Investing in a stock market is never an easy process. It takes a lot of knowledge and skills to continuously grow the shares and experience a return of investment. However, Richard Wyckoff created a different technique that will make anyone successful in this kind of investment platform. He invented the Volume Spread Analysis (VSA) in order to know the market and avoid the possibilities of losing shares.
Basically, VSA is a technical analysis that attempts to study the supply and demand, as well as the variables that affect the relationship of the price bar’s volume quantity, spread of price range and closing price. According to Wyckoff, the imbalances of the market’s supply and demand are an activity created by several professional operators (smart money) in order to make profits and stay in the business. Any trader who knows how to read the price chart can identify these activities on the first glance. However, those who do not know are usually trapped in severe profit loss. Thus, Richard Wyckoff, the inventor of Volume Spread Analysis, studied and researched these characteristics in order to stop the losses and continue winning in the stock market.
Throughout the years, the principles taught by Wyckoff have evolved and helped several traders in keeping their investments intact. Tom Williams is one of the traders who noticed how the market was manipulated by professional operators. Just like Wyckoff, he also spent several years of understanding the market and studying the concepts behind Volume Spread Analysis. In the early 1980’s, Williams began creating a computerized system for the patterns of professional operators. Together with an experienced computer programmer, they were able to come up with a personalised software to make reading VSA easier.
It took years to create the software for Volume Spread Analysis. Tom Williams started drawing charts to recognize the relationship of price movement, volume and price closing. Through the clues he obtained from the charts, he decided to create a computerized system for the Volume Spread Analysis. This software is developed in order to help the traders operate in a detailed and more informed way. The computerized “Wyckoff method” which is completely automated to produce trading signals that does not rely in any human intervention.
Trading in the stock market is quite tricky, especially for first timers who have no idea on how to detect the professional trader’s activity. But through the dedication to assist all the novice VSA traders, we have created iVSAChart analytics software locally, which is available today.
Despite the fact that Tom Williams retired from professional trading, his legacy continues as the iVSAChart software is another great product evolved from Williams’ work, to become the key to some individuals who wished to be successful in the industry. There were several unique methodologies existing nowadays but it was Tom Williams who evolved the Volume Spread Analysis into an easier and useful approach.
The Evolution of Volume Spread Analysis http://spreadbetting2017.com/the-evolution-of-volume-spread-analysis/
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