volume at any particular time. The results of this analysis are shown in the bottom bar of the chart.
If the bar is green the volume is bullish, if it is red then the volume is bearish.
It is best to use the relative volume tool to aid you in your entry or exit.
Whatever your trading style, the short-term trending tool is a flexible indicator that can be set up to help you in 'scalping' or swing trading on intraday charts, position trading on daily charts, or even in medium/long-term investing on weekly or monthly charts.
The circular dots display in 3 colors; red for a short-term down-trend, green for a short-term up-trend and grey when the market is in congestion.
As well as the changing colour of the dots, one of the great things about this indicator is the way it levels out, as prices become slow to progress. If prices suddenly surge forward, it will also accelerate upwards or downwards, smoothing out the fluctuations caused by minor corrections or reactions.
There is a second trending system that is designed to be a lot more insensitive to minor trend changes. The medium-term trend tool is a volatility-driven system which takes into account how much a market moves. The more a market moves, the more forgiving the system becomes to adverse price excursions against the trend. However, if a market isn't that volatile, the trending system becomes more responsive to movement.
Medium-term up-trends are signified by the bar turning green, while medium-term down-trends are represented by the bar turning red. This tool compliments the short-term Trending Tool, to provide further confirmation, or to spot counter-trend trading opportunities.
The Tracker Stop system follows the price up or down depending on whether you are long or short.
There are 2 levels on each bar – either above the bar for short trades, or below, for long trades. If the stops straddle the bar then the chart is in congestion.
The Stop furthest from the bar (light blue) is more conservative and has less risk than the H-Stop nearest the bar (light brown).
We call the point where historical trend lines intersect a 'trend cluster', and a rectangular block will be displayed on the right side of the chart. Trend clusters represent strong areas of resistive price levels.
When these appear the software has picked up intersecting trend lines and channels either above the price action (showing resistance to higher prices), below price action (which shows support below price action), or straddling above and below price action, which often indicates congestion as prices bounces off both the upper and lower trend clusters.
On the right edge of the chart you will see a maximum of 10 clusters displayed with up to 3 different severity levels. When the prices break past the cluster, they tend to continue in the same direction, until further support or resistance is encountered. There are examples of this happening in the chart on the previous page.
This tool is very useful for helping to refine entry points and determine exit points.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options futures or forex); therefore, you should not invest or risk money that you cannot afford to lose.