VSA (Volume Spread Analysis) is a strategy that analyzes the market by observing changes in trading and the differences between the opening and closing prices of a given period. With this technique, you can observe how market participants react to changes in trading volume and prices. This allows you to keep a good eye on trends and notice upcoming investment signals.

This technique is eagerly used by traders who want to better understand the forces that have a real impact on price movements and investment signals. Traders try to spot unseen patterns that herald a change or continuation of the current trend. The VSA strategy allows you to observe hidden dynamics. A properly conducted analysis of volume, spread, and signals is helpful in understanding market participants.

Where does it begin and where does it end?

Investors are intensively looking for a method that helps to identify the moment when a given trend begins or is coming to an end. Tools that allow you to answer the question of where the beginning and the end are, which influences making better investment decisions, can come to the rescue. At Webinar Universe, we discuss this topic in detail:

  • Step 1 – Conduct a price pattern analysis

Each start and end is linked to distinctive price patterns found on the chart. For example, a reversal trend may be heralded by a pattern called Head and Shoulders, while the continuation of the current trend will be indicated by Pennant or Flag.

  • Step 2 – Relevant Technical Indicators

It is worth paying attention to such technical indicators as: MACD, RSI, or Stochastics. These are signals that will help in confirming a particular trend. It should be remembered that divergations between the price and the indicator often indicate that a given trend may be heading for a reversal.

  • Step 3 – Volume Analysis

Volume analysis helps in better identifying whether prices are supported by market participants. It is worth remembering that an increase in volume often indicates the occurrence of a potential reversal.

Impulse and correction

The two most important strategies when investing are Impulses and Corrections. Understanding these concepts can make it much easier to make more accurate decisions. The following are some of the topics that are discussed in the training platforms.

An impulse is nothing more than a rapid price movement that occurs in a certain direction. An upward impulse is associated with a rapid increase in prices, while a downward impulse heralds a decline in prices. Impulses are often influenced by market events and changes in investor behavior. A correction is a reversal of the current trend. The aim is to compensate for the existing imbalances in the market. If there is an increase in impulse, it is associated with a correction that lowers prices, leading to a convergence in a market that is experiencing rapid changes. A downward impulse will cause a correction that will lead to an increase in prices for a short period of time.

Proper use of impulses and corrections requires proper trend analysis, identification of the occurring moment and confirmation of the signal with the help of technical indicators. The Impulse and Correction Strategy is a key tool used by investors. The ability to recognize impulses and corrections allows you to make the best possible investment decisions.


Usage in the forex market

The forex market allows you to access unlimited investment opportunities. To make the right profits, you need to use the right strategy. In creating an effective forex strategy, it is worth following the following points:

  • Step 1 – Technical Analysis

In order to make an appropriate strategy, you should use the available technical analysis tools, such as trend lines, indicators, or price patterns. They play a vital role in determining the exit and entry points of a particular trade.

  • Step 2 – Fundamental Analysis

The second and one of the most important stages is to conduct proper fundamental analysis. It involves observing economic news and political changes that can have a real impact on the financial markets. This is an element that is often forgotten by investors, but which helps in observing a given situation and taking appropriate actions in the market.

  • Step 3 – Risk management

When investing, an important element of the strategy is the appropriate risk management skills. It's a good idea to set your upper threshold for the level of loss and follow the recommendations before you start your work. In the forex market, one of the most important factors is to properly understand trends. The ability to distinguish between downward, upward and sideways trends allows for more accurate decision-making. Trading signals play a key role in the strategy, as they inform about the potential moment of opening and closing a given position. It is worth remembering to choose the right currency pair so that the strategy is as optimal as possible and brings the best returns.

Using the VSA strategy is fascinating and can bring fruitful investments. The use of advanced methods of market analysis, which we mention in the Webinar Universe training, allows you to better understand the dynamics of changing prices and trading volume. The use of VSA strategies not only helps you to succeed when investing, but also allows you to move effectively in the financial markets.