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What Is Volume Spread Analysis?

There was a legend amongst traders, his name was To Williams, and what he did with a simple bar chart and volume indicator has changed the way we look at that information forever. If you are not aware of this tool then you are missing big time in your trading. Tom in his long trading career relied mostly on the teachings of Richard Wyckoff an even bigger legend in ther world of trading.

The magic that Tom did was he converted Wyckoff Analysis (mostly done on higher time frames) into something that can be applied to very short term charts as short as 1 minute charts. And the beauty is the principles that he taught us can be applied to a 1 minute chart and to a monthly periodicity chart as well. And it works equally well on both the charts.

Often Volume Spread Analysis is called at Wyckoff Analysis on steroids…

Volume Spread Analysis Indicator

The VSA indicator uses three parameters to come up with an idea as to what the smart money is trying to do on a particular bar. Yes the “smart money” concept was gicven to us by Tom Williams. I have used it in almost all sectionsof the DTF course, not only that I have used principles of different technical analysis tools like market profile, order flow and tried to identify smart money using that.

In short whenever I say smart money then I have identified them using teachings of 3 core philosophies covered under the Advanced Technical Analysis section and 3 techynical analysis tools namely…

  • Market profile
  • Order Flow
  • Volume Spread Analysis

Once again the tool/software I personally use is covered in detail in the course. Both how to use it and the exact same settings I use are shared in detail. yes DTF membership has it all…

Does Volume Spread Analysis work?

The answer is a resounding yes. It definitely works and works well. In fact in my early days with market profile and order flow I was always feeling that there was a gap in my analysis on market profile chart and that on the order flow chart.

Then one fine day I thought whether this VSA can bridge the gap and it did. Now I dont feel there is a gap in analysis when I move from market profile chart to order flow chart. The transition has become smooth by inserting a VSA chart in between the market profile and order flow chart.

Dean Trading Framework

Dean Trading Framework helps you learn powerful tools that can take your trading to next level in a systematic manner. The content is arranged in a logical sequence to help you make the most of it.

The topics included are…

  1. Advanced Technical Analysis Course English & Hindi
  2. Market Profile Course English & Hindi
  3. Order Flow Course English & Hindi
  4. Volume Spread Analysis Course English & Hindi
  5. Detailed discussion on the software I use and its settings…
  6. Special offers on the software I use…

There is much more to this topic of trading and we cover it in great detail in the DTF Membership. So if you are curious and want to bring consistent profitability in your trading consider subscribing to our quarterly membership…

Free Dean Trading Framework Masterclass

To know more about how the Dean Trading Framework works enrol for a free masterclass on DTF Membership. You will learn all about the membership here, answers to common questions like…

  • What topics are included in the membership?
  • How is the content delivered?
  • How the queries and questions are handled?
  • How long will you have access to the content?
  • What happens when your membership expires?
  • What about the new content that is added during your membership?
  • And many many more…