VSA Method "Master the Markets"

Beginner Questions
1

Hi all!
I am currently reading “Master the Markets”. VSA seems to be a quite intuitive approach to understanding market behaviour. Many things just make a lot of sense. Yet I am finding it difficult to grasp low volume. Perhaps someone here is able to clarify it to me.

It is said that volume may be interpreted as the amount of force/pressure that need be applied in order to move price. A move in price without volume is then just residual momentum and will probably not go far because smart money has already acted. Yet in another text I have read about the topic, it is said that when volume drops and price still rises, this means that the “opposing” force has dropped and allowed price to pass on low effort (in a supply-demand approach this means that any opposing orders have been filled and many more remain, further moving price). So here I have two - in my opinion intuitive - explanations of the same situation leading to opposing predictions.

So maybe someone here is able to further explain to me how to interpret low volume.

Regards,
Codaky

2

No idea about this method! Can you please add any picture of this method? I am interested to see the trading chart with that method.

3

You can choose to interpret it that way, if you want to, but that it isn’t what it means. That’s more or less a description of order flow, not of volume.

Unless you’re trading spot forex from equivalent front-month futures volumes (which some do) this has nothing to do with trading spot forex anyway, because “volume” isn’t available for spot, by definition.

If a broker’s purporting to show you something called “volume”, that’s just their own volume, and the volumes of retail forex counterparties has almost nothing to do with interbank volume at all.

It’s not easy to understand why someone learning retail forex trading would want to be concerned with volume spread analysis at all,