Axiata Back Testing - Sequence of Volume Spread Analysis

VSA Technique - analyze the price actions in comparison with the volume and spread change.

Climatic Candle, C1
- Range spread > 50%
- Volume > SMA (14)
- Better not in the 1st bar of the new trend.

Exhaustion Candle, C2
- Appeared after C1, same trend
- Range Spread < 50%
- Volume > SMA (14)

Lack of Support, C3
- Appeared after C2, same trend
- No requirement for the range spread
- Volume < SMA (14)
- Seller exhausted since they can't sell more. Standby for the reversal.

Reversal Candle, C4
- Appeared after C3, opposite trend
- No requirement for the range spread
- Volume > SMA (14), not a must but good to have
- Body of C4 candle shall cover the body of C3 candle

Always check multiple TF before analyzing the VSA to determine support and resistance levels. VSA can be used on any TF and compare the volume bar with the preceding 2-4 volume bars to determine the smart money movement. May add another indicators such as MACD (to confirm on the BO) and Moving Average (to ride the trends)

Keep practicing VSA, insyaAllah the trading success % will increase over time.

Ride the trend and enjoy!!