Let me quickly say your prospective on the market is as much as knowledge you have learned and perceive to be true or false…
This approach at Volume Bars i take needs discipline and patience. But Volume bars are used as a non-Lagging indicator to your price action. They are used to help you confirm an entry or exit so as to you not being faked out.
The Key to this is knowing when Volume bars are to be used, News and the time of day play a big factor.
Last but not least a famous forex trader by the name of Casper Marney (used to trade on the FX markets at 2 major institutions in the past) wrote in an article about Tick Bars and Volume stating and i quote :
“From our analysis of these four currency pairs, we could
postulate that over 90% of movement in tick volume in any
currency pair is reflected in the movement of actual traded
volume” https://volumeprofile.org/paper.pdf published in 2011
I am not going to explain my Strategy again you can see it in other Posts i have, ill just say i adjust it a bit different then traditional VSA…
With that said please prove VSA is wrong and doesn’t work in the FX markets. By showing it with Charts and price action. (of course VSA is not 100% accurate no strategy is but it helps determine a lot of more then just candlestick patterns)
Check out the video below, how i determined Gold would rise off zones with Volume indicating that there was no break out to the down side after we broke the low… As you can see my video i made it showed that Volume was very high for that time of Day after we broke and then a bullish reaction. Btw that video was made prior to the move that happened this week.
