VSA (Volume Spread Analysis) vs LRA (Locked-in Range Analysis)

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Old Feb 3, 2018, 12:09pm   #1
 
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VSA (Volume Spread Analysis) vs LRA (Locked-in Range Analysis)

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Lets compare two cause-effect methods of analysis which help us to make our FOREX trading strategy more profitable:

Volume Spread Analysis (abbr. VSA) seeks to establish the cause of price movements, and from the cause, predict the future direction of prices. The ‘cause’ is quite simply the imbalance between supply and demand in the market, which is created by the activity of separate professional operators called "Smart Money".

Locked-in Range Analysis (abbr. LRA) seeks to determine the direction of the prevailing volume of open positions which will allow to join the further profitable price changes for all united market makers called "centralized automated market-making system".
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Old Feb 12, 2018, 10:15am   #2
 
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Old May 8, 2018, 7:47am   #3
 
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VSA (Volume Spread Analysis) Basis is the concepts of Richard Wyckoff, a renowned trader during the 1920’s and 1930’s. VSA is an old method that correctly described the market only before the conversion of exchanges to an electronic order matching system via the Internet (CME Globex was introduced in 1992 as the first global electronic trading platform for futures contracts) and before the appearance of the market-making system which provides all market liquidity.

So for today only LRA (Locked-in Range Analysis) is the cause-and-effect analysis method arising from the basis of the market.

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Old May 14, 2018, 4:40am   #4
 
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I've tried VSA, makes sense cause it's show all trader orders and position. But a key for this methode was it depend on your forex broker. If they don't have a lot of customer you can't get a valid data.
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Old May 30, 2018, 2:21pm   #5
 
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Quote:
Originally Posted by JamesGBrown View Post
I've tried VSA, makes sense cause it's show all trader orders and position. But a key for this methode was it depend on your forex broker. If they don't have a lot of customer you can't get a valid data.
You need to use CME Group Volume Data of relevant futures to Forex Pairs.

For Example: Volume of 6E (EuroFX Futures) used for EUR/USD

Forex Volume is nothing
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