VSA | Volume Spread Analysis [Kintsugi Trading]

26 jul 2022

What is the VSA | Volume Spread Analysis [Kintsugi Trading] Indicator?

I created this premium volume indicator to find and place high probability forex trades as a part of the Kintsugi Trading 3LS | 3 Line Strike Strategy.

Originally developed by Tom Williams who is considered the father of Volume Spread Analysis, this tool is an amazing indicator and would make a great addition to any trading strategy.

You are free to customize all the inputs:
• 30 | Moving Average-1 Multiplier (Average Volume)
• 0.5 | Moving Average-1 Multiplier (Below Average Volume)
• 1.5 | Moving Average-2 Multiplier (High Volume)
• 3.0 | Moving Average-3 Multiplier (Ultra High Volume)

**Note The default inputs are based on my research and analysis.


https://www.tradingview.com/x/nG4gIG51/


Components of The Volume Spread Analysis:
1. The Volume (i.e. activity)
2. The Spread (i.e. range of the price bar)
3. The Close (the closing price of the current bar)

Volume: Volume is the activity of the frequency of transaction of the price change during a specified period of time.
Spread: Spread is the difference between opening and closing price.
Close: Close price tells us where the balance point is at the end of the period.


At Kintsugi Trading we strongly believe that we cannot beat or outperform institutional traders, instead, we have to trade along with them. With that in mind, we follow the footprints of smart players who leave behind trails.
I have designed this indicator so that it is capable of giving signals for all the phenomena explained in Tom William's book.

This Indicator is successful at visualizing the following phenomenon:

• Trapped Buyers
• Trapped Sellers
• Stopping Volume (long)
• Buying Climax
• Selling Climax

Good luck with your trading!