Analytical VSA Trader
Indicator based in Volume Spread Analysis (VSA) that draws market reversal signals and provides a market strength scanner to be used as a filter.
- In the first initialization in a given pair, it'll take a longer time than usual, as Metatrader needs to download data for the background to be computed.
- In the tester, multitimeframe analysis has to be disabled, and as such the signals from the upper timeframes won't appear and the background will only be computed for the current timeframe.
- Highly accurate market reversal signals, unmatched by any other indicator in the market
- Multi-timeframe analysis
- Market strength (background) scanner
- Usable in any market and timeframe
- Can be used as an independent trading system (more information in the website) or in conjunction with other trading systems
- Fully automatic and complete volume and price analysis
- Alerts in MetaTrader, by email and push-notifications
- Strictly non-repainting indicator
About Volume Spread Analysis
VSA is a proven methodology of analyzing financial markets. First developed by Richard D. Wyckoff, one of the most successful Wall Street traders of all time, in the 1900s, and perfected by Tom Williams, during the time he was a syndicate trader for 15 years based in London in the 1960s-1970s. Other very successful Wall Street traders like William O'Neill use it as well. It's based on supply and demand, which governs any market, and not anything else: no technical indicators, no price patterns, just pure price and volume action.
Any business where there is money to be made there are professionals: Art has professional traders, poker has professional players, betting has professional betters, and likewise financial markets have professional traders. Being successful in the markets is all about following the footsteps of the 'sharks' of this game: market operators, pit traders, market-makers, syndicate traders and top professional traders. The purpose of VSA is to show you what the professionals are doing by analyzing the price movements and volumes, and profit with that knowledge!
These signals signal a top/bottom in the market or a trend pause. When there are many Major Demand/Demand signals in a price area however, the market is said to be going through an accumulation process, which corresponds to the smart money coming into the market, opening long positions. After the accumulation is finished, which can take from only a few bars to more than a hundred in some cases, depending on the volumes and the previous market behaviour, a bull market can begin. The background, explained ahead, analyzes these factors to determine the market bias.
Supply/Demand signals from the 2 upper timeframes will also be computed and shown on the current chart, as circles (1 timeframe above) and squares (2 timeframes above).
Minor Supply/Minor Demand Signals
They're similar to regular Supply/Demand signals, the difference being in the volumes - whereas the stronger signals have very high volumes, these have more modest, yet still significant volumes. Like any other VSA signal, they also signal a market reversal, though they hardly have a lasting effect on the market as the previous ones.
No Demand/No Supply Signals
The signals explained above show when the smart money is coming into/out of the market, while No Demand/No Supply signals show when they are absent, which is also an important information. But if the market is going up and there isn't professional support, which can be recognized from the volumes and bar formation, it means that the rally will soon fizzle until the prices become more attractive for further buying. Also when a no-demand signal is surpassed by the prices, it becomes a bullish signal, as it means there is demand coming into the market again (vice-versa for no-supply).
The background analyzes the market over the longer perspective, to determine what the professionals and institutional traders (smart money) is doing: accumulating, distributing, buying/selling into dips, taking profits, etc.., taking the volumes, price action and the market trend into account to determine the market strength. It's a prime filter to enter in a trade - long positions should only be taken when the background is strong/very strong, and short positions when it's weak/very weak.
This is the module to set up the alerts. It offers you the option to alert you by MetaTrader, email and push notifications. These alert you when a VSA signal appears, and with an option to filter signals using the background. For example: if there is a strong signal (dot below the bar), you can select the option that makes Analytical Trader only alert you of this signal if the background is strong as well, thus guaranteeing the trend and the recent market history is bullish as well.
Trading SystemA trading system to use with the indicator is provided in the website, under the Trading Guide section. After your purchase, you can send me an email requesting the other indicators that are included in the package with this one, such as the Alert System, Advanced Volumes, Stoploss indicators, and others. Due to the versatility of this indicator, it can also be used with other trading systems.
The indicator manual can be downloaded here. The only required input to change is the GMT offset, when running the indicator for the first time. If your broker's time is GMT+2 for example, you should set the first setting to true and set the offset as 2.
- Is Analytical Trader suitable for traders who haven't even heard of Volume Spread Analysis (VSA)?
Of course! The indicator marks all the important bars, computes the background automatically, so you don't have to worry about how it's done.
- What makes this indicator different from many others in the market?
Place yourself in the position of a trader in a physical exchange: if you saw the majority of traders around you yelling sell orders, or if the other traders suddenly went quiet and no orders were being sent, wouldn't you do something about it? That valuable piece of information would be in the volume, and that's precisely what most indicators out there are missing. Experience in trading is also essential to be able to make an indicator usable in real trading conditions, inserted in a consistent trading system.
- How can Analytical Trader help VSA traders?
It accelerates VSA learning: if there is a VSA bar, this indicator will draw it. By marking every important bar, and telling you how the background is like, is almost like having a teacher at your side teaching you on what you should look for. You can also compare your own analysis to Analytical Trader analysis, which I do very often by the way!
- Does it work with tick volumes?
Yes, tick volume works the same way as real volume as VSA is concerned, as it measures the activity in the market. These are very highly correlated between brokers and to real volumes in futures, giving an accurate picture of the overall market.
I'm Leonardo from Analytical Trader, a graduate in Physics, trading live using volumes and price action for 6 years, with success. I apply my experience in trading and knowledge in Mathematics to develop indicators that do a deep analysis of the markets, and show the real important information that would otherwise be inaccessible to regular traders.
You can contact us with any question or problem by e-mail or Skype (contacts available at my MQL5 profile and website).
- Extended Multi-timeframe signals to include Minor Demand/Supply and No-Demand/No-Supply
- Improved supply/demand detection algorithms in the current and MTF signals. Now more market reversal signals are shown
- Improved Daily+ timeframes optimization: the indicator is now more adaptable to these timeframe’s volume and price behavior
- Improved supply/demand detection in trends
- Improved supply/demand detection during the Asian session
- Improved background's algorithm, that made it more responsive to a trend change, and to trend corrections.
- Added more demand/supply signals that happen during market trends
- The indicator can now be used without limitations in the strategy tester, using Multitimeframe = false
- It's now easier to integrate the indicator with custom indicators/expert advisors, by the use of buffers.
- It is now possible to filter signals alerts with background for the current timeframe’s signals.
- In the Alerts module, it is now possible to choose what kind of signals will set off the alerts.
- Fixed a background bug that showed a wrong background in some instances.
- Fixed an alerts bug, in which some alerts weren't being set off.
- Minor no-demand and minor no-supply signals added. These are related with the existing no-demand/no-supply signals, but are usually not as strong.
- No-demand/no-supply signals accuracy improved.
- Minor demand and minor supply signals accuracy improved.
- Analytical Trader is now more adaptable to different market conditions (low volumes and high volumes scenarios)
- Fixed an initialization bug when many charts were open
- Added filtering options for alerts.
Added push notifications.
Bug corrected in the background module; it was being wrongly calculated in some occasions.