VSA Text Indicator
The VSA Text indicator helps to find out how the spread of a forex pair depends on volume and patterns.
Description
The VSA Text Indicator for MT5 is a spread indicator that calculates volume. VSA stands for Volume Spread Analysis.
The name VSA Text comes from the fact that it shows vertical text where the market volume is high or low. It consists of five texts; no supply bar, no demand bar, force to move up, force to move down, upthrust reversal and stop volume.
Neither offer strip mentions when there is a slight try from buyers. The lack of demand bar shows when sellers are reluctant to enter the market.
The effort to move the bar up draws a candle moving up. Conversely, the effort to push the bar down results in a down candle.
The upthrust bar defines a potential uptrend. On the other hand, an inverse upthrust describes a potential reversal.
Stopping volume simply suggests when there is little to no volume. The indicator works on the relationship between price and volume and gives you an idea of where the market is headed next.
How to trade with the VSA Text indicator?
By drawing text on the chart, the VSA Text indicator suggests potential market movement. The entire emphasis of the indicator falls on the supply and demand zones.
When a no-supply band appears, the indicator signals a potential downtrend. On the other hand, when a no-demand bar appears, it signals a potential uptrend.
Uptrend and reverse push bars illustrate a potential uptrend or downtrend. This way you can see the whole picture and position yourself accordingly.
Efforts to push the bar up and down reinforce the upthrust and reverse up bars. When the market makes unexpected moves, these bars reflect the general mood of the market.
You can use the VSA Text indicator with other technical analysis such as support and resistance to confirm the signal. Also, you can use the indicator on any timeframe as it is based on volume analysis.
Configuring the VSA Text buy indicator
- Locate the no-supply band on the chart.
- Wait for the trend to fully develop.
- Enter a trade when there is no offer
- Place a stop loss near the low of the buy point.
- Exit the trade when there is a no-demand band or an attempt to move down.
Setting up the sale of the VSA text indicator
- Find the no-demand band on the chart.
- Wait for the trend to fully develop.
- Enter a trade on a No Demand bar
- Place a stop loss near the sell high.
- Close the trade when a no-supply band appears or when there is an attempt to push the band up.
Conclusion
The VSA Text indicator is great for determining the total volume of the market. He draws text bars, he tells you about the general mood of the market. However, the indicator is prone to false signals on lower time frames, so it is better to use it with other volume indicators.