Thread by @PrasunaBarik

99% of traders spend their 99% of time in searching for a holy grail which can turn their investment into multifold. Question: does there any holy grail exist? Probably no. But you can "Trading In the Shadow of the Smart Money" by doing some volume spread analysis. (1/n)

We need to understand the importance of price action and volume. Any candle which has a wider spread say 1 ATR or 3% above means there was lot of demand and supply was less. That's why stock had gone up. To confirm check volume should be more than 25 day average.

When volume is excessively high then there is a high probability of involvement of smart money. Now question comes in the high volume candle who was the winner? Buyers or sellers. Follow up price action in the direction of the high volume candle, will give confirmation.

VSA - Trading In the Shadow of the Smart Money. Long Setup

Entry Criteria
Wider Green Spread
Vol > 25 DSMA.

Exit Criteria
SL = Candle low
R:R = 1:3 #TrailSL.
Acceptance rate - 60%+

Additional Criteria:
RSI > 50 or < 30
ADX rising + ADX > 20
Away from 50 SSMA

VSA - Trading In the Shadow of the Smart Money. Short Setup

Entry Criteria
Wider Red Spread
Vol > 25 DSMA.

Exit Criteria
SL = Candle High
R:R = 1:3 #TrailSL.
Acceptance rate - 60%+

Additional Criteria:
RSI < 50 or >70
ADX rising + ADX > 20
Away from 50 SSMA

Example of long trades. Look for green/blue star symbol below the candle.

Example of short trades. Look for Orange/Red star symbol above candle.

Shared the chart signals basis above VSA setup for top 4 heavy weights. Rest is for home work.

Sharing all triggers for last 6-7 sessions. Results you can check yourself.

t.me/TradersVenue_N…
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Last 8 Years Backtest results. Check the trigger time and validate the outcome. Anyways you are not paying a penny.

1- !! Bade Chart Pe Bada BO - BTST @TradersVenue !!

drive.google.com/open?id=1thuaW…

2- !! Bade Chart Pe Bada BD - STBT @TradersVenue !!

drive.google.com/open?id=1nInnV…

Two must read books of the "Trading in the Shadow of the Smart Money" series available here under the below google drive link. It will help you learn volume spread analysis. Worth spend the weekend for a good read.

drive.google.com/open?id=18A7Eg…

drive.google.com/open?id=16iXy1…