VSA indicators for MT4. VSA indicator reads the market as an open book
VOLUME SPREAD ANALYSIS (VSA) - It is one of the methods of analyzing trading volumes in combination with forms and sizes of candles on the trading schedule.
This analysis method makes it possible to identify the activity of the so-called "professional" or "smart" money, that is, to detect the current market mood and make a market entrance to the direction of major participants. After all, it is the imbalance of supply and demand that creates price movement on the market.
To facilitate the task of holding such an analysis, indicators of VSA volumes were created. And the description of the best of these algorithms, we will look at today.
What does the VSA volume method imply?
Surely, you all got into such a situation - keep risk management, trading exclusively according to the rules of the selected strategy and even emotions are not addressed, but the losses at the same time tolerate quite often. What is happening? Maybe you miss some important point?
Most likely it is! And omission, in such a factor - as volumes.
To take into account the volumes in the trading process is very important, since their analysis allows you to identify the mood of large market participants, and when discovering transactions, followed by them. To date, there is already a whole separate type of technical analysis, which is engaged in the study of market volumes in combination with the analysis of candle graphs. And called this technique - VSA..
A few years ago, traders had to manually engage in this type of analysis, but at this stage some of the functions of themselves can take VSA volume indicators. Let's immediately go in the right direction, and for this we remember the smallest theory ...
Let's start with the fact that most of particular beginner traders under VSA understand simply a histogram analysis of volumes, and this is not entirely correct.
In this technique, candle spread - this is a candle range between HIGH and LOW. You probably paid attention that when visiting specialized forums or when studying analysts, such phrases are often found as, for example, " short candle - false signal"," Do not open a deal, as the price is excessively smeared "and the like. These are all non-subjective statements, and the conclusions made on the basis of the VSA method.
Analysis on VSA. About bear / bull
So, the VSA volume technique analyzes the following:
spread, which is a full price range of candles from its minima to maxima or width of volatility, that is, indicates how the bidding in the current period is actively going; prices of opening and closing bars, that is, the final solutions of market participants about prices; trading volumes in bundles with closing prices and spread dynamics, that is, it analyzes in which parts of the bar are their closures.In the VSA technique itself, an analysis of such models has been laid:
- characteristics of bars (closing prices, spread, volumes);
- price formations ();
- market phases (figures in parallel with bar combinations). An example of typical VSA technique combinations, you can see in the figure below.
Theoretically, the demand and demand should coincide, otherwise the applications will not be performed. For example, the more demand will be, the faster the cheaper applications are used, that is, the market growth should be observed. When an equilibrium point is reached, large proposals will put pressure on the market on the downlink, that is, there will be an increase in sales.
The more traders will sell, the harder the mood is becoming a bear in the market.
All this allows you to define VSA volume indicators.
What do VSA volume indicators show the trader?
In other words, VSA volume indicators for MT4 and 5 allow you to catch the moments when large volumes that give strong price impulses intervene in the market.
It is at such moments that even minor market participants can get good profits. There is a whole collection of such algorithms that take into account almost all known combinations of candles and visually height and color of the histogram indicating the necessary moments of entry into the market.
But the entire collection of VSA indicators for MT4 and for MT5, we are not interested, we will look at the description of the two best and most sought-after algorithms today.
Description of the volume indicator for MT4 - VSA WSD Histogram
As mentioned today for MT4 and for MT5, there is a whole collection of algorithms for Volume Spread Analysis, among which there are many simple versions that do not stand to the recommendation. We suggest to consider the description of one very interesting instance - the VSA WSD Histogram indicator.
At first glance, the motion of this algorithm of many shocks, because the main goal of the VOLUME Spread Analysis, this is the guidance of trading on clean schedules. However, you should not do hasty conclusions.
The main point is that this algorithm for MT4 and for MT5 in its calculations does not apply any additional formulas, and all of its painting it applies solely to ensure that the traders perceive the signals better.
So, in the histogram of the indicator, each bar is a spread, which is indicated in the information scoreboard on the right of white numbers. Roma over bars is also not for beauty. So the diamond of gray is pointers of neutral market mood, red rhoms are stronger than bears, green rhombus - bulls prevail.
In addition, the indicator is a description that we are currently considering, measures the length of the shadows of the candle. On the histogram, this information is provided with red and green columns. Directly in the information board, you can only see the value for the current bar - the WICK variable.
Such valuable information neglect is not worthSince in most candle formations are taken into account precisely the proportions between the candles and their shadows, and they are very uncomfortable to measure them, and besides for a long time.
Briefly about the settings of the volume indicator VSA WSD Histogram
Regarding the settings of this algorithm for MT4 and 5, download which is possible here, then they are quite simple.
SHOWTEXT variable or permits or prohibits displaying text information on the schedule screen, the "MA_LENGTH" value is responsible for the frequency of the moving average (default 100), which measures the average value of the spread, and the remaining parameters, is the color setting.Volume Indicator Description - VSA Better Volume
As we have already noted, the analysis of the spread is the most important component of the VSA method, but it loses its meaning without understanding the dynamics of volumes. This is understandable even intuitively, because the candle range on the charts can be seen immediately, but the most significant information relating to the motives of the market crowd and large participants can be obtained only from the volumes.
It is for these purposes that developers and created indicators of VSA volumes, one of these tools is the algorithm, the description of which we will now consider - Better Volume.
This indicator that you download is above, in our collection, has data standard depending on the specific colors that appear patterns.
On the chart, the indicator lights as follows:
During the appearance on large volumes of bearish candles, the bar is assigned white color. Such situations, as a rule, arise on the waste of bearish trends, that is, at the time of connecting to the sales of professionals under the influence of emotions or, when they are massively triggered by buyers. In addition, white bars may be evidence of the nucleation of new decay trends.
Here, the red bars are antipodes of white, as their formation occurs on bull candles with really large volumes.
As statistics show, such patterns are formed on currencies with the same frequency and at the time of the origin of the trend and when the trend is completed.
When the indicator draws a green bar, it means that a large volume on FLET was observed on the market, that is, on the appropriate candle was very low spread.
This formation on the market is one of the most difficult, as false signals often appear on stories, and the second moment of this kind of phenomena may not be associated with trade in large market participants, and be a banal "news chaos".
Yellow bars are characteristic of a small amount of candles with low spreads. They are most often observed during the "Night Flat", but if this formation is formed during the period when the main financial platforms work, this indicates the completion of the trend. That is, a yellow bar indicates that even the crowd is no longer interested in this movement.
Well, and another bar, which gives the Better Volume indicator for MT4, the description of which we consider is a formation of purple color.
But from practice it is seen - such a phenomenon is so rarely found (almost never) that they can even be neglected.
As you can see, VSA volume indicators allow traders to clearly define the reversal points of the price, which in general increases the efficiency of the trading process. At the same time, experts recommend in their strategies, not to use such algorithms on their own, but to attract parallel and other indicators.
About VSA method, what is important?
The VOLUME Spread Analysis method that detects the manipulations and transactions of "smart money" is rapidly gaining popularity, but if 5 more - 6 years ago traders studied the market independently, today some functions can take on the VSA indicator.
To immediately direct the thought in the right direction, remember a little theory. Unfortunately, many novice traders understand the VSA simply analysis of the histogram of volumes, which is not entirely true. Of course, she is the most important link of this technique, but no less importance here plays candles.
Under the spread in this case it is understood not the difference between ASK and Bid prices, but the range of High candles to Low. Reading the analytics on specialized forums Very often you can find phrases on the "Candle short - a false signal", or "the price too much smeared, wisely not to open the deal." All this is not subjective opinions, but conclusions based on VSA.
VSA indicator measuring candle spread
Currently, there are several similar algorithms (they can even create a newcomer in programming - it is enough to subtract from the maximum of a candle minimum), so the simplest versions recommended today, instead, consider one interesting instance called VSA WSD Histogram.
The pedestrian markup is slightly shocking, since the main goal of the supporters of Volume Spread Analysis is trade in pure graphics, but do not hurry with the conclusions, the fact is that this VSA indicator does not use any additional formulas, and all this "painting" is used only for the best Pattern perceptions.
Each bar in the histogram is a spread, it is also indicated on the right in the information board (white numbers). Gray rhombus above the bars indicate the neutrality of the situation, but green and red, on the contrary, show, the so-called divergence:
- if a green rhombus appeared is a bullish signal;
- if a red rhombus appeared - the bears is stronger.
In addition, the VSA WSD Histogram indicator measures the length of the candle shadows, on the histogram these values \u200b\u200bare represented by green and red bars, and in the information board, the expert shows only values \u200b\u200bfor the current bar (opposite the WICK variable).
It is impossible to disable this feature, but if it overloads the schedule, you can always reduce the thickness of the lines in the settings. But we do not recommend ignore such valuable information, as in many candle patterns, the proportions between the body of the candle and its shadows are taken into account, and manually measure them very considerably.
As for the rest of the settings, there is nothing to tell here, using the ShowText variable, you can allow / prohibit the main text information to display, and the MA_LENGTH parameter is responsible for the period of the moving average measuring the average value of the spread (by default its period is 100). The remaining parameters are designed to configure the colors.
VSA indicator for analyzing volumes
As already noted, the analysis of the spread is an important component of the method considered today, but without studying the dynamics of volumes, it loses any meaning. This is even intuitive, because the range of candles on the chart is visible to the naked eye, and the most valuable information on the motives of large speculators and the market crowd can only be obtained from the volumes.
Especially for this purpose, the Better Volume indicator was created, assigning standard VOLUMES bars, specific colors depending on the pattern that appears. Currently, this VSA indicator works correctly in all versions of the MetaTrader terminal (created versions MQ4 and MQ5), and the most recent modification is presented on the chart as follows:
The white color is assigned to the bar when the advent of bearish candles appears on large volumes. Such a situation can often be observed on a bearing of a bear trend, i.e. When non-professionals are connected to the sales under the influence of emotions, or at the time of mass activation of stop-orders from buyers. Also, a white bar may testify to the emergence of a new down-trend.
A red bar in its meaning is the antipode of the previous one, as it is formed on bull candles with a large volume. According to our observations, the listed patterns are formed on currency pairs with the same frequency both at the beginning and at the time of the end of the trend.
If the VSA indicator drew a green bar, it means that a large amount in the Fleet passed on the market, in other words, the corresponding candle has a low spread. This is one of the most complex patterns in all the senses of this word, since, firstly, there are no false signals on history, and secondly, such a phenomenon may not be connected with the activities of large market operators, but with the usual "news chaos. "
Bars of yellow color are characteristic of candles with a small volume and low spread, as a rule, they appear during the "night flute" (a period of low trading activity), but if a similar pattern appeared during the operation of the main platforms, it may indicate the completion of the trend (even The crowd lost interest in the movement).
And the last pattern that identifies the VSA indicator is represented by a purple bar on the volume histogram. The author claims that this signal appears on a series of candles with a large volume, but practice has shown - this phenomenon occurs so rarely that they can be neglected.
Before writing the article there were plans to consider additionally the VSA signal indicator (with arrows on patterns), but in the process of testing several algorithms it became obvious that they were useless, and instead of helping a newcomer, it is finally confused.
This is due to the fact that the provisions of "analysis of volumes and spreads" are not guidance to action and are not supported by strict rules, much here depends on the general situation observed over the past days (and even weeks). In other words, it is primarily necessary to take into account the context, and only after that it sees, as a separate pattern fits into the overall picture.
As an example of such a situation, you can bring a monthly excitement in the foreign exchange market before and after publishing the statistics of non-Farm Employment Change. Of course, patterns formed at such news are often false, moreover, even a few days later, the market can give "Echo."
An experienced trader in this case is a look at the situation, but the VSA indicator is not, as it is a primitive algorithm, it is not even neuralized, trained in taking into account similar bursts in the past. Therefore, we recommend soberly assessed the possibilities of such tools.
And one more important nuance, which should be mentioned at the very beginning, is associated with the type of volume. The fact is that the MetaTrader4 terminal uses teak data, i.e. The VOLUMES histogram bar reflects not the real amount of volume on all transactions, but simply the number of price changes.
Unfortunately, this circumstance somewhat distorts the result of the analysis, as the boundaries are erased between small transactions and millions of dollars. This problem can be solved very simply - the import of information on real volumes from the futures market. A source:
Social buttons for JoomlaPopular:
- 11/14/2013 06:32 | Release Indicator - Determine the end of the trend 59040
- 09/23/2014 11:08 | Designer Forex Counselor will create any trading robot 51105
- 12/13/2013 01:48 | Trade within the day - Forex hour strategy 43086
In principle, the capabilities of standard volume indicators for work should be enough, especially since teak volumes are quite reliably reflecting what is happening on the market. But there are a lot of custom developments with which it may be more convenient to work. They will consider them today.
These algorithms allow to obtain real data from the Chicago Exchange in MT4 (in the terminal only tick volume). Until September 2013 was provided free of charge and activations did not require.
At the same time download the VSA indicator from the site http://my.clusterdelta.com/ can now be. They are installed in the trading terminal and the metatreer will see them, but when trying to start, you will see a message that the user is not authorized. This is the consequence of the fact that it is not paid access to indicators.
Immediately note - you will receive an ordinary teak volume. For visibility to the chart, add the SONICR VSA indicator and the standard tick indicator VOLUMES. As can be seen, they are absolutely the same, the difference in the colors of the histogram columns.
Settings can be left unchanged. Regarding the columns of the histogram columns:
- the gray color indicates the phase of the fly, as such no price movement, it fluctuates in a small range and sell at this moment;
- blue - on these columns volume grows, but the candles do not differ in a large spread. Between bulls and bears there are parity, large players have been observed outside the market, and what you see is the result of exemplary equality of forces;
- red - indicates that a large player who makes a downgrade entered the market. The volume increases sharply, and the candle on the graph - a bearish;
- green - a major player came to the market, but the rate is already on the growth of the currency pair. Candle at the price chart of bull.
Compared to the standard VSA indicator, it is good because it allows you to estimate the situation in the market of columns of the histogram columns. As for the settings, they can be left unchanged.
Unlike the previous one, this VSA volume indicator is sold for $ 249, the amount is rather big, we'll figure it out that the author offers for this money.
The author of the indicator, Leonardo Barata, will provide an indicator for this amount, which will search for points of reversal and mark them on the chart. As a filter, a market forces scanner is used. You can find the indicator through the market in the Terminal itself, you can also download the demo version of the algorithm.
Work with the indicator will not work, but you can check it in the tester. As it works in real time, you can judge the video from the developer.
According to the results of the inspection, it was found:
- it does not redraw as many other forex indicators;
- the graph is really noted points of reversal. This happens with the intake in a couple of candles, so that by this time a part of the movement the price will pass, enter the market according to the testimony of this tool is not worth it.
Do not take to judge whether it is worth $ 249, but performs its function - notes the points of potential reversal of the graphics. Buyers' reviews are positive, so the tool is worth.
The network has a similar indicator called Dots, it simply shows the trend based on the angle of inclination of the price relative to the horizontal line.
The BAR DOTS indicator works in a similar way here only takes data not from the price itself, but uses teak volumes. The green circle denotes the upward trend, the red - downward trend, and the gray dots - the flask.
It can be used exclusively as auxiliary tool. It is in free access, so you can download it for free.
The tool with the name WICK Spread Divergence differs from those described in that in addition to working with volumes, the length of the candle shadows is measured. The signal to the market is set as a color rhombus over the histogram column.
The indicator displays:
- in the indicator window itself, it is indicated: the value of the candle range, the size of the shadows, as well as the divergence;
- the top and bottom shadow of each candle, the green part of the column shows the upper shadow, red - lower. Histogram column itself is equal to the value of the candle spread;
- rhombus over each column indicates the state of the market. Gray recommends refraining from trade, green rhombus - It is worth seeing to shop, red - priority should be given sales.
In general, the VSA WSD Histogram indicator is useful, but a lot of false signals gives a lot, so it is better to use it as an additional filter in a trading strategy.
The histogram itself is an ordinary teak volume, as two drops of water coincides with the standard tick volume indicator voumes. Multi Volume Histogram is valuable to others, because it displays more useful information in addition:
- the column column can be focused on the state of the market. Blue suggests that priority can not be given a short nor long positions, the red indicates the exit to the market of a large seller, green - a major player for an increase entered into business;
- this VSA indicator for MT4 smoothes data on tick volumes of the moving average and the average volume displays information in text form. At the moment, the volume is lower than the average;
- in addition, a recommendation on the entrance to the market is issued. At the moment there are no signals about what the indicator reports.
An interesting indicator, you can use it as analogue of the standard VOLUMES tool, which is in the default terminal. The histogram will be exactly the same, but by staining the columns of the histogram in different colors, depending on the situation in the market and additional information in text form, this algorithm is more useful.
Conclusion
A more detailed description of the VSA indicators can be found either on the websites of their developers, or on profile forums. We note that the overwhelming majority of them are just the variations of the standard tick volume indicator. But at the expense of a number of useful additions, it is quite possible to use instead of the standard VOLUMES indicator.
It is advisable to use them as an additional filter in your trading strategy. Included only on signals of any of the considered algorithms is strictly prohibited.
From the article you will find out:
Greetings all readers of our site! We continue the topic of volumes, and today we will consider very interesting - this is Sonicr VSA. Who is a little familiar with the financial market, he probably heard about the Sonicr system. Yes, at one time, this strategy has made noise among many traders. She gained enormous popularity, moreover, she really gave positive results.
Best broker
Currently, this system is not used as often, however, many traders who use in their own often use an indicator from this trading system. In general, I can say that this is the usual indicator of volumes, and talk about it for a long time and there is no sense.
In general, the SonicR VSA indicator presented is very similar to, he still stains a histogram in different colors when a large volume is in the market, which can be key in changing the current market trend. Given this fact, there is nothing new here, accordingly, I do not see any meaning for a long time and tediously repeated, as it is said about this was already a lot.
I consider it expedient as part of this article to consider the most common formations of VSA, which are often practiced in the market conditions. Of course, the clear identification of their identification requires certain skills, but, as they say, patience and work - everything is perfect. Extend your horizons.
Even, you know, as part of this article, I will try to explain such two concepts as accumulation and distribution. Roughly speaking, we will see what lies behind these processes, which is characteristic of one and another phase. In addition, I will try to show you one very interesting example, so that you understood how the so-called crowd spreads.
General knowledge about VSA without SONICR
You must clearly understand that we are with you, ordinary ordinary traders, are located on the lowest hierarchical stage of the stock exchange sphere. We have a low level of information, we do not have such powerful technical support, and indeed the level of skills in many leaves much to be desired. And who is such marketers?
Here, demand and proposal are in dynamic equilibrium, as there is no freaking lot to move the price in one direction or another, it remains here only to wait.
Here we have a distribution phase, since the market moves clearly to the uplink. This tells us that at the moment the demand is stronger than the offer and there is a strong freaking lot from the buyers. When will this movement stop? It will stop when the redistribution of lots occurs in the opposite direction, then the trend will change.
Total, the flask is the accumulation phase, and the trend is the distribution phase. It is worth clearly understood that the marketer accumulates the position very carefully. That is, he cannot enter the market on the whole kitlet, since everyone will see the movement and will enter in his direction, and extra passengers are a decline in profits for the Marketimeker. Naturally, he will not go to such an adventure. Where did he accumulate his position?
Pay attention to the flask that I noted earlier, it was in this range that the Marketomaker accumulate his position, without a strong price offset. And now, let's justify it from the point of view of volumes and see the frequent situation.
Now carefully look at the example, and try to understand what I will explain to you. In the orange rectangle we have a flask, where demand and proposal are equilibrium. Then, the price goes out of consolidation down and what happens at this point? At the moment, the foots' footsteps are triggered and the purchase will be activated. In addition, sellers are activated, since the movement went down.
I want to draw your attention at that time I noted by the Red Arrogo. Look, at that moment are large volumes that indicate us that the activity begins. The SONICR VSA indicator clearly showed us it.
And so, we see a downward movement, but I noted the blue that Sonicr VSA shows us a systematic decline in volumes. From the point of view of logic, this indicates to us that showed weakness. To determine, you can use the indicator by reference.